The Top 10 Cities Where You Can Live Car-Free

Thu, 03 Jul 2025 19:22:24 +0000

The typical new car today costs almost $49,000 – near a record high. Used cars are also flirting with all-time highs. That’s because car prices skyrocketed during the pandemic and have hardly fallen since, making car ownership one of the biggest financial burdens Americans face.

A recent survey found that nearly half of Americans say car costs are standing in the way of financial stability. But in most U.S. cities, owning a car is practically a requirement. This creates a divide between those who own a car and those who don’t (often a racial one), impacting socioeconomic opportunity, health outcomes, and more.

That’s why it matters to be able to get around without a car – and in some cities, it’s possible. In this article, Redfin real estate highlights the top 10 U.S. cities where you don’t need a car, ranked by their “Car-Free Score.”

These cities offer robust public transportation, walkable neighborhood cores, and solid bike infrastructure. Learn more about how scores were calculated in the methodology.

>> Learn more about the most walkable, bikeable, and transit-friendly cities.

1. Cambridge, MA

Car-Free Score: 84.6 | Walk Score: 90 | Bike Score: 96 | Transit Score: 70

Home to Harvard University, MIT, and a dense mix of historic neighborhoods, Cambridge is the best city in the U.S. for car-free living. It excels in all three categories: Walkability, bikeability, and transit-friendliness.

Walking: Most of Cambridge is built on a human scale. Neighborhoods like Harvard Square and Central Square pack groceries, cafes, parks, and pharmacies within a few blocks – perfect for daily errands on foot.
Biking: Cambridge is a national leader in bike infrastructure. The city has protected lanes on major corridors like Massachusetts Ave and Broadway, dozens of Bluebikes stations, and seamless links to regional trails like the Minuteman Bikeway and the Charles River path.
Public transportation: Since it’s just across the Charles River from Downtown Boston, Cambridge is deeply connected to Greater Boston by the MBTA. The Red Line subway anchors the transit network, with stops in Harvard, Porter, Central, and Kendall. Bus routes fill in the gaps.

Cambridge homes for sale | Cambridge houses for rent | Cambridge apartments for rent

2. New York, NY

Car-Free Score: 81.5 | Walk Score: 88 | Bike Score: 69 | Transit Score: 89

New York City is one of the easiest places in the U.S. to live without a car. In fact, less than half of residents even own one, thanks to dense neighborhoods, reliable transit, and a street network built for walking.

Walking: NYC is one of the most walkable cities in the world. Manhattan neighborhoods like the West Village, SoHo, and the Upper West Side are packed with shops, services, and parks within a 5-10 minute walk. The outer portions of the city are a bit harder to navigate on foot.
Biking: Biking has surged in popularity thanks to Citi Bike, protected bike lanes, and greenways like the Hudson River Greenway and the Brooklyn Waterfront Greenway. The city is rapidly expanding its bike network with a focus on safety and connectivity.
Public transportation: New York is America’s leader in public transportation. The subway network alone has 672 stations – nearly as many as the combined total of all other subway systems in the country. Buses, ferries, and trains fill in the gaps.

New York homes for sale | New York houses for rent | New York apartments for rent

3. San Francisco, CA

Car-Free Score: 79.1 | Walk Score: 89 | Bike Score: 72 | Transit Score: 77

San Francisco isn’t just about tech companies and bay views – it’s also one of the best cities in the country to live without a car. Its small layout, strong public transit system, and growing network of bike lanes make it simple to go vehicle-free.

Walking: Despite its famously steep streets, San Francisco is amazingly walkable. Neighborhoods like North Beach, the Mission, and Hayes Valley are especially pedestrian-friendly, with shops, restaurants, houses, and transit stops in accessible clusters.
Biking: San Francisco’s bike network has grown rapidly in recent years. Protected lanes on corridors like Valencia Street and JFK Promenade, along with the flat “Wiggle” route, make biking an increasingly viable option. Bay Wheels bike-share adds convenience for quick trips.
Public transportation: An extensive mix of Muni buses, streetcars, and light rail serve 158 million trips annually, while BART connects San Francisco to the wider Bay Area.

San Francisco homes for sale | San Francisco houses for rent | San Francisco apartments for rent

4. Berkeley, CA

Car-Free Score: 75.1 | Walk Score: 85 | Bike Score: 83 | Transit Score: 60

Berkeley is a leader in pedestrian-first urban planning. Pair that with a small footprint, mild weather, and amenities like UC Berkeley, and Berkeley becomes one of the best cities for car-free living.

Walking: Downtown Berkeley, Elmwood, and North Berkeley are designed around pedestrians. Restaurants, markets, bookshops, and pharmacies are usually just a few blocks from homes and employment. Elsewhere, flat terrain and traffic-calmed streets make walking generally safe and pleasant.

Biking

Selling a Rental Property With Tenants: What Landlords Should Know

Thu, 03 Jul 2025 18:44:04 +0000

You can sell a rental property with tenants in place, but it’s not always simple. From lease agreements to tenant communication, there are key factors to consider if you’re planning to sell an occupied unit.

Whether you are selling a rental house in San Francisco or looking to let go of your condo in Portland, this comprehensive guide will help you navigate the ins and outs of selling a house with tenants.

Can you sell a rental property with tenants?

Yes. If your property has tenants, you can still list it and complete a sale. However, the lease stays in place even after the property changes hands – so the buyer will become the new landlord and must honor the lease terms.

If your tenant is on a month-to-month agreement, you may have more flexibility. But in either case, you’ll need to follow local laws when it comes to notice periods, showings, and eviction rules.

Legal considerations when selling a tenanted property

Selling a rental property with tenants isn’t as simple as putting it on the market. There are key legal and lease-related obligations to understand first:

Lease agreements

When selling a rental property with tenants on a lease, the lease agreement remains legally binding even after the property changes hands. This means the new owner inherits the lease and must honor its terms. If the tenant is on a month-to-month lease, the landlord typically has more flexibility in terms of ending the tenancy.

State and local laws

Real estate laws vary significantly across states and municipalities. Some states, like California and New York, have robust tenant protection laws which should be considered before ending a tenancy due to a property sale. Consulting your local housing authority or a real estate attorney is vital.

Notice requirements

Whether the lease is fixed-term or month-to-month, you must provide proper notice to your tenants if you intend to sell a tenanted property. In most cases, 30 to 60 days’ notice is required, but this can vary. Selling a house with tenants often involves coordinating showings and inspections, which also require advance notice (typically 24 to 48 hours).

Early termination

If you prefer to sell the property vacant, you may need to negotiate an early termination of the lease. This could involve offering financial incentives or assistance with relocation. Note that forcing a tenant out without due process can lead to legal repercussions.

How to sell a property with tenants in place

Selling a home with tenants requires a thoughtful, respectful approach. These tips can help:

1. Review the lease

Before initiating the sale, thoroughly review the lease agreement to understand your and your tenant’s rights and responsibilities. Pay close attention to clauses related to early termination, property sale and notice periods.

Also make sure to adhere to any language that may affect showings or tenant obligations during the sales process. Understanding these terms will help you avoid legal missteps and set realistic expectations for both parties. If the lease includes a “sale clause” or requires specific notice, it’s critical to follow those stipulations precisely.

2. Communicate with the tenants

Clear, honest communication can make all the difference when selling a house with tenants. Let your tenants know about your plans as early as possible, and explain how the sale may affect them. Emphasize that their lease remains valid and that their rights will be respected throughout the process.

Reassure them that you will coordinate showings and inspections with consideration for their schedule, and encourage open dialogue to build trust and cooperation. A well-informed and cooperative tenant can ease the entire selling experience.

3. Offer incentives

Tenants may be understandably apprehensive about the disruption that comes with selling a house, especially when it involves frequent showings, inspections, and the uncertainty of future ownership. Offering tangible benefits can help ease these concerns and encourage a more collaborative dynamic.

Some common incentives include reduced rent during the listing period, professional cleaning services, flexible scheduling around showings, or a one-time cash bonus for maintaining the unit in showing condition. These gestures demonstrate goodwill, making it more likely that tenants will cooperate and help present the property in its best possible light.

4. Negotiate with tenants

In some cases, negotiating an early lease termination with the tenant may be the most practical solution. Start by assessing your tenant’s willingness to vacate early, and be transparent about your timeline and intentions. If the tenant expresses interest or flexibility, work together to draft terms that address both parties’ needs.

Negotiation options might include forgiving the last month’s rent, refunding the security deposit in advance, covering relocation expenses, or providing a cash-for-keys agreement. It’s essential to document all agreed-upon terms in writing and have both parties sign the agreement. This not only protects you legally but also provides clarity for the tenant.

5. Work with professionals

Hiring a real estate agent experienced in selling a tenanted property can be invaluable. They’ll know how to market the home to investor buyers and navigate the nuances of tenant-occupied sales. Additionally, consulting a real estate attorney ensures compliance with all legal requirements, particularly local landlord-tenant laws and notice regulations. These professionals can help you develop a strategy that minimizes risk while maximizing your property’s market value.

Pros and cons of selling a house with tenants in it

Pros:

Immediate rental Income for the new owner: One of the biggest advantages is that the property generates income from day one, making it especially attractive to real estate investors seeking cash flow without delay.
Lower vacancy risk: With reliable tenants already in place, the new owner avoids the time and cost of advertising, screening tenants, and potentially enduring a vacant property period.
Attractive to investor buyers: Turnkey rental properties with paying tenants are often in high demand among investors who prefer minimal disruption and steady returns. The presence of tenants can also serve as proof that the home is in livable condition and in a rentable location.

Cons:

Limited buyer pool: Many traditional homebuyers want to occupy the property themselves, which excludes them from purchasing a tenanted property unless the tenants agree to vacate.
Complicated showings and inspections: Coordinating showings around a tenant’s schedule can be challenging, especially if the tenant is uncooperative or maintains the property poorly.
Potential tenant resistance: Tenants may be resistant to the idea of a new landlord or concerned about their future, leading to tension, restricted access for buyers, or even negative impressions during viewings.

How tenants can affect the sale

Aside from the pros and cons listed above, selling a rental property with tenants in place can introduce additional unique challenges that may impact the sale’s outcome. Below are key considerations that may influence how smoothly and profitably your tenant-occupied sale goes.

Lower offers: Buyers may offer less for a property with a lease in place—especially if rent is below market rate.
Marketing limitations: You’ll have to work around tenant availability, which can limit photos, tours, and open houses.
Payment history: Late or missed rent payments may raise red flags for buyers.
Lease violations: Ongoing issues like unauthorized pets or property damage can scare off potential buyers.
Disclosure requirements: Some states require sellers to share details about existing tenants, including lease terms and security deposits.
Property condition: You may have less control over how clean or show-ready the home is during listing and tours.

FAQs for selling a house with tenants

What is the 50% rule in rental property?

The 50% rule is a general guideline used by real estate investors. It suggests that 50% of a rental property’s income will go toward operating expenses (excluding mortgage payments). This includes property taxes, insurance, maintenance, and management fees.

Can I sell my house with people living in it?

Yes, you can sell a property that is occupied. However, you must honor the existing lease agreement and provide appropriate notice for showings and other activities related to the sale.

Can you sell a property with an active lease?

Absolutely. When you sell a rental property with tenants on a lease, the new owner assumes the role of landlord and must adhere to the lease terms.

Can I break my lease if my landlord is selling the house?

In most cases, a lease remains valid despite a property sale. Tenants are usually not allowed to break the lease unless there’s a specific clause permitting it.

Can my landlord evict me because he wants to sell?

A landlord cannot break a lease unless they have cause and follow proper legal procedure. In many jurisdictions, the landlord must wait until the lease ends or negotiate with the tenant to vacate. Eviction laws vary, so consult a legal expert.

The post Selling a Rental Property With Tenants: What Landlords Should Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

A 12 Step Timeline for Selling A House: What to Expect

Thu, 03 Jul 2025 18:26:57 +0000

A clear timeline for selling a house can make all the difference in staying organized and on schedule throughout an often stressful process. From the decision to sell to closing day, Redfin has you covered every step of the way.

Whether you’re transitioning to a rental house in Tucson, downsizing to an apartment in Salt Lake City, or fulfilling your dream of buying a home in San Diego, the selling process can look different for everyone. This timeline for selling your house breaks down the process step-by-step, so you know what to expect.

In this article:

Decide whether to sell now
Hire a listing agent
Set a selling price
Pick a listing date
Get a pre-sale inspection
Declutter, clean, and stage
List your home
Show your home
Review and negotiate
Accept an offer
Prepare for the final walkthrough
Closing day
What happens now?
FAQs on the selling timeline

1. Determine if now is a good time to sell your house

The first step in any home sale is making the decision on whether you should sell your house now. This can be a highly personal decision, but it’s important to consider and research the following to help you make the right choice:

Personal finances: Gather information on your loan payments and mortgage to see what you still owe on your house and calculate what your profit might equal from a sale. Assess your budget to cover closing costs, taxes, commissions, and other selling fees.
Housing market: Research the current state of the housing market and see how similar homes in your area are selling to get a sense of pricing and demand.
Market type: Determine whether you’re in a buyer’s or seller’s market. In a buyer’s market, homes sell slower and may require price flexibility. In a seller’s market, homes sell quickly and often receive multiple offers. Understanding this helps set realistic expectations.

2. Hire a listing agent

While you can sell your home without an agent, the home selling process is a lot of work without a professional. Real estate agents are key helpers for both buyers and sellers. A seller’s agent, or listing agent, specifically helps with key tasks throughout the home selling timeline, like determining a listing price and negotiating offers.

It’s best to hire an agent about two months before you’re ready to list your house. Be sure to take time and interview a handful of agents, because choosing the right agent can make the entire selling process smoother and less stressful.

>>Read more: What Does a Real Estate Agent Do?

3. Set a selling price

You can use a home-value calculator to estimate your home’s value before getting a professional home appraisal. Your agent can help you set a competitive price based on this estimate and current market trends.

Be prepared to compromise your ideal price with market realities. You may risk losing potential buyers if your home is overpriced, ultimately extending your selling timeline.

4. Pick a date to list your home

Timing can play a big role in how quickly your home sells—and for how much. When deciding the best time to sell a house, consider factors like:

Your personal schedule
Academic calendars
Holidays
Time of year
Days of the week

Strategize with your agent to weigh your availability and market trends.

5. Get a pre-sale home inspection

Schedule a pre-listing home inspection to catch any necessary repairs before your home hits the market. Addressing any issues before listing your home can prevent surprises during the buyer’s inspection and unexpected delays when there’s an interested buyer. This will also provide transparency about the home’s condition and reduce your liability as a seller.

While some fixes are mandatory after a home inspection, some can be negotiated between the buyer and seller. Determine which repairs are worth your time and budget to fix, and which might impact your home’s value or appeal if left undone.

6. Clean and declutter

It’s not just to impress potential buyers – having your home cleaned and decluttered makes both the selling and moving process easier. Start about a month before listing by removing personal items and excess clutter. This helps buyers envision themselves in the space and gives you a head start on packing. Hiring professionals to help will streamline what can be tedious tasks on your own, too. Here are a few methods for a smooth process:

Have your home professionally decluttered: Determine what you’re keeping, donating, or discarding, start clearing items to present a neutral space for buyers to view.
Keep personal belongings in a storage unit: Rent a storage unit to keep boxes and furniture out of the way while showing your house. Some storage companies even offer portable units so you can move them directly to your new home when you’re ready.
Hire a cleaning company: Make sure every inch of your home looks – and smells – clean and fresh. A clean home with an appealing interior is one of the easiest ways to stand out from the competition.
Get your home professionally staged: A professional stager can transform your space to appear bigger and brighter. They’ll rearrange furniture, add neutral decor, and provide the finishing touches that will help your home appeal to potential buyers.
Don’t forget the outside: The first thing potential buyers will see of your house is the outside. Don’t underestimate the value of the landscaping, exterior window washing, or shining up your front door.

7. List your home

Once repairs have been made, the inside is clean and staged, and the outside is picture perfect, it’s time to list your house. First, however, you’ll want to get professional real estate photos. Though you could take photos yourself, professional photos can help your home sell faster – and for more money. It’s also a great way to make your home stand out in a sea of listings. Your real estate agent will help you create and market the listing to get it in front of as many potential buyers as possible.

8. Show your home

Showing your home through tours or open houses is the climax of the timeline for selling your house. When potential buyers walk through a house, it’s their chance to picture themselves living there. If they like the picture, an offer won’t be far off. Review this open house checklist to make sure you’ve covered all the bases, and have your agent help you create a schedule for showings.

9. Review offers and negotiate

As the offers begin to roll in, your agent will present them, advise you on counter offers, and guide you through the negotiation process. It’s important to look at the full terms of the offer, not just the offer price, to make sure you get the best deal.

In some cases, hiring a real estate attorney to prepare and review final documents and contracts can be helpful to avoid any issues that could hold up your sale.

10. Accept an offer

Once you’ve received an offer that meets your needs, it’s time to accept and begin the closing process. This can take anywhere from 30 to 60 days, in which time you will pack the remainder of your belongings, complete any remaining repairs requested by the buyer, and determine the final dates.

11. Prepare for the final walkthrough

The final walkthrough will give the buyers a chance to take a look at the property and confirm that all the agreed-upon repairs were made and no new problems have come up. At the time of the final walkthrough, your home should be clean and completely empty, except for items that were part of the agreement.

