As reported by Fox Business, major real estate giants are now being forced to rethink “office exclusive” listings — homes marketed only to a select few agents or brokerages and never listed on the public MLS. It’s an approach that limits transparency and locks out everyday buyers who just want a fair shot.  Realtor.com put it bluntly: to “catch the big fish” in real estate, buyers need a real advantage — one they often don’t have if listings are kept hidden.

📝 Contracts Before You Tour?

In addition to limited visibility, buyers are facing new pressure from agents to sign Buyer Representation Agreements before touring a home — something many people are uncomfortable doing before building trust. As explained in this article from Realtor.com, these agreements, often 3 to 6 months long, bind you to an agent before you’ve had a chance to test the relationship — or even decide if you’re serious about buying.

📉 A Challenging Economy

Meanwhile, the broader economy isn’t exactly offering comfort. Elevated mortgage rates, trade tension, rising homeownership costs, and even a government credit rating downgrade are making headlines. And yet, as HousingWire points out, homebuyer demand remains resilient — and that surprises many who assumed home sales would tank.

🌟 Here’s the Good News: Innovation Thrives in Times Like This

While some companies are doubling down on outdated, restrictive practices, others are stepping forward with fresh, consumer-first innovation. That’s where HomeTraq comes in.  We see the confusion in today’s market — and we’re not running from it. We’re building solutions that make sense for you.

🔎 See More Homes
We show you as many homes as possible from MLSs across the country, including listings that might otherwise be tucked away from public view. No exclusivity games. Just access.

🚪 Tour Without a Commitment 
With HomeTraq, there’s no need to sign a long-term commitment to an agent just to tour. You schedule home showings on your time, with no pressure and no fine print.

🧭 Stay in Control
You choose when to work with an agent — and who that is. No one forces your hand. You set the pace, and we empower the process.

📱 Use Simple, Smart Technology
Our mobile-friendly platform makes home touring easy, fast, and flexible. It’s real estate without the runaround.

🙌 Why This Matters Right Now

Disruption can feel overwhelming — but it can also open the door for smarter solutions and better experiences. As traditional models start to crack, platforms like HomeTraq offer a vision for what’s next: real estate that is transparent, accessible, and centered on the consumer.

So if you’re feeling discouraged by what you’re hearing — take heart. The market may be complex, but your homebuying journey doesn’t have to be. Start touring today, with no contracts, no pressure, and more listings at your fingertips.

👉 Visit HomeTraq.com to get started.

The National Association of Realtors (NAR) has introduced what it calls “New Flexibility for Sellers” under its Clear Cooperation Policy—a rule that previously required listings to be shared publicly within one business day of being marketed. Now, under the new guidelines, listings can be temporarily withheld from public view, creating a kind of "soft launch."

While this may seem like a smart play for sellers, here’s what buyers need to know:

🚫 1. Limited Access to Inventory

Delayed listings aren’t visible on public portals like Zillow or Trulia right away, meaning you could be missing out on homes that are technically "for sale" but not yet advertised to the broader market. Your dream home might be listed—but invisible.

🔍 2. A More Fragmented Market

With different agents and brokerages choosing when and where to market listings, the system becomes less centralized and more confusing. Buyers may have to work harder, check more places, and rely heavily on insider information to get the full picture.

🔦 3. Concerns About Transparency and Fairness

Critics of delayed marketing argue that it reduces transparency in the market and may even be a step backward. According to HousingWire, this practice opens the door for brokers to retain both sides of a transaction—keeping the buyer and the seller within their own office—and limit exposure to competing agents.

This echoes the pre-MLS era, when listings were kept in a brokerage’s private book and buyers had to physically go to each office to see options. The digital age was supposed to democratize access to information—not take it away.

So, Who Really Benefits From Delayed Marketing?

While brokerages may promote this as a benefit to sellers, the reality is that the brokerage often benefits more—by keeping commission dollars “in-house.” And if a listing never reaches the open market, how can a seller truly know they got the best price or the strongest offer?

More importantly, it appears that buyers lose out—especially those who aren’t connected to an insider network of agents who know what’s "coming soon" but not yet shared.

🔁 Is This Just the Industry Trying to Turn Back the Clock?

To many industry veterans, the reappearance of these “off-market” strategies feels like a throwback to a less consumer-friendly time. Back in the 1980s and early ‘90s, listing books and office-held keys gave brokers the power—and kept buyers dependent.

Now, in a time when transparency should be increasing, policies like delayed marketing feel like a step in the wrong direction.

⚖️ A Legal Storm May Be Brewing...

These concerns aren’t just philosophical—they could soon land NAR back in legal trouble. According to a recent Inman News article, the latest changes to the IDX (Internet Data Exchange) rules paired with the delayed marketing strategy may violate the spirit—if not the letter—of fair competition law.

“The Clear Cooperation Policy must be dismantled entirely, or allow listing brokers to opt out without penalties or limitations,” warns the article.

“This new version appears designed to block competition, and if it moves forward as written, it could spark another lawsuit.”

That lawsuit wouldn’t be surprising, especially in the wake of the recent Sitzer/Burnett verdict and ongoing scrutiny of how commissions and access are handled in the real estate industry.

🧭 What Can Buyers Do?

Delayed marketing may be good for brokers, but it’s not great for consumers. Homebuyers deserve access to the full picture—not just what one brokerage chooses to show, so consider the following when home shopping:

1. Work with a buyer-focused advocate. Choose agents who prioritize full-market access and aren’t tied to dual-agency deals.

2. Ask about off-market and delayed listings. Don't sign a commitment with an agent before you are comfortable that they have a good pulse of what’s going on in the local market.

3. Stay informed. Read up on how industry policies impact your buying journey—and don’t be afraid to ask questions.

🚀 How can HomeTraq Help?

The promise of real estate technology was always openness, equality, and efficiency.  HomeTraq continues this commitment to not let these values slip away by insuring you have the following during your homeownership journey: 

1. A free home search for all homes available online at HomeTraq.com.  

2. When you are ready to tour a home, you can easily schedule the time & day to meet an agent at the home to tour it with no commitment, pressure or expectations.  

3. If you are impressed by the agent you meet at the home showing, feel free to stay connected with them.  

4. If you don't get good vibes from the agent you meet, that's fine too - just schedule your next home showing with HomeTraq and you will meet a different agent.  

5. You can meet as many agents as you desire with HomeTraq when touring homes, because the next step is always your decision.  

With HomeTraq there is no hidden agenda, insider's club or secret society you have to be a member of to simply shop for a new home...

According to expert housing market predictions, home prices will remain steady this year.  While some major metros along the coasts remain financially out of reach for many first-time buyers, the Midwest offers a refreshing alternative.

Homebuyers are discovering they can afford more home for their money without sacrificing proximity to good schools, parks, restaurants, and job opportunities. This affordability is one of the biggest reasons why more Americans are relocating from the Sunbelt to the Snowbelt, a category that includes much of the Midwest.

The Midwest Is the New Real Estate Hotspot

Coastal living has long dominated real estate dreams, but those dreams are quickly shifting. The demand for homes in the Midwest is surging —and for good reason. Cities like Kansas City and St. Louis offer cultural amenities, strong local economies, and housing options that fit a variety of budgets.

Buyers are increasingly attracted to the region’s balance of affordability, job growth, and community-oriented living. Real estate in the Heartland is not only more accessible—it’s also holding its value remarkably well in the current market.

Gen Z is Buying—and They're Buying in the Midwest

It’s not just seasoned buyers making their way to the Midwest. Gen Z is entering the housing market earlier than expected and is particularly drawn to Midwestern cities. As noted in HomeTraq’s piece on Gen Z homeownership, this younger generation is looking for homes that align with their financial realities and lifestyle preferences.

With remote work offering flexibility and Midwest markets offering opportunity, it’s a perfect match. Cities like Springfield, MO, and Wichita, KS, are now seen as smart places to lay down roots, build equity, and start a future.

Stable Market Amid Financial and Political Uncertainty

Despite ongoing concerns about inflation, the upcoming political environment, and general market volatility, housing continues to remain a relatively stable investment. In fact, many analysts believe real estate may be one of the more resilient sectors as we move through the year.

According to the latest housing trends update, while mortgage rates remain elevated compared to recent historic lows, many sellers are adjusting pricing and offering concessions. The result? A more balanced playing field for buyers who come in informed and prepared.

What Economic Uncertainty Means for Mortgage Rates

It’s easy to be intimidated by today’s mortgage rates, but there’s reason for cautious optimism. Historically, economic downturns and uncertainty often lower mortgage rates. As the Federal Reserve continues to combat inflation, signs of economic cooling could lead to more favorable conditions for borrowers later in the year.

If inflation continues to ease and the job market stabilizes, the Fed may be less inclined to raise rates—or may even begin cutting them—which could bring mortgage rates down. For buyers watching the market closely, this presents a window of opportunity.

Why Now Might Be the Right Time to Act

With the historically strong spring housing market underway, buyers who act now in affordable markets like Missouri and Kansas are well-positioned. Not only are these areas more budget-friendly, they’re also experiencing strong demand and long-term growth.

At HomeTraq, we’re here to guide you through this changing landscape—starting with what we believe is the best way to tour homes: on your terms. With HomeTraq, you can schedule home tours without committing to an agent up front, giving you more control, more flexibility, and more confidence in your home buying journey.

Explore Homes, Stress-Free

Ready to start your search? Whether you’re a first-time buyer, relocating to the Midwest, or simply ready to find your next home, HomeTraq makes the process seamless.

🔍 Search homes and book a showing instantly at HomeTraq.com

📍 Discover the affordability of the Midwest—and why the heartland is becoming the heart of American real estate.

• Rocket Companies' Acquisition of Redfin: Rocket Companies, a leading mortgage lender, announced plans to acquire Redfin, a prominent real estate brokerage, in an all-stock deal valued at $1.75 billion. This merger aims to create a seamless homebuying process by integrating mortgage lending with property search services. While this could enhance convenience, experts caution that such consolidation might lead to higher costs for consumers, underscoring the importance of maintaining competitive options in the market.  apnews.com

• Compass's Negotiations to Acquire HomeServices of America: Compass is reportedly in advanced talks to acquire HomeServices of America, the real estate brokerage unit of Berkshire Hathaway. This potential merger represents a significant shift in the industry, as major players seek to expand their market share through strategic acquisitions. This move could further consolidate power in the hands of a few large corporations, potentially reducing consumer choice and limiting competition.  However, it's essential to note that HomeServices of America has denied these reports, stating that no such discussions are taking place.  reuters.com

  
  

Legal Developments: Advocating for Consumer Choice

Legal actions and settlements are also reshaping the real estate landscape: 

• National Association of Realtors (NAR) Settlement:  NAR reached a settlement last Fall that includes changes to real estate transactions, aiming to preserve consumer choice while creating greater transparency and fairness regarding real estate services.  The original intent of the settlement was ensuring consumers had more choices when selecting an agent and to prevent hidden commission structures from misleading buyers and sellers.  However, in practice, many agents and brokerages have used the changes as leverage to force consumers into commitments they may not fully understand or desire.  yahoo! finance

• Department of Justice (DOJ) Warnings:  The Department of Justice has expressed concerns and issued warnings regarding certain aspects of the real estate industry, particularly concerning the National Association of Realtors (NAR) settlement and new rules around buyer-broker agreements, potentially limiting competition and harming buyers.  The DOJ has repeatedly warned against limiting consumer options, emphasizing that buyers should not be pressured into signing exclusivity agreements before they are ready. Instead of creating a freer marketplace, some in the industry are using these regulatory changes to introduce restrictive policies that may ultimately work against consumer interests.   reuters.com

HomeTraq's Commitment to Consumer Advocacy

At HomeTraq, we are proud to be at the forefront of this evolution, advocating for a home buying experience that prioritizes transparency, flexibility, and the unique needs of each consumer.   While major players in the industry claim to be adapting for the better, we must remain vigilant in ensuring that these shifts truly benefit homebuyers and not just the bottom line of corporations.

In this dynamic environment, HomeTraq remains dedicated to empowering homebuyers through innovative, consumer-first solutions:

• Flexible Home Touring: We offer one-time home tours without requiring long-term commitments, allowing buyers to explore properties at their own pace.

• Transparent Agreements: Our straightforward, single-showing agreements ensure that buyers understand the terms without feeling obligated to continue beyond the initial tour.

• Empowered Decision-Making: After a tour, buyers have the freedom to decide their next steps, whether that's engaging further with the agent or exploring other avenues.

• Genuine Consumer Advocacy – Our business model is built on trust, transparency, and the belief that homebuyers deserve full control over their journey.

By focusing on these principles, HomeTraq aligns with the broader industry shift towards more consumer-friendly practices, ensuring that the homebuying process is as seamless and empowering as possible.  HomeTraq.com

The Future of Real Estate: Who’s Really Looking Out for You?

The real estate industry is evolving, and while many changes claim to be in the consumer’s best interest, buyers must stay informed and cautious. Mergers, acquisitions, and regulatory shifts can either empower consumers or create new hurdles.

At HomeTraq, we are on the front lines of this transformation, ensuring that homebuyers get the fair, transparent, and flexible experience they deserve. As other companies navigate their priorities, we remain committed to one thing: putting consumers first.  

Stay informed. Stay empowered. And always demand the home buying experience you deserve.

With Spring comes the excitement of the homebuying season!  Gen Z is already making moves,  and with mortgage rates recently seeing their largest weekly decline since late last summer, more buyers are diving into homeownership across the Midwest.  But before you head out to tour homes, there’s something you need to know...

Attending an Open House Might Not Be in Your Best Interest...

Open houses may seem like a great way to check out a property, but they come with serious drawbacks for homebuyers:

1. You May Accidentally Give Away Your Negotiation Power

At an open house, the agent hosting the event works for the seller—not for you.  They have a fiduciary duty to the seller to get the best possible deal, which means they may not always have your best interests in mind.  If you mention your budget, timeline, or excitement about the home, that information can be used against you in negotiations. Anything you say to a seller’s agent could impact your ability to get the best deal.

2. You Could Be Pressured Into Working with an Agent

Many agents use open houses as an opportunity to recruit buyers. You may find yourself being pushed into signing a buyer representation agreement before you’re ready. The recent NAR settlement has changed the real estate landscape, and now some agents require signed contracts just to show homes. Before you commit to anything, make sure you fully understand your options.

3. Open Houses Don’t Offer a Private Touring Experience

During an open house, you’re walking through a home alongside other potential buyers. This limits your ability to take your time, ask questions, and truly envision yourself living in the space. Plus, you might miss important details because you’re navigating around a crowded room.

4. Sign-In and Solicitation

Many open houses require attendees to sign in upon arrival, providing their contact information. While this is often done for security and follow-up purposes, it can also lead to unsolicited marketing and sales efforts. After attending an open house, you may receive emails, phone calls, or mailings from real estate agents or mortgage brokers trying to solicit your business.

A Smarter Way to Tour Homes: HomeTraq

Instead of attending an open house, take control of your home search with HomeTraq. With no commitments, no pressure, and no awkward conversations with a seller’s agent, HomeTraq lets you schedule private home tours at your convenience.

• No contracts – Tour homes first, then decide when and how to work with an agent.
• Private showings – Explore the home at your own pace, without distractions.
• Full transparency – Get all the information you need without worrying about hidden agendas.
  
  

👉 Skip the open house. Book a private, no-commitment home tour today at HomeTraq.com.

In the evolving landscape of real estate, Generation Z is making significant strides toward homeownership, particularly in the Midwest. Recent data indicates that Missouri and Kansas are at the forefront of this trend, with 17% and 18% of homebuyers being Gen Z, respectively. This surge is largely attributed to the affordability and growth potential these regions offer.

Midwest: A Haven for Young Buyers

A recent CoreLogic report highlights that several Midwestern metros have the highest shares of Gen Z mortgage applicants. Des Moines, Iowa, and Omaha, Nebraska, lead with 21% of mortgage applications from Gen Z buyers. These cities offer median home prices well below the national average, making homeownership more attainable for young adults.

In Missouri, cities like St. Louis are gaining attention for their robust real estate markets. Both Kansas City and St. Louis have recently been recognized as a top housing market for 2025, thanks to its affordability, strong job market, and limited housing supply. Homes here are selling quickly, often at or above asking prices, indicating a competitive environment favorable to buyers.

Affordability Driving Gen Z Homeownership

The Midwest's appeal to Gen Z buyers is further underscored by the contrast with coastal markets. In states like Hawaii and the District of Columbia, where median home prices exceed $600,000, Gen Z comprises only 6-7% of mortgage applicants. In contrast, more affordable Midwestern states see a higher proportion of young buyers entering the market.

Navigating New Real Estate Dynamics with HomeTraq

The real estate industry has recently undergone significant changes due to a class-action lawsuit settlement with the National Association of REALTORS® (NAR).  Homebuyers are now required to have a written agreement with a showing agent before touring any home for sale. This update aims to enhance transparency and streamline the home-buying process.

Understanding that these new requirements might seem daunting, HomeTraq offers a solution designed for both new and repeat homebuyers. Our Home Showing Authorization aligns with the latest regulations while prioritizing your flexibility and convenience. Here's how HomeTraq simplifies the process:

• No Long-Term Commitment: The HomeTraq Home Tour Authorization is specific to a single home tour, ensuring you're not bound by extended agreements.

• Complimentary Tours: We provide home tours at no cost, eliminating any financial barriers to exploring potential homes.

• Pressure-Free Experience: With no obligations beyond the scheduled tour, you can explore properties at your own pace, making informed decisions without undue pressure.

By integrating the home touring process into your online search, HomeTraq enables you to request tours seamlessly, without the hassle of extensive paperwork or hidden commitments. Whether you're a first-time buyer or looking to relocate, our platform empowers you to navigate the current real estate landscape with confidence.

Spring into Action with HomeTraq

As spring approaches, the housing market is poised for increased activity. HomeTraq is ready to assist Gen Z and all homebuyers in navigating this dynamic landscape. With on-demand home tours and a customer-friendly approach, HomeTraq simplifies the home-buying process, ensuring you find the perfect home with ease.

Embrace the opportunity this spring to explore the thriving Midwestern real estate market. Let HomeTraq guide you every step of the way toward your new home.

Finding your perfect home should be as enjoyable as sipping hot cocoa by the fire, not weighed down by unnecessary pressure. However, recent changes in the real estate industry—specifically the NAR settlement—have made it so that many real estate agents now require buyers to sign a written agreement before even setting foot in a property. While these changes aim to bring more transparency to the industry, they can also add a layer of stress for buyers who are still exploring their options.

That’s where HomeTraq comes in and lets you schedule on-demand home tours without needing to commit to an agent right away. You can browse homes at your pace, on your terms, and make decisions when you’re ready. It’s home touring, reimagined for the modern buyer.

Deck the Halls of Your Dream Home

Think about how much time and effort goes into planning the holidays—gift shopping, decorating, traveling—the last thing you need is to complicate your house hunt. HomeTraq gives you the freedom to explore homes without getting bogged down by contracts and obligations. This flexibility is especially helpful during the busiest season of the year, allowing you to fit home tours into your schedule seamlessly.

Imagine walking through a beautifully decorated home this holiday season, envisioning where your own decorations might go, without worrying about whether you’ve signed the right forms or agreed to something you’re not ready for. That’s the gift of HomeTraq: convenience, peace of mind, and control.

Why HomeTraq Works for You

• Freedom from Pressure: Tour homes without needing a signed agreement upfront, unlike traditional agents who may require this due to the NAR settlement.

• On-Demand Flexibility: Schedule tours that fit your busy holiday calendar.

• Empowered Decisions: Take the time you need to find the right home before committing to an agent.

This holiday season, give yourself the gift of choice. HomeTraq puts the power back in your hands, so you can focus on what really matters: finding the perfect place to create new memories with the ones you love.

Start Touring Today

Ready to deck the halls of your dream home? Visit HomeTraq.com to explore available homes for-sale and schedule your first no-commitment home tour. Whether it’s a cozy cottage or a spacious family home, your future starts here.

The real estate industry has recently undergone a significant shift. Due to a class-action lawsuit settlement with the National Association of REALTORS®, homebuyers must now have a Written Agreement with a showing agent in place before touring any home for sale. This update aims to improve transparency and make the home-buying process easier to navigate. But how does this new requirement affect you, and how is HomeTraq making it simpler?

New Home Touring Requirements: What You Need to Know

As part of the NAR settlement, every potential homebuyer must agree to a Written Agreement with their agent to tour a home. Here’s what this written agreement must include:

• 📅 Length of Agreement: The agreement must specify a clear, limited timeframe, with no open-ended commitments.
• 💸 Compensation: This can vary—some agents might charge a flat fee, a percentage of total sales price, an hourly rate or no fee.
• ✅ Services Provided: The agreement should outline what services the agent will and won’t provide, ensuring you know what to expect.

While these requirements bring clarity, they can feel a bit restrictive for those wanting to casually tour homes. And while some agents may still require commitments or fees upfront, know that is a refreshingly flexible approach...

HomeTraq’s Home Showing Authorization: Flexibility, Simplicity, and No Pressure

With HomeTraq, we know that seeing a home in person can make all the difference. Our Home Showing Authorization is designed to meet the new requirements while prioritizing flexibility and freedom for buyers. Here’s how HomeTraq makes touring easier:

• 📅 No Commitment: The HomeTraq Home Tour Authorization specifies a single home tour, so you’re never tied into a long-term agreement.
• 💸 No Cost: Unlike others, HomeTraq provides home tours for free and doesn’t involve any commitment to compensation.
• ✅ No Obligation: HomeTraq offers the freedom to explore homes without the pressure of future commitments, allowing you to enjoy a hassle-free, exploratory experience.

This approach ensures that you can freely tour homes without the burden of complex or costly agreements.

How HomeTraq Puts You in Control

HomeTraq was built with your convenience in mind. By integrating the home touring process into your online search, you can easily request tours without the lengthy paperwork or hidden obligations that sometimes accompany the new requirements. Whether you’re serious about buying or simply exploring, you’ll have the freedom to check out properties on your own terms.

Ready to Tour with Confidence?

At HomeTraq, we’re excited to help you navigate these changes with ease. If you’re looking for a home or just exploring your options, take advantage of the flexibility HomeTraq offers and make informed decisions with confidence.

>> Embark on a stress-free journey to find you perfect home

If you're browsing homes online and find one you'd like to tour in person, you're not alone!  Many buyers start their home search online, but it’s that in-person visit that really helps you get a feel for the space. With HomeTraq, scheduling a home tour is incredibly easy, and it’s built right into your online search.     Here’s how to use HomeTraq to book a home tour without commitment, on your schedule.

Step-by-Step Guide to Scheduling Your Tour

1. Start Your Search
   Begin by using your free home search provided by HomeTraq. You’ll have access to all for-sale homes on the market, just like other popular online home searches. Take your time to browse through listings and find the homes that catch your eye.

2. View Property Details
   When you’ve found a home you want to learn more about, click on the listing. You’ll be able to see all the details, including photos, square footage, number of rooms, and other important information.

3. Request a Tour
   Ready to see the home in person? Request a tour by clicking Book A Showing. Choose a day and time that fits your schedule— let’s say you’d like to see the home on Sunday at 2PM. Just select your preferred time, click Tour This Home, and you're on your way!

4. Log in for Easy Access
   If you’re already logged in, your contact information will pre-fill to save you time. HomeTraq’s integration makes the process seamless, so you don’t need to re-enter any details.

5. Confirmation of Your Appointment
   After you submit your request, HomeTraq sends it out to our local network agents in the area of the home. Once one agent confirms the appointment, they’ll meet you at the home at your chosen time for a personal tour with no commitment or obligation. You’ll be notified by text when the appointment is confirmed. It you need to add any special requests or notes (for example, if you have specific needs or need details about accessing the property) you will be able to chat with the showing agent in advance of the tour as well as afterwards. 

6. No Cost, No Commitment
   One of the best things about HomeTraq is that there’s no commitment or cost to schedule a home tour. There are no worries because all is outlined in the Home Showing Authorization which agents in our network have already agreed to.  HomeTraq handles all the details, so you can feel confident that everything is clear and straightforward. You DO NOT have to sign a Buyers Agency Commitment to tour the property. 

7. Tour the Home
   An agent will meet you at the home at your chosen time for a personal tour with no commitment or obligation.
   
   

Why HomeTraq Makes Your Home Search Easier

With HomeTraq, you’re in control of your home search experience. You can browse homes and book tours without feeling pressured to commit to an agent until you’re ready. Plus, with HomeTraq’s seamless integration, there’s no back-and-forth or hassle—just pick a time that works for you, and a local agent will be there.

Whether you’re just starting to browse or have a few homes in mind, HomeTraq makes it easy to move from online shopping to in-person touring. Ready to start? Try it out today, and if you have any questions, you can always reach out through the embedded chat feature or contact us by phone, text, or email. 

Begin by using your free home search provided by HomeTraq. You’ll have access to all for-sale homes on the market, just like other popular online home searches. 

That’s why we’re asking for your support. We’ve partnered with the Impact Foundation, making it easy for investors, private foundations, and companies to contribute through Donor Advised Funds (DAFs) and Program-Related Investments (PRIs). Individual donors can also support us through the HomeTraq Giving Fund, a charitable component of the National Christian Foundation (NCF).

Your contribution—whether small or large—directly supports our mission to expand homeownership in underserved communities.   In fact, based on our recent partnership successes, every $541 donated enables HomeTraq to guide a local community member through the process of becoming a qualified homebuyer—someone ready, willing, and able to purchase a home. The benefits don’t stop there. Each homebuyer supported by HomeTraq creates a ripple effect, boosting the incomes of local real estate agents, loan officers, title representatives, and insurance agents who assist in the home-buying process. By contributing, you’re not just helping one individual achieve their homeownership dream—you’re also strengthening entire communities. 

Together, we can make home buying more inclusive and equitable for everyone. Click here to donate: https://hometraq.co/NCF

Thank you for joining us in this mission. Every donation brings us closer to transforming real estate into a space that serves everyone, no matter where they live or what their financial situation might be.

With your help, we can break down the barriers to homeownership and create a better future for underserved communities.

Buying a home is one of the most significant decisions you’ll ever make, and it’s important to approach it with clarity and purpose.  Search all homes for sale by clicking here.  To help you navigate this exciting journey, here are 13 crucial aspects to consider when searching for your dream home:

1. Location, Location, Location

Your preferred location or neighborhood is arguably the most critical factor in your home search. Think about what matters most to you: proximity to work, quality of schools, access to amenities, or the overall vibe of the community. Whether you’re drawn to a bustling urban center or a quiet suburban enclave, the right location will complement your lifestyle and daily needs.

2. Budget

Understanding your budget is fundamental to a successful home search. Knowing how much you can comfortably spend helps you avoid the disappointment of falling in love with a home that’s out of reach. Establish a budget range that includes the purchase price, potential renovations, and other associated costs. This will keep your search focused and realistic.

3. Property Type

Are you envisioning a single-family home, a cozy condo, or a townhouse? Identifying your preferred property type early on can streamline your search and ensure that you’re only viewing homes that fit your needs and lifestyle. Each type comes with its own set of advantages and considerations, so be clear about what suits you best.

4. Bedrooms and Bathrooms

Consider how many bedrooms and bathrooms you need now and in the future. Whether you’re planning to grow your family or just need extra space for guests, having a clear idea of your requirements will help you narrow down your options. Think long-term to ensure your new home accommodates your lifestyle changes.

5. Architectural Style

Do you have a specific architectural style in mind? Whether you’re drawn to modern minimalism, classic colonial, or mid-century charm, identifying your aesthetic preferences will help you find a home that feels uniquely yours. Consider how the style of the home reflects your personality and daily living habits.

6. Must-Have Features and Amenities

What features are non-negotiable for you? Whether it’s a spacious kitchen, a large backyard, or a home office, identifying these must-have elements early on will help you stay focused during your search. Prioritizing these features ensures that your new home aligns with your vision and lifestyle.

7. Deal-Breakers

Just as important as knowing what you want is knowing what you don’t want. Identify any deal-breakers that would make a property unsuitable for you. This could be anything from proximity to noisy highways to a lack of natural light. Being clear about what you can’t compromise on will save you time and energy.

8. Proximity to Amenities

Consider how close you want to be to schools, parks, shopping centers, and other amenities. The convenience of having essential services nearby can significantly impact your day-to-day life. Whether you’re looking for walkability or easy access to recreational facilities, think about how these factors will influence your happiness in your new home.

9. Commuting Distance

If you need to commute to work, determine your ideal commuting distance. This can be a major factor in your quality of life, so it’s important to find a location that makes your daily commute as stress-free as possible. Factor in traffic patterns, public transportation options, and how much time you’re willing to spend on the road.

10. Accessibility Needs

Consider any specific accessibility requirements or preferences you may have. Whether you need a home without stairs, wheelchair accessibility, or simply a layout that’s easy to navigate, these needs should be front and center in your search. Ensuring your new home accommodates these requirements will make it a more comfortable and functional space.

11. Renovation vs. Move-In Ready

Decide whether you’re open to renovating or if you prefer a move-in ready home. Some buyers love the idea of customizing a fixer-upper, while others want a home that requires no additional work. Your willingness (or lack thereof) to take on renovations will significantly influence the types of properties you consider.

12. Timeline

Understanding your timeline is crucial to a smooth home-buying process. If you’re in a hurry to move due to a job relocation or the end of a lease, you’ll need to be strategic about your search. Conversely, if you have more time, you might be able to wait for the perfect property to come along. Be realistic about how long the process may take, from finding a home to closing the deal.

13. Financing Preparedness

Finally, consider your financing situation. If you’ve been pre-approved for a mortgage, you’ll have a clear understanding of what you can afford, and you’ll be in a stronger position when making an offer. If you’re paying in cash, your transaction might move more quickly. Either way, being prepared financially will make the process smoother and less stressful.

By carefully considering these 13 aspects, you’ll be better equipped to find a home that not only meets your needs but also feels like the perfect fit for your lifestyle and future.  Search all homes for sale by clicking here.  Happy house hunting!

Choosing to schedule a private home tour over attending an open house can significantly enhance your home-buying experience. With an on-demand home tour experience like HomeTraq, this process becomes even more accessible and convenient, allowing you to find your dream home on your terms.

Schedule Tours With Real-Time Availability:  Book private showings at your convenience, any time that fits your schedule.  If the home is available to be toured at the time you want to see it, HomeTraq will coordinate an agent to meet you there.  Phone tag and scheduling hassles are eliminated.    

No Sales Pressure: Enjoy a pressure-free environment where you can make decisions at your own pace.  Buyers can tour homes without entering into an exclusive agency relationship or committing to a single agent.

From personalized attention and avoiding conflicts of interest to in-depth property analysis and flexible scheduling, private tours ensure you get the most out of your home-buying experience.  

As the holidays are upon us, we at HomeTraq are reflecting on a year filled of significant change in the real estate landscape.   The recent federal jury ruling against the National Association of Realtors has sent ripples through the industry, bringing to light practices that have not been as buyer-friendly as they have been presented over the years. As we bid farewell to this transformative year, HomeTraq, a trailblazing technology startup specializing in no-commitment, on-demand home tours, is here to....

Unwrap the 3 simple truths about real estate transactions:

1. Forced Commitments are Not Consumer Friendly.  
Forcing consumers to sign Buyers Agency Agreements to simply tour for sale homes is not buyer-focused by any means. HomeTraq boldly declares that the era of compelling buyers to sign binding agreements before even stepping foot in a potential home is outdated and counterproductive. This practice has been a barrier for many buyers, deterring them from exploring available homes freely. We believe in empowering buyers with the freedom to tour homes without unnecessary commitments.

2. Conflicts of Interest are Clear & Present.  
Alternatively, forcing consumers to coordinate home tours directly with the listing agent is not buyer-friendly either, and more concerning it creates a complete conflict of interest challenging the fiduciary responsibility and duty of agents.The potential conflict of interest when buyers coordinate tours and questions directly with listing agents is alarming.  A buyer's agent should act as a dedicated advocate for the buyer's interests, free from conflicting allegiances. This declaration sheds light on the importance of maintaining the fiduciary duty of agents to ensure a fair and transparent real estate process.

3. Commitment is a Two-Way Street.  
When a consumer is ready to make a commitment to work with a specific real estate agent, a Buyer’s Agency Agreement is vital to detail what services consumers are provided and what the buyer agent receives in compensation from their client.  Clarity in commitments should be complimented with clarity in compensation. When a buyer is ready to engage a specific real estate agent, a Buyer's Agency Agreement becomes crucial. This agreement establishes clarity on services provided and the compensation structure, fostering a transparent and mutually beneficial relationship.

The services provided by a buyer's agent have never been performed for free.  The real estate industry, however, has long perpetuated the notion that buyers' agency comes without a cost to the homebuyer.  In response, the recent legal developments are begging the question... What does a buyer's agent actually do in a real estate transaction?  With this in mind, HomeTraq is here to unwrap another set of presents...