12. Close the deal

Whether the seller has to be present at closing depends on the type of sale and local practices, but a few tasks are typically required:

Sign the necessary closing documents: Not all closing documents are for the buyer. Sellers sign and receive documents transferring property rights and ownership. Some documents, like the deed, overlap and are signed by both parties.
Pay remaining balances: Any outstanding mortgage balances, HOA fees, or negotiated seller-paid closing costs are typically paid at closing.
Turn in your keys: Physical keys, garage door openers, and codes that access the home should be passed off to the new owner.

Going through a divorce is hard enough—figuring out your next move shouldn’t add more stress. If you’re wondering how to buy a house after divorce, the key is knowing when you’re financially and emotionally ready, understanding how your divorce affects your mortgage eligibility, and preparing with the right support. Whether you’re eyeing a condo in Denver or a house in Charlotte, this guide will help you navigate timing, budget, and legal details so you can buy with confidence after a divorce.

1. Decide if you’re ready to buy after divorce

Deciding whether to buy a home after divorce is about timing, stability, and financial clarity. A home can provide a fresh start, but buying too soon can create complications if your divorce isn’t fully settled or if your finances aren’t yet stable enough for a mortgage.

Is your divorce finalized?

If your divorce is still in process, it can affect your ability to buy. Some lenders may require a finalized divorce decree before approving a mortgage, as this document outlines debt and asset division, alimony, and more. These details directly impact your debt-to-income ratio, how much you afford and borrow.

If you’re still legally tied to a shared mortgage or other debts, it can limit your ability to qualify for a new loan. Waiting until your divorce is finalized can help prevent legal or financial complications during your purchase, ensuring a smoother path to closing.

Should you rent first?

Renting a home before buying can be a practical option if you need time to adjust to a single income, rebuild your credit, or save for a down payment and closing costs. It also gives you space to assess your budget and understand your new living expenses before taking on a mortgage.

However, buying sooner may help you settle into a stable living situation and start building equity instead of paying rent. If your finances are ready, your divorce is finalized, and the local market is favorable, purchasing a home can be a strong next step.

2. Understand your mortgage and homeownership status

Before buying a new home after divorce, take stock of your current mortgage and property ownership.. If your name is still on your previous mortgage, you’re legally responsible for payments, which can impact your credit if missed and will count toward your debts when applying for a new mortgage.

To remove your name, your ex may refinance the loan in their name, or you may request a release of liability if the lender allows it. It’s important to speak with your lender and legal advisor to understand your options.

3. Review your finances and credit

Divorce often changes your financial situation. Understanding where you stand will help you set realistic expectations.

Income changes post-divorce

Post-divorce, you may move from a dual income to a single income, which can lower the amount you qualify for when applying for a mortgage. If you’re receiving alimony or child support, you may be able to count those as income – if you can show consistent payments and that they’ll continue for at least three years. If you’re the one making those payments, they count as debt.

Understand your debt-to-income ratio

Lenders use your debt-to-income ratio (DTI) to evaluate your ability to manage monthly payments alongside your debts. Your DTI is calculated by dividing your total monthly debt payments by your gross monthly income.

Many lenders prefer a DTI of 36% or lower.
Some allow up to 43%, depending on the loan program.

Build or repair your credit

Your credit score plays a significant role in qualifying for a mortgage and securing a favorable interest rate. A higher credit score can reduce your interest rate and make your new mortgage more affordable. However, divorce can hurt your credit if joint debts weren’t managed well.

Steps to strengthen your credit before buying include:

Paying bills on time to avoid late payment impacts.
Paying down credit card balances to lower your credit utilization ratio.
Monitoring your credit reports for errors that can be disputed and corrected.
Avoiding new large debts before applying for a mortgage.

4. Assess your assets and savings

Before buying a home after divorce, it’s essential to evaluate your assets and savings to ensure you’re financially prepared for the costs of homeownership beyond just the purchase price.

Plan for these key expenses:

Start by reviewing your available cash and liquid assets to see what you can comfortably use toward your home purchase. You will need:

Down payment: Typically ranges from 3%–20% of the home’s purchase price, depending on your loan type.
Closing costs: These usually add 2%–5% of the home’s price and cover fees for appraisals, inspections, and lender charges.
Escrow funds: Lenders often require an upfront deposit to cover property taxes and homeowners insurance.
Additional expenses: Moving costs, utility deposits, appliances, and furniture

Building these expenses into your budget ensures you can comfortably settle into your home with less financial stress.

5. Define your housing needs

Before you start looking at homes, take time to define what you truly need in your next living situation. Post-divorce, priorities often shift, and clarifying your needs will help you find a home that fits your lifestyle and budget. Consider:

Location: Consider the neighborhoods that align with your needs, such as access to work, support systems, or preferred school districts if applicable.
Home size and type: Evaluate what size home and features realistically fit your new budget and lifestyle. A smaller space may reduce costs and upkeep while still meeting your needs.
Essentials vs. nice-to-haves: Be clear on what you can afford and what is essential versus nice to have. Post-divorce, a new home is about stability and practicality, not matching your previous living situation.

6. Work with professionals experienced in post-divorce purchases

Buying a home after divorce isn’t just about finding a new place; it involves financial, legal, and logistical factors that can affect your purchase. Working with professionals who understand the complexities of post-divorce transitions can help you navigate the process smoothly and protect your interests along the way.

Find a real estate agent who understands divorce transitions

Partnering with a real estate agent who has experience helping clients after divorce can make the search and buying process less overwhelming. An agent familiar with these transitions will understand the emotional and financial shifts you may be navigating and can:

Help you set a realistic budget based on your current financial situation.
Advise on neighborhoods that align with your new needs, such as proximity to work, support systems, or specific school districts.
Guide you through negotiations with an awareness of your timelines and potential legal considerations tied to your divorce.

Ask prospective agents if they have worked with post-divorce buyers and how they approach helping clients during this time.

Work with a lender familiar with post-divorce mortgage nuances

After a divorce, your income and debts may change, affecting your ability to qualify for a mortgage. An experienced lender can help you understand how support payments impact your debt-to-income ratio, address any existing mortgage obligations, and document your assets and debts clearly. They can guide you through pre-approval with these factors in mind, helping you understand what you can afford and ensuring the loan process aligns with your current situation.

Consult your divorce attorney regarding property decisions

Before finalizing a home purchase, check in with your divorce attorney to ensure your new property aligns with your divorce agreement. Your attorney can:

Confirm whether your divorce decree impacts your ability to purchase or the timing of your purchase.
Advise on any shared financial obligations that could affect your budget.
Guide you through the legal steps if there are outstanding property or asset-related matters tied to your divorce.

7. Prepare for legal and tax implications

Buying a home after divorce involves tax and legal details that can impact your finances and future plans. Addressing these considerations early can help you avoid surprises and protect your interests during and after your purchase.

Potential capital gains implications if selling the marital home

If the marital home is sold during or after the divorce, there may be capital gains tax implications depending on how much the property sells for and your ownership history. In many cases, you may qualify for a capital gains exclusion if the home was your p

Can a Real Estate Agent Sell Their Own Home? What You Need to Know

Thu, 03 Jul 2025 17:59:46 +0000

Real estate agents help clients buy and sell homes every day, but what happens when the home for sale belongs to the agent themselves? Whether you’re an agent thinking about listing your own home for sale in Atlanta or a buyer considering making an offer on a home in Dallas, it’s important to understand what it means when the seller is also a licensed professional. The process raises key questions about rules, disclosures, and ethics. Can a real estate agent sell their own home? In short, yes – but there are key considerations to keep in mind. Here’s what you need to know.

Can real estate agents sell their own homes?

Yes, realtors can sell their own homes, but there are important rules to follow. Most states allow agents to list and sell properties they personally own, as long as they disclose their licensure and ownership status to all potential buyers. This requirement helps maintain transparency and ensures that all parties are aware of the agent’s professional background.

Agents can use the same process they use for clients: listing through the MLS, marketing the property, staging, coordinating showings, and negotiating offers. Depending on their brokerage agreement, they may pay reduced commission fees or avoid certain costs altogether.

That said, listing your own home as a realtor comes with added responsibilities. You’ll need to approach the sale with professionalism and avoid any conflicts of interest, especially if a potential buyer isn’t represented by another agent.

Key steps for agents selling their own home:

Whether you’re a Redfin real estate agent or affiliated with another brokerage, the following steps are commonly recommended to help navigate the process of selling a home you own while meeting ethical and regulatory standards:

Disclose your licensure and ownership in writing to buyers
Confirm state laws and brokerage policies for any additional requirements
List the property through your brokerage and local MLS, if applicable
Review local comps to set a fair price
Prepare and stage the home to attract buyers
Coordinate showings and open houses in accordance with brokerage procedures
Review and negotiate offers in a professional manner
Maintain transparency and follow professional ethics throughout the process

Rules and legal considerations for agents selling their own home

In many states, licensed real estate agents are required to disclose to buyers that they are also the property owner. This disclosure is typically included in listing materials and purchase agreements to ensure transparency during the transaction. Because laws and brokerage policies vary, it’s essential to check with your state’s real estate commission and your broker to ensure you’re meeting all applicable requirements and completing any necessary paperwork.

Ethical considerations for agents selling their own home

Selling your own home as a realtor can create potential conflicts of interest, especially if you are negotiating directly with buyers. Maintaining transparency throughout the process is essential to avoid misunderstandings and to uphold professional standards. Some brokerages may also limit or discourage agents from representing both themselves and the buyer in the same transaction, so it’s important to know your options before listing.

Pros of selling your own home as a real estate agent

Potential savings on listing agent commission fees: You may save on the portion of the commission typically paid to a listing agent, reducing your overall selling costs depending on your brokerage agreement.
Greater control over the process: Representing yourself allows you to manage pricing, marketing strategies, negotiations, and scheduling for showings around your availability.
Leverage your market expertise: Your knowledge of local market conditions, pricing strategies, and buyer behavior can help you market your property more effectively.

Cons of selling your own home as a real estate agent

Emotional attachment can impact objectivity: It may be harder to price the home realistically or make strategic decisions during negotiations when you’re personally invested.
Perceived conflict of interest: Buyers may feel uneasy negotiating directly with a seller who is also a licensed agent, which could affect trust or comfort.
Time and workload considerations: Managing your own sale can be time-consuming and may take focus away from serving your current clients.
Brokerage policies and disclosure requirements: Many brokerages require written disclosure that you are both the owner and a licensed agent when selling your home. You must follow your brokerage’s rules and ensure transparency to avoid conflicts of interest.

FAQs on realtors selling their own homes

1. Can a realtor earn commission when selling their own home?

Yes, in many cases, a licensed real estate agent can earn the listing side of the commission when selling their own property. However, they may still be responsible for paying the buyer’s agent commission – unless the buyer is unrepresented or a different arrangement is agreed upon.

2. Do brokers need to approve the sale?

In many cases, yes. Brokerages often require agents to notify them when listing their own property and may have specific procedures or oversight requirements to ensure compliance with state laws and brokerage policies.

3. Can a realtor represent both themselves and the buyer?

It’s sometimes allowed, but the situation can be complex. Representing both the seller and the buyer, also known as dual agency, may be subject to restrictions or prohibitions depending on the state and the brokerage. Full disclosure to all parties is required, and agents must follow all applicable laws and ethical guidelines.

The post Can a Real Estate Agent Sell Their Own Home? What You Need to Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Private Mortgage Insurance (PMI): What It Is, How It Works, and How to Get Rid of It

Thu, 03 Jul 2025 16:46:23 +0000

Key Takeaways:

PMI is required on conventional loans with less than 20% down.
It adds to your monthly costs but can be removed once you reach 20% equity.
You can avoid PMI with a larger down payment, VA loan, or piggyback loan.

If you’re buying a home and planning to put down less than 20%, chances are you’ve come across the term PMI. But what is it, why do you need it, and how much will it actually cost you? Whether you’re purchasing a home in Denver, CO or looking at homes for sale in Tampa, FL, understanding PMI is key to budgeting smart.

In this Redfin article, we’ll break down everything you need to know about private mortgage insurance (PMI) – including how to avoid it or remove it when the time is right.

What is private mortgage insurance (PMI)?

PMI stands for private mortgage insurance. It’s a type of insurance that protects your lender, not you, if you stop making payments on your mortgage.

Lenders require PMI on conventional loans when your down payment is less than 20% of the home’s purchase price. While it helps you buy a home with a smaller upfront investment, it adds to your monthly costs.

Why do lenders require PMI?

PMI reduces the lender’s risk. When you put down less than 20%, you’re considered a higher-risk borrower. PMI provides the lender a financial safety net in case you default on your loan.

Types of private mortgage insurance

There are several types of PMI, and the right one for you depends on your financial situation and lender policies:

Borrower-paid PMI (BPMI): This is the most common type. You pay the premium as part of your monthly mortgage payment. It can be canceled once you reach 20% equity.
Lender-paid PMI (LPMI): The lender pays for the insurance, but you’ll typically get a higher interest rate in return. This type can’t be canceled, removing it requires refinancing.
Single-premium PMI: You pay the entire premium upfront at closing, either in cash or financed into your loan. It lowers your monthly payment but carries risk if you sell or refinance early.
Split-premium PMI: A mix of upfront and monthly payments. You pay part of the premium upfront and the rest in monthly installments.

Understanding the differences can help you choose the most cost-effective option based on how long you plan to stay in the home and your budget.

How much does PMI cost?

The cost of PMI depends on a few factors, including your loan amount, credit score, and down payment. But here’s a general idea:

Typical PMI cost: 0.3% to 1.5% of the original loan amount per year
Example: On a $300,000 loan, PMI might cost $75 to $375/month

Tip: You can sometimes reduce PMI rates by improving your credit score or putting down more money upfront.

Ways you can pay for PMI?

PMI can be paid in different ways, depending on the loan and lender:

Monthly premium (most common): Included in your monthly mortgage payment
Upfront premium: Paid at closing
Hybrid: Some paid upfront, some monthly

Your lender will explain your options during the loan application process.

When and how can you remove PMI

PMI isn’t permanent. You can remove it once you’ve built enough equity in your home.

You can request PMI cancellation when:

You’ve reached 20% equity in your home (based on the original purchase price)
You have a good payment history
Your mortgage is current

PMI is automatically removed when:

You reach 22% equity in your home (if you’re current on payments)

You can also refinance your mortgage if your home value has increased significantly, allowing you to eliminate PMI sooner.

Check out our guide: How Much Equity Do I Have in My Home? Here’s How to Calculate Home Equity

How to avoid PMI altogether

Here are a few ways to skip PMI when buying a home:

Put down at least 20% on a conventional loan
Consider lender-paid PMI (LPMI): The lender covers the insurance but typically charges a higher interest rate
Use a piggyback loan: Take out a second loan to cover part of the down payment
Explore VA loans (for eligible veterans and service members), which don’t require PMI

PMI vs. other types of mortgage insurance

Not all loans use PMI. When researching mortgage insurance, it’s easy to confuse PMI with other similar-sounding terms. Here’s a quick breakdown of the differences:

Loan Type	Insurance Type	Required If…
Conventional	PMI	Down payment < 20%
FHA	MIP (Mortgage Insurance Premium)	Always required, regardless of down payment
VA	No PMI	May require a funding fee
USDA	Guarantee Fee	Similar to PMI, required for all USDA loans

What’s the difference between PMI, MIP, and MPI?

PMI (Private Mortgage Insurance): Required for conventional loans when your down payment is less than 20%. Protects the lender if you default.
MIP (Mortgage Insurance Premium): Required for FHA loans. Unlike PMI, MIP is typically required for the life of the loan, unless you refinance.
MPI (Mortgage Protection Insurance): Optional insurance that pays your mortgage if you become disabled, lose your job, or pass away. This protects you or your family, not the lender.

Understanding these terms can help you choose the right loan product and avoid unnecessary confusion during the mortgage process.

Is PMI worth it?

PMI increases your monthly housing costs, but it can be a worthwhile tradeoff if it helps you become a homeowner sooner. This is especially in fast-growing markets, where home prices may rise faster than you can save for a 20% down payment.

It’s not ideal for every buyer, but if you’re financially stable and plan to stay in your home long enough to build equity, PMI can be a short-term cost with long-term benefits.

Pros of PMI:

Buy a home sooner: Avoid waiting years to save a full 20% down payment.
Start building equity right away: Rising home values may outpace your savings rate.
PMI can be temporary: Most borrower-paid PMI can be removed once you reach 20% equity.
Potential tax deduction: PMI premiums may be deductible (consult a tax advisor).

Cons of PMI:

Added monthly cost: Can range from $75 to $375/month or more, depending on your loan.
Doesn’t protect you: PMI covers the lender, not the borrower, in case of default.
Harder to remove in some cases: For example, lender-paid PMI (LPMI) requires refinancing.

The post Private Mortgage Insurance (PMI): What It Is, How It Works, and How to Get Rid of It appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Do You Have to Join an HOA When Buying a Home?