The 9 gifts of a buyer's agent:

1. Representation and Advocacy. 
A buyer's agent serves as a steadfast representative, communicating and advocating for the buyer's needs with all parties involved in the home purchase process, including seller’s agents, mortgage lenders, attorneys, inspectors, and title representatives.

2. Finding Home Matches. 
Through various channels, including text, email, phone calls, and online home search portals, a buyer's agent suggests homes and neighborhoods that may align with the buyer's needs and preferences.

3. Tour Coordination. 
Takes the lead in coordinating and scheduling home tours for properties that match the buyer's interests and needs.

4. Facilitating Additional Service Providers.
Educates, coordinates, introduces, and facilitates additional service providers necessary for a successful home purchase, such as mortgage lenders, title companies, attorneys, home insurance providers, inspectors, contractors, municipal inspectors, and appraisers.

5. Market Guidance. 
Provides crucial guidance on current market trends, offer contingencies, and contract clauses that influence the attractiveness of purchase offers.

6. Contract Facilitation.
Structures, drafts, and coordinates the facilitation of contracts and paperwork to successfully submit the purchase offer to buy a home.

7. Negotiation Skills.
Negotiates and communicates with the seller’s representative during the contract offer and negotiation phase to ultimately facilitate acceptance from all parties involved.

8. Concession Navigation.
Negotiates and navigates potential seller and buyer concessions and requirements arising from the home inspection and discovery process.

9. Closing Assistance.
Assists and coordinates the closing process to ensure a smooth transition from offer acceptance to homeownership.

The federal jury ruling against the National Association of Realtors has stirred discomfort in the industry.  While the upheaval may be challenging, it appears to level the playing field, providing much-needed clarity into the financial aspects of a real estate transaction. As we unwrap the true gifts of a buyer's agent this holiday season, HomeTraq stands committed to transparency, empowering buyers with freedom, and fostering mutually beneficial relationships that enrich the real estate experience for all. In the spirit of the season, may the truth about real estate transactions bring joy and enlightenment to buyers and sellers alike.

In the ever-evolving world of real estate, it's crucial for homebuyers to have a trusted advocate by their side throughout the home buying process. The recent $1.78 billion verdict in the Sitzer/Burnett v. The National Association of Realtors (NAR) class-action lawsuit focuses on unfair "cooperative compensation" practices in real estate, but it also brings light to the significance of the duties performed by agents involved in the real estate transaction. 

This lawsuit begs the question, why does a homebuyer even need a buyer's agent?   Here are some reasons why a real estate agent representing a homebuyer plays a critical role in ensuring that the buyer's best interests are protected:

The Listing Agent Represents the Seller, Not the Buyer:  One of the most fundamental reasons for enlisting the services of a buyer's agent is the inherent conflict of interest in real estate transactions. Listing agents, affiliated with the seller, are primarily focused on securing the highest possible price for the property they represent. This means that when a prospective buyer approaches a property, attends an open house, or expresses interest in a listing, the listing agent's primary duty is to the seller. They're not looking out for the buyer's best interests whatsoever.

The potential consequences of relying solely on listing agents is a huge concern in the real estate industry right now, as there are many lawsuits now being filed which challenge the status quo of how the real estate industry has operated for over 100 years.  While lacking real solutions to some long-term problems, these cases highlight the industry's need for transparency and unbiased representation. 

Buyers Need Their Own Advocate to Navigate the Home Buying Process:  The home buying process can be a complex, daunting, and sometimes an extremely overwhelming journey. From property selection and negotiation to inspections and closing, numerous steps require careful consideration. A buyer's agent serves as an advocate, offering expert guidance every step of the way. They bring experience, market knowledge, and negotiation skills to ensure buyers make informed decisions.

These lawsuits have the potential to rewrite the entire structure of the real estate industry in the United States, by lowering the cost of moving homes by reducing commissions, but at the same time underscores the importance of homebuyers having an advocate in the real estate transaction. This case serves as a reminder of the need for unbiased representation, especially when significant financial investments are at stake. 

Contractual Commitments Effect Service Levels:  Once a consumer signs a commitment (Buyer's Agency Commitment) to work with a real estate agent, it's essential to understand the legal binding nature of the agreement.  Committing via a signed representation agreement with a real estate agent truly can be perceived as a "double-edged" sword.  While many agents are committed to serving the interests of their clients as best they can throughout the home buying and selling process, there are instances where expedited service levels taper off once a contractual commitment is signed.  This happens because the agent may perceive they no longer have to go "above and beyond" to earn their clients business, simply because the commitment has already been executed.  In such cases, it's essential for all parties to remember that the buyer has the power to make what choices are in their best interest.  Buyer's Agency Commitments in most cases can be voided by request of the buyer, but often only happens in extreme cases of malpractice.

The Financial Commitment to Hire a Real Estate Agent is Substantial:  Typically, the home seller pays their listing agent via their listing agreement, then the listing agent splits the commission with the buyer’s agent. Traditionally, that works out to a 5%-7% commission split roughly evenly between the buyer’s and seller’s agents.  While the primary focus of the pending lawsuits is on the commission and costs associated with buying a selling a home, it's essential that buyers and sellers alike know, they have the ability to ensure their interests are well-represented.  Additionally, as the lawsuits claim, the commissions paid to real estate agents are negotiable, despite what may perceived as industry standard practices. 

These Lawsuits Serve as a Reminder of the Critical Role Buyer's Agents Play in the Real Estate Transaction: The listing agent primarily represents the seller's interests, and a buyer's agent is essential to ensure the buyer's best interests are protected throughout the process.  While contractual commitments exist, it's important to remember that both the buyers and sellers have the power to make decisions that align with their goals. 

Trying to further understand how these lawsuits may help you make better decisions in the real estate buying journey?

How do you find a real estate agent you can trust?

Are you curious about why visiting open houses are not in your best interest?

Historical Bissell Mansion in St. Louis, Missouri

The city's first brick home was built by Captain Lewis Bissell in the 1830s & most recently was the site of a Murder Mystery Dinner Theatre.  Allegedly inhabited by the ghostly spirts of Bissell and one, or both, of his wives.  According to a local news story, real estate agents and appraisers have reported paranormal experiences while visiting the home...

The Campbell House in Wichita, Kansas

Built from 1886 to 1888 by Colonel Burton Harvey Campbell, rumors of many ghosts haunt the grounds, thanks to the parts which were salvaged from actual European castles. Supposedly, the ghosts came over with the other castles’ segments. Get your hands on it (and the ghosts) for just three million dollars....

1800s Italianate Victorian in Louisiana, Missouri

The owner started renovation as a labor of love but circumstances resulted for them not able to complete what was started. It's a sincere wish that a new owner will take over where owner has left off.  There’s plenty of spookiness to be found and it definitely needs a ton of renovation, but for $95k, you can’t go wrong... or can you?

The Sallie House in Atchison, Kansas

Though the house had long been known to be haunted, Sallie’s haunting grew ominous in 1993, when the house was rented to a young couple. Psychics have confirmed the presence of spirits dwelling in the home and many have actually communicated with them – and skeptics have left as believers...

Living with ghosts... are you ready?

Could you handle hearing ghostly footsteps and doors slamming in the middle of the night?  Can you deal with seeing a ghost or objects mysteriously moving around?

Watching these things happen in a movie is one thing, but living through it is another. If you're serious about buying one of these haunted houses, do some research first to decide if you're okay with the property's history and the kind of haunting you might encounter.

Looking for even more haunted places?

If these homes for sale aren't exciting enough for you, and you want to experience truly haunted houses that aren't on the market, you're in luck. We have a rich history of hauntings in the area, with plenty of houses that are believed to be haunted by lingering spirits. Whether you're looking for some real scares this Halloween season or just have an interest in local ghost stories, check out more haunted houses in the area!  If you want to look even deeper check out this database of haunted areas from across the Midwest.

The "Anywhere Lawsuit": What It Means for You
One of the central pieces in this real estate revolution is the "Anywhere Lawsuit." This legal action is shaking up the industry by challenging the long-held practices of real estate commissions. The lawsuit argues that these commissions have not been clearly defined and been artificially inflated, causing higher costs for both buyers and sellers. The good news for consumers is that if successful, this lawsuit could bring about substantial changes in how real estate commissions are structured and negotiated.

By providing more commission transparency, consumers could potentially save a significant amount when buying or selling a home. The traditional model often favored agents, but this legal challenge aims to level the playing field, allowing consumers to keep more of their hard-earned money.

NAR's New Transparency Policy
The National Association of Realtors (NAR), in response to the shifting landscape, has recently made a groundbreaking policy change. NAR will now allow listing brokers to offer 0% commission to buyer's agents. This policy shift is designed to bring more transparency into real estate transactions and provide flexibility for sellers looking to reduce commission expenses.

For home buyers, this means more options and a clearer understanding of the costs involved in purchasing a home. The shift towards 0% commission could encourage competition among agents and provide buyers with the opportunity to find deals that suit their budget.

The Impact on You and Your Home Search & Home Sale
These changes aren't just about legal battles or industry policies; they're about improving your ability to find your dream home with clarity. The new policies increase the likelihood of potential reductions in real estate commissions but more importantly make the home-buying process more accessible and transparent.

NAR's buyer commission rule offers you the freedom to explore a wider range of options without being tied to membership requirements or their associated regulations. This shift puts you in the driver's seat, granting more autonomy and control over your real estate transactions.

Your Advantage in the Evolving Real Estate Market
As a consumer, these changes offer you several distinct advantages:

1. Transparency: With NAR's policy shift and the legal challenges to commissions, you'll have a clearer understanding of the costs associated with your real estate transactions. This enables you to make more informed decisions.

2. Wider Choice: The removal of the NAR's buyer commission rule opens the door to more diverse options, letting you explore a broader range of properties and agents.

3. Empowerment: Now more than ever, you are in control of your real estate decisions. Even more so with on-demand & no-obligation real estate services you have what you need to navigate this evolving landscape with confidence.

4. Cost Savings: Transparency of buy-side and sell-side commissions can equate to more money in your pocket, allowing you to allocate your resources more efficiently when buying or selling a home.

Navigating the Revolution and Empowering Consumers
Amidst these transformative developments in the real estate industry, HomeTraq is here to empower consumers like you to make the most of this changing landscape.  Increased transparency provided by no-obligation and on-demand home tours are just the tip of the iceberg.    

As you embark on your home buying & home selling journey, learn more about how HomeTraq can empower you in the ever-changing world of real estate and explore the services offered.  You have the support you need to make the most informed decisions and secure your ideal home or sell your existing home. Don't miss out on this opportunity – embrace the real estate revolution and discover a brighter, clearer and more affordable future for homebuyers and home sellers.

Limited Representation:
When you visit an open house, you should be aware that the listing agent represents the seller's interests, not yours. They have a fiduciary duty to the seller to get the best possible deal, which means they may not always have your best interests in mind. If you want someone who will advocate exclusively for you as a buyer, it's advisable to work with a buyer's agent who can provide you with personalized guidance and representation throughout the home-buying process.  Scheduling a home tour with HomeTraq, gives you the piece of mind to visit a home with an agent, but there also is no commitment to work with the agent showing you the home.  

Lack of Privacy and Public Access:
Open houses are open to the public, which means you'll be touring the property alongside other prospective buyers. This lack of privacy can make it challenging to thoroughly explore the property, ask specific questions, or have candid discussions with others in your group. Additionally, the presence of other attendees can sometimes create a rushed or uncomfortable atmosphere, making it difficult to envision the home as your own.

Sign-In and Solicitation:
Many open houses require attendees to sign in upon arrival, providing their contact information. While this is often done for security and follow-up purposes, it can also lead to unsolicited marketing and sales efforts. After attending an open house, you may receive emails, phone calls, or mailings from real estate agents or mortgage brokers trying to solicit your business. If you're concerned about unwanted solicitations, use HomeTraq to schedule a private showing with a local agent who has agreed to respect your privacy.

When buying a home, you're not just investing in the property itself, but also in the neighborhood it's located in. Research potential neighborhoods thoroughly, considering factors such as proximity to work, schools, public transportation, safety, and local amenities. All of these criteria and more can be found Using Our Home Shopping Experience. Once you find an area you like, take the time to visit at different times of the day to get a sense of the community and whether it aligns with your preferences.

Make a List of Your Must-Haves and Nice-to-Haves

Creating a list of your must-have features in a home will help you prioritize what you're looking for. Additionally, distinguish between must-haves and nice-to-haves, as this will give you flexibility during the search process. Keep in mind that no home will likely have every single feature you desire, so be prepared to make some compromises.

Work with a HomeTraq Network Agent

Navigating the real estate market can be challenging, especially for first-time buyers. Have your pick of a network of many qualified, knowledgeable agents who will guide you through the process, negotiate on your behalf, and ensure you find a home that meets your needs and fits your budget. One major advantage of using HomeTraq is the flexibility of touring homes on your schedule. No matter what time you want to see the property, a friendly HomeTraq agent will be there to open the door for you.

Tour Homes and Ask Lots of Questions

As you start visiting potential homes, attend open houses or have your agent schedule private showings. Remember to take note of each property's strengths and weaknesses. Utilize your agent and ask questions to gain a better understanding of the property's history and condition. Resources may be available, such as an inspection the seller has already conducted or a property disclosure which will let you know about the property's condition.

Make an Offer and Seal the Deal

Once you find the perfect home, work with your real estate agent to make an informed offer. Consider recent sales data of comparable homes in the area, as well as any necessary repairs or improvements you might have to make. Be prepared for negotiations with the seller, as they may counter your offer before reaching an agreement. Once you have an accepted offer, the work begins to make sure the sale goes smoothly. This submitting documentation to your lender for underwriting, scheduling an inspection and appraisal, and completing any other contingencies stated in the contract. 

The Bottom Line

Buying your first home is an exciting journey filled with important decisions and responsibilities. By following these key steps for first-time homebuyers, you'll be well-prepared to navigate the real estate market, make informed choices, and find the perfect place to call home. Remember, patience and diligence are essential throughout the process. With careful planning and the right guidance, you can turn the dream of homeownership into a reality and embark on a new chapter of your life with confidence. Happy house hunting!

We want you to be comfortable in every step of the home-buying process, and that includes home tours. You can request a home showing using HomeTraq and quickly receive a confirmation from one of the agents in our network. We want to protect you as a buyer, so we never share your demographic or personal information with the agent. This buyer anonymity prevents discrimination in the home buying process and allows you to work with multiple agents, ultimately deciding which one you wish to continue to work with. 

Influence of Economic Factors

Economic conditions play a crucial role in shaping the real estate market. Factors such as interest rates, employment rates, and inflation all impact buyer affordability and purchasing power. Currently, interest rates remain historically low, which has created favorable conditions for buyers, as borrowing costs are reduced. However, as the economy recovers and inflationary pressures rise, there is a possibility of interest rates increasing in the future. Buyers should closely monitor these economic indicators to make informed decisions.

Government Policies and Regulations

Government policies and regulations have a significant influence on the real estate market. These policies can range from tax incentives for homeownership to regulations on short-term rentals and zoning restrictions. It is important for buyers and sellers to stay informed about local and national regulations that may impact their real estate transactions. Government interventions aimed at increasing affordable housing options or implementing stricter lending standards can also affect the dynamics of the market.

The Importance of Technology

Technology continues to transform the real estate market, revolutionizing how buyers search for homes and how sellers market their properties. Online platforms and listing portals have made it easier for buyers to access property information, view virtual tours, and connect with real estate professionals. Sellers can leverage technology to market their properties through virtual staging, professional photography, and social media campaigns. Additionally, emerging technologies such as artificial intelligence and virtual reality are reshaping the way properties are marketed and transactions are conducted.

HomeTraq is focused on helping you, as the buyer, through all the hoops and hurdles of the home buying process. We want to make the home-buying process is a great experience by facilitating convenient home tours and working to connect you to the financial resources that matter to you the most.

The Bottom Line

The current real estate market is characterized by high demand, limited supply, changing buyer preferences, and the influence of economic conditions and government policies. Buyers and sellers should stay informed, work closely with real estate professionals, and adapt to the evolving landscape to make informed decisions. By understanding the market trends and leveraging technology, individuals can navigate the current real estate market with confidence. Whether you are buying, selling, or simply interested in the real estate industry, staying updated on these trends and insights is key to success in this dynamic market.

Find More Home Shopping Resources

The National Observer mentions, “Baby boomers made up 39% of homebuyers in 2022, according to data from the National Association of Realtors. Millennials, who are now 24 to 42 years old, had been the dominant homebuying generation since 2014, but last year made up 28% of homebuyers. That's down from 43% observed in 2021.” Many boomers are approaching retirement age or have been retired for some time. For those with investments or other assets, they can comfortably purchase second properties or trade up for a better home. 

Interest Rates are Still Historically Low

In the past, mortgage interest rates have been as high as 18 percent and maintained around 10 percent for a long time. At the height, rates hit the 7 percent mark in October 2022. However, Baby Boomers are well aware that this is still reasonable compared to past experience. While Millennials might have not seen interest rates this high in their house hunting days, Baby Boomers didn't flinch at a slightly raised rate. 

On the other hand, Millennials have driven the housing market since 2014. Interest rates haven't risen about 5 percent in that time. In their experience, interest rates are unreasonably high. Perspective plays a big part when making a big decision like buying a home. While Millennials are waiting to see if the market corrects itself, Boomers are snatching up all the real estate they can find. 

FHFA and the Department of Housing and Urban Development (HUD) announced via press release the new conforming loan limits for 2023. The new conforming loan limit is $726,200, which is a $79,000 increase from last year's limit of $647,200. In addition, the "conforming loan floor and ceiling increased to $472,030 and $1,089,300, respectively, for calendar year 2023." In areas considered low cost, the "floor" figure derives from 65% of the national conforming loan limit. In contrast, the ceiling for high cost areas is 150% of $762,200 conforming loan limit. Detailed information about the new guidelines can be found on the HUD website. 

What This Means For Borrowers

In short, more buyers have access to qualify for financing on more houses. “The increase in loan limits, commensurate with the increase in home prices, will allow qualified individuals and families to continue to access FHA-insured mortgages to achieve affordable home financing,” said Principal Deputy Assistant Secretary for Housing and FHA Lopa Kolluri. They still have to meet all of the benchmarks in place to receive the loan. For example, FHA loans require a 3.5% down payment, credit score above 580, and a 43% debt to income ratio (DTI). To put this into context, under the new limit, a home buyer can purchase a property using a conforming loan up to $472,030 in a low cost area. Under the FHA requirements they would need at least a 580 credit score, down payment of at least $16,521.05, and a monthly DTI less than 43%. An individual lender may have additional requirements, but these are the baseline standards for a conforming loan.

The increased limits are more inclusive for borrowers looking for a home on the higher end. The most common alternative for a home valued above the conforming loan limit is a jumbo loan. Some buyers view this as less than ideal because it would typically require a larger down payment. Going back to the previous example, a $472,030 home wouldn't have qualified for a conforming loan last year. The buyer would need a jumbo loan, which may require up to a 20% down payment, or $94,406. That's a substantial leap from the 3.5% down payment of $16,521.05. Buyers on that higher end can get a lot more house for a much more reasonable down payment. 

In addition, more buyers can enjoy a lower interest rate by avoiding a jumbo loan. Since jumbo loans are not federally insured, they carry more risk for the lender. As a result, the lender might ask for a higher interest rate to issue a jumbo mortgage. With a higher conforming loan ceiling, more buyers will qualify for a conforming loan and avoid high-risk mortgages. 

More Resources for Conforming Loan Limits

Every year, HUD issues a Mortgagee Letter which breaks down Nationwide Forward Mortgage Limit. They also offer resources for home buyers, which lenders can pass along to their customers. It walks you through the home buying process and has information for each stage, from financing to closing. 

You may have heard about how the federal reserve (commonly known as The Fed) is raising interest rates to cool down the market. Two things will help calm the market. Increased inventory (supply) of houses or higher prices that buyers are unwilling or unable to pay (demand). The easiest way for The Fed to impact the market is by adjusting the federal funds rate. Bankrate describes this as the "interest rate at which banks and other depository institutions lend money to each other." For home buyers, this makes it more expensive to borrow money. In theory, fewer people will be interested in buying as the rate to borrow becomes more costly.

Consumers are seeing rising mortgage rates, which begs the question: are mortgage rates too high? The short answer is, "It depends." Perspective is key here. Are you asking if mortgage rates are too high to buy now, or are they high compared to similar historical periods? You will get a completely different answer depending on your circumstances.

In 1970, mortgage lenders were charging as high as 17 percent interest. Rates consistently declined to 8 percent by 2000. According to Freddie Mac, they reached an all-time low in 2021, averaging below 3 percent. Someone who has been in the industry for a while will suggest that interest hovering around 5 percent is still extremely low. Of course, 2 percent over 30 years can amount to a significant chunk of cash. There is no doubt that borrowers from 2 years ago got a fantastic rate. 

Suppose 5 percent is too high for your comfort level. In that case, you might be waiting years before it comes back down to the historic lows. One way to counter the higher rates is by refinancing. After a few years of paying down the loan, either rates will come down, or at the very least, you will have some equity built up. You can renegotiate a lower rate or get a shorter loan to accumulate less interest. 

The bottom line: for those considering buying soon, it's still a good time to buy. Rates are historically low and will likely continue to rise until the market is balanced. Planning to wait it out might cost you valuable years of building equity and living in your own house. Ultimately, everyone's financial situation is different. It's always smart to speak with an expert before deciding to apply for a mortgage.

Why is now a good time to buy? [Pros and cons of the current market]

The previous section talked about the slight increase in mortgage rates, although they are still historically low. Some buyers have been priced out of the market or will need to save more money to afford the higher rates. The benefits must outweigh the downside of a slightly higher rate if you're going to make the big decision to buy.

A fixed-rate mortgage allows you to lock in your rate. It is even more crucial to get a fixed rate in an unpredictable market. The Fed has stated that it will continue gradually increasing the federal fund rate until the market is more balanced. Locking in your rate protects you from the volatility that might occur once the market reaches a breaking point. The discouraging outcome you want to avoid is buying at the peak price for a high-interest rate. You could get stuck with an overpriced home at a high-interest rate. Refinancing would be much more difficult or even impossible. 

Luckily, the market is still predicted to climb, as demand hasn't slowed much, and inventory is low. With the rising interest rates, some buyers have chosen to wait and see if they will go back down. This means less competition for those that choose to stay in the game. As a result, home prices are starting to sell at more reasonable prices. It's too soon to tell if this means the market is slowing. Houses are still selling at record prices and with multiple offers. It is trending in the right direction for buyers, and sellers have to negotiate more than in the last few years. 

Do you want to keep looking at for-sale homes? You can do so here. 

Found a home you'd like to tour? Schedule a tour here. 

Visit here for more resources like this. 

The next step is finding a real estate agent. HomeTraq makes it easy for you to tour properties you love and find the right real estate agent for you, without pressure to commit right away. If you find a place you want to tour, click here and type in the address. Soon, a real estate agent in the area will accept your tour request and meet you at the home. Once the tour is over, you are able to continue with that agent or find a new one by following the same process. 

A real estate agent will be able to provide all of the up-to-date information about the area, school systems, tax rates, water and sewer charges, or anything else that will go into your decision on a home.

Making an Offer

Once you have found the perfect home, it's time to make an offer. The first step will be meeting with your real estate agent, as well as an attorney, to fill out the Offer to Purchase form. This varies state by state and can be complicated, so it's best to fill it out with parties that thoroughly understand the form. You will then determine how much you're willing to pay for the house, keeping in mind factors like how much you can afford, how many other buyers there are, and how badly you want the home. 

The Inspection

It is advised that you include a contingency of offer depending on the results of the home inspection. This inspection is done by a professional, third-party company and is usually the responsibility of the buyer. This inspection should cover all central heating/cooling systems, insulation, structural components (interior walls, roof), and the foundation of the home. You most definitely can (and should) be present when the home inspection is being done so you can ask any questions and review what is being inspected. 

Finally, you'll make a deposit called "earnest money" to your real estate agent to go along with your offer. This shows that you are serious about the offer. If the sale goes through, that money will be deducted from the money owed at closing. If the seller rejects your offer, that money will be returned. Once your offer is made, the seller may make a counteroffer. From there, you have the option of accepting, rejecting, or making another counteroffer. That process goes on until an offer is accepted!

Check out more helpful blogs for home buyers here. When you're ready to tour a home, you can do it directly on our website here. 

Have more questions about financial options and downpayment assistance? Click here to get connected to a loan officer about pre-approval.

It may be more difficult for some buyers to save a ton of money for a down payment. Instead, some lenders will offer low-to-no down payment mortgages to allow new buyers the chance to enjoy homeownership. Your best bet for ensuring a reasonable rate on your loan is to build up your credit. If you've taken out other loans for things like cars, student loans, or personal loans, you likely already have a substantial credit history. HomeTraq can help connect you to lenders that offer low-to-no down payment mortgages depending on your situation. Click here to learn more about DPA and what resources are out there.

By spending around $500 up-front, you can save thousands of dollars on your home sale and have the luxury of a quick and comfortable ride to closing day. 

Does this seem like an investment that you're interested in? Here are some key factors that can determine how quickly your home gets sold and how much money you can save during negotiations:

• Agents agree to lower commission rates.
• Buyers love that your home is free of major issues.
• You can save money on expensive repairs or "closing credits."
• You have proof that your home is listed at a reasonable price.

Putting in the work before listing your home is an industry secret that saves agents the time and resources it takes to get a house ready to sell. By going through a Pre-Listing program, your home will be free of any significant issues that the buyer may find, which puts you in a great position to attract serious buyers who are searching for a move-in ready house. In return, the seller saves valuable time and some serious cash on the sale as a reward for the hard work they put in before listing their home. Take a look at some of the ways sellers are saving money by utilizing HomeTraq's Pre-Listing services: 

Agents Agree to Lower Commission Rates

Realtors who are partnered with HomeTraq have agreed to a 4% commission rate on houses where sellers have participated in the pre-listing program to some extent. A typical commission is around 6-8% for a home sale, and it typically comes out of the seller's pocket. Keep in mind, the seller and buyer's agents both get a cut of the commission. Thus, the seller pays a commission for the buyer's agent as well, which they agree upon in the contract with their selling agent. In other words, you pay for an agent that doesn't even represent you. It's in your best benefit to get a lower commission and keep more money in your pocket. 

Suppose you're using an agent outside of the HomeTraq network. In that case, you can still utilize our pre-listing model and request a reduced commission rate. Most agents appreciate the fact that you are making their life more comfortable. By consulting professionals about selling your home before agreeing on the contract, you are putting in the work for them. Your home will be in excellent condition to sell before they step into the picture, and they just have to find the buyer. We can negotiate a reduced commission, so more cash from the sale goes into your pocket.

Buyers Love That Your Home is Free of Issues

Gaining insight into the problems gives you the power to fix them before the buyer is even aware of the issue. If buyers see your home as "complete" and the house is more attractive, they may be willing to offer more money for a well-prepared home. 

An issue-free home comes from having an inspection done before you allow buyers to tour the home. Getting an inspection before the sale might seem like a waste of money because the buyer's lender will also have an inspection done by someone in their network to ensure the home doesn't have any major defects. However, getting ahead of these problems could save you a ton of money in the long run. 

Move-in ready homes are the most popular listings on the market. Most buyers aren't looking for a home to fix up and turn around for profit. Therefore, having a home with few issues is the best way to ensure you get substantial interest in your home. More interest leads to more tours, and more tours mean a higher chance for an offer. 

You Can Save Money on Expensive Repairs and "Closing Credits" 

You can preemptively fix the issues however it works best for you. Once the buyer becomes aware of any problems, they can negotiate closing credit with stipulations like requesting a specific contractor or other specifications. 

As the owner, you want to be in the driver's seat. Once you offer your home for sale, the buyers are interested in how the problems get fixed. If you do them before listing your home, you have complete control over how much you spend on the repairs. For example, if the buyer finds out about an issue from their inspection, they can request a $3,000 credit to fix it. In reality, it may only cost $50 to hire someone to come fix it. You run the risk of scaring away the buyer if you come back with a low counter-offer. Having a pre-inspection dramatically reduces the likelihood of this happening. 

You Have Proof That Your Home is Listed at a Reasonable Price

One great way to get a quick estimate for the value f your home is to use an automated valuation model (AVM). Many mortgage companies use AVMs so they can confirm pre-approvals for buyers. However, sellers can utilize the same software to determine how much they should list their home for.

Not all AVMs are created equal, so they aren't seen as an official "appraisal." They still consider several factors that the appraiser will evaluate, such as square footage and the number of bedrooms and bathrooms. Some will go more in-depth and utilize other properties in your area for comparison and even ask for tax records on the home.

Tax records are another key component of the pre-listing program. Ensuring that your tax records are accurate and up-to-date is a key step to estimating the real value of your home. If anything on the record is inaccurate, you could get an incorrect valuation. While AVMs are fast, they are not as meticulous as a full appraisal. Appraisals can take weeks to complete, but they are as official as it gets. If you want to be sure about your home's value, you should get your property appraised. In this case, you will have the most powerful negotiating tool. If the offer is below the appraised value, you would have an easy case for your counter-offer already on-hand. 

• Equifax 800-685-1111 or equifax.com
• Experian 888-397-3742 or experian.com
• TransUnion 800-888-4213 or transunion.com

What can hurt my credit score? 

There are only a few things you can DO to improve your credit score. It's also important to know what to avoid, so you don't hurt the hard work you've done to get a solid credit score. Unfortunately, keeping a good credit score takes time. Unless you can pay off a lot of debt at one time, you should pay attention to what things you should avoid, so you don't make it worse. 

Don't activate more credit cards

If you don't have a good credit score, you probably shouldn't tempt yourself to borrow more money. Also, your credit score considers how many credit lines you have open. So, even activating a credit card, whether you use it or not, can hurt your credit. 

Try not to "max out" your existing credit cards. As mentioned above, lenders consider your debt. Using your entire credit line can accumulate a lot of interest if you can't pay it back quickly. Do your best to keep up with your current credit cards and focus on paying off the credit you've already used. 

Some people think that closing a credit line will help their score. Closing a credit line negatively impacts your credit. Any activity, even if it's meant to eliminate the temptation to use a card, will hurt your score. If you've paid off a card and don't intend to use it, store it in a safe place so no one can steal your personal information. You must have a credit history to get a loan, but you can't close a credit line either. Weird, right? 

Try to avoid co-signing

If you co-sign for someone's loan, you are held equally responsible for the payments. If they miss a payment, it impacts your credit score as well. Chances are if they need a co-signer, it's probably because they either don't have adequate income to get the loan by themselves, or they have a poor payment history. Try not to get involved in any unnecessary risks, especially if you plan to apply for a mortgage soon.  

Need help? 

Talk to a mortgage professional HERE if you need help improving your credit score.

When you start thinking about buying a house, it’s easy to let your emotions run the show. Before you know it, you’re stalking homes for sale on a home searching tool like Zillow, Trulia or Realtor. com.   Understanding the steps of the home-buying process empowers you to make smart decisions about your home purchase.  Use an online home searching tool like HomeScout to get a handle on values in your area and their potential.  Get unfiltered, accurate, personalized & private access to 100% of homes available.  

See Homes Now

As you compile the list of properties you’d like to live in one day, note the areas of concern you have and ask your real estate agent about them before taking a tour. Below are five pieces of listing information on real estate websites that might tip you off about problem homes.

Market Time

You’re certain you’ve found your dream house. It’s in your price range and located in the vibrant neighborhood with good schools that you’ve been reading about in the paper. Every box is checked on your personal ‘needs list’: 3 bedrooms, 2 bathrooms, 2850+ square feet, a new kitchen, and a big, beautiful backyard. And then you see how long it’s been posted: 558 days. Oh boy. There is no consensus among professionals as to what the maximum time of home listing should be in order to attract buyers, but if it’s been on the market for multiple months or more than a year, it may be safe to assume that one of two things is happening: 1. Its listing price is too high, or 2. there is something unattractive about the property that is keeping it from selling.

Heating/Cooling

When you’re searching for a new home online, it’s important to think about your relative comfort during seasonal extremes. If you live in a hotter part of the country, air conditioning is a must. Conversely, if you live in the Midwest or Northeast, efficient and reliable heating will be a big concern. Certain terms will tip you off if the home you’re considering doesn’t have central heat or air conditioning: Pellet stove, wood stove, window unit, wall heater, multi-zone, multi-split, and ductless, among others. However, if you’re more tolerant of temperature fluctuations, non-HVAC systems may save you money while reducing your carbon footprint. 