Thu, 03 Jul 2025 16:05:24 +0000

Do you have to join the HOA, or do you have a choice? HOAs can offer benefits like neighborhood maintenance and amenities, but they also come with rules, fees, and legal obligations. So what happens if you find your dream home, and it’s in an HOA community? Whether you’re buying a house in Roswell, GA or a townhome in Summerville, SC, this Redfin article offers expert guidance on navigating homeowners associations (HOAs) during the homebuying process.

Do you have to join an HOA?

It depends on the type of HOA. If the neighborhood has a mandatory HOA, membership is automatic — you’re legally required to join, follow the rules, and pay the fees once you purchase the home. However, if the community has a voluntary HOA, you can choose not to join. In that case, you won’t be bound by the rules or have to pay dues, but you may lose access to amenities and community decision-making.

What is an HOA and what does it do?

A homeowners association (HOA) is a legal entity formed by a community’s residents or developer to enforce property standards, maintain shared spaces, and uphold a neighborhood’s appearance and value. If you buy a home in an HOA-governed community, you’re expected to follow its covenants, conditions, and restrictions (CC&Rs) — a set of rules that can govern everything from landscaping to exterior paint colors to rental policies.

HOAs collect dues from members to cover expenses like:

Landscaping of common areas
Security patrols or gate maintenance
Community amenities (pools, parks, gyms)
Trash and snow removal
Long-term repairs or reserves

The scope and power of an HOA vary widely depending on the neighborhood, the governing documents, and local laws.

What are the types of HOAs?

Voluntary HOAs

In a voluntary HOA, homeowners are invited — but not required — to join the association. If you decline, you’re not legally bound by its rules, nor do you pay regular dues. However, you may not have access to neighborhood amenities or voting rights in community decisions.

Voluntary HOAs often rely on goodwill and community spirit to maintain standards. They may manage landscaping, signage, or organize events, but lack enforcement power without homeowner participation.

Mandatory HOAs

A mandatory HOA, sometimes referred to as a “mandatory-membership HOA,” is a legal obligation tied to your property deed. If you purchase a home in one of these communities, you’re automatically enrolled — you don’t get to choose.These HOAs:

Require dues (monthly, quarterly, or annually)
Enforce CC&Rs through fines or legal action
Can place liens on your property for nonpayment
May restrict certain renovations or uses of your home

The rules, fees, and authority of a mandatory HOA will be detailed in the community’s governing documents, which buyers should review before closing.

How to know if HOA membership is required

You’re required to join an HOA if the property is part of a mandatory association. This requirement is typically:

Recorded on the property deed
Included in the CC&Rs
Acknowledged in your closing paperwork

Once you purchase the home, you become a legal member and agree to follow its rules and pay assessments. If you fail to do so, the HOA can:

Fine you
Suspend access to amenities
File a lien or initiate foreclosure in extreme cases

When HOA membership may not be required

Not all neighborhoods with the term “association” in the name have mandatory membership. In voluntary HOAs, membership is optional, and non-members are not subject to fees or rules unless they opt in.

Some neighborhoods also have inactive HOAs, where an association exists on paper but is no longer collecting dues or enforcing rules. Even in these cases, deed restrictions may remain in effect, so it’s worth consulting with your real estate agent or a real estate attorney to verify the details.

Can you refuse to join a homeowners association?

If the HOA is mandatory, no — you can’t refuse. Even if you didn’t sign anything directly with the HOA, your deed binds you to the rules. Failing to pay dues or follow the guidelines could result in legal consequences.

For voluntary HOAs, you can decline membership. But you may not be able to use shared amenities or participate in decisions that affect the neighborhood.

What to do if you disagree with the mandatory HOA?

If you live in a mandatory HOA and disagree with its rules or governance, there are legal and procedural options to pursue change.

Steps you can take:

Attend board meetings to voice concerns or raise questions
Join the board or vote for candidates who share your views
Propose amendments to the CC&Rs, though these often require a community vote
File a complaint with your state’s HOA regulatory agency (if applicable)

Keep in mind that all homeowners are bound by the CC&Rs unless and until they’re legally amended.

What happens if you don’t follow HOA Rules?

If you violate HOA rules, you could face:

Warning letters or citations
Fines (daily, monthly, or per incident)
Suspension of community privileges
Legal action, including lawsuits or liens on your property

In some states, repeated or serious violations can result in foreclosure proceedings. While this is rare, it’s legally permitted under certain circumstances — especially if you fail to pay dues or fines.

How to avoid buying into an HOA

If you’d prefer not to deal with HOA rules, here are a few tips:

Work with an agent who knows which neighborhoods typically don’t have HOAs
Look at older homes, especially those built before the 1980s
Avoid subdivisions or master-planned communities
Use county GIS maps to see if a property is inside an HOA boundary
Scrutinize listings for terms like “association dues,” “CC&Rs,” or “managed community”
Ask your title company to confirm if any HOA fees or restrictions are tied to the deed
Look outside city limits — homes in unincorporated areas may be less likely to have HOAs

Can you dissolve an HOA?

In very rare cases, homeowners can vote to dissolve an HOA — but it’s a complex and costly legal process. Dissolution typically requires:

Unanimous or supermajority vote of homeowners
Legal counsel and court filings
Satisfaction of debts and contracts
Approval from city or county governments

Even if successful, dissolving an HOA can take years and result in unanticipated expenses for the community. For most buyers, it’s much easier to avoid HOAs upfront rather than try to leave one later.

What to look for in a well-run HOA

If you’re considering buying a home with a mandatory HOA, make sure the association is well-managed. Signs of a strong HOA include:

Clear, regular communication with homeowners
Responsiveness to maintenance requests and complaints
Transparent finances, including easy access to budgets and reserve studies
No frequent surprise fees or special assessments
Consistent enforcement of rules
Proactive long-term planning for repairs and upgrades

Talk to current homeowners and request HOA documents during your due diligence period.

Final thoughts: Know before you buy

You can’t avoid a mandatory HOA if it’s tied to the property — and refusing to participate doesn’t get you off the hook. If you’re unsure, ask questions early in the home search and read all HOA documents closely before closing.

Buying into an HOA can offer benefits, but it’s not for everyone. Understanding how HOAs work, and whether you have a choice, is key to finding the right home for your lifestyle.

The post Do You Have to Join an HOA When Buying a Home? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How Long Does It Take to Sell a House?

Thu, 03 Jul 2025 15:35:06 +0000

One of the most common questions homeowners ask when preparing to sell is, how long does it take to sell a house? While the process varies widely, the national average time to sell a house typically ranges between 55 and 70 days from listing to closing.

While this is a general range, your own selling timeline may be shorter or longer depending on your pricing strategy, the home’s location, how quickly you respond to offers, and the buyer’s financing situation. So whether you’re considering selling your house in Austin or are about to list your home for sale in Denver, here’s what you need to know about how long it takes to sell a house.

How long do most houses take to sell?

While the time it takes to sell a house can vary based on a number of factors, the stages of the home selling process are typically the same wherever you live. The below guide shows a general timeline:

Home Preparation (1–3 weeks): This phase includes cleaning, decluttering, staging, and completing any minor repairs or updates. Professional photos are taken, and your home is listed on the housing market.

Active Listing Period (10–30 days): Once listed, your home will receive showings, and potential buyers may submit offers. In a hot market, this could happen in just a few days. However, in slower markets, it might take a few weeks.

Offer Negotiation & Acceptance (1–5 days): After receiving one or more offers, you’ll review terms, negotiate price or contingencies, and accept the best deal. Quick responses from both sides can speed this up.

Inspection & Appraisal (7–14 days): Once under contract, the buyer arranges a home inspection and the lender orders an appraisal. If issues are found, this stage may involve renegotiations or repair agreements.

Final Loan Approval & Escrow (2–4 weeks): The buyer’s lender completes underwriting, verifies documents, and prepares for closing. The title company ensures all legal and financial requirements are satisfied.

Closing Day (1 day): Both parties sign the necessary paperwork and transfer ownership. The seller receives proceeds, and the buyer gets the keys to their new home.

Total Average Timeline: 55–70 days from listing to closing. This can vary based on market conditions, buyer financing, property condition, and how quickly each party responds during the process.

>> Read: How to Sell Your House Fast

What factors affect the time it takes to sell a house?

A few primary factors can speed up or slow down your home sale. Understanding these can help you better position your property and manage expectations.

Location: A home located in a highly desirable area—such as one with great schools, new infrastructure, or proximity to city centers—tends to sell faster. Homes in more rural or isolated areas typically take longer due to limited buyer interest.

Price: Overpriced homes often linger on the market, while competitively priced listings draw more attention and offers. Pricing your home slightly below market value can even result in multiple bids and a quicker sale.

Condition and staging: Homes that are clean, updated, and move-in ready tend to appeal to a broader range of buyers. Investing a bit in curb appeal and minor improvements can shave weeks off your market time.

Comparable sales: If similar properties in your area have sold within a few weeks, that’s a good sign you may see similar results — assuming your property is priced and presented well.

How quickly can you sell a house?

In competitive housing markets, homes can receive offers within the first 24 to 72 hours of being listed. The fastest sales typically happen when a home is priced attractively, shows well, and is marketed effectively to the right buyers.

However, even when a home goes under contract quickly, the sale isn’t complete until closing. The average time to close on a house is about 30 to 45 days. This period includes buyer inspections, appraisals, loan approval, title work, and final negotiations. Delays can happen at any stage, so sellers should be prepared for unexpected issues, regardless of contract stage.

What size house sells the fastest?

Homes that sell the fastest are typically between 1,500 and 2,000 square feet. These mid-sized homes are appealing to a wide range of buyers, including first-time homeowners, young families, and older adults looking to downsize without sacrificing comfort.

Larger homes with luxury features or high price tags, tend to take longer to sell due to a smaller pool of qualified buyers. At the same time, very small or older homes may stay on the market longer if they need repairs or updates. Generally, homes that offer flexible space, modern features, and a reasonable price point move more quickly than those that cater to niche markets.

What are the hardest months to sell a house?

The time of year has a major impact on how long it takes to sell your home. In general, spring and early summer are considered the best times to sell, with more buyers actively searching and competing for homes.

Conversely, the hardest months to sell a house are usually November through February. During the winter holidays and colder months:

There are fewer active buyers
Moving is less appealing due to weather and school schedules
Homes may not show as well due to shorter days and gloomy weather

If you need to sell during these slower months, consider adjusting your pricing or offering incentives to attract interest.

What takes the longest when selling a house?

There are several points in the selling process where delays commonly occur. Overpricing a home is often the first and most significant factor that extends time on the market. Buyers are increasingly savvy and have access to listing data and market comparables.

Condition also matters. A home that requires major repairs or cosmetic updates is more likely to be passed over in favor of move-in-ready properties. Many buyers want a home they can settle into immediately, especially when mortgage interest rates are higher and budgets are tighter.

Even after an offer is accepted, financing delays, low appraisals, inspection negotiations, or issues with the title can stall the process. These back-end challenges are among the most common reasons home closings are delayed, and they can stretch the timeline beyond your initial expectations.

How long should you live in a house before selling?

If you’re thinking ahead to resale value and tax implications, a good rule of thumb is to live in your home for five years before selling. From a financial perspective, selling too soon may result in a loss. Particularly if you’ve only made small payments toward the principal on your mortgage. Waiting five years before putting your house back on the market allows time to:

Build up equity and avoid selling at a loss.
Recoup upfront closing and moving costs.
Qualify for capital gains tax exemptions (you must have lived in the home for two of the last five years to exclude up to $250,000 of profit, or $500,000 for couples, from your taxes).

Selling too soon can be costly — especially if home prices haven’t appreciated enough to offset the transactional fees. Living in your home for a few years also gives you time to make improvements that can boost resale value

Final thoughts on how long It takes to sell a home

Understanding the timeline of a home sale helps you plan better and avoid unnecessary stress. The most successful home sales come from a combination of good timing, smart pricing, thoughtful preparation, and market-savvy guidance. If you’re preparing to list your property, take advantage of online resources to understand your market, or find a local Redfin Real Estate agent who can create a tailored strategy for your home.

The post How Long Does It Take to Sell a House? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Is a Home Warranty Required? Tips to Decide if it’s Right for You

Thu, 03 Jul 2025 15:00:16 +0000

If you’ve heard the term ‘home warranty’ during the home buying process, you might be wondering: is a home warranty required when buying a house? The short answer is no—home warranties are optional, but they can offer peace of mind by covering repairs for appliances and major systems due to normal wear and tear. Though paid upfront, it can save you money in the long run.

Quick Answer: No, a home warranty isn’t required—but it can help cover repair costs for appliances and systems due to normal wear and tear. It’s an optional plan some homebuyers choose for peace of mind

Whether you’re buying a home in Tampa, FL, Boise, ID, or Providence, RI, this Redfin guide will explain when a home warranty might be worth it and help you decide if it’s the right choice for your needs.

Is a home warranty required?
What is and isn’t covered by a home warranty
Pros and cons of a home warranty
When a home warranty is worth it
When to skip a home warranty
How to know if a home warranty is right for you
Alternatives to home warranty
Making the call: do you need a home warranty?
FAQs on home warranty

A home warranty, sometimes called a home protection plan, is a service contract that covers the major components in your home. If they stop working, the warranty can help cover the cost to fix or replace them. Unlike homeowners insurance, which deals with sudden damage from accidents or natural disasters, a home protection plan focuses on wear-and-tear issues that occur over time.

It can also help you save money by reducing the out-of-pocket expenses you’d otherwise face for unexpected repairs. For example, if your furnace breaks down in the middle of winter, a home warranty could cover most of the cost to get it working again, making it easier to handle surprise problems without blowing your budget.

>> Read: Home Warranty vs. Home Inspection: Do You Really Need Both?

Is a home warranty required?

No, a home warranty is not legally required when buying a house. Unlike homeowners insurance, which lenders typically mandate to protect the structure itself, a home warranty is an optional service contract. It provides coverage for repairs or replacements of major home systems and appliances that break down due to normal wear and tear.

While not mandatory, some sellers may include a home warranty as an incentive to make their listing more appealing. Buyers can also choose to purchase one for added peace of mind, especially if the home has older systems or appliances. Whether you decide to get a home warranty ultimately depends on your budget, the age and condition of the property, and your comfort level with unexpected repair costs.

What is and isn’t covered by a home warranty

There are clear distinctions between what a home warranty will cover and what it won’t. Understanding these details is important as you consider whether a warranty makes sense for your home.

What’s typically covered

HVAC system: Central heating units, air conditioners, and ductwork
Plumbing system: Pipes, toilets, water heaters, and interior plumbing lines
Electrical system: Wiring, electrical panels, and related components
Major appliances: Refrigerator, oven, built-in microwave, dishwasher, garbage disposal, washer, and dryer
Leaky roof: Some policies offer limited coverage for roof leaks.
Septic system or well pump: Select plans may also include repairs to septic tanks or well pumps.

What’s commonly excluded

Pre-existing conditions: Problems that existed before your coverage began won’t be covered.
Improper installation or maintenance: If an item fails because it wasn’t installed or maintained correctly, the warranty generally won’t apply.
Cosmetic issues: Dents, scratches, and other superficial damage are not included.
Items under manufacturer’s warranty: If your appliance is still covered by the original manufacturer, the home warranty won’t duplicate that protection.
Non-major appliances: Smaller appliances such as countertop microwaves, standalone freezers, or wine coolers are often excluded from standard plans

Pros and cons of a home warranty

A home warranty can be a helpful safety net, but it also comes with some important trade-offs to consider.

Pros:

Budget-friendly protection for unexpected repairs, typically costing a few hundred dollars annually compared to potentially costly out-of-pocket repairs.
One call to coordinate service, simplifying the process and saving time hunting for trusted contractors.
Peace of mind knowing you’re covered if something breaks, helping avoid large surprise expenses.
Transferable coverage: Many home warranties can be transferred to a new owner if you sell your home, potentially making your property more attractive to buyers.

Cons:

Service fees (usually $50–$125) required for each claim, which can add up if multiple repairs are needed.
Coverage limitations and exclusions may leave some repairs uncovered, meaning you could still face unexpected costs.
Possible delays or disputes when filing claims that might require persistence to resolve, potentially prolonging out-of-pocket expenses.

When a home warranty is worth it

If you’re buying an older home, a warranty can make it easier to handle repairs or replacements for aging systems and appliances that might fail sooner rather than later.

For example, replacing a furnace can cost around $3,800 to $10,000, while a year of warranty coverage typically runs between $300 and $600, plus service fees. Having that safety net could save you thousands if something breaks unexpectedly.

You might consider a home warranty if:

You’re a first-time homeowner who wants predictable costs instead of large surprise bills. Rather than worrying about the full cost of a major repair, you pay set premiums and a service fee when something goes wrong.
You’re a seller looking to make your listing more appealing and give buyers extra confidence that any surprises after move-in will be covered.
You own rental property and want to simplify repairs while keeping costs more predictable over time.

>> Read: Home Maintenance Checklist for First Time Homebuyers

When to skip a home warranty

If you’ve purchased a newly built home, a builder warranty often covers major systems and structural components, making home warranty redundant. The same goes for homes with recently replaced appliances or systems that are still under manufacturer warranties.

Some homeowners also prefer to pay out of pocket for occasional repairs and handle issues on their own. In that case, setting up a dedicated savings fund for maintenance can be a smart alternative.

Keep in mind:

Older systems without maintenance records may lead to denied claims if you can’t prove regular upkeep.
Preventative home maintenance and good documentation can sometimes offer the same peace of mind without the extra expense.