Drainage

To some folks, not having a municipal sewer system is a deal-breaker when looking for the perfect home. If the idea of wastewater sitting under the lawn in a big tank is unattractive to you, look for the word ‘septic’ within the home’s description. Septic tanks are really the only option for rural properties, and they’re not a bad option because they’re generally less expensive due to zero municipal obligations. If you find a home in a city or large town and it isn’t integrated into the sewer system, you’ll want to find out why. A brand new home that hasn’t been hooked up to the city sewer system may involve significant future or front-end costs that might not be disclosed in the online listing.

Location

You want to be close enough to the city to give you modern convenience when you need it, but far enough away so you get that sense of separation from the hustle and bustle you’ve always wanted. When you’re conducting your online search, you might come upon a house that looks perfect in every way… until you zoom out in the bird’s-eye view. If the house is close to a freeway, airport, or active train tracks, you can expect noise! Look for at least a one-mile sound buffer from trains, planes, and automobiles if peace and quiet are important to you.

Pictures

You love to garden and fish, and you desire mountain views and access to hiking trails. One house you’ve found online is set on 15 acres of mixed woods and meadows and backs up to a river and national forest. Image after image reflects the beauty and pristine surroundings of this rural palace. But wait, what about the inside? If the listing you like only includes outdoor images but few interior shots, your suspicions should be raised. Ask your real estate agent to send detailed shots of the actual house before you seriously consider it for purchase.

Home Showings Simplified

How it Works

You choose the property

You do this anyway!  You find the home(s) you are interested in online.  HomeTraq gives customers total control of their home buying experience. On-demand home showings is the name of the game. You choose the property you want to tour, not the agent. Once you've decided which home you want to see, you request a viewing through the HomeTraq app, and an agent approves the showing based on YOUR request. 

You choose the date and time

One of the worst feelings is finding a fantastic home that is listed within your budget and having to wait (what seems like forever...) to get inside. HomeTraq allows you to decide the date and time you want to tour the home. It's even possible for clients to tour homes on the same day they submit a request. Also, most requests are approved by an agent within 3-5 minutes. 

No Obligation

We take it a step further by ensuring that you are not obligated to work with a specific agent. This protects you from working with an agent that you're not comfortable with. You are never required to use a particular agent until YOU choose the one you like and YOU choose to sign a buyer's contract with them. 

Our no-obligation policy serves another purpose. Since the agents know that you are not under contract with them and can back out at any time, it serves as an incentive to be as accommodating as possible. Good agents will try to give you a positive showing experience and build an honest relationship with you.

No Solicitation

We do not share your email or phone number with anyone.  YOU choose when you are ready to give it to an agent.  Additionally, not only do they not have the ability to, our network agents have agreed not to contact you until you're ready. Initial communication comes through the chat feature in the HomeTraq app.  Once you have all the details about touring a home, you won't hear from the agent until you view the home. This is meant to protect you from unsolicited calls and emails about properties that you're not interested in. 

Find Your Neighborhood Vibe

We recently launched a new quiz on hometraq.com that helps you determine what neighborhood fits your preferences and personality. The quiz is a playful way to help with what types of homes you should tour. It asks a series of questions about what you prefer in a neighborhood such as where you like to travel, what kind of neighbors you like, and where you like to shop. It takes this information and offers a score in the form of percentages. If you want to find out which neighborhoods you'd enjoy, click on "What's My Neighborhood" on the HomeTraq website. 

In-Person or Live Video Tours

The St. Louis Business Journal recognized HomeTraq for introducing Live Video Tours when the pandemic slowed in-person viewings. Agents are still showing homes in person for those who prefer to see it physically, but you now have the option to choose a virtual tour. Request a live video tour, and a network agent will virtually walk you through the house as if you were there. The agent is still available to answer any questions or fulfill any requests you may have, but it's a safer alternative to viewing a home during uncertain times. 

Other Resources

HomeScout

We partner with an online real estate service that advertises for-sale homes called HomeScout. It uses real MLS (multiple listing service) information to provide up-to-date information on available homes in your area. Here are some unique features you can benefit from if you use HomeScout in your home search: 

• Save homes you like and get updates if its status changes.
• Search based on the zip code you want to live in. 
• Quick access to information about getting pre-approved for a mortgage. 
• Speak to a loan officer about your loan options.
• See a map of all for-sale houses in a particular area. 
• Filter your search by price, size, number of beds/baths, or keyword search. 
• Have access to information like nearby schools, restaurants, entertainment, and other popular amenities. 

Mortgage pre-approval

We also give you the opportunity to speak with a mortgage lender and explore your financial options. We can get you in contact with a financial professional who can answer any questions or ease any concerns you may have throughout the process. 

We know buying a home is a huge decision. Even if you're not ready to commit yet, we still recommend getting pre-approved for a loan. Pre-approval gives you the peace of mind to know your price range, and you can act quickly once you find a home you want to buy. Most sellers require pre-approval before you put down an offer on the house. 

As a buyer, you'll need to be prepared for competition. Put in the work up-front, and you may be rewarded with an accepted offer in an extremely hot market. 

What does this mean for sellers?

You may have heard someone say that it's a seller's market. Okay, sure, but what does that really mean? It means that sellers are in the driver's seat. Depending on their location, they may get multiple offers on their home and have a buyer by the end of the month. It also means that housing prices are high, so you could get a fantastic deal on your sale. If you've thought about selling your home, now would be a great time to get the most bang for your buck. 

You can now tour homes that you like by requesting a home showing, and the agent will meet you at the door. You're no longer stuck with the same agent throughout the entire search for your new home. If you tour a home and you're not comfortable working with a particular agent, you can request another home tour and find a new one. 

You're not constrained to the agent that shows you the home. With HomeTraq, you have the luxury of touring homes as many times as you'd like and continue to tour homes until you find the agent you want to work with. Once you find an agent you like, you can work with them. There is no obligation to use an agent that you don't like.

Choosing the Right Agent

Finding a buying or selling agent is more than just someone you can get along with. Of course, you don't want to pick someone you're not confident about. More than that, you should search for an agent that is the best fit for your personal situation. Here's an example: 

Suppose you're looking for a home in the suburbs with a nice setup and room for a small family. An agent who sells million-dollar mansions on the other side of town probably doesn't know the suburban market well. Simply because they have a good reputation does not mean they are the right fit. Even further, you might get along great with that agent, but they're probably not the right agent for the job. 

Also, an agent should be honest with you and not try to sugar coat things. If an agent is willing to lie to you to get your business, nothing stops them from tricking you into a bad deal. If you have a bad feeling about an agent, get a second and third opinion. Chances are your gut is telling you the truth. 

How It Works

Log into HomeTraq and choose a home you'd like to tour. You'll get a confirmation text in an average of 3-5 minutes and get approved for a home tour from a real agent. Like Uber, you'll be made aware of the agent facilitating the tour, and you can choose whether you're willing to tour a home from that agent. You can confirm or deny that tour based on the agent giving the tour. 

Once you tour the home, you have the freedom to choose whether or not to work with that agent for the remainder of your search. Otherwise, you can schedule a new tour with another agent to continue with someone else. You are in control of your own home search. Agents can offer guidance at any point, but you decide what homes you want to tour and with whom you want to tour. 

Finding A Home To Tour

There are two routes to take. Once you find the right agent, you can work with an agent to find homes you'd like to tour. Otherwise, you can take matters into your own hands. You can find a home on any online platform or local MLS and apply to tour the home via HomeTraq. The buying process is still the same, no matter how you find the home. 

If you need help finding a home, take a look at HomeScout. We partner with HomeScout to bring you local listings with a variety of other services. For example, using HomeScout gives you access to certain information about the neighborhood, such as nearby schools, stores, entertainment, and crime ratings. Whether you use HomeScout or not, make sure to do your homework about the different neighborhoods where you're looking at homes. 

Home Valuation Request

Some AVMs are free to use and available to the public. A more detailed report might cost somewhere around $20. Each model is different, so if you're not happy with the first valuation, it's not a bad idea to get a second opinion. Keep in mind, an AVM is a rough estimate based on publically available data. 

If you're serious about contesting your property taxes, you will need more than just an automated report to plead your case. Professional consulting firms are available to help, but it might cost you some time and money. However, if you feel your taxes were wrongfully calculated, it might be worth digging a little deeper. 

How it impacts your property taxes

Tax Assesors in your local Treasury use what is called "fair market value" to determine the value of real estate in their area. They use a similar process to AVMs by evaluating similar properties that recently sold in the area, and compare them to the tax records for your property.  

• St. Louis tax assessor
• Columbia tax assessor
• Kansas City tax assessor

Assessments are somewhat subjective because they're an estimate based on many factors. While a lot of Treasury departments have automated methods, there is a human element to determining property value. So, it is possible to argue that an assessment is inaccurate. Particularly, homeowners tend to contest their assessment when the estimate seems too high. If your property is valued at a higher price, you'll owe more in property tax.

If you're looking to sell your home, it's exciting to get a high valuation. However, if you don't plan to sell and get a surprising valuation, it might be worth looking at other options.

Resources to contest your tax assessment

Contesting your property assessment is a commitment, but it could be useful if you want to save some cash. Certain companies like Admiral Consulting help you contest your assessment for a percentage of what you save over a few years. Depending on how much you believe the assessment is wrong, it may be worth your time to talk to someone about your options. 

Some customers are seeing up to a 10% spike in their real estate taxes from last year. $3,450 is the median property tax amount in Missouri for a home that's valued at $250,000. An assessment that is off by 10% would add almost $400 to your tax bill. Even for a modestly-priced home, it's worth speaking to someone about contesting your property tax. 

Find Your Vibe at https://HomeTraq.com

If you live in a high-interest area, you can use that to your advantage. Popular neighborhoods include areas with good school districts, safety ratings, and healthy real estate markets. You can find the information about your school and safety ratings on HomeScout. Just type in your zip code and select a house in your neighborhood listed for-sale. Scroll down, and you'll see a "lifestyle information" categories with ratings for your area. 

4. Access

It might be hard to find time to let people in to tour your home if you're still living in it. You might not have a choice, but you should probably consider if your schedule will allow for a lot of home tours. You could always plan an open house to invite many people to see your house at a time that works with your schedule, but you might be missing out on an entire group of buyers if you can only let people in on the weekend. The best time to list your home for sale is when the agent can have access to the home at a time that works for the prospective buyer. 

If you can move out of the home before you allow tours, there are ways that you can make an agent's life super easy! To make a home more readily available to prospective buyers, many sellers put the house on a secure SUPRA lockbox. Once your agent has electronic access, they can schedule a showing at any time. This eliminates any potential scheduling hassle, and they don't have to request access every time they have a tour. Additionally, many home-sellers have all but eliminated “by appointment only” requests as it creates an additional scheduling barrier. 

5. Move-in ready

Millennials are now the largest generation, and they are starting to buy homes at higher rates. Real estate studies have shown that in a time of "instant gratification," Millennials are less interested in fixer-upper houses than previous generations. Younger generations prefer move-in ready homes, and they're willing to pay for it. If you think your home needs some attention, it might be worth your time to update your home before you put it on the market. Your pocketbook will thank you! Check out our previous post about cheap and easy ways to DIY update your home. 

If you can't afford to update your home, you can always negotiate closing credit. Closing credit is a discount on the sale in exchange for the costs the buyer will incur to update the house before they move in. This isn't ideal, but it is an option if you'd rather not deal with it yourself. 

6. Should I talk to an agent?

Absolutely! Talk to an agent that you trust about what steps you should take to sell your home. They can offer recommendations and set you down the path for success. Preferably, find an agent who has experience representing sellers. Ask for references, if necessary. They will have previous clients who can vouch for their work. Avoid agents who also have clients looking to buy a home. This could be a conflict of interest, as it's hard to have both parties' interests in mind. 

Selling your home FSBO puts a lot of extra pressure on your household to get everything in order.  We recommend interviewing agents and choosing an agent you're comfortable with and has experience selling homes in your area. Not only will it speed up the selling process, but it takes much of the work out of your hands and places it on the realtor (it is their job, after all). 

Take a look at some of the primary reasons we recommend finding a great selling realtor to help sell your home:

Realtors Offer Experience and Expertise

Taking the stress off of yourself and your family members is enough reason to forego the idea that using an agent isn't worth the price. If you need more convincing, consider how helpful it would be to have someone in your corner that knows the market. They can tell you what is selling faster than others, then help you position your home on the market appropriately. 

Someone who has been helping other people sell homes in the area can tell you what buyers are looking for right now. They can also give you a better idea of a fair listing price based on several different factors. They may have access to an automated valuation model (AVM) that uses the same variables as appraisers to determine the value of your home. They can also emphasize your home's popular features that you may not have considered before meeting with them. 

Also, licensed real estate agents are professionally trained and certified to sell homes in your state. Their extra knowledge and experience could lead to a quicker and easier sale. They can work through all of the rough patches and offer recommendations based on their experience. In all, it's always helpful to have another person helping you make big decisions. 

Agents Can Conduct Buyer Screenings

Real estate agents have screening processes where they can verify the buyer's identity wanting to tour your home. In other words, they serve as an extra security barrier for your home. Sometimes, making a sale without a professional involved can be tricky. 

As much as we would like to deny it, there are people out there who wish to take advantage of others. Knowing this, agents have ways to confirm the identity of a prospective buyer and ensure that everything is safe before they enter your home. Selling your home FSBO could mean less security. Inviting strangers into your home could be dangerous without the right levels of preparation and protection.  

Also, selling agents can work with buying agents to double-check that the person is correctly identifying themself. In other words, if a buying and selling agent is involved, there is an extra layer of protection. Agents can make appointments with buyers before the tour to get a better read on the individual before letting them enter your home. 

To prevent individuals from knocking on your door and ask to tour your home, you can ask your realtor to post a "Do Not Inquire Within" sign on the for-sale sign in your yard. 

Agents Have Networks

The agent may work for a brokerage with many other buying agents looking for a home for their clients. They scan the listing site for their clients' homes and communicate to help their clients find the best houses. This is one of the most significant advantages of listing with an agent. They can speed up the selling process and get a ton of interest in your property if the conditions are right. 

Even if the market is slow or they don't have an extensive network, there is still an advantage to having a realtor. Getting a selling agent gives your home credibility among other agents. There is a certain level of trust among real estate agents. For example, if your home is listed FSBO, a buying agent might be skeptical about contacting you for their client. Although, if you have an agent, they either already know your agent and are comfortable contacting them, or they will reach out and get to know them. Either way, having an agent puts you on a level playing field among buyers' agents. 

A Realtor's Fiduciary Duties

Finally, all real estate agents must maintain a specific level of responsibility to keep their license. These duties are all geared toward making sure your best interest is behind every decision. As the seller, you are protected by ethics laws that ensure your sale goes smoothly and with your safety and satisfaction in mind. 

Here is a list of fiduciary duties that real estate agents must follow to keep their license:

• Care: You show reasonable care for your clients in the transaction, which could very well include their safety.
• Obedience: You obey your clients’ wishes—most want to keep themselves and their belongings safe.
• Loyalty: You are loyal to the client, which means placing their interests above your own. You are their guardian in this transaction.
• Disclosure: You disclose relevant facts to the transaction, and safety for buyers and sellers may be an important disclosure!

6/24/2021

If you have all of this paperwork ready, we suggest getting pre-approved for a loan. Having pre-approval gives you a sense of security and confidence in knowing you're prepared to buy a home. It also gives you an advantage should someone else make an offer that isn't approved yet. Check out https://www.hometraq.com/ to speak to a mortgage lender about getting pre-approved for a mortgage. 

2. How will I know when I'm ready to buy a home? 

If you're financially ready, then only you can decide when you're emotionally prepared. Of course, it's a huge purchase and a long-term responsibility. Once you're comfortable with the monthly expenses, you have to decide if you can see yourself in a single-family home. 

When you own a property, you can personalize to fit exactly what you want. Ready for a big industrial kitchen or paint all the walls a particular color? Then you're probably ready to buy your own home. Landlords don't want you to personalize their property because they'll likely have to rent it out to someone else eventually. If you own the house, you don't have to jump through unnecessary hoops to feel comfortable at home because you're your own landlord!

3. Should I buy a foreclosed home? 

We wouldn't suggest buying a foreclosed house if it's your first home. However, it could be an excellent investment if you're willing to put in the work. A foreclosed home has likely been neglected, and it might require a facelift. If you can renovate and update the house to be more attractive, you could re-sell the home and make some serious profit. 

If you're not interested in flipping a property, then you'll be able to update the home to fit everything you've desired from a home. Since it's so cheap, you can use the extra money in your budget to make all the changes you want. Of course, you'll have to be experienced with renovating homes or willing to learn. Either way, it could end up being a fun activity. Just be aware of the amount of work you could be getting yourself into. 