How to know if a home warranty is right for you

Examine the age and condition of your home’s systems and appliances

Older or heavily used items are more likely to need repairs, making coverage more valuable. If you’re concerned about something major, like an HVAC system, research the typical cost of repairs or replacement and compare that to a year of warranty coverage, plus service fees.

Consider your financial cushion

If an unexpected repair bill of a few thousand dollars would strain your budget, spreading costs out with predictable premiums can offer peace of mind. Even if you could pay out of pocket, having a backup plan sometimes makes homeownership feel less stressful.

Think about how much time you want to spend coordinating repairs yourself

If you prefer to avoid searching for and vetting contractors, a home warranty’s one-call service can be a major convenience.

Evaluate the home warranty plan

Before you decide to buy a home warranty, review the following:

Review contract details carefully: Coverage varies by plan, so understand exactly what’s included, what’s excluded, and any payout limits. Most warranties have caps per item or term, and they typically don’t cover pre-existing issues.
Check costs and fees: In addition to the annual premium, expect a service call fee each time you request a repair.
Look into waiting periods: Many plans don’t start right away and have a 30-day waiting period after purchase. Coordinate with your Redfin Real Estate Agent to make sure the warranty takes effect when you close on the home.
Research the company’s reputation: Read reviews and ratings to see how providers handle claims and customer service.
Run a few scenarios: Estimate whether you’d save money compared to paying for repairs out of pocket, especially if your systems and appliances are newer.
Consider your comfort level: Think about whether you prefer predictable costs or don’t mind covering unexpected repairs yourself.
Review renewal and cancellation terms: Most contracts renew automatically each year, so check how to cancel or adjust coverage if your needs change.

Alternatives to home warranty

If a home warranty doesn’t feel like the right fit, consider these other ways to prepare for unexpected repairs:

Set up an emergency repair savings fund: Regularly saving money can create a financial cushion for repairs as they arise.
Rely on manufacturer warranties: Keep track of warranties that come with new appliances or systems to take advantage of covered repairs.
Buy appliance-specific extended warranties: Purchase additional coverage for key appliances that might need extra protection beyond the manufacturer’s warranty.
Invest in preventative maintenance plans: Regular inspections and tune-ups, like HVAC servicing or plumbing check-ups, can help prevent costly breakdowns.

Can a Buyer Back Out of a Contract? What Sellers Need to Know

Wed, 02 Jul 2025 18:21:03 +0000

Key takeaways

Buyers can back out if they’re within contract contingencies.
Sellers usually keep the earnest money if buyers back out without cause.
A strong contract helps protect you from legal and financial issues.

A question that rattles both sellers’ nerves and real estate professionals’ phones: What happens when a buyer backs out of a home sale? Every real estate transaction carries this tension, and knowing your rights and options is important for a successful sale. So whether you’re selling your family home in Portland, OR or a small rental property in Boston, MA, the below guide can help you successfully navigate any hiccups that may arise.

Valid reasons buyers can back out of a contract

Most purchase contracts include contingency clauses—legal safeguards that allow a buyer to withdraw without penalty if certain issues arise. The below are common reasons that buyers back out of a home sale:

Home inspection: If a professional home inspection uncovers structural defects, mold, pest infestations, or safety hazards, the buyer can invoke the inspection contingency. They can negotiate for repairs or credits, or else walk away and get their earnest money back.
Financing: Even with pre-approval, buyers might fail to secure a mortgage. If a financing contingency is included, they can cancel the contract and usually receive a full refund of their earnest money.
Title issues: A title contingency flags title defects—liens, encumbrances, boundary disputes. If unresolved, the buyer can exit the deal. Most contracts legally allow backing out under this clause, and earnest money should be returned.

These contingencies—common instruments in modern contracts—answer the question: Can a buyer back out of a home sale if things go sideways? Legally speaking, yes—but only within the parameters set from the start.

What happens when there’s no valid reason

Buyers who withdraw outside of valid contingencies may face serious consequences, such as loss of earnest money. Earnest money—usually 1‑3% of the sale price—is deposited to show good faith. If a buyer exits the deal without legal justification, the seller typically keeps the deposit as compensation.

It is also possible for sellers to pursue legal remedies such as breach-of-contract claims or specific performance (forcing the buyer to proceed). While somewhat rare, lawsuits are possible—particularly in the face of demonstrable seller damages .

What sellers can do when a buyer backs out of a contract

As noted above, if the buyer abandons the contract without valid grounds and the contingency deadlines have passed, sellers have several options. They can legally retain the earnest money or sue for legal damages or specific performance. However, it’s important to note that the complexity and cost of litigation often make this a last resort .

The most commonly pursued action by a seller after a buyer backs out of a sale is to put the home back on the market. This avoids extra legal fees, and most earnest money disputes are resolved by escrow providers or agents without court involvement .

Protecting yourself with a strong purchase agreement

When drafting a purchase agreement keep in mind that every contract is unique. Deadlines and clause language—like what defines a valid contingency or non‑refundable deposit—are everything. Always have legal counsel or a professional review your documents .

A knowledgeable agent can guide clause inclusion, contingency timing, and help navigate disputes (or litigation) efficiently. Their professional advice and negotiation can be pivotal .

Even when a buyer is within full rights to back out of a sale, often the best outcome is a negotiated exit, such as a mutual release with partial return of earnest money. These arrangements can preserve goodwill and avoid costly legal drama .

Seller FAQs: What to do when a buyer backs out

Can you sue a buyer for backing out of a home sale?

Yes. Sellers can sue for breach of contract or pursue specific performance, though it’s uncommon. Most disputes today focus on retaining earnest money or are settled via escrow

What happens if a buyer backs out of a sale?

If a buyer backs out within a contingency period, they exit with a refund of earnest money.
If they back out without valid reasons or outside of deadlines, sellers may keep the deposit and could pursue legal remedies.

At what point is it too late to back out of buying a house?

Once all contingencies (inspection, financing, title) are removed and deadlines passed, it is typically too late—the buyer may forfeit their earnest money and be liable for breach of contract.

Who pays escrow fees if the buyer backs out?

Escrow fees are generally split unless otherwise negotiated. If the buyer breaches, many escrow providers require them to cover fees—but it depends on contract language .

Can a buyer cancel a contract on a house?

Yes—but only if they invoke a contractual contingency: inspection, financing, appraisal, title, insurance, or sale of the current home. Otherwise, cancellation risks deposit loss and legal exposure .

The post Can a Buyer Back Out of a Contract? What Sellers Need to Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Can You Get a Mortgage with a New Job? What Homebuyers Need to Know

Wed, 02 Jul 2025 17:42:26 +0000

Starting a new job doesn’t automatically disqualify you from getting a mortgage, but it can raise some red flags for lenders. If you’re wondering Can I get a mortgage if I just started a new job?, the good news is that it’s possible. However, you may need to take a few extra steps to prove your financial stability and reliability as a borrower.

This Redfin article explains how job changes impact the mortgage process and what lenders look for—whether you’re applying for a home loan in Raleigh, NC or preparing to close on a house in Denver, CO.

Why lenders care about job history

When you apply for a mortgage, lenders want to know you’ll be able to make your monthly payments. One way they assess this is by looking at your employment history.

Ideally, they like to see consistent income over the past two years – typically with the same employer or within the same industry.Changing jobs doesn’t automatically hurt your chances, but lenders will want reassurance that your new income is stable and ongoing.

Can you qualify for a mortgage right after starting a new job?

Yes, but it depends on your situation. Here’s how different scenarios may affect your mortgage application:

1. Same industry, similar role

If you switched to a new job in the same field, especially with a pay increase, most lenders won’t see it as a problem.

Example: If you’re a nurse who just moved from one hospital to another, your consistent career path shows stability, which lenders like.

2. Different industry or career change

If you’ve changed industries entirely, lenders may want more documentation to understand the transition.You may be asked to provide additional documentation, such as:

Offer letter with your salary and terms of employment
Proof of first paycheck or start date
Explanation letter if your field is entirely new

3. Probationary period

If your new job has a probationary or trial period, lenders may wait until it’s over before approving your mortgage. Some may approve with conditions or ask for additional income documentation.

What do lenders look for if you just started a new job?

If you’ve recently switched jobs, here’s what lenders typically want to see:

A signed offer letter or employment contract
Proof of income (such as pay stubs or direct deposit records)
Job stability (consistent career or strong resume history)
A good credit score
Low debt-to-income ratio
Savings or reserves for emergencies

What happens if you change jobs while buying a house?

Changing jobs during the homebuying process can complicate things, but it doesn’t necessarily derail your mortgage application.

Changing jobs after mortgage pre-approval

If you switch jobs after getting preapproved, your lender will likely need to reverify your income and employment. This could delay the process, especially if:

You change industries
Your new income is lower or unstable
You haven’t started the new position yet

Always notify your lender right away if you change jobs after pre-approval to avoid surprises.

Changing jobs before closing on a house

Changing jobs just before closing can be riskier. Most lenders do a final employment verification days before closing. If they can’t confirm your employment or income, it could delay or cancel the closing.

Tip: Avoid changing jobs until after you close on your home, if possible. If a change is unavoidable, keep all documentation and work closely with your lender to update your file promptly.

Exceptions: Special loan programs for recent job changes

Some loan types are more flexible than others:

1. FHA Loans

The Federal Housing Administration (FHA) allows applicants to qualify with less job history, especially if they can prove future income or recent graduation.

2. VA Loans

If you’re a veteran, VA loans can be flexible if your new job is consistent with your past employment or military service.

3. Conventional Loans

These tend to be stricter but can still work with a new job if you meet the income and credit requirements.

Tips for getting a mortgage after starting a new job

If you recently switched jobs, here’s how to improve your odds:

Wait until you’ve received your first paycheck.
Get a strong employment verification letter showing job security and salary.
Avoid major financial changes (like buying a car or racking up debt) during the approval process.
Maintain or improve your credit score.
Work with a lender who understands your situation and is familiar with different loan programs.

Can you get preapproved for a mortgage with a new job?

Yes. Mortgage preapproval is possible if you can document your new income. Many lenders will accept an offer letter as proof—especially if it’s signed and you’re starting within 30–90 days. However, they may delay the final approval until after you’ve officially started.

What if you’re self-employed or a freelancer?

Self-employed borrowers usually need at least two years of income history to qualify for a mortgage. If you just started freelancing or gig work, it may be harder to get approved right away.

Tip: Consider waiting until you’ve filed two years of tax returns—or explore bank statement loans or other non-traditional loan options.

Final thoughts: Getting a mortgage with a new job is possible, with the right preparation

Starting a new job doesn’t mean homeownership is out of reach. If you can show a steady income and strong financial habits, many lenders will still consider your application. Just be ready to provide extra documentation—and work with a lender who understands your unique path.

The post Can You Get a Mortgage with a New Job? What Homebuyers Need to Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

The Truth About Sellers Backing Out — And How You Can Stay Protected in a Home Sale

Wed, 02 Jul 2025 16:48:59 +0000

Imagine this: A home seller has agreed to the offer and the closing date is approaching. Suddenly, the seller decides to back out before closing. Can that actually happen?

The short answer: Sometimes, yes. But it’s not that simple. Whether you’re buying or selling a home in Portland, OR or Austin, TX, it’s important to understand when and how a seller might be able to walk away from a deal, and what each side can do if that happens.

In this Redfin article, we’ll walk you through the key scenarios, the legal gray areas, and how both buyers and sellers can protect themselves when things don’t go as planned.

Can a seller back out of a sale before closing?

Yes, a seller can back out of a home sale, but only with a valid legal or contractual reason. If a seller cancels without cause, the buyer may have grounds to pursue legal action or seek compensation.

Know your contract

Once both parties sign a purchase agreement, it becomes legally binding. That means neither party can back out just on a whim.

Buyers often have contingencies (like financing or inspections) that allow them to cancel without penalty.
Sellers usually have far fewer opportunities to back out. Sellers’ rights to cancel are typically limited to specific contract terms or contingencies.

This is why it’s so important to review your contract carefully. Even one overlooked clause could cause serious issues if the seller tries to walk away at the last minute. Knowing what’s in the fine print can help prevent a lot of stress later on.

When can a seller back out of a home sale?

While it’s not common, there are a few very specific situations where a seller might be able to legally cancel the sale:

The contract hasn’t been signed yet: Until both parties sign the purchase agreement, the seller can back out without any legal consequences. Verbal agreements or ongoing negotiations are not binding.
There’s a seller contingency: Every now and then, sellers include something like, “We’ll sell, but only if we can find a new place to live first.” These are rare, but they do exist, and if it’s in writing, it’s fair game.
Buyer fails contingencies: If the buyer’s inspection, financing, or appraisal contingencies aren’t met, sellers may choose not to re-negotiate and let the deal fall through instead.
The buyer breaks the contract: If a buyer misses a major deadline, fails to secure financing, or doesn’t follow through on agreed-upon terms, the seller might have legal grounds to walk away.
Issues arise during attorney review: Many contracts include a short attorney review period allowing either party to back out if their lawyer finds a problem.
Mutual agreement to cancel: Sometimes, life just happens. If something changes and both the buyer and seller agree to cancel, it’s totally doable (and drama-free).
A legal loophole or fraud: Though rare, sellers might cancel if fraud or misrepresentation occurs. This usually requires legal advice from a real estate attorney.

Common reasons why a seller might cancel a sale

Even with a signed contract, sellers sometimes decide to back out for personal or practical reasons::

Regret about letting go of a longtime home: Selling a place filled with memories can feel overwhelming, causing sellers to hesitate or reconsider.
Trouble finding a new place to live: If sellers struggle to secure their next home, they might pause or back out until they have a plan in place.
A higher offer that came in too late: Sometimes sellers receive a better offer after accepting one and may be tempted to cancel the first deal to take the higher bid.
Family or personal circumstances that suddenly change: Unexpected events like job changes, health issues, or family emergencies can make sellers rethink moving.
The appraisal is higher than the sale price: While less common, a high appraisal might lead sellers to question if they’re getting a fair deal or want to adjust terms.
Seller won’t agree to buyer’s repair requests: If repair negotiations stall or the seller refuses costly fixes, it can cause the deal to fall apart.

Consequences of canceling a contract without cause

Backing out without legal cause can have serious consequences for sellers:

Financial penalties: If the seller backs out without a valid reason, the buyer may seek compensation for costs like inspections or appraisals—and possibly sue for damages.
Impact on seller credibility: A canceled sale becomes part of the home’s listing history, which can scare off future buyers and hurt the seller’s credibility.
Loss of earnest money: The seller may have to return the buyer’s earnest money and, depending on the contract, could be liable for additional damages.
Legal trouble: A buyer might file a lawsuit to force the sale through a legal process called specific performance, especially if they’ve already invested time and money.

In cases like the above, the seller walking away could be considered a breach of contract. If a seller breaches the contract, buyers can:

Work with a legal professional to force the sale (this is called “specific performance”)
Seek compensation for expenses like inspections, appraisal fees, moving costs, or even the time you’ve lost

How buyers can protect themselves

Buyers need to stay sharp, move fast, and keep things friendly to protect themselves during a sale. Understanding your contract and staying on top of the process can help avoid headaches. Here’s how to stay protected:

Act fast: Keep on top of your financing, inspections, and deadlines. The quicker you move, the less chance a seller has to find a way out.
Know your contract inside and out: Work with a good agent or real estate attorney who can explain exactly what’s allowed—and what’s not—so there are no surprises.
Keep things friendly: This might sound a bit old-school, but building a good rapport with the seller can really help. People are less likely to back out when they like and trust you.

Bottom line? Sure, a seller can back out—but not without a solid reason or consequences. So if you’re buying a home, stay sharp, read the fine print, and make sure you have a team that’s looking out for you.

FAQs

1. Can you sue a seller for backing out of a home sale?

Yes, if a seller backs out without a valid reason after signing the contract, the buyer can sue for damages or force the sale through legal action.

2. How can a seller get out a real estate contract without consequences?

A seller can cancel without consequences if:

The contract isn’t signed
There’s a seller contingency
The buyer fails a contingency or breaches the contract
There’s mutual agreement to cancel
A legal loophole or fraud is involved
During attorney review

3. How can a buyer protect themselves from a seller backing out?

Buyers should:

Move quickly on inspections and financing
Know their contract well
Work with a good agent or attorney
Build a good relationship with the seller

The post The Truth About Sellers Backing Out — And How You Can Stay Protected in a Home Sale appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Should I Sell My House Now?

Tue, 01 Jul 2025 22:45:00 +0000

Key takeaways:

It’s a good time to sell your house if you price correctly and are open to negotiation.
There are far more sellers than buyers in the market, tipping the scales toward buyers – but sellers can still get competitive offers in hot markets.
Selling now could help you avoid potential price swings if the economy moves toward recession or inflation.
Consider holding off if you want top dollar or recently refinanced.

If you’re thinking about selling your home, you’re not alone. But with today’s record housing costs keeping everyone on the sidelines, it’s natural to wonder if now is the right time.

The typical monthly housing payment has surpassed $2,900, and house prices have risen for 23-straight months. These costs froze the Spring homebuying season. On top of that, President Trump’s tariffs – while in limbo – have rattled the economy, further weakening demand.