4. Should I buy a fixer-upper? 

The same idea applies here, as we mentioned in the foreclosed home section. Be ready to put in a lot of hours making your home perfect. Remember, you'll be living in this house while you're making renovations. If you want a home where you can relax and host company right away, you might consider getting a move-in ready home. Otherwise, buying a fixer-upper could be an excellent investment. Just be sure it fits your circumstances. 

5. How will buying a home affect my taxes? 

Most people can get a tax credit from the interest they pay on their mortgage. You can also get other tax perks for owning a home. For example, if you switch to more energy-efficient electricity, you can use it as a write-off. Also, sometimes you can deduct Private Mortgage Insurance (PMI) from your taxes if it's included in your mortgage. Some areas allow tax deductions if you pay property taxes as well. 

6. What kind of insurance will I need? 

We hear a lot of questions about the right insurance for homeowners. Ultimately, there are two types that we recommend every homeowner get well buying a home. 

• Title Insurance
  Title insurance protects the buyer from any complications or mistakes during the title transaction. If there are any legal issues, title insurance will help offset any attorney expenses. You can visit our post about title insurance for detailed information about how to get title insurance and what it covers. 
• Hazard Insurance
  Another essential type of insurance for homeowners is hazard insurance. Hazard insurance is usually included in homeowner's insurance, which most lenders require. Make sure your homeowner's insurance provides hazard insurance and purchase it well before you move into your home. 

Since the Community Reinvestment Act (CRA) was introduced in the 1970s, lenders have struggled to find new and meaningful ways to serve low-to-moderate (LMI) communities and tackle homeownership inequality. They do their best to donate to charity or help their community through fundraising and community events. Unfortunately, low-income individuals still have a much harder time getting a mortgage. We've created a Socially Responsible Real Estate Technology that will increase your mortgage business and improve your lending opportunities in LMI neighborhoods. 

The Problem: Unequal Access to Real Estate Resources

Homeownership Inequality

In a 2020 Forbes article titled Redlining’s Legacy Of Inequality: Low Homeownership Rates, Less Equity For Black Households, Real Estate writer Brenda Richardson states, "The national homeownership rate is lower for Black families than white families—44% versus 73.7%." She continues by suggesting this homeownership gap contributes to the overall wealth inequality in the US. Minorities don't have proper access to mortgage lenders and can't accumulate assets.  

Access to Agents

Especially in areas where most residences are rented rather than owned, prospective buyers have a hard time finding an agent to show them a home they're interested in. They might even have a hard time finding for-sale homes in the first place. Unfortunately, some agents refuse to serve certain areas if the homes are valued too low. 

With HomeTraq, the buyer is protected from discrimination because the agent won't see the buyer's face or name before they accept the showing request. Also, some agents won't show buyers a house before they're pre-approved for a loan. In this case, agents are to serve as an educator and encourage the buyer to talk to a lender. 

Redlining

The act of redlining is illegal, but the effects continue to impact low-income neighborhoods. Showing consumers that not only is redlining a thing of the past, but you're encouraging LMI communities to apply for a loan is an admirable mission. 

The Solution: HomeTraq Home Touring Technology

Down Payment Assistance

Notifies the buyer and financial institution when a requested home tour falls in a neighborhood that qualifies for Down Payment Assistance based on FFEIC census tracts. Hundreds of thousands of dollars go unused by potential homebuyers every year. Most of the time, it doesn't get claimed because the buyers don't know it's available. HomeTraq educates buyers and can make the homeownership dream a reality for those that don't think they can afford it. 

Increase Mortgage Business from your own Customer Base

HomeTraq is a real estate solution to a mortgage problem. When partnering with HomeTraq, we refer customers who come through a lender's pipeline back to their mortgage services. Also, we notify the mortgage officer when their customers are shopping around. 

Financial institutions lose 93% of the mortgage opportunities from their own customers every year. HomeTraq can double your mortgage conversions by simply notifying the lender when one of their customers is home shopping. The cost of acquisition is much lower than other lead gen sources because you only pay when your customer goes on a home tour. 

For example, most homes are priced similarly based on square footage, number of beds, baths, and location. Other factors include the home's condition, the strength of the market, and how it compares to other similar homes in the area. For a more detailed description of how appraisers evaluate a home, check out another blog titled "How to Determine Your Home's Value."  

If a seller decides to have an appraisal before listing their home, it might impact their listing price. Lenders will always require an inspection and appraisal at the buyer's expense, and they could come back and ask for a price reduction after the appraisal. We recommend sellers have an appraisal before deciding on a listing price so they can minimize the risk of listing the home too high or too low. 

An important tidbit to remember is that the appraised value of a home can vary based on the housing market's strength. This reality means appraisers have to consider the condition in the market in their valuation. The next section defines market value and talks about how the market can impact a home's value. 

Market Value

Market value refers to the impact supply and demand can have on home sales. Supply means how many homes are for sale, and demand is the number of interested buyers. If the market has tons of buyers and not many sellers, those who choose to sell can get away with asking for a higher price. On the other hand, if there are many houses for sale, the buyer can get away with a lower price. Either way you look at it, the market is dictating the outcome.

Let's say you're looking for a home to buy. There are tons of viable homes on the market, so you can be picky. If you tour a home and would like to make an offer, you can afford to ask for a lower price because if they decline, you can move on to another home. Likewise, if you can see yourself buying only one or two homes, you have to be much more careful about negotiating a price. The market has impacted the value of the house. 

The seller's perspective is the same but from the opposite side. If there are tons of potential buyers, they can decline an offer that they think is too low. On the other hand, if they only have interest from one buyer, they have to decide how desperate they are to sell the home. It's valuable to understand what kind of market you're in before you make any important decisions. If you play your cards right, you can use the market to your advantage and get the better side of the deal. 

The housing market seems to have eluded the effects of COVID-19 when August produced another increase in total housing demand. The number of mortgage applications increased by 3% in August, with a total increase of 25% from this time last year. 

Housing Demand Soars

This is good news for the economy. One explanation for the high buyer's demand is that people are thriving and looking for a better home. It also shows that people aren't scared to go out and buy a home, given the current circumstances. As long as the proper steps are taken to allow for safe home tours and mortgage transactions, there's no reason to be worried about getting out there and buying a new home!

Since last August, the 25% increase in mortgage applications shows that not only has housing demand recovered from the pandemic, but it continues to grow. This is excellent news if you're looking to sell your home. Unfortunately, the market has been tight because fewer people are willing to sell their homes. 

A strong economy puts individuals who were previously renting or leasing a home in a better position to buy a house and put down roots. The problem with a low housing inventory means they have less options. It may take longer than usual to find a home that meets your expectations. Be patient and wait for the right home to come onto the market. During the waiting period, you can spend some time getting your current home ready to sell, or start packing your things up early. Take advantage of your free time while you wait for the right house to come along, then you can move quickly when it does. 

High-End Housing Leads the Charge

While the market for houses around the median price ($250,000-$350,000) is tight, inventory continues to increase for high-end homes. The US has seen an increase of 44% availability for homes valued at $1 million or more.

One explanation for this increase could be that wealthy individuals have not been impacted by the pandemic as significantly as the middle-class and working-class households. We should start to see the median-level houses follow their lead as the market continues to recover from COVID-19. With the massive demand for housing, if inventory starts to increase, it could be great news for the real estate market. 

Buyer's Want Larger Houses

Many buyers are applying for homes with more square footage than their previous home. With COVID-19 forcing many people to work from home, they can manage a larger space than usual. In fact, they may need more space to accommodate an office area or for their equipment. Many companies have taken advantage of the work-from-home initiative and decided that they will continue working from home long-term. It's a great way to save money on the expenses related to having a physical office. 

Some families have had to transform their homes to fit their new lifestyle. Many kids are forced to stay home rather than go to school, so the parents have had to create a makeshift workspace for their kids as well. It has been difficult for some families to create enough space in their home for a classroom and a functional home office. 

So, the result is homebuyers looking for a new home with the space to fit all of their unique needs. The COVID-19 pandemic has posed many new obstacles for homeowners, and it doesn't seem like they are going away any time soon. The good news? Mortgage rates are trying to stay low, despite the impact COVID-19 has had on the economy, and people have not been afraid to take advantage of it.

According to Edward Pinto, the director of the American Enterprise Institute's Housing Center, the above-average prices are not a temporary thing. He believes that prices could stay higher for years because people are placing a higher value on their homes. Even as the country is recovering from the pandemic, many businesses are still having their employees work remotely, which means people are spending more time in their homes. 

Also, with the combination of low housing inventory and high demand from home buyers, the market will stay competitive. Until the market balances itself out, homeowners will continue to drive up the price of for-sale homes. 

People who were originally working in large, expensive cities are moving to more affordable parts of the country like the midwest. As their jobs stay remote, they want more space and more bang for their buck. Suburbs and smaller subdivisions are seeing the largest influx of potential homebuyers. 

Next Steps

While buying a house in this market is hard, it's not impossible. Speed is your friend in the competitive marketplace. It's also important to mention that mortgage rates are at an all-time low, most at about 3% right now. This can help if you're needing to put more money down for a house than you were expecting. 

But waiting for more of a market balance in the coming months might save you a chunk of change as well if you're not in a rush to move.

Something that might help you decide your next move is getting your home evaluated. You may be surprised at how much your current home has increased in value. 

Follow the link below to request a free home valuation.

Home Valuation Request

If you want some more information about finding Down Payment Assistance (DPA) in your area, check out this blog post about down payment assistance.

• Department of Housing and Urban Development (HUD) 

• Federal Housing Administration (FHA)

It's Like Applying for a Scholarship

If you've applied for a college or trade school scholarship, then you know that nearly every scholarship has different qualifications. I once came across a scholarship when I was applying for college that the recipient had to be born on a specific month. While I don't believe state and local down payment funds are this specific, I can say that none of them are built the same. Different assistance programs are available based on income, geographic location, and the last time you've owned a home. Some plans are for low-to-moderate-income buyers, and others are built to assist minority groups. Prospective home buyers have to research and see which category they fall into to find the right DPA program.

DPA for First Time Buyers

It can be difficult for a first-time buyer to enter the home buying world. Financing companies and state and federal governments have tried to make it more accessible for new homebuyers to take out a loan. If you've been renting for a long time, you won't have a history of mortgage payments for lenders to evaluate, making it more difficult to approve a loan amount. Different organizations have provided down payment assistance specifically for first-time buyers to bridge the gap, so they don't have to settle for a huge interest loan. 

It may also be more difficult for some buyers to save a ton of money for a down payment. Instead, some lenders will offer low-to-no down payment mortgages to allow new buyers the chance to enjoy homeownership. Your best bet for ensuring a reasonable rate on your loan is to build up your credit. If you've taken out other loans for things like cars, student loans, or personal loans, you likely already have a substantial credit history. Continue to pay off those loans, and don't take out any more loans until you've spoken with a trusted bank or lender. 

Once you're sure your credit is in good standing, it's time to evaluate your expenses against your income. Understanding how much you can afford for a mortgage depends on how much money you make per month vs. how much outstanding debt and expenses you have. Once you know your debt-to-income (DTI), you'll have a better idea of how much you can afford. Finally, start saving for a small down payment. Lenders can help you out, but the likelihood you get a 0% down loan is small. Saving up some cash is your best bet to ensuring you get the loan. 

Common Mortgage Qualifications

We wanted to throw in some qualifications for standard mortgage options so you can compare your finances. If you're somewhere close to these benchmarks, you're in an excellent spot to be able to take out some type of mortgage. Even better, if you meet these qualifications and you're a first-time buyer, you should have some good options when choosing to buy your first home. 

Conventional Mortgage

• Usually requires a minimum credit score of 620
• 5-percent down payment, some programs allow 3-percent
• Debt-to-income around 50% or less
• Usually requires Private Mortgage Insurance until you reach 20% equity. 

FHA Loan (Government-backed: Federal Housing Administration)

• Usually requires credit score to be a minimum of 580
• 3.5% minimum down payment
• Additional fee: mortgage payment premium for the life of the loan. 

Veterans Affairs (VA) Loan

• Only available to veterans or their spouses
• 0% down payment
• No Private Mortgage Insurance required

If you qualify for any of these options, then you should have a good idea of how much you'll need to save for the down payment. If you don't meet the requirements, you can still search for other down payment assistance options in your area. 

Talk to a Trusted Lender

The best way to get sound financial advice is to speak with a mortgage professional. They can explain your financing options and help you make a plan that fits your needs. You will also have a better idea of the types of down payment assistance options in your area and can tell you which ones you should pursue. 

Before you start your home search, you should talk to a lender about pre-approval. Having the peace of mind going into your home search is a great feeling. A pre-approval will tell you how much you're likely approved to borrow, and it will guide your home search. Besides, you don't want to waste your time touring homes that don't fit your budget. Also, you'll be ready to make an offer when the right house does come around. Once you're ready to get serious, talk to a loan officer about pre-approval so you can start your home search. 

If you're still stuck after reading through this list and can't figure out what you want from a neighborhood, you can take a quick and fun quiz to figure out which neighborhood fits your vibe.

Crime Rating

One of the most significant factors home buyers consider is the safety of the neighborhood. Naturally, they don't want to move somewhere that they won't feel comfortable. So, check out the area's crime rating to see if you'll have any cause for concern. Most popular listing sites will include information about the crime rating in that area. If they don't, a quick google search will do the trick. You can also read a few local newspaper segments to get a feeling of what kinds of things are going on in that area. 

Entertainment/Night Life

Entertainment is especially important to younger generations and single home buyers. The ability to go out and be social is crucial for maintaining a healthy life and meeting new people. Some sites will offer a general "entertainment" rating, but they might not dive deeper into the types of entertainment you can find. You might need to do some additional research to determine what sorts of entertainment and nightlife are near the location. 

Some home buyers might want a trendy, late-night pub with live music they can frequent, while others might consider entertainment to be movie theatres and game stores. This might require some extra digging to make sure the area fits your vibe. Google is a great resource, but you may want to consider driving around or even attending some of the hotspots to see if it fits your desires. For younger generations, if the nightlife is right, they will settle for less in other categories. 

Quality of Education

Parents with kids rely heavily on the quality of schools in the area when deciding where to move. School quality is also a major contributor to the cost of living and housing prices. If you're lucky, you can find an affordable home in a nice neighborhood where the property value will significantly increase. Otherwise, if you're willing to splurge, you can get a beautiful home in a neighborhood with an excellent school system. Your kids will be well-educated and live in a respected community with other families who value education. 

Be cautious when moving into a neighborhood with a good school if you don't have kids. The cost of living is typically higher because the school relies on local taxes to fund its programs. Thus, an excellent school means you're paying higher taxes. If you aren't interested in funding the school system, then you might want to avoid an area with a high-end public school system unless you're interested in paying taxes for other kids to have a quality education. 

Cost of Living

The cost of living is directly related to all the other categories. If it's a nice neighborhood with tons of entertainment, low crime rates, quality education, and easy access to stores and markets, the cost of living is typically higher. So, if you want a cheaper home, you may have to sacrifice in other areas. Otherwise, you can have the luxury of living in a great neighborhood, but you're probably going to have to pay for it. 

One way to gauge the cost of living is to research the different tax rates in the area. If you're not already familiar with the area, checking out the property tax, sales tax, and state income tax is a good start. Places with a higher cost of living are usually attributed to a higher tax rate. Also, natural and organic grocery stores will be a bit pricy, so an abundance of those will run up the food bill. Finally, look at the prices of food and drinks in some of the local restaurants, and you'll get a good idea of what you'll be paying in other categories as well. 

Access to Restaurants and Grocery Stores

Cooking all week is exhausting. Sometimes you need to be able to order in some take-out or take the whole family to a nice restaurant. Most families prefer to be within driving distance of a few restaurant choices. Local or regional cuisine is preferable, but any kind of gastropub or diner should do the trick. Whatever you're into, be sure to check out the local food scene before you make the leap. It's a real bummer if you have to drive an hour or more to get some sushi or pick up some of that BBQ we love so much. 

For the fancy chefs among us, it may be necessary that a grocery store with tons of fresh produce is nearby. If that's the case, you probably don't want to live too far from a grocery store. While food deserts are becoming less prevalent thanks to a recent push to end food insecurity, grocery stores might still be hard to find in some neighborhoods. Double-check that there is a quality grocery store within walking/driving distance from your desired location so that a quick trip to the store doesn't have to be a full-day event. 

Activities and Fitness

I like to golf, while some people like to do yoga. Whatever you're into, there's likely a home nearby. If your idea of fun is working out at planet fitness or going to a spin class, you may not want to live in a rural community. Likewise, if you enjoy long walks in nature, fishing, and camping, you probably shouldn't live anywhere near a planet fitness. Figure out what lifestyle and activities are important to you, and keep that in mind when choosing a location. 

Consumer Federal Protection Bureau (CFPB)

The CFPB was formed to protect consumers' rights. It is not specifically for real estate, but there are sections about financing, such as mortgage loans, bank accounts, and services, credit reports and scores, etc. Anything to do with banking, loans, and credit will have resources in the CFPB portal to offer advice on financial planning and laws that protect you as the consumer. 

Federal Trade Commission (FTC)

Another group that advocates for consumers' rights is the Federal Trade Commission. In fact, if you feel like you've been treated poorly, misled, or the victim of fraud, the Federal Trade Commission may step in to investigate. Otherwise, you can use the site as a resource to gain insight into how the regulations are evolving. 

Real Estate Settlement Procedures Act (RESPA)

Commonly known in the real estate industry as "RESPA," the real estate settlement procedures act is designed to increase transparency in the mortgage transaction. Lenders are required to share the full disclosure with their clients at least 3 days before the closing date. If something changes within this 3-day period, the lender is required to relay that information to the borrower and push back the closing date to accommodate any changes. 

RESPA also protects consumers from unnecessary closing fees and limits the use of escrow accounts. It also limits the illegal exchange of money known as "kickbacks," where lenders and real estate professionals would hand over clients in exchange for cash. To be clear, referral fees are different and completely legal. Kickbacks are an unlawful exchange of money for services. 

Truth in Lending Act (TILA) 

TILA is another example of a disclosure act, but this one applies to more types of loans such as credit cards and auto loans. The lender is required to provide sufficient information to the borrower at least 3 days before closing, and the borrower has the right to back out of the loan at any time within the three-day period. Similar to RESPA, if anything changes within the 3-day time frame, the lender must share that information and allow the borrower sufficient time to review the changes and back out at any point. TILA was designed to allow consumers time to think about their purchases and not fall for pushy sales tactics or coercion by the lender. 

Community Reinvestment Act (CRA)

Fair lending laws also protect consumers from discrimination. In the past, lenders have chosen to refuse loans to minority and low-income individuals. The CRA prohibits these practices and penalizes lenders who don't comply. Since the CRA was introduced, low-to-moderate income communities have seen an increase in access to loans. Banks and mortgage companies are encouraged to provide the necessary resources to everyone in their constituency, not just the well-off neighborhoods. 

Equal Credit Opportunity Act (ECOA)

Similar to the CRA, the ECOA requires banks to consider all credit applications. The CRA mainly pertains to mortgage loans, but the ECOA covers all other major loans. Banks and credit unions cannot discriminate based on sex, race, age, religion, or any other non-financial category. With the increase in technology, it's fairly easy to determine the credit score and DTI of most people, so there is no need to consider any other characteristic. There never was a need, but now it is illegal to do so. 

• How to Prepare Your Home for Sale
• 5 Step Plan for Finding the Right Home
• The Better Way to Tour Homes 
• How to Find Down Payment Assistance in Your Area

Preparation is key in a fast-paced market. We see for-sale homes get multiple offers in a week. You have to be confident in your decision when the time comes to make an offer. Arranging your finances, creating a must-have vs. would-be-nice list helps. Once you know what you need, you can sign up for a tour quickly when you see something go on the market that checks those boxes. 

Request pre-approval ASAP

Being in the right mindset and organizing your finances is an important first step. Once your mind is in the right place, and you're ready to start touring, you should get pre-approved for a mortgage. Pre-approval will tell you how much you can afford and confirms to the seller that your offer is valid. 

Once you're pre-approved, you can narrow down your search to a specific price range. Pre-approval takes less than 10 minutes to apply, and it's a pretty accurate snapshot of your finances. Buying a home is a huge investment, so you'll want to protect yourself by preparing your mind and your mortgage options. 

Act and react quickly

You probably get the point by now. The market is super competitive for buyers right now. We talked about being prepared, both financially and mentally. You've read our blogs about buying and selling best practices, and you know that when the home of your dreams goes up for sale, you'll need to act fast if you want a shot. However, there are just some things that are not in our control. 

We can prepare every last detail and still get thrown a curveball halfway through the process. That's when we need to think on our feet. Sometimes you'll apply to see a home, and the seller will cancel the showing. Or, you make an offer, and they counter with a number so high there's no way you'll come to a common ground. When other buyers are involved, you never know what might happen. Simply put, be ready to get thrown a curveball. If you anticipate something going wrong, you won't be shaken too badly when it happens, and you can recover quickly. Ask a friend, call your agent, or just take a moment to process everything. Then get back out there and keep fighting for your dream home!

Use HomeTraq to get in the house quickly.  

There's no time to wait on a call back from the selling agent to see if the home is available to tour. Not to mention, you never want to tour a home without representation. HomeTraq solves both of those issues. When you apply for a home tour at hometraq.com, an agent will meet you at the door just like an Uber driver will pick you up from the bar. You get representation and expertise from a local real estate agent, with no commitment to use them again in the future. You also get to choose a time that works for you rather than going off the agent's schedule. You're in control and can work at your pace. Have a weird work schedule? Schedule three tours on your day off. It's the best way to ensure you see every house in a time where homes aren't sticking around long.  

Water damage can occur from poor drainage of rainwater, roof damage, or any leaking internal pipes. Standing water outside of your home can damage the exterior and compromise the foundation. On the interior, if you have any pipes leaking or standing water, it can rot wood beams or lead to mold and mildew that can cause health issues. In other words, current water damage or past signs of water leaks like stains or rotting wood will likely be reported on the inspection. Buyers are wary of water damage because it is hard to get rid of and can wreak havoc on the home if not adequately addressed. 

Ventilation

Inspectors will look to make sure there are exhaust fans and proper ventilation in necessary areas such as kitchens and bathrooms. They will also check to make sure carbon monoxide levels are normal and that there are windows in all the bedrooms. There also has to be a way to cool down an area in every bedroom, including a window, fan, or A/C unit. If anything can produce fumes, the inspector will make sure that the exhaust systems and ventilation are operable and that the fume levels are normal, and there are no concerns. 

Selling your home can be one of the best moves you’ll do. Housing is consistently in high demand, with few homeowners ready to sell.  The economy is bouncing back, and whether you sell for cash or through a real estate agent, you have several details to consider.

Selling your home can be the decision of a lifetime. You can get good value out of your home, but you need to know that it has drawbacks. Here are the pros and cons of selling your house and whether you should do it now.

Pro: You Can Get Some Equity from your Home

Whether you’re preparing to sell your home or you don’t want prep at all, one crucial detail you need to consider is your home’s equity. You want to gain some equity to buy your next home and get something more suitable than what you already have.

Selling now can be a great advantage because mortgage rates are down, and it’s a buyer-centric year. There’s also a lot of extra equity flowing, with the average borrower gaining as much as $50,000+ to $100,000+ gain in equity. Selling now can get you solid value on your home and get a good profit margin.

You’re also setting yourself up with enough equity to cover your next home. Whether you’re downsizing or going for a home fit for a larger family, you should be able to cover that and get a little extra on the side now that you’re getting started.

Con: It Can Be Hard To Find A New Home

When you’re trying to sell your home, the last thing you want is to become homeless yourself. Remember that it takes time before selling a home - from a few days to several weeks long. Some homes even take a few months before you can flip them over.

During this time, you need to make sure that you can find yourself a new home. A real estate open house can fast track your home sale by a few weeks and even net you up to an extra $15,000 in sale price. All these don’t matter if you’re worried about your next home.

If you’re still unsure where you’ll end up next, or you haven’t secured the deal yet with your next house, don’t sell just yet. It’s better to wait to ensure that you have a roof over your heads before you sell. There’s also a chance that you won’t get the price you want for the home, which can be problematic if what you get is less than the value of your next home.

Pro: You Have A Growing (Or Shrinking) Family

One pro of selling your home is accommodating your growing family’s needs. If you have a starter home with only a few bedrooms, you’re likely a family of 3 or even 4. This can be problematic if you have a growing family or you’re on your way to having teenagers that need their own space.

Selling your home now can help you find a more suitable space for your family. The same is true if you have kids moving out, which means you won’t need a bigger home anymore. Downsizing can help you have a home that works for your needs.

Sell your home and find a more suitable home to accommodate your needs. A bigger house can be great for a growing family, while a smaller home affords you a cozier space while getting some extra cash.

Con: Your Family Needs To Readjust

One of the big cons of selling a home is having the kids adjust to a new environment. Most people who buy their first homes are likely couples looking to have children or those with a growing family. If you have kids who already have friends in your area, expect some adjustment issues.

Your family would need to adjust to an entirely different environment. If you’re moving nearby, the adjustments should be easy to make. For those moving to a entirely different city or state, we’re talking about big adjustments to a new culture, new neighborhood, and even new school.

If you think your kids can adjust well, there shouldn’t be many problems, especially if relocation is a must. Selling your home means your family needs to do their best and welcome their new lives, including yourself. If your family is the type that likes being rooted in one place, consider if selling your family home is necessary at all.

Pro: You Can Get More Than Listing Price

If you have kept the value of your home, you are in an excellent place to get more money than the asking price. Many homes are selling for tens of thousands of dollars above listing, and you should get the most value from the current market.

Most homes right now are bought through intense bidding wars from buyers, together with a stronger interest from everyone. The real estate market is in a weird position where many in-demand homes sell for much higher - as much as a third of all homes sold.

If you think you’re in an advantageous position, it’s a fantastic time to sell now. With the right home, you’ll likely get to sell higher than your original home’s value. The extra money can go a long way, especially if you’re looking to build onto your next project.

Con: You’ll Miss Out On Your Home’s Value

One of the biggest issues that you can experience when selling your home is missing out on the growing value of your home. If you have all the right pieces that make for a fantastic real estate property, selling now can make you lose out on the potentially higher value you can get.

Home prices are starting to soar once again, but there is demand that is growing for them this time. If you sell out before you reach the peak value of your home, you’re losing out on potentially tens of thousands of dollars. Then again, you need to time the sale to fit your needs.

A home’s value does not matter if you lose out on the right window. If you have a second home secured and can afford to sit on it until the time is right, you should be able to grow its value. If your home’s in the right place, it should have a consistent demand for it regardless.

The Bottom Line

Selling your home can be a blessing or a challenge, depending on many factors. The best-case scenario is to have a backup home that will give you time to improve your property value and even get an agent to sell it. Weigh out the pros and cons of selling your home and make sure it’s worth it for you.

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By: Kat Sarmiento

Kat writes articles with the hopes of reaching out to more people. Her writing is focused on lifestyle, science, and smart hacks, that will definitely (well, hopefully) be useful to her readers.

12/16/2021

Winter buyers are serious about finding a home. In cold regions and during the holiday season, people looking to buy a new home are highly motivated. Whether they are relocating due to work or school, or want a fresh start, if they're touring your property during the holiday season, they are serious about buying a home.

Preparing your home for sale during the holidays takes a different strategy than during peak season. Here are five ways to make your home stand out to serious winter buyers: 

1. More strategic marketing
2. Embrace the holidays (but not too much)
3. Stick to a competitive selling price
4. Increase curb appeal
5. Prepare your home for photos

Make Your Home Stand Out

Winter buyers mean business. If they are willing to spend their time during the holidays to look for homes rather than snuggled up next to the fire watching Hallmark movies, they really want a new home. This is advantageous to sellers as long as they have the right plan in place and are prepared for when the time comes.

1. Start with Strategic Marketing

Listing your home during the holiday season is slightly different than during peak season. Homebuyers typically like touring houses that have been freshly listed. This gives them confidence that there isn't an offer already on the table, and they're not wasting their time competing with other offers. 

Consider posting or re-posting your listing late the night before a popular touring day like Friday or Saturday. The serious buyers will be up in the morning looking for new listings to tour that weekend. If they see a new listing in their price range, they will jump on it quickly. 

Also, large listing websites are useful but don't forget about local marketing platforms as well. Whether this means sharing your listing on social media or posting it to a local newspaper or website, maximum publicity is the key. Serious buyers will be scanning multiple listing sites. Having more visibility may be what gets your home the proper attention. 

2. Embrace the Holidays [but not too much]

There's nothing wrong with getting in the holiday spirit. Decorating your house with warm tones is a great way to make your home feel cozier. If you have a fireplace, feel free to light the fire or some holiday scented candles to make it feel like home. 

Selling around the holidays is a great time to have some fun with your showings. You can play some holiday-themed music to set the mood or use some typical holiday decorations like centerpieces, wreaths, or fireplace decorations. Try to stick with generic themes, so the buyer doesn't get overwhelmed with the decorations. Too much clutter or eye-grabbing decorations can take the buyer's attention away from the home.

3. Stick to a Competitive Selling Price

Like we mentioned, buyers in the winter want to move quickly. They don't want to wait for the price of a home to come down. If it is priced too high, they will move on to other homes. In the summer, you might see bidding wars, or you can gradually take the price of a house down if you see less interest. Consider listing the home to sell in the beginning to get buyers' attention from the start. 

Another reason to list the home at a selling price is because fewer people are looking to buy. They are a different demographic of buyers who are looking to buy right now. If they see a home at a fair price, that could be all they need to make an offer. If you miss one serious buyer because your home is overpriced, you may be waiting a long time before another comes around. 

4. Increase Curb Appeal

Having an attractive front porch is so important when listing a home. This is even more important in the winter because buyers might drive around examining for-sale homes in your area. The front of your home might be what attracts or deters someone from calling the number on the sign. 

Not to mention, most listings include a photo of the front of the home with the description. Whether they are driving around or see it online, the front of your home will make the first impression. Don't rely on your interior decoration to attract buyers. When buyers have no time to waste, the first impression is crucial. Consider hiring a landscaper to touch up around your front porch, so it is as appealing as possible. 

5. Prepare the Interior for Photos

So the buyer swiped right on the image of your front porch. That's great! The next thing they will see is your interior. Preparing your home inside to accentuate your home's main attractions is how you secure a tour. So, how do you prepare the interior of your home to sell during the winter? 

You start by decluttering everything you have lying around. All of the extra things that you need to live take away from the extra space. It may feel cozy to you, but a home buyer might feel enclosed. Do your best to make the rooms feel open and spacious.

One way to make the rooms feel open is by rearranging your furniture. What is most functional for your family might not be what is most appealing to the eye. Consider moving your furniture around or even removing some extra furniture to make the room feel more open. 

Also, consider arranging the furniture in a way that would be good for pictures. Make a game plan ahead of time about where you want to take the photos from and what angles you'll use. This might help you decide where the best place to move the furniture as well. 

There are numerous house siding options to choose from that offer low maintenance, durability, and appeal to the potential buyer. When you’re considering options to redo the outside, take a moment to look at the house from a variety of angles. The street view, in the driveway, and even the back of the home help you to get the full picture. You want to choose something that is not only durable and low-maintenance but also offers curb appeal and value. 

Some of those options that do just that include:

• Stucco 
• Wood
• Fiber cement siding
• Stone Veneer
• Brick
• Metal

One of the most popular options is fiber cement siding. Not only is this a low-maintenance option, it also gives you the most variety in the way the home looks as well. It’s a great choice to get a huge ROI.

New Garage Door

One vital part of the home is the garage area. When the door doesn’t work properly or looks run down, it can be a detriment to the resale value. It’s easy to add a new door and get a great ROI. People want the garage of the home to work properly and protect their items that are stored there. When it comes to the cost of a garage door, this is actually a great way to invest into the home and get a return. You can easily add a new door to update the look of the residence and offer security to the new buyers.

Basement

One item in the home that may need to receive some TLC is the basement area. Is the basement in the property heated or closed in for use? By taking time to remodel the basement into a climate-controlled space, you can increase the square footage that the home provides. Providing heating for basements is easy to do with radiant floor heating. This allows you to heat the area without having to change anything in the current HVAC system you may already have. 

This type of heating allows efficiency, durability, and comfort all at the same time. You’re sure to love the ROI you’ll receive from this addition and the increase in space.

The Flooring

Take a look at the flooring in the home. Does it look worn out or old? Consider replacing it with faux wood flooring to help with the ROI of the property. There are so many faux wood options out there that provide a classic elegance to the home without all the maintenance needed in real wood flooring. You can choose from a variety of styles and types, such as laminate wood, to help update the inside of the home. This is a huge appeal to those who are looking to buy which will help you to sell the home quicker once completed.