The result is a housing market with far more listings than buyers, which is affecting markets nationwide. So, what does this all mean for home sellers? Let’s dive into the data to help you decide if you should sell your house now or wait.

>> Read: How to Sell Your House in 2025: A Comprehensive Guide

What sellers need to know about the housing market

Here are some market trends to keep an eye on before finding an agent and listing your home for sale.

Buyers are in charge, mostly

“Home sellers should prepare for a buyer’s market,” said Daryl Fairweather, Redfin Chief Economist. “Rising inventory has given buyers more options, but record housing costs have made them wary. Those willing to brave today’s wild market are prepared to lead negotiations and pay a fair price.”

There are nearly 500,000 more sellers than buyers today, so homeowners need to be flexible and realistic about pricing if they want to stay competitive – including offering concessions.

That said, trends vary widely across the country. In the Midwest, there aren’t enough homes for sale to meet demand, so sellers in cities like Milwaukee and Detroit may see bidding wars and quick sales. On the flip side, most Sun Belt cities now favor buyers, as homeowners look to escape worsening climate risks and climbing insurance costs.

Here are the top states where buyers have the upper hand, according to days on market. As a rule of thumb, the fewer days a house spends on the market, the more demand there likely is.

The economy is volatile

House prices and mortgage rates remain elevated. Plus, economists are concerned that inflation could rise further due to President Trump’s shifting policies on trade.

“Unless the new tariffs are entirely eliminated, inflation doesn’t increase, or the country falls into a severe recession, mortgage rates are unlikely to fall,” said Chen Zhao, Head of Economics Research at Redfin. “With housing costs at all-time highs, homebuyers are dealing with a prolonged period of record-low affordability.”

This unpredictable economy has kept buyers on the sidelines and allowed inventory to build up. In fact, Redfin found that the discrepancy between inventory and buyer demand will push house prices down by the end of the year. Sellers have begun to hold off now, too.

In these uncertain times, it’s essential to talk with your agent to decide if now is a good time to sell.

>> Read: How to Buy, Sell or Rent a Home Amid Economic Uncertainty

When is it usually a good time to sell your house?

Spring is generally the best time to sell, when buyers are most likely to be active. However, market trends and personal considerations matter the most.

In today’s market, sellers should be prepared for lower demand, plan ahead for their next home, and be realistic about pricing.

Here are some general rules for sellers to follow to decide if it’s a good time to sell.

If housing supply is low	Fewer homes on the market can push prices up and lead to faster sales. That’s the case in many metros today, especially in the Midwest and East Coast, where demand outpaces supply.
If mortgage rates drop	Falling mortgage rates can spark a surge in demand. More buyers in the market often means stronger offers and possible bidding wars – good news for sellers.
If you need to sell	Sometimes, life necessitates that you sell. Maybe your family is growing, you need to relocate for work, or want to be closer to family. In these cases, it may not matter if it’s an objectively “good” time to sell.

>> Read: How to Sell Your House Fast – and for More Money

When is it typically a bad time to sell your house?

You may have no choice but to sell your house, but when these trends are at play, you’re less likely to sell quickly or above market value.

If mortgage rates are high	Higher mortgage rates effectively shrink buyers’ budgets, meaning they get less house for the same amount of money. This often means fewer, lower offers. If you can’t command the price you want, it may be worth waiting to sell.
If you’ve recently refinanced	Selling soon after refinancing could wipe out any savings you gained from a lower rate, especially once you factor in closing costs and fees. Many sellers today are “locked in” to a pre-pandemic rate and see no reason to give it up.
If your home needs work	A home that needs some love can be harder to sell and may attract lower offers. If you have major repairs on your to-do list, consider tackling them before listing.

>> Read: 7 Common Home Selling Mistakes and How to Avoid Them

So, should you sell your house now?

If you’re financially ready, know your next move, and have a great agent, now may be a good time to sell a house.

However, housing costs are in record territory, and the economy is turbulent. Plus, with more supply, many buyers are holding out for a good deal, meaning sellers generally don’t have the negotiating power they’re used to. You may need to offer incentives to attract serious offers.

Home sellers should connect with an agent, price competitively, and be open to concessions. Selling with Redfin gives you options to reduce your listing fee, get top-tier marketing and pre-listing help, and access to the best agents. Qualified Redfin customers can also unlock Rocket Preferred Pricing, a new program that helps you save when you buy with Redfin and finance through Rocket Mortgage.

There are always good reasons to sell your house – whether you’re relocating, downsizing, or hoping to cash in on your home’s equity. You may also simply need to move. There isn’t a right answer for everyone, but in today’s unpredictable market, timing and strategy matter more than ever.

The post Should I Sell My House Now? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Home Warranty vs. Home Insurance: Do You Need Both?

Tue, 01 Jul 2025 22:08:22 +0000

Key takeaways:

Home insurance covers damage to your house and personal belongings due to unexpected events.
A home warranty covers repairs and replacement of appliances and systems due to normal wear and tear.
Having both home insurance and a home warranty is strongly recommended, but only home insurance is required.

Many assume they are the same thing, but a home warranty and home insurance have a few important differences. Whether you’re browsing Redfin to buy a home in Cincinnati, OH, fixing up a rental house in Nashville, TN, or doing some research before moving out of your Seattle, WA apartment, getting familiar with these terms will help you ensure your home is fully covered.

Home warranty vs. home insurance: a quick comparison

Feature	Home warranty	Home insurance
Required?	No (optional)	Yes (by lenders)
Covers	Home structure, additional structures (sheds, fences, etc.), personal belongings, and liability	Appliances and home systems (HVAC, plumbing, etc.)
Cause of damage	Unexpected events (storms, fires, break-ins, etc.)	Normal wear and tear
Cost	Average $1,411 per year	Average $350-$600 per year

What is a home warranty?

A home warranty provides coverage for your home’s systems and appliances. Think washing machines, water heaters, and electrical systems. These items go through normal wear and tear, and a home warranty helps you pay for repairs or replacements when they are needed.

A home warranty is not required, but it is recommended. The cost of the warranty varies depending on the company you select, but you can purchase a home warranty at any time.

Who should buy it

Homeowners with out-of-warranty or outdated systems and appliances
Buyers who may struggle to cover sudden repair costs out of pocket
People who don’t know a trusted professional for repairs

What is home insurance?

Home insurance covers the home itself, as well as other structures like a workshop or shed that may not be permanently attached. If your house or your belongings are damaged due to unexpected events, like natural disasters, home insurance will pay for those repairs or replacements.

Home insurance is required when taking out a mortgage, and a lender won’t approve the loan without it.

Who should buy it

Anyone taking out a home loan
Property owners looking to protect their home and personal items from damage or loss
People who want liability coverage in the case of injury on their property

What is covered under home warranty vs. home insurance?

A big difference between a home warranty and home insurance is the types of damage they cover. While a warranty covers wear and tear on appliances and systems inside the house, home insurance covers structural damage and loss of personal belongings due to unexpected events like fires and storms. Here’s how these coverages work in real-life scenarios:

Scenario 1: You open your dishwasher to find that the load of dishes you ran last night is still dirty, and a spray arm has detached from the machine. A home warranty will pay for repairs or a replacement dishwasher.
Scenario 2: A severe windstorm comes through and a falling tree causes some damage to your roof and crushes your bicycle. Depending on the policy, your home insurance will cover the cost of repairs for the roof, as well as the cost of replacing the damaged bike.
Scenario 3: Your toilet leaks while you’re on vacation and causes significant water damage. Your home warranty will pay to replace or repair the toilet, but your home insurance covers the repairs to the damage and any lost personal items.

Do I need both?

To protect their investment, lenders require home insurance before approving a mortgage. If you buy a house outright with cash, you can avoid both a mortgage and proof of home insurance upfront, but it’s still wise to have coverage. Rather than skipping it altogether, decide how much home insurance you need and work with your insurance provider to build coverage that’s right for you.

While a home warranty is not a requirement, the cost is generally worth the peace of mind. The average price ranges from $350 to $600 per year, and it could potentially save you thousands if an appliance or system breaks down and needs to be replaced.

It may be tempting to decide between a home warranty vs home insurance, but having both offers the best protection. New homeowners often face unexpected appliance failure in their first year. Adding a home warranty on top of your home insurance helps cover those costs, preventing large repair bills right after moving in.

Home warranty vs. home insurance FAQs

What’s the difference between home warranty vs. home insurance?

A home warranty covers repairs and replacement of appliances and systems due to wear and tear, while home insurance protects your home and belongings from unexpected events like fires, storms, or theft.

Is home insurance required?

Yes, your lender will require proof of home insurance when you sign your closing documents to finalize your mortgage.

Can I buy a home warranty after moving in?

Yes, you can purchase a home warranty at any time, or cancel it at any time. Check with your provider to learn specifics about your policy, and be sure to note any cancellation fees.

Does home insurance cover appliance breakdowns?

No, home insurance does not cover appliance breakdowns, although it may cover damage caused by an appliance breakdown, like a leak from a dishwasher.

Do I really need both a home warranty and home insurance?

If you want the fullest protection, yes, you should get both. Home insurance is essential for disaster protection and recovery while a home warranty saves you money on common home maintenance and repairs.

Can a seller offer home warranty coverage during the sale?

Yes, it’s fairly common for home sellers to include a one-year home warranty in a home sale. This attracts more buyers as it gives them peace of mind during their first year of ownership.

In comparing a home warranty vs. home insurance, both is best

When comparing home warranty vs. home insurance, it’s clear that both serve important, and different, purposes. Home insurance is required to protect against disasters and major losses, while a home warranty helps cover wear and tear on appliances and systems. Together, they offer fuller protection and peace of mind for homeowners. If you’re buying a new home or just want to better protect the one you’re in, consider adding both.

The post Home Warranty vs. Home Insurance: Do You Need Both? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

What Is Appreciation in Real Estate? Here’s What Every Homeowner Should Know

Tue, 01 Jul 2025 21:57:14 +0000

If you’ve ever bought a home or even thought about investing in property, you’ve probably heard the term “appreciation” tossed around. But what is appreciation in real estate?

Real estate appreciation is the increase in a property’s value over time. It can result from market trends, economic changes, or property improvements, and a key way real estate investments build wealth.

Whether you’re buying your first home in Phoenix, AZ, selling a condo in Tampa, FL, or investing for the future, understanding how appreciation works can help you make smarter financial decisions.

What is appreciation in real estate?

Appreciation in real estate is the increase in a property’s value over time. It’s the reason a home bought for $250,000 in 2010 might sell for $400,000 today. That $150,000 gain is appreciation. This increase usually happens due to a mix of market forces like higher demand, limited housing supply, or improvements in the neighborhood.

It’s important to remember that appreciation isn’t guaranteed and doesn’t happen evenly year to year. The housing market has ups and downs, and some locations see much stronger growth than others. Real estate appreciation is influenced by multiple factors and it’s not a straight-line journey.

Read>> How much is my house worth?

Appreciation vs. depreciation vs. inflation

Appreciation in real estate is different from general inflation.
Inflation affects the overall cost of goods and services across the economy, while appreciation refers specifically to the increased market value of a property.

Although the two are related, home values often outpace inflation, especially in high-demand areas.

How does real estate appreciation work?

Understanding real estate appreciation is similar to how interest builds in a savings account—the longer you hold the asset, the more value it can gain. As a property’s value rises, so does your potential profit when selling. Appreciation is influenced by several key factors:

Market demand: When more people want to live in an area, home prices typically go up.
Economic factors: Inflation, job growth, and mortgage rates all impact property values.
Location: Homes near amenities, good schools, or growing job markets often appreciate faster.

Example

You buy a house for $400,000 when interest rates are low at 3%. With affordable mortgage payments, more buyers enter the market, increasing demand—and your home value rises to $430,000 over two years. That’s $30,000 in appreciation, largely driven by favorable borrowing conditions.

Later, interest rates rose to 7%, making mortgages more expensive. Fewer people can afford to buy, demand drops, and home prices start to dip. If you were to sell now, your home might be worth $390,000, showing depreciation driven by high interest rates and reduced buyer activity.

What is considered a good real estate appreciation rate?

While appreciation rates vary widely by region and year, the national average home appreciation rate typically ranges from 3% to 5% annually. However, in some competitive markets (like parts of California or Texas) annual appreciation may jump higher, while slower-growth areas may see less.

A “good” appreciation rate depends on your goals:

Homeowners looking to build equity over time may be content with steady 4-5% growth.
Investors often seek faster appreciation combined with rental income.
Flippers rely on forced appreciation through renovations, not just market trends.

That said, appreciation can fluctuate. Some years bring double-digit gains; others might see flat or even declining prices. That’s why it’s important to look at long-term trends rather than month-to-month headlines.

How to calculate appreciation

Basic appreciation formula:

(New Value – Original Value) ÷ Original Value = Appreciation Rate

Example:

You bought a home for $300,000 five years ago, and now it’s worth $375,000.

Calculation:

($375,000 – $300,000) ÷ $300,000 = 0.25 or 25% total appreciation

This means your home gained 25% in value over five years.

Year-by-year breakdown

To calculate year-by-year appreciation more accurately, use this compound growth formula:

Future Value = Present Value × (1 + Annual Rate)^Years

To reverse this and find the average annual rate:

Annual Rate = (Future Value ÷ Present Value)^(1/Years) – 1

Using the example above:

($375,000 ÷ $300,000)^(1/5) – 1 = ~4.56%

So, your home appreciated about 4.56% per year on average.

You can also use tools like the Federal Housing Finance Agency (FHFA) House Price Calculator to estimate historical appreciation based on national or regional housing data.

Factors that impact real estate appreciation

Appreciation doesn’t happen on its own. It’s driven by a combination of local and national factors. Here are some of the key drivers::

1. Location

Proximity to schools, public transportation, job hubs, and low crime rates can all boost a property’s value. A neighborhood with steady growth and development often outperforms stagnant or declining areas.

2. Home improvements and upgrades

Renovations that increase livable space, modernize kitchens and bathrooms, or boost curb appeal can drive what’s known as “forced appreciation.” However, not all upgrades yield the same return on investment.

3. Market demand and housing inventory

When demand exceeds supply, with more buyers competing for fewer homes, prices tend to rise.. This supply and demand dynamic is one of the strongest drivers of appreciation.

4. Economic indicators

Interest rates, job growth, and wage increases all influence how much people can afford to pay for a home. In general, when the economy is strong, housing demand rises—and so do home values.

5. Timing and holding period

The longer you hold onto a property, the more time you have to benefit from appreciation, especially if you bought during a buyer’s market or a downturn. As the market improves over time, your property’s value can increase significantly, boosting your return.

Ways to add value to your home

While you can’t control the economy, there are steps you can take to encourage appreciation:

Renovate wisely: Focus on high-ROI projects like energy-efficient windows, minor kitchen remodels, or adding a bathroom. In 2021, home improvements in San Diego like upgrading to energy-efficient vinyl windows cost roughly $20,700, yielding about 87% ROI.
Boost curb appeal: Landscaping, exterior paint, and a welcoming front porch can leave a strong impression. Installing a new garage door ( which cost ~$4,000) can return up to 94% of the cost at resale.
Stay on top of maintenance: Regular upkeep keeps your home in good shape and retains its value. Smart upgrades like thermostats, lights, and security systems can trim energy bills by nearly $1,100 per year, and buyers often pay more for homes with these modern features
Keep an eye on neighborhood plans: If new developments are planned nearby (like parks, schools, or shopping centers), your property may appreciate more over time.

Can you influence appreciation?

Whether managing a rental, flipping a house, or buying your dream home, appreciation impacts its future value. And while you can’t control market factors like interest rates, you can make decisions that positively impact your home’s value.When you’re ready to sell, work with a real estate agent who knows how to position your home for the best price.

The post What Is Appreciation in Real Estate? Here’s What Every Homeowner Should Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Is Now a Good Time to Buy a House?

Tue, 01 Jul 2025 21:50:42 +0000

Key takeaways:

If you have the means, now may be a good time to buy a house.
It’s a buyer’s market – there are nearly 500,000 more home sellers than buyers – but a shaky economy has everyone on edge.
Mortgage rates have reached 3-month lows, but they will likely remain volatile due to economic uncertainty.
House prices keep rising: The median U.S. home sale price sits at a near-record high $442,000, marking 23 straight months of year-over-year gains.

Spring is over, marking the end of the traditional homebuying season. But given how slow the season was, many homebuyers are wondering if it’s a good time to enter the housing market.

Housing remains largely unaffordable for most of the country, after all, and economic uncertainty is keeping everyone on the sidelines. While prices may drop soon, buyers and sellers are still unwilling to spend big. So, it’s no surprise that many are questioning if now is the right time to take the leap.

In short, whether or not it’s a good time to buy a house boils down to if it’s a good time for you to buy a house. Let’s dive a bit deeper into market trends to help you answer, “Should I buy a house now or wait?”

From Redfin’s Chief Economist

“Now is a good time to buy, if you can afford it. Prices keep climbing, but there is also significantly more inventory, giving buyers an upper hand in negotiation. A volatile economy is making everyone uneasy, though. Buyers serious about making offers should consult a local agent and be confident in their finances and future income.” – Daryl Fairweather, Redfin Chief Economist.

What buyers need to know about the housing market

Here are some key market trends to keep an eye on and help you make an informed homebuying choice.

House prices are high but could fall soon

The median U.S. sale price is $442,000 – up 0.9% from a year ago. House prices have posted year-over-year gains for 23 consecutive months and are 33% higher than they were in 2020. Monthly housing costs have sat in record territory for months.

Years of underbuilding and subsequent low inventory have been the primary drivers behind these record prices.

However, price growth has slowed recently due to rising inventory and falling home sales. Now, Redfin predicts that these trends will push house prices down by the end of the year – the first drop since 2023. This will make homebuying more affordable, because wages are expected to rise.

If you’re planning to buy, moving soon could help you take advantage of lower competition.

>> Read: Redfin’s 2025 Housing Market Predictions

Mortgage rates are elevated and volatile

As of July 1st, daily average 30-year fixed mortgage rates sit at 6.67% – well below last week’s rate. But zooming out, mortgage rates are still relatively high due to persistent inflation, an uneasy economy, and stronger-than-expected job market.

“Tariff uncertainty and economic unease means buyers should expect mortgage rates to remain volatile for the foreseeable future,” cautioned Chen Zhao, Head of Economics Research at Redfin. “Unless all tariffs since inauguration day are called off, or inflation doesn’t materialize, rates are unlikely to fall. That being said, even small dips will be a welcome break for homebuyers.”

Redfin predicts that mortgage rates will hover between 6-7% this year.

How mortgage rates affect housing costs

Mortgage rates are important for buyers because they directly translate to monthly housing costs. The higher the rate, the more you pay every month. If rates drop, you can save tens of thousands over the lifetime of your mortgage.

Let’s see how your monthly payments change with different rates, using data from our Mortgage Calculator.

Buyers have the upper hand

It’s a buyer’s market for the first time in years: Housing inventory is rising across the country – especially in the South – giving buyers more negotiating power. However, supply is still very low in parts of the Midwest and East Coast, putting sellers in charge and pushing up prices.

In general, high costs are keeping buyers on the sidelines and freezing home sales. Let’s dive a bit deeper into the data and look at two key indicators.

Inventory is at a five-year high

There are more homes for sale in the U.S. today than there have been since the start of the pandemic – nearly $700 billion worth. Florida and Texas have the most homes on the market today, by far. This is the primary driver behind today’s buyer’s market.

Housing inventory is rising because more sellers are listing their homes than buyers are buying them, with some of the largest increases in disaster-prone areas like Florida. In fact, local Florida experts believe a market correction – where home prices fall to better reflect local incomes and demand – could be in store.

Rising inventory is the primary driver behind today’s buyer’s market. Buyers who can afford this market may be in a better position to receive concessions. However, some sellers are now holding off because they’re realizing they can’t sell for as much, which may impact the market in the future.

Demand is near an all-time low

Even with more homes on the market, buyer demand remains sluggish due to high housing costs and economic uncertainty – especially in markets like Austin and Tampa. For buyers who have the budget, this could be a good time to enter the market, as sellers may be more open to negotiation.

Still, there are exceptions. In some Midwest cities like Milwaukee and Detroit, strong demand for affordable homes is pushing prices up and putting sellers in charge.

>> Read: How to Sell Your House in 2025: A Comprehensive Guide

Inflation could rise

Critical to the housing market, the Fed and economists are concerned that inflation could rise, which would impact mortgage rates. Plus, due to the evolving tariff situation, they fear that “stagflation” – a combination of slow growth and rising inflation – could set in.

There is growing uncertainty around how much tariffs will affect inflation, with a few economists beginning to believe it may not end up playing a large role. Still, most experts believe that tariffs will raise prices on nearly all goods.

Inflation has major implications for buyers. Most importantly, it can lead to higher house prices and mortgage rates, and stretch budgets further. So, if inflation does tick back up, borrowing could get more expensive, making now a smart time to lock in a rate before that happens.

All-cash buyers hoping to avoid mortgages altogether should act now to avoid potential price increases.

>> Read: A Housing Market Under Donald Trump: What It Could Mean for Buyers, Sellers, and Renters

How to buy in an uncertain economy

With tariffs, economic whiplash, and volatile mortgage rates, many buyers are wary of getting into the market. Here are a few tips from our economists about navigating this shifting landscape.

Stick to your budget: This isn’t the time to stretch financially. With recession odds hovering around 50% and economic uncertainty rising, make sure you have enough in savings to cover mortgage payments if your income changes.
Negotiate, negotiate: The market favors buyers, so use your leverage. There’s more inventory, and sale prices are increasingly coming in below asking.
Be smart about rates: Mortgage rates are unpredictable. Shop around, compare lenders, and ask about “float down” options if rates drop significantly after you lock in. You can always refinance later if needed.
Sell before you buy: If you own a home, consider selling it first. It will give you a clearer budget and help you avoid the risk of carrying two mortgages.

>> Read: How to Buy, Sell or Rent a Home Amid Economic Uncertainty

is-now-a-good-time-to-buy-a-house-5 A seller’s credit, also known as a seller concession, is a financial agreement where the home seller agrees to cover some of the buyer’s closing costs. Rather than lowering the price of the home, the seller contributes a credit at closing to help reduce the buyer’s upfront expenses.

This strategy can make a home purchase more affordable and appealing, especially in competitive markets like Austin or Atlanta, where buyers often face high prices and closing costs. This Redfin guide explains how seller credits work, when to use them, and what to watch out for during negotiations.

What is a seller’s credit?

A seller’s credit is money the seller agrees to contribute toward the buyer’s closing costs. It’s typically negotiated as part of the purchase agreement and applied at closing to cover eligible fees like:

Lender and loan origination fees
Title insurance
Escrow or attorney fees
Prepaid taxes and homeowners’ insurance

Example: You’re buying a $400,000 home and negotiating a $10,000 seller credit. At closing, that $10,000 goes toward your closing costs, reducing the cash you need to bring. The seller still gets $400,000 on paper, but takes home $390,000 after the credit.

Why would a seller offer a credit?

Sellers may offer credits to:

Attract buyers in slower markets
Avoid repairs by offering money instead of fixing issues
Keep a deal alive after inspection reveals problems
Maintain the list price while helping the buyer afford the purchase

It’s a negotiation tool that helps both sides meet in the middle.

How much can a seller contribute?

Seller credit limits vary depending on the type of loan and the buyer’s down payment. For example, conventional loans typically allow seller concessions of 3% to 6%, while FHA and USDA loans may allow up to 6%, and VA loans cap the contribution at 4%. It’s essential to work with your lender and agent to ensure the credit stays within the allowable range; otherwise, any excess might simply be forfeited.

Pros and cons for buyers

Pros:

Lowers the upfront cash needed to close
Makes it easier to afford fees like lender charges and insurance
Can be the difference-maker for first-time or cash-strapped buyers

Cons:

The offer still needs to be appraised at full value
May be less competitive in a hot market if the seller has stronger offers

Pros and cons for sellers

Pros:

Makes your listing more appealing, especially if repairs are needed
Helps move the deal forward without dropping the list price
Useful incentive in slower markets

Cons:

Reduces your net proceeds
Could signal flexibility and open the door to more negotiation

A final note on seller’s credits

A seller’s credit can make a big difference in how affordable a home feels at closing. If you’re buying, it’s worth discussing with your real estate agent, especially if the home needs repairs or the market favors buyers. If you’re selling, a credit might help you attract offers faster without cutting your list price.

When used strategically, these credits can help both sides reach a smoother, more affordable deal.

FAQs about seller’s credit

What is a seller’s credit on a house?

A seller’s credit is when the home seller agrees to pay for part of the buyer’s closing costs. It reduces the amount of cash the buyer needs to bring to closing, but doesn’t lower the home’s sale price.

Does a seller’s credit come out of the seller’s pocket?

Yes, but indirectly. The seller receives a lower net profit from the sale, as a portion of the proceeds is allocated to the buyer’s costs. However, it’s typically paid at closing, not upfront.

Can a seller’s credit be used for a down payment?

No, they can’t be applied to a down payment. They’re limited to closing costs and prepaid expenses as allowed by the buyer’s loan type.

Is a seller’s credit the same as lowering the sale price?

Not exactly. Lowering the price affects loan amounts and appraisals. It keeps the sale price intact but helps buyers afford upfront costs, which can make deals easier to close.

How much credit is too much?

It depends on the loan type. Conventional loans usually allow 3–6%, FHA up to 6%, and VA up to 4%. Any amount above actual closing costs generally can’t be used and may be forfeited.

The post Seller’s Credit: What it Means for Buyers and Sellers appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How Many People Can Be on a Mortgage? What You Need to Know Before Entering a Joint Mortgage

Tue, 01 Jul 2025 20:40:07 +0000

As home prices hit another record high, steadily rising, more people are teaming up to afford a house, whether it’s couples, friends, siblings, or even adult children and parents. Co-buying is becoming more common, but it raises a key question: How many people can actually be on a mortgage?

Quick answer: There’s no legal limit on how many people can be on a mortgage, but most lenders allow up to four. That’s because standard underwriting systems can only handle four applicants—anything more typically requires manual review.

Whether you’re co-purchasing a townhome in Seattle, WA or a house in Boston, MA, joint mortgages allow you to split a loan with someone else to help make homeownership more affordable.

This Redfin guide will walk you through the essentials of a joint mortgage and what to know before signing the dotted line.

How many people can be on a mortgage?

There’s no legal limit to how many people can be on a mortgage, but most lenders will allow up to four borrowers on a single home loan. Some may allow more, but this depends on their internal policies. Often the mortgage underwriting software they use, such as Fannie Mae’s Desktop Underwriter or Freddie Mac’s Loan Product Advisor, typically caps applications at four individuals.

When multiple people apply for a mortgage together and share both the financial responsibility and legal ownership of the home, it’s called a joint mortgage. This type of arrangement allows co-borrowers to combine their income and credit profiles, which can help with loan approval or boost purchasing power.

That said, just because several people can apply doesn’t mean they’ll all qualify. Lenders assess each applicant’s income, credit score, debt-to-income ratio, and employment history. The lowest credit score in the group can affect the loan terms, so one weaker profile may influence the entire application.

How do you apply for a mortgage with multiple borrowers?

If your lender and loan type allow co-borrowers, each person will fill out their own application and provide proof of income, assets, debts, and employment. Everyone will have a credit check, and all co-borrowers need to be present together at closing.

What do lenders look at with multiple co-borrower applicants?

When multiple people apply for a mortgage together, lenders evaluate everyone’s finances but often base the loan terms on the lowest credit score among the group. They’ll examine:

Credit reports and scores for each applicant
Proof of income (pay stubs, W-2s, tax returns)
Debt-to-income ratios
Employment history and stability
Cash reserves or savings

All of this affects how much you can borrow and what kind of interest rate you’ll get. If one borrower has poor credit or high debt, it could limit your options or mean higher interest rates for everyone.

Why do multiple people get a mortgage together?

Buying a home solo can be financially tough, especially in competitive markets with high prices and tight inventory. That’s why many buyers are turning to co-ownership as a practical solution. Here are a few common scenarios:

Unmarried couples want to purchase a home together.
Siblings or friends team up to buy a starter home or investment property.
Parents co-buy with their adult children to help them enter the housing market.
Business partners co-invest in a multi-unit or rental property.

In these cases, pooling financial resources can increase buying power, making it easier to qualify for a loan or afford a better property.

Read>> Buying a House with a Friend: Pros, Cons, and Key Considerations

Co-Borrowers vs. co-signers vs. joint mortgages: what’s the difference?

When applying with others, it’s important to understand the difference between co-borrowers, co-signers, and joint mortgages, as they’re not the same.

Co-borrowers are equal partners on the mortgage and the property title. They’re jointly responsible for monthly payments and have ownership rights.
Co-signers don’t have ownership interest in the property but help someone qualify by backing the loan with their income and credit. They’re financially liable but not on the deed.
Joint mortgages is the loan structure when two or more co-borrowers apply together. It’s the setup that allows all parties to share the mortgage obligation and own the home jointly.

So, if your name is on the mortgage and the deed, you’re a co-borrower on a joint mortgage. If you’re just helping someone qualify without sharing ownership, you’re a co-signer.

Pros and cons of having multiple co-borrowers

Teaming up with others has clear upsides, but there are also risks. Here’s what to keep in mind.

Pros:

Higher buying power: Combined incomes can help qualify for larger loans.
Shared costs: Mortgage payments, taxes, and maintenance can be split.
Easier approval: If one borrower has strong credit and income, it can help offset another’s weaker profile.

Cons:

Shared liability: Everyone on the mortgage is fully responsible for repaying the loan. If one borrower stops paying, the others must cover the full amount. Lenders can go after any co-borrower for the total balance due.
Credit risk: Missed payments affect all borrowers’ credit scores.
Potential disputes: Decisions about selling, refinancing, or maintenance must be made jointly.

Make sure you trust your co-borrowers, and talk through expectations up front to avoid conflict later.

Tips when buying a home with multiple people

Buying a home with others can work well, but it’s important to plan ahead. Here are some practical tips:

Check with lenders early: Not all lenders allow more than two borrowers, and some may have stricter credit or income requirements for joint applicants.
Get preapproved as a group: A joint preapproval will give you a clearer idea of your combined buying power and help identify any credit or income concerns upfront.
Consult a real estate attorney: A lawyer can help you draft a co-ownership agreement and explain your legal obligations and ownership options.
Choose the right ownership structure: Decide whether to hold the title as joint tenants or tenants in common; each has different legal and inheritance implications.
Have a written agreement: A co-ownership contract should outline who pays what, how ownership is divided, and what happens if someone wants out.
Create an exit plan: Agree in advance on how you’ll handle refinancing, selling, or buying someone out if circumstances change.
Consider opening a shared bank account: A joint account can simplify making mortgage payments and tracking shared expenses.
Be honest about financial history: Everyone’s credit, debt, and income will be scrutinized; transparency will prevent surprises during underwriting.

How do you get out of a joint mortgage?

When multiple people share a mortgage, life changes (like a breakup, divorce, job relocation, or disagreement) can make it necessary for one or more borrowers to exit the arrangement. However, getting out of a joint mortgage isn’t always simple. Whether you want to leave or need to remove someone else, here’s what to know:

1. Refinance the mortgage

The most common way to get out of a joint mortgage is through refinancing. This means one borrower applies for a new loan in their name only (or with a new co-borrower), paying off the original joint mortgage in the process.

However, this only works if the remaining borrower qualifies on their own; their income, credit, and debt-to-income ratio must meet the lender’s standards.

2. Sell the home

Sometimes the cleanest way to dissolve a joint mortgage is to sell the property and split the proceeds. This is helpful if no one can afford to take over the mortgage solo or if both parties want a fresh start. After selling, the mortgage is paid off and all parties are released from responsibility.

3. Loan assumption (rare, but possible)

In limited cases, a lender may allow the remaining borrower to assume the mortgage, meaning they take over the loan under its existing terms. This can avoid refinancing, but it usually requires requalification and lender approval, which isn’t guaranteed.

4. Legal action or buyout agreements

If one borrower refuses to cooperate, the other may need to take legal action to force the sale of the home or agree to a formal buyout, where one party pays the other for their share of the home’s equity. These situations often require help from a real estate attorney.

Important: Removing a name from the mortgage does not automatically remove someone from the deed (ownership title), and vice versa. You’ll need to file a quitclaim deed or other title transfer form to fully change ownership records.

FAQs

Can a joint mortgage be transferred to one person?

Not directly. To transfer a joint mortgage to one person, the remaining borrower typically needs to refinance the loan in their name only, which requires qualifying on their own. Simply removing a name without refinancing is rarely allowed by lenders.

What is the maximum number of people on a mortgage?

Most lenders allow up to four borrowers on a single mortgage, though this can vary. While there’s technically no legal limit, lenders set their own policies based on underwriting systems, and all applicants must meet credit and income requirements.

The post How Many People Can Be on a Mortgage? What You Need to Know Before Entering a Joint Mortgage appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Selling a House With Foundation Issues: Your Guide to a Successful Sale

Tue, 01 Jul 2025 20:22:21 +0000

When you’re selling a house with foundation issues, sitting on that property can feel like dragging a boulder uphill. Buyers get spooked. Lenders get stingy. And sellers, more often than not, find themselves navigating a mess they didn’t budget for.

All that said, it’s not impossible to sell a house with foundation issues, regardless of whether it’s a condo in Los Angeles or a home in Charleston. With the right approach, honest disclosures, and some smart strategy, you can still sell your house—maybe not for a dream price, but without losing your mind in the process.

Figure out the full scope of the problem

Start by getting clear on what you’re dealing with. Are you looking at minor hairline cracks, or a full-blown structural crisis with sinking corners and bowing walls?

Hire a licensed structural engineer. Not a general contractor. Not a handyman with a good reputation. You need someone who can give you a full diagnostic. Expect to pay a few hundred dollars, but this report is your baseline. Without it, you’re just guessing and hoping, which is a bad combo when tens of thousands of dollars are at stake.

Fix it or sell as-is?

This is the big decision every seller with foundation damage faces: fix the problem, or sell the house in its current condition?

Option A: Fix it

If the damage is limited and repair costs come in under, say, $10,000–$20,000, and you’re in a seller’s market, it might be worth it. Buyers get peace of mind, the home qualifies for traditional financing, and you can list at full market value.