These seemingly simple updates can help make a huge difference in the return you receive on your property investments. By installing these along the way, you can turn around and resale the home for a profit larger than you might have first thought. These durable renovation options help you to add value and appeal to potential buyers down the road.

Andrea Erickson is a contributor to Innovative Building Materials. She is a blogger and content writer for the real estate industry. Andrea is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes. 

Whether you're thinking about selling your home or just curious about how much your home might be worth, there are several routes you can take to determine you home's value. 

Methods for Determining Property Value: 

• Use an Automated Valuation Model (AVM) to calculate an estimate. 
• Consult a realtor or someone with knowledge of real estate sales in your area. 
• Have an inspection to find out if any codes or regulations have changed since you bought the home. 
• Research the market on various listing sites. 
• Get a formal appraisal on your property for the most accurate value. 

Depending on how serious you are about selling your home, you can get a few different opinions on your home's value. The quick and easy methods like using an AVM or scanning a listing site can get you in the right ballpark, but they're not the most official methods for determining property value. If you are sure you want to sell your home, it might be a good idea to take the extra time to talk with a professional about your home's value so that you can list it at the right price. 

Use an Automated Valuation Model (AVM)

Mortgage companies use automated valuation models to get an estimate of the home's value. AVMs allow them to get a quick response to a complicated question because the housing market is always changing. However, this automated method is not the most accurate way to determine home value. It merely allows the mortgage lender to quickly pre-approve a loan while waiting for the real appraisal to come through. 

For sellers, an AVM is a great tool to start narrowing down a listing price. Sellers can get a quick estimate of how much their home is worth, so they can have a better idea of what their finances will look like post-sale. An AVM might not be the best option for determining a listing price due to the housing market's volatility. While some AVMs take into account local data and might consider the market trends to some extent, it's better to get more information in addition to an AVM to get an accurate read on your property's real value.  

Research the Local Housing Market

Another way to find a rough estimate of your home's value is by researching your local real estate market. Comparing your home to other homes in the area is a valuable way to find out the market's state and help you decide whether or not it's a good time to sell your home. Researching the local housing market can tell you how many homes similar to yours are for sale in your area and how quickly those homes are selling. If homes similar in size, quality, and condition to yours are selling quickly, your home may be more valuable than you think. 

Researching different listing sites such as HomeScout can tell you similar homes in your area's price. Several variables go into home valuation, but it can give you a ballpark idea of your local market. Selling your home at the right time is just as important as listing it at the right price. Having insight into your area's housing market can help you sell your home quickly and get the most value out of the sale. 

Consult a Real Estate Professional

Once you're serious about selling your home and have done some research for yourself, it might be time to bring in a real estate professional to help you get the ball rolling. They can offer great insight into the market and give you the resources to sell your home at a great price. 

First, realtors have connections. They have a network of other agents who have serious buyers. Realtors work with each other to help their clients buy and sell homes. More competition could mean a faster sale at a higher price. Speaking of cost, realtors can recommend a solid listing price that will make your house competitive compared to other similar homes they've seen sell in your area recently. Combining your research with their experience could be the best way to determine an appropriate listing price. 

They can also give recommendations on how to stage your home to make it most appealing to the current market. It may seem silly, but how you present your home could be a great asset to make your home seem more valuable. Without this insight, you could be missing out on some extra cash. 

Inspections Save Money

Gaining information from an inspection can be a valuable tool for narrowing down your home's value. While an AVM gives you an estimate, you can use that base value and compare it to your inspection to get an even stronger estimate for a listing price. 

For example, if an AVM determines that a home is valued at $300,000 and an inspection shows that a $1,500 repair needs to be done on the A/C unit before the house is sold, you'll either need to repair the A/C yourself or offer a credit at closing. Either way, your home is reduced in value until the A/C issue is rectified.

Note: having an inspection before you sell the home can save you money on the overall sale. Hiring a contractor to fix the unit before the buyer can request closing credit is advantageous because they will likely request more credit than it will cost to repair the unit. Getting ahead of the game can save you some cash on the sale. 

Pre-Appraisal for a Quick Sale

The most accurate valuation of your property is an official appraisal. A professional appraiser will evaluate every inch of your home and compare it to similar homes in your area. They will then take into account the current status of the housing market and give you a certified valuation of your property. An official appraisal can cost anywhere from $200-$700, depending on your region. Most sellers opt for a pre-appraisal, which is less official, but saves you a lot of money. Simply take pictures of your home and submit it to a pre-appraisal software. You'll get a quick and accurate opinion of your home's value.

A pre-appraisal could lead to a faster sale for a few reasons. First, having an appraisal before inviting buyers in to tour your home will give them the confidence that you have an accurate listing price. Buyers are sometimes hesitant to commit to a home until they know that the listing price is close to the house's true value.

Also, it will save time during negotiations. If the seller has a certified appraisal on-hand, the buyer doesn't have much wiggle room. They know how low you're willing to go before you lose money on the sale. Also, they already know the home's condition beforehand, so there isn't much to negotiate. Ultimately, having an appraisal gives you the best chance to sell your home quickly and ensure you don't lose money on the sale. 

Getting an offer is a great feeling, but the race is far from over. Once someone presents an offer, a plethora of tasks needs to be cleared before you can sit down to sign the paperwork. As mentioned previously, the process varies from state-to-state and even town-to-town. Regardless, there are a few common steps that each transaction must conduct before handing over the keys. 

Inspection

You'll likely have an inspection soon after the offer. Whether their agent recommended it or the mortgage company required it, the buyer will hire an inspector to walk through your home and make sure everything is "up to code." Although the buyer will pay for the inspection, the seller will be responsible for solving any issues. 

Repairs and Renegotiation

Once the inspection is done, the seller has to fix all the problems. Whether you hire someone else to do it or solve the issue yourself, this is more time, energy, and money that you'll have to put toward the sale before closing. Also, any major issues might drive down the value of the home in the buyer's eyes. They might be inclined to lower their offer or ask for closing credit to fix the problems. Renegotiation is a standard part of home sales. 

Appraisal

Mortgage companies require the buyer to have an appraisal to ensure their loan will be covered. In other words, they want to be sure that they are lending a reasonable amount compared to the home's value. Again, no expense to the seller, but you'll have to work with an appraiser to let into your home.

Title Check

The title company will look at tax records and evaluate all legal aspects of the title. They are responsible for making sure the closing process goes smoothly, and the title can be transferred to a new owner without implications. 

Potential Closing Costs For The Seller

Although you're not responsible for the inspection and appraisal fees, there are still a few costs that might arise on the seller's side. 

Buyer's and Seller's Agent Commission

When signing the contract, the homeowner will agree to a certain commission or percentage of the sale, which will be paid to the agent at closing. A typical commission is around 5 to 6 percent. However, some agents will agree to less depending on the circumstances. HomeTraq selling agents have agreed to a 4 percent commission in exchange for HomeTraq's provided Pre-Listing services. 

The buyer will likely have an agent as well. The commission will be split between the buyer and seller agent at the time of closing. It might not be a 50/50 split because it depends on the contract. If the seller finds their own buyer, they get to keep the commission, but the seller's cost stays the same regardless. 

Title Insurance

Some states require the seller to purchase title insurance when transferring the deed to your home. Title insurance protects the seller from any mishaps or processing errors that might occur from the transfer. The lender's title insurance covers their interest in the property until the mortgage is paid off. A homeowner's title policy protects the owner's right to the property. 

Early Payoff/Mortgage Fees

Sometimes a mortgage contract will include an early payoff fee for different reasons. If the seller has an outstanding balance or their contract includes an early payoff fee, the seller is responsible for covering the difference. Any of these fees will be due at or before closing. Also, any previous liens or judgments on the property are the responsibility of the current owner. Any other outstanding dues before the time of closing, such as homeowner fees, garbage collection, and utilities, are the responsibility of the homeowner until the title is transferred to the buyer. 

Any Issues from Inspection

Some mortgage companies require an inspection before transferring the money. An inspection will happen soon after an offer is made and well-before closing to ensure the current owner has enough time to resolve potential issues before the new buyer moves in. If the inspection finds any problems, the homeowner is responsible for solving the problems and will incur the cost. This expense can vary widely depending on the condition of your home. 

Closing Credits

These are fees that the seller is responsible for paying. Sometimes sellers will offer "credits" or cash incentives for someone to buy their home. You will typically see this in cases where the home needs renovation in certain areas. The seller chooses to offer a credit to the buyer to fix it rather than fixing it before closing. It is sometimes more convenient to provide closing credit as a seller if you need to sell your home quickly.

Closing/Settlement Process Resource

alta.org: The American Land Title Association is a national association for title insurance companies. The Consumer section of their website provides a link to “HomeClosing 101,” a guide to settlement and costs, as well as a detailed description of the closing process from the perspective of the title insurer and title searcher.

Getting pre-approved for a loan has several benefits. Some homeowners want to see pre-approval before you make a formal offer on the house. Want to talk to a professional about getting pre-approved?

Move quickly

Especially when the market is crowded, having a pre-approval when others don't can make your offer stand out. It means that you can move quickly through the buying process, and the seller can get rid of their house faster. Some homeowners even require pre-approval before they consider your offer.  

Negotiating power

The idea that you're ready to buy the house can give you some leverage in the negotiating process. Your offer will have weight because they know you're serious about buying the home. 

Peace of mind

Knowing you can afford to buy the home is a great feeling. Getting pre-approved for a certain amount will give you peace of mind, so you don't feel guilty about the price of the home. 

Rate

When you hear the Mortgage Loan Officer (MLO) talk about the rate, they're referring to the interest rate associated with the loan. The interest rate is the additional percentage added to the mortgage as a result of borrowing the money. This serves as an incentive to pay the loan back on time. 

Two typical mortgage rates are adjustable-rate and fixed-rate. Adjustable-rate (ARM) means the rate will increase as the loan approaches the end. Fixed-rate, as the name suggests, means your rate stays the same through the life of the loan. We recommend choosing a fixed-rate, so you know your monthly expenses. However, an adjustable-rate might be useful in some circumstances. If you want to talk to a mortgage professional, visit hometraq.com for more info. 

Term

The term is the amount of time, or "life" of the loan. A longer-term will typically allow for lower monthly payments. However, interest is usually higher for longer terms as well. Paying more in interest means you build up equity slower. A shorter-term will allow a lower rate and faster equity. 

Points

Discount points represent the upfront payments of interest to the lender. The lower the interest rate, the higher the discount points, and vice versa. Each point is 1 percent of the loan amount. 

Origination points are charged to offset the administrative cost of processing and originating your loan. They can also include a document preparation or underwriting fee.

Down Payment

A down payment is an amount you pay in cash at signing. A larger down payment means less borrowed from a loan. A 20% down payment avoids the Private Mortgage Insurance cost (see below). However, the national average for down payments is around 10 percent, and some loans require as little as 3 to 5 percent. 

Mortgage Insurance 

Mortgage Insurance, also called MI, private MI or PMI, is generally required on mortgages with down payments less than 20 percent of the property value. MI reduces the amount a credit union loses if members do not repay their mortgage. 

Without the protection of MI, credit unions typically require a member to make a down payment of at least 20 percent of a home's purchase price, which can mean years of saving for some members. 

This large down payment assures the credit union that the member is committed to the investment and will try to meet the obligation of monthly mortgage payments to protect the investment.

A low down payment also allows members to purchase more home than they might otherwise be able to afford.

FHA vs. Conventional

FHA loans are guaranteed by the Federal Housing Administration and extend credit to homeowners, particularly those who have limited down payment funds and lower credit scores.

Conventional loans are typically guaranteed or insured (when required) by private mortgage insurers. Conventional loans are purchased by Fannie Mae or Freddie Mac.

Conventional Loans

• Generally require a 5 percent down payment,
  with specific programs allowing as little as 3
  percent down.
• If MI is required, private Ml companies offer
  cancelable and flexible monthly or single
  premium options.
• Private Ml on a conventional loan is typically less
  expensive than the Ml on a FHA loan.
• Typically, a minimum credit score of 620 is
  required.
• Often have quicker processing time than FHA
  loans.
• Generally have a lower loan-to-value (LTV) ratio
  than FHA loans.

FHA Loans

• Require a 3.5 percent down payment, and most
  borrowers have an FHA insurance premium
  payment for the life of the loan. Additionally, FHA
  loans have both an upfront payment (which may
  be financed into the loan amount) and monthly
  premium payments.
• Lower maximum loan limits may be imposed
  (compared to conventional).
• May allow lower minimum required credit score.

Image Source: Flickr Sightline Institute Middle Homes Photo Library: www.sightline.org.

1. Market condition

Selling your home could be an excellent financial decision. Especially if you plan on downsizing, you can make a significant profit from a successful sale. Keep in mind, you can make more money, depending on the market's condition. 

For example, you might have heard a realtor talk about a "buyer's" or "seller's" market. All of this jargon has to do with how quickly houses are selling, housing inventory, and the price at which they're being bought/sold. 

Right now the market is a seller's market. Homes are selling quickly, many at more than the asking price, because of the low inventory. This can allow you to have a high resale value on your home and a high amount of home equity. 

2. Timing

The first question you should ask yourself is if you're personally ready to go through the process of selling your home. Selling your home is a ton of work. Even if you can afford to have someone pack and move your belongings, the home sale process is still mentally and emotionally draining. You can do anything you can put your mind to, but make sure you're prepared for the roller coaster. 

An excellent way to eliminate some of the stress involved in selling a home is to find a great selling agent. A selling agent will help you prepare your home for showings and guide you through every step of the way. They can offer recommendations and even participate in the negotiation process to make sure you're getting the best deal. Involving an agent from a well-known broker can also increase attention to your home because they probably have tons of clients looking for a home exactly like yours! 

3. Location

Location is one of the biggest topics buyers consider when looking for a home. Location includes subcategories like schools, crime rate, cost of living, and area housing reports. Most buyers already have an idea in their minds of what they want their new neighborhood to look like. How people perceive your community will likely have a considerable impact on the amount of interest your home gets. 

If you live in a high-interest area, you can use that to your advantage. Popular neighborhoods include areas with good school districts, safety ratings, and healthy real estate markets. You can find the information about your school and safety ratings on HomeScout. Just type in your zip code and select a house in your neighborhood listed for sale. Scroll down, and you'll see a "lifestyle information" category with ratings for your area. 

While the location is still very important, many jobs have continued with remote work even as COVID restrictions have been reduced. It's important to think of the inside of your home as well and if it can accommodate remote work. 

4. Access

It might be hard to find time to let people in to tour your home if you're still living in it. You might not have a choice, but you should probably consider if your schedule will allow for a lot of home tours. You could always plan an open house to invite many people to see your house at a time that works with your schedule, but you might be missing out on an entire group of buyers if you can only let people in on the weekend. The best time to list your home for sale is when the agent can have access to the home at a time that works for the prospective buyer. 

If you can move out of the home before you allow tours, there are ways that you can make an agent's life super easy! To make a home more readily available to prospective buyers, many sellers put the house in a secure SUPRA lockbox. Once your agent has electronic access, they can schedule a showing at any time. This eliminates any potential scheduling hassle, and they don't have to request access every time they have a tour. Additionally, many home-sellers have all but eliminated “by appointment only” requests as it creates an additional scheduling barrier. 

5. Move-in ready/Updated

Millennials are now the largest generation, and they are starting to buy homes at higher rates. Real estate studies have shown that in a time of "instant gratification," Millennials are less interested in fixer-upper houses than previous generations. Younger generations prefer move-in-ready homes, and they're willing to pay for them. If you think your home needs some attention, it might be worth your time to update your home before you put it on the market. Your pocketbook will thank you! Check out our previous post about cheap and easy ways to DIY update your home. 

This is also a chance to take advantage of recent structural improvements such as a roof or plumbing. They can help you receive a nice profit on your home if they're new. 

If you can't afford to update your home, you can always negotiate closing credit. Closing credit is a discount on the sale in exchange for the costs the buyer will incur to update the house before they move in. This isn't ideal, but it is an option if you'd rather not deal with it yourself. 

6. Should I talk to an agent?

Absolutely! Talk to an agent that you trust about what steps you should take to sell your home. They can offer recommendations and set you down the path for success. Preferably, find an agent who has experience representing sellers. Ask for references, if necessary. They will have previous clients who can vouch for their work. Avoid agents who also have clients looking to buy a home. This could be a conflict of interest, as it's hard to have both parties' interests in mind.