Option B: Sell as-is

If the cost to fix is astronomical—or you don’t have the time, energy, or money—it might make more sense to sell the house in its current condition. You’ll take a hit on the price. But you can offset some of that loss by avoiding months of construction, loan payments, and stress.

There’s no one-size-fits-all answer. Sometimes, fixing it nets you more in the long run. Other times, the time and effort to fix the issues may not be worth it in the end.

Disclose everything

There are no shortcuts here. Every single known issue has to be disclosed in writing. And when it comes to foundation problems, leaving anything out is not just unethical, it’s also a great way to end up in court.

If you’ve had repairs done, include the reports, invoices, and any warranties. If you’re selling as-is, say so clearly in the listing and again in the purchase agreement. Let the buyer know up front what they’re walking into. Some will walk away. That’s fine. You don’t need every buyer. You just need the right one.

Price appropriately

Buyers aren’t going to pay top dollar for a house with foundation issues. But that doesn’t mean you have to take the first lowball offer that comes in.

Work with a Redfin real estate agent who has experience selling homes with issues. They’ll know how to price strategically—low enough to reflect the damage, but high enough to keep negotiation on your terms. Sometimes, the best way to market a property like this is to show potential: “Great opportunity for an investor,” or “Priced to reflect needed repairs.”

Identify your target buyer

You’re probably not going to sell to a first-time homebuyer using an FHA loan. They’re too risk-averse, and their lenders won’t touch a house with structural problems unless they’re fixed first. Instead, focus on three groups:

Cash buyers. Investors, flippers, and people who don’t need financing.
Contractors or tradespeople. Folks who know how to fix things themselves and see value in the discount.
Buyers using renovation loans. These are rare and complicated but can work. A 203(k) loan, for example, wraps repair costs into the mortgage.

Adjust your marketing accordingly. Don’t waste time pitching to people who can’t—or won’t—deal with the issue.

Appraisals and lender red flags

If you do end up with a buyer who needs a loan, you’ll have a bit more work to do. Lenders require appraisals, and foundation issues often tank them. An appraiser might flag the problem as “structural damage,” which is the kiss of death for financing unless you’ve already made the repairs or the buyer agrees to fix it after closing—something most banks won’t allow.

This is why cash buyers are easier. No appraisal. No lender. Fewer hoops.

Prepare for longer timelines and tougher negotiations

Selling a house with foundation issues isn’t a quick process. Expect longer days on market. Be ready for deals to fall through and buyers to get spooked. Their inspectors find something new. Their uncle who’s “in construction” takes one look and tells them to run.

This is normal. Stay patient. Keep your paperwork in order. Be transparent. And don’t let one failed deal make you desperate for the next one.

You can sell a house with foundation issues

At the end of the day, selling a house with foundation issues comes down to two things: honesty and persistence. The damage is real. You can’t spin it. But you can sell it, if you don’t pretend it’s not a problem and start showing buyers why it’s still worth their time.

The post Selling a House With Foundation Issues: Your Guide to a Successful Sale appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How Much is a Mortgage on a $300K House?

Tue, 01 Jul 2025 19:48:09 +0000

No matter the state of the housing market, buying a house is an expensive endeavor. Unless you’ve got a few hundred thousand dollars lying around and plan on buying a house in cash, you’ll probably need to take out a mortgage to make this purchase. But how much will that cost you when all is said and done?

In this Redfin article, we’ll break down how much a mortgage on a $300K house costs, both on a monthly basis and in the long run. Whether you take out a 30-year mortgage on a house in Houston or a 15-year mortgage on a home in Louisville, find out how much you’ll likely end up paying.

How much is the monthly mortgage payment on a $300K house?

Your monthly mortgage payment is more than just repaying the loan—it includes several costs that can vary based on where you live and the type of mortgage you choose. While principal and interest make up the bulk of your payment, additional expenses like property taxes and homeowners insurance can significantly impact your total monthly cost.

Here’s what’s typically included in your mortgage payment:

Principal and interest: The amount borrowed and the interest charged by your lender
Property taxes: Set by your local government and vary based on location
Homeowners insurance: Protects your home against damage and liability
Private mortgage insurance (PMI): Required if your down payment is less than 20%

The exact amount you’ll pay each month depends on your interest rate, loan type, and down payment size. Below, we’ll break down estimated mortgage payments for a $300,000 home based on different down payment amounts.

Example monthly payments for a $300K home (30-year loan at 6.5% interest)

Down payment	Loan amount	Monthly payment (principal + interest)	Estimated total payment (including taxes + insurance)
20% ($60K)	$240,000	$1,500	$1,950
10% ($30K)	$270,000	$1,700	$2,300
5% ($15K)	$285,000	$1,800	$2,412

Property taxes and insurance vary by location, so actual costs may differ.

How interest rates affect your mortgage payment

Interest rates have a major impact on your mortgage payment. Even a small rate increase can add thousands to the total cost of your loan.

Example: monthly payment at different interest rates

For a 30-year loan with a $240K loan amount, here’s how your interest rate affects total costs:

Interest rate	Monthly payment (P&I)	Total interest paid over 30 years
6%	$1,438	$277,765
6.5%	$1,500	$306,000
7%	$1,600	$335,894
8%	$1,764	$395,652

A 1% increase in interest (from 6.5% to 7.5%) could cost you over $60,000 more in interest over the life of the loan. A higher credit score and a larger down payment can help you secure a lower rate, reducing your total costs.

How loan type affects your mortgage payment

The type of mortgage you choose impacts your monthly payment and total interest paid over time. A 30-year mortgage offers the lowest monthly payment but costs more in interest over time. A 15-year mortgage requires higher payments but saves money long-term. An ARM starts with lower payments, but rates can rise after the fixed period.

Here’s how the most common options compare:

Loan type	Monthly payment (P&I)	Pros	Cons
30-year fixed	~$1,500 (with 20% down)	Lower monthly payments, easier to qualify for	Higher total interest, slower equity build
15-year fixed	~$2,100 (with 20% down)	Pay off home faster, less total interest	Higher monthly payments, harder to qualify
Adjustable-rate (ARM)	~$1,500 (initial)	Lower initial payments, good for short-term buyers	Rates can increase, unpredictable costs

How much should you put down on a $300K house?

Your down payment impacts your loan amount, monthly payment, and whether you’ll need private mortgage insurance (PMI). A higher down payment reduces your loan size, lowers your interest costs, and eliminates PMI if you put down at least 20%.

Common down payment options

20% down ($60K) – No PMI, lower monthly payments, and less interest paid over time
10% down ($30K) – PMI required, moderate monthly payment
5% down ($15K) – PMI required, highest monthly payment, and more interest paid

If you can’t afford 20% down, many lenders offer low-down-payment loan options. FHA loans require as little as 3.5% down, and VA or USDA loans may allow 0% down for eligible buyers.

A larger down payment means lower monthly payments and saves thousands in interest over the life of the loan. However, putting down less can help you buy a home sooner if saving for a large down payment isn’t feasible.

Income needed for a $300K home (30-year loan at 6.5% interest)

Before buying a home, it’s important to determine how much you can afford based on your income and expenses. Lenders often use the 28/36 rule to assess affordability—this guideline suggests that your monthly housing costs should not exceed 28% of your gross income, while total debt payments (including loans and credit cards) should stay under 36%.

Below is a breakdown of the income typically needed to afford a $300K home.

Gross monthly income	Affordable mortgage payment	Can afford a $300K home?
$5,500 ($66K/year)	~$1,540	No
$6,900 ($83K/year)	~$1,932	Yes
$7,500 ($90K/year)	~$2,100	Yes (more comfortably)

If your income is below this range, you may still qualify by:

Making a larger down payment to reduce your loan amount
Improving your credit score to get a lower interest rate
Reducing other debts to improve your debt-to-income ratio

A higher down payment or lower interest rate can help make a $300K home more affordable.

Final thoughts

Your mortgage payment on a $30oK home depends on interest rates, loan type, and down payment size. A higher down payment and lower interest rate can save you hundreds per month and tens of thousands over time.

Before buying, consider:

How much you can afford based on your income and debts
Current interest rates and how they impact payments
The best loan type for your budget and financial goals

Ready to buy a home? Use Redfin’s mortgage calculator to get a personalized estimate.

The post How Much is a Mortgage on a $300K House? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How to Sell a Rental Property? 10 Steps to Success

Tue, 01 Jul 2025 18:11:28 +0000

Selling a rental property isn’t always a walk in the park. From property preparation and closing details to additional tax and tenant issues associated with investment properties, the stresses can add up fast. So, whether you’re selling a rental home in Atlanta or a property in Denver, check out this Redfin guide and learn the basics of how to sell a rental property with confidence in 2025.

This article assumes you own a rental property in the U.S. Always consult an attorney, tax professional, or Redfin agent for situation-specific advice.

3 key questions to ask before selling your rental property

Thinking about selling your rental property? Take a moment to reflect on these three simple questions to make sure you’re set up for success.

What are your financial goals?

Think about what you want to achieve with your money. Are you looking for a quick profit, aiming to spread out your investments, or addressing a financial need? Clarifying your motives will guide your decision.

Is the market in your favor?

Check out the local real estate market. Are property prices rising, steady, or falling? Timing your sale based on market trends can boost your return. Also, see if rental demand is strong in your area.

How will the sale affect tenants and your income?

If you have tenants, consider the impact on them. Review the lease terms, tenant rights, and local laws to ensure you’re compliant. You should also consider the financial impact of losing your rental income.

Selling with tenants vs. selling vacant

You can sell your rental with tenants or after they move out – each comes with tradeoffs:

Tenant-occupied: Appeals to investors, preserves rental income, but may limit showings and sale price.
Vacant: Attracts more traditional buyers, easier to stage and market, but results in lost income while on the market.

Your strategy depends on your buyer audience and local regulations.

How to sell a rental property

Step 1: Evaluate your goals against current market conditions

Assess your objectives: Determine why you’re selling and whether you want to maximize profit, sell quickly, or defer taxes via a 1031 exchange.
Research the market: Analyze local real estate trends to determine the best time to sell. Check comparable rental property sales (comps) in your area for pricing guidance.
Consider tenant status: Review your lease agreements. Are tenants on a month-to-month lease or a fixed-term lease? This affects your ability to show or vacate the property.
- Action: Contact a local Redfin agent to get a comparative market analysis (CMA).
- Tip: Tenant-occupied properties may appeal to investors—but could deter buyers looking for a primary residence.

Step 2: Familiarize yourself with the tax and financial implications

Calculate capital gains: Long-term capital gains (0%, 15%, or 20%) may apply if you’ve held the property over a year. High-income sellers may also owe a 3.8% Net Investment Income Tax.
Account for depreciation recapture: If you claimed depreciation, the IRS taxes depreciation recapture at 25% (up to the amount depreciated).
1031 exchange: If you want to defer taxes, consider a 1031 exchange to reinvest proceeds into another investment property. Strict rules apply, be sure to consult an expert before taking this route.
- Action: Consult a CPA or tax advisor to estimate taxes and explore strategies like a 1031 exchange. Gather records like purchase documents, improvement receipts, and depreciation schedules.
- Tip: Keep all records for at least 6 years, or indefinitely for 1031 exchanges.

Step 3: Communicate with tenants and follow local laws

Review lease terms: Check if the lease allows termination for sale or requires that tenants be allowed to stay until the lease ends. Be aware that state laws for these situations vary.
Notify tenants: If you are selling a home with tenants, inform them of future showings and notify them of their rights.
Offer incentives (optional): To encourage cooperation or early move-out, consider offering a cash-for-keys deal or reduced rent.
- Action: Consult a landlord-tenant attorney or property manager to ensure compliance with local laws. Keep records of all correspondence.
- Tip: Selling to an investor who wants tenants in place can help simplify the process.

Step 4: Prepare the property for sale

Assess the condition of property: Evaluate the repairs or upgrades needed to maximize value. Focus on high-ROI fixes.
Stage the property: If the home is vacant, stage it to appeal to buyers. If it’s occupied, do your best to work with tenants to keep it clean and accessible for showings.
Gather documentation: Gather up your property records. That means leases, maintenance history, utility bills, etc. Potential buyers will likely be interested in this.
- Action: Hire a contractor for repairs or a stager for presentation. Schedule a pre-listing inspection to identify issues upfront so you don’t run into any unexpected holdups.
- Tip: Highlight income potential through current rent and vacancy rates in marketing materials for investor buyers.

Step 5: Hire your agent and set the listing price

Work with a real estate agent: Find a Redfin agent to work with and come up with a competitive price based on market trends.
Find a tax advisor: Ensure tax compliance and explore tax-saving strategies.
Factor in vacancy: If you’re selling a vacant property, price it like a primary residence based on comps.
- Action: Talk with your agent and agree on a listing price.
- Tip: In hot markets, underpricing slightly can spark bidding wars. That said, this strategy doesn’t come without risk.

Step 6: Market and show the property

List the property: Your agent will list the property on the MLS and market it locally. Be sure to highlight rental income potential in your listing. Beyond that, your agent will have local insights and connections to help get the property out to the right people.
Coordinate showings: If the property is actively occupied by a renter, schedule showings with tenant consent, following state laws. If the property is vacant, use lockboxes for easy access. It can be helpful to coordinate with work schedules or other set times.
- Action: Ensure tenants are cooperative or the property is vacant for showings.
- Tip: Professional photos and virtual tours attract more buyers.

Step 7: Review offers and negotiate

Evaluate your offers: Compare your offers based on price, contingencies, and closing timeline. Note, investor buyers may offer cash for faster closings.
Negotiate terms: You can counter offers to improve price or terms. If the property is being rented, iron out all of the details of the lease transfer.
- Action: Work with your agent to assess offers. Consult your attorney if terms are complex or you are looking for any clarification.
- Tip: Cash offers from investors often close faster, but may come in lower than financed offers.

Step 8: Navigate inspections and appraisals

Buyer inspections: The buyer will likely conduct inspections. While not ideal, you may need to negotiate repairs or adjust the price if issues arise.
Appraisal: If the buyer uses financing, the lender will require an appraisal to confirm the property’s value.
Title search: A title company will check for liens or title issues. These issues will need to be resolved before the sale is finalized
Tenant cooperation: Make sure the current tenants allow access for inspections, per lease and state law. These laws vary by state so be sure to do your research.
- Action: Coordinate with your agent, tenants, and service providers to ensure inspections, appraisals, and title reviews happen on schedule. Provide all requested documentation quickly to keep the deal moving.
- Tip: Buyers often back out during the inspection period – staying responsive and flexible during this stage can help keep your sale on track.

Step 9: Close the sale

Sign closing documents: After diligent review, cross the i’s and dot the t’s on the closing statement, deed, and other paperwork. If the property is actively being rented, transfer the lease agreement to the buyer.
Pay off your mortgage: If applicable, your mortgage lender will provide a payoff statement. The title company will disburse the funds to pay off the loan.
Distribute the funds: After deductions like agent commissions, closing costs, and taxes, you’ll receive the net proceeds.

Transfer utilities and keys: Coordinate with the buyer to transfer utilities and hand over the keys.

Action: Attend the closing (in person or remotely) or sign documents in advance. Confirm tenant notification of the new owner, if applicable.

Tip: Review the Closing Disclosure three days before closing. This is required for financed buyers to ensure accuracy.

Selling a House With Multiple Owners: Your Guide to a Successful Sale

Tue, 01 Jul 2025 15:50:34 +0000

Living with someone teaches you a lot—selling a house with them teaches you even more. Whether you’re co-owners with siblings, friends, or an ex, the process can test even the best relationships. But with some planning, honest conversations, and the right paperwork, you can avoid the drama and close the deal smoothly.

So, whether you’re offloading an investment property in Asheville or a lake house in Minneapolis, you can sell a house with multiple owners, if each party comes prepared, that is.

Figure out who owns what

Before anyone even starts thinking about profits, you need to get real clear on how the ownership is structured. This isn’t about who mowed the lawn or paid for the new water heater—it’s about what’s on paper.

Tenants in common (TIC): Each person owns a specific share of the property, which can be unequal. One person can sell their share without the others.
Joint tenancy with right of survivorship: Everyone owns the property equally, and if an owner dies, their share passes to the others.
Tenancy by the entirety: Reserved for married couples. You jointly own the entire property, and full ownership passes to the surviving spouse upon death. Divorce typically converts it to a tenancy in common.
LLC or Trust Ownership: If the house is owned under a legal entity, different rules apply, and you’ll need to honor the predetermined agreement governing the group.

If you don’t know which situation applies, you should be able to find this information on the deed.

Make sure everyone’s on the same page

Just because one owner wants to sell doesn’t mean the others do—or that they have to. Unless the ownership agreement says otherwise, everyone needs to agree to list the property.

This is the time for a blunt conversation. What’s the price? Who picks the agent? Who pays for repairs or staging? What if one person refuses to sign? These are all things that need to be figured out before the property hits the market.

Put everything in writing. You don’t need a 40-page document filled with legalese, just something that says: here’s the plan, here’s the timeline, and here’s what we do if someone reneges.

Choose a point person

It can definitely be difficult to sell a house by committee. Buyers get spooked when there are five different voices at the table, and multiple points of contact can make agents’ lives a lot more difficult.

Appoint one person to handle communication with your Redfin agent, contractors, and title company. Give them power to sign paperwork—but only within agreed boundaries. You can do this with a simple limited power of attorney or a written agreement.

This doesn’t mean they make decisions solo. It just means they carry the ball.

Handle the title and debts upfront

Before you get too far down the road, pull a title report. Make sure there aren’t surprise liens, unpaid taxes, or long-lost co-owners who vanished in the 90s.

If one of the owners owes money and there’s a lien against their share, it has to be cleared before closing. Same goes for a divorce settlement that never got finalized or a trust that wasn’t properly transferred. These issues are fixable—but not overnight.

Also, if there’s a mortgage, figure out how much is left. Any unpaid balance will come out of the sale proceeds before anyone sees a dime.

Decide how to split the money before it hits the table

Don’t wait until closing day to figure out who gets what. If ownership is split equally and everyone pitched in equally over the years, this is straightforward. But that’s rarely how it goes.

Maybe one person paid the down payment, another did all the upkeep, and a third lived there rent-free for a decade. Maybe someone fronted the property taxes when money was tight. Those details matter.

You can agree to divide the proceeds differently than the deed reflects—but everyone needs to agree in writing. If you’re not sure what’s fair, bring in a real estate attorney or mediator to iron out the details in a fair way.

When someone doesn’t cooperate

Here’s the harsh truth: if one of the owners refuses to sell and there’s no agreement forcing them to, you’re stuck. Your options are:

Negotiate a buyout: Offer to buy their share or let someone else do it. Sometimes money talks.=
Partition action: This is a lawsuit that asks a court to force the sale of the property and divide the proceeds. It’s expensive, time-consuming, and a killer for relationships, but it works.
Wait them out: If you’ve got time and patience, waiting them out might be the cheapest option. But it’s also the riskiest.

There’s no magic wand for a stubborn co-owner. You either find common ground, or you let a judge do it for you.

List, sell, and close

Once everyone’s on board, you can list the property just like any other house. The agent will need the contract to be signed by all owners. No exceptions.

During closing, all owners must approve the final settlement statement and sign the deed. If someone’s out of town, a power of attorney can handle that. If an owner has passed away, their estate must be involved in the sale.

Make sure taxes are covered. If you made a big profit, you might owe capital gains. If one owner isn’t a U.S. citizen, there could be withholding requirements under FIRPTA (foreign investment in real property tax).

It is possible to sell a house with multiple owners

Selling a house with multiple owners is paperwork-heavy, emotionally straining, and full of pitfalls for the disorganized. But it’s also manageable—if you treat it like the serious financial transaction that it is, not a weekend group project.

Get your facts straight, talk it out early, and put every agreement in ink. Because trying to sell a house with multiple owners when things go south is not an easy feat.

The post Selling a House With Multiple Owners: Your Guide to a Successful Sale appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

19 Types of Home Inspections that Buyers Should Consider

Tue, 01 Jul 2025 00:05:03 +0000

Buying a home is a significant investment, and ensuring the house is in the best condition possible is a top concern for any buyer, regardless of whether it’s your first home or investment property.

While a general home inspection is almost always recommended for anyone buying a home, savvy buyers will do their due diligence by scheduling specialty home inspections, especially if the house is older or has specific features. So whether you’re eyeing a new house in San Diego or browsing homes for sale in Detroit, learn more about the different types of home inspections you should consider.

Do I need a specialized home inspection?

Brian Wendorf of Integrated Home Inspections compares home inspections to a visit to the doctor. “Getting a home inspection is like seeing a trusted general practitioner who will evaluate overall health and recommend seeing a specialist when there is a question or concern about something that may be a latent issue.”

You should always consider specialized home inspections based on the home’s age, location, or condition, to investigate potential issues, especially those that are common in homes in your area. General home inspections are great at giving you an idea of the overall state of the house at a point in time but may miss key details.

When it comes to buying a home, you want to make sure you know all there is to know about the property before signing on the dotted line. Here are 18 different types of home inspections you should consider:

Types of home inspections

General
Roof
Electrical
Attic
Chimney
HVAC
Mold
Pest
Foundation
Plumbing
Septic
Radon
Asbestos
Pool
Soil
Lead-based paint
Crawl space
Sewer
Wood-destroying organism (WDO)

1. General inspection

The general inspection is the most common type of home inspection, providing a general survey of all the major systems and functionalities of the house from roof to foundation. While they offer a broad overview of the home, general inspections tend to lack the depth of specialized inspections. As you’ll read later on, there are a plethora of different inspections covering all aspects of the home. Environmental factors and the individual home’s condition can dictate which types of inspections are right for you.

2. Roof inspection

Roof inspectors conduct a more thorough inspection that may reveal issues that aren’t visible to the untrained eye. These can include leaks, unsecured shingles that could allow water to enter the home, and the condition of the gutters.

“Your roof is your home’s shield against the elements,” says Preston Smith of Mahogany Premium Home Inspections. “A roof inspection during a home inspection can help you spot problems early and save money on repairs. Peace of mind is priceless.”

3. Electrical inspection

Safety, comfort, and improved energy efficiency are a few of the benefits you will gain from having your electrical systems inspected by a professional. Wires can become frayed and damaged from regular wear and tear and pose a dangerous fire hazard to your home and family.

4. Attic inspection

Before you close on your dream home, make sure you get the attic checked out. Attic inspections evaluate ventilation and insulation while looking out for pests like termites.

“Many people, including some roofing companies, don’t understand the importance of roof or attic ventilation or the proper way to install a venting system,” says Sean Brady of SpecQuest. “Getting a home inspection that includes the attic can help identify deficiencies in this area, which can help prolong the life of roofing materials.”

5. Chimney inspection

Chimney inspections can alert you of any potential problems in the firebox or flue, buildup, or blockages that you can bring to the homeowners to fix before closing on the home. The inspector assesses the exterior for cracks or structural damage and clear the chimney of any buildup of creosote (a byproduct of burning wood) that can combust if left untreated.

6. HVAC inspection

A strange sound or smell could indicate an underlying issue that could affect your HVAC system, leading to increased heating and cooling costs, or worse, needing to replace it with a whole new system. An HVAC inspection provides a clearer picture of the home’s heating and cooling system, and can even give you recommendations for repairs or energy-efficient upgrades.

“The AC unit is one of the most used components in the home,” says Kal Hoffman of Miami Divum. “HVAC and vent inspections are probably one of the least thought about, but most cost-effective actions that a homeowner can do once every three to five years. A well-functioning unit with proper ventilation will not only pay for itself, but will also continue to save the homeowner money throughout its lifespan.”

7. Mold inspection

Just because you can’t see mold doesn’t mean there isn’t any lurking away in your dream home. In fact, a mold problem could indicate that the home is harboring larger issues such as water damage, leaks, or even flooding.

“Mold inspections involve a comprehensive visual assessment of the property to identify visible mold and potential mold-conducive conditions,” says Randy Cottrell of Blue Crab Inspections. “Advanced tools like infrared imaging and moisture meters are employed to detect moisture intrusions or dampness not visible to the naked eye.”

Note: Mold inspections are especially important in humid areas like Miami, FL.

8. Pest inspection

Termites and other wood-loving pests can cause irreparable damage to the property that is costly to replace. A trained pest inspector can definitively identify if there is a continuing presence of pests, such as termites, carpenter ants, rodents, or spiders, in your home’s exterior and interior. Getting a pest inspection early on will let you know you’re investing in a pest-free home.

Note: Older homes are more susceptible to pest problems.

9. Foundation inspection

Whether you’re a seasoned or first-time homebuyer, a foundation inspection can easily be overlooked when going through the types of home inspections you should consider. Large cracks in the exterior and interior walls, uneven floors, gaps between walls and the ceiling, or even doors that won’t close properly are potential warning signs that there may be bigger foundational issues that have gone unnoticed.

10. Plumbing inspection

To prevent issues like a sewer backup or a failing water heater from becoming a homeowner’s nightmare, investing in a plumbing inspection before making the down payment can bring underlying issues to light. An inspector will either conduct a visual inspection or use a diagnostic camera to verify that fixtures and appliances are installed properly and check for signs of water damage under or behind appliances.

11. Septic inspection

Like plumbing emergencies, a malfunctioning septic system can spell costly repairs (along with unpleasant odors) if they aren’t caught before you’re under contract. A trained septic inspector will locate and assess the septic tank, sludge layer, and absorption area to ensure all components are in working order. Always consider a septic inspection if you’re buying a home with a septic tank.

Note: Homes in New England states like Massachusetts are most likely to have septic systems.

12. Radon inspection

If you’re looking for your future home in regions where basements are common, requesting a radon test as part of the home’s overall inspection can help bring you peace of mind. Nearly 1 in 15 homes in the United States has elevated radon levels, and the EPA recommends that all houses be tested for radon levels during the point of sale.

In most cases, you can request the seller’s previous radon test results as part of the home inspection and use that as a point of comparison.

“Radon testing is important because it is the second leading cause of lung cancer in the US,” says New South Property Inspections owner Wes Grant.

Note: Midwestern states like Iowa and North Dakota have elevated radon levels.

13. Asbestos inspection

Houses built before 1975 might have asbestos in the building materials. An asbestos inspection should be conducted by a certified asbestos removal company. If the inspector recommends a removal, make sure this is addressed before signing off on the contract.

Note: East coast cities like Boston, which tend to have older buildings, are at higher risk for asbestos exposure.

Deciding how long to keep paperwork after selling a house depends on your individual circumstances. With so many moving parts, there are a number of scenarios that can arise, each with their own specific documentation requirements. Read this Redfin article to find out a few of the most common home sale scenarios and their recommended document retention periods. Whether you’re selling your home in New Haven or finally putting your house in Chattanooga on the market, you can use this information to protect yourself from some of the most common problems down the line.

This article is meant to act as a general guideline. Consult a tax professional, attorney, or Redfin Real Estate Agent for advice specific to your situation.

How long should you keep paperwork after selling a house?

You should keep paperwork related to the sale of your house for several years after the sale — often at least seven — especially if the sale involved a large gain, home improvements, or any unusual circumstances. This includes documents like your closing statement (HUD-1 or settlement statement), receipts for repairs and upgrades, and anything else that helps document your home’s value over time. These records can be useful if questions come up later, whether for taxes, legal matters, or future financial planning.

General paperwork guidance for all home sale situations

Key documents to keep: Purchase and sale agreements, closing statements, deeds, title insurance policies, receipts for home improvements, mortgage payoff statements, and any tax-related forms.
Why keep them: These documents may be needed for tax purposes, resolving disputes, or proving ownership history. The IRS can audit tax returns for at least 3 years after filing and 6 years if significant income is underreported. Beyond that, some home sale situations will require longer document retention.
Storage tip: Keep physical and or digital copies in a secure, organized manner. Digital backups are recommended for long-term storage and easier to sort through.

Situation	Minimum Document Retention Period	Key Documents to Keep Indefinitely
Primary Residence (No Tax)	3 years post-tax filing	Closing statements, major improvement receipts
Primary Residence (Taxable)	6 years post-tax filing	Closing statements, major improvement receipts
Investment/Rental Property	6 years post-tax filing	Closing statements, depreciation records, rental income/expenses
Inherited Property	6 years post-tax filing	Appraisal at date of death, estate documents, closing statements
Second/Vacation Home	6 years post-tax filing	Closing statements, improvement receipts
Short Sale/Foreclosure	6 years post-tax filing	Form 1099-C, lender correspondence
1031 Exchange	Indefinitely	Exchange agreements, intermediary records closing statements
Sale with Legal Disputes	Indefinitely or per state law	Contracts, legal filings, correspondence

How long to keep documents after different types of home sales

Not all home sales should be handled the same. The same goes for how long to keep paperwork after selling a house. You need to be fully aware of your situation and the documentation requirements associated with it.

1. Primary residence sale (no capital gains tax due)

Scenario: You sell your primary residence and don’t owe any tax on the profit.

Retention period: Keep your closing documents and records of any home improvements for at least three years after you file taxes for the year of the sale.

Example: If you sold the home in 2025 and filed taxes in 2026, hold onto your records until at least 2029.

Additional considerations: Improvements can affect your home’s value over time, so storing receipts longer — or indefinitely — is a good idea.

2. Primary residence sale (capital gains tax due)

Scenario: You sell your primary residence but owe capital gains tax.

Retention period: Hold on to these documents for at least 6 years after the tax filing year. For complex cases, consider keeping key documents indefinitely.

Additional considerations: Same as scenario one, it is a good idea to retain records of all home improvements.

3. Investment property or rental property sale

Scenario: You sell a home you used as a rental or investment.

Retention period: Hold onto records of the sale, income, expenses, and improvements for at least six years after filing your taxes.

Example: For a 2025 sale filed in 2026, keep everything until at least 2032.

Additional considerations: If you claimed depreciation or other deductions while owning the property, keeping those documents even longer can help you stay covered.

4. Inherited property sale

Scenario: You sell a home that you inherited.

Retention period: Keep sale-related paperwork for at least six years after filing your taxes.

Example: If you sold the home in 2025 and filed in 2026, hold onto documents until at least 2032.

Additional considerations: Documents like appraisals, probate records, or wills may be worth keeping indefinitely in case questions come up in the future.

5. Sale of a second home or vacation home

Scenario: You sell a second home that wasn’t your primary residence.

Retention period: Keep your sale records, improvement receipts, and any related documents for at least six years after your tax filing.

Example: If the sale happened in 2025 and taxes were filed in 2026, aim to keep everything through 2032.

Additional considerations: If the home was ever a primary residence or rental, keep records from those time periods too.

6. Short sale or foreclosure

Scenario: You complete a short sale or go through foreclosure.

Retention period: Keep lender correspondence, closing documents, and any official forms for at least six years after filing your taxes.

Example: If the sale happened in 2025 and you filed in 2026, hold onto everything until at least 2032.

Additional considerations: These types of sales can be more complex, so it’s safest to digitize and store records securely for the long term

7. Sale involving a 1031 exchange

Scenario: You sell an investment property as part of a 1031 like-kind exchange.

Retention period: Keep all documents related to both properties — including the exchange agreement and closing statements — indefinitely.

Additional considerations: Since the tax implications can carry forward into future sales, maintaining a full paper trail is essential.

8. Sale with legal disputes or contingencies

Scenario: Your sale included legal issues or special terms, like seller financing or a lease-back agreement.

Retention period: Hold onto all contracts, correspondence, and legal documents indefinitely or until all claims and obligations are fully resolved.

Additional considerations: The timeline for keeping these records can vary depending on state laws. If you’re unsure, consult an attorney.

Don’t toss your important docs too soon

When it comes down to it, the best approach is to digitize your records, store them securely, preferable in multiple locations, and label them.You don’t want to be the person scrambling through boxes of water-damaged paperwork in the garage five years from now. When it comes to the question of how long to keep paperwork after selling a house, err on the side of caution. Digitize your records and store them somewhere safe until the day comes that you need them.

The post How Long to Keep Paperwork After Selling a House: 8 Common Situations To be Aware Of appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Can You Sell a House with Water Damage? 7 Steps to Success

Mon, 30 Jun 2025 20:17:23 +0000

Selling a house with water damage can feel like an uphill battle – but it’s not impossible. Whether you’re trying to sell a water-damaged home in New Orleans or a condo in Phoenix, buyers may still be interested if the issue is handled the right way

So, can you sell a house with water damage? Yes, you absolutely can. You just have to do it the right way. Here’s your basic playbook for selling a house with water damage, from the first drip to the final signature.

1. Get a professional inspection

You can’t sell a house with water damage by pretending it’s a charming fixer-upper. That puddle in the crawlspace? It’s not “rustic.” It’s a liability. So, step one is to call in a professional. Reach out to a water damage inspector or restoration expert to dive into the details of the problem.

This isn’t just about knowing what’s broken. It’s about arming yourself for the days ahead. Without hard data, you’re a sitting duck for lowball offers or lawsuits from buyers who discover the problem you “forgot” to mention.

2. Decide whether to repair or sell as-is

You’ve got two paths, none of them perfectly paved with gold.

Repair the damage: Pay to fully repair the water damage and any underlying issues associated with it. There is a shot at getting some or all and more of the cost back in a higher sale price.
Sell as-is: Sell the property as-is and target investors or cash buyers who don’t flinch at the idea of some major repairs after closing. This may be faster in some scenarios, but you’ll also likely take a hit on the sale price.

Your choice depends on your bank account, your patience, and the local market. If flippers are circling your neighborhood like vultures, an as-is sale might be your ticket. If it’s a seller’s market, repairs could improve your profit. Get contractor quotes, check comps for other water-damaged sales, and don’t kid yourself about how much buyers will be willing to look past.

3. Disclose all water damage honestly

Most states require you to fill out a disclosure form that’s basically a confession of your house’s shortcomings. Water damage? Mold? Past floods? You have to be honest about it. If you aren’t, you’re opening yourself up to a lawsuit that could cost more than the house itself.

4. Work with an experienced agent

A Redfin agent can act as your guide and point of contact. If possible, find an agent who has sold water-damaged houses before. They’ll run a Comparative Market Analysis (CMA) to price your place against other similar homes and handle the paperwork.

5. Price your home appropriately

Realistically, you probably won’t get top dollar for a home with water damage. That said, you need to price it realistically. If similar homes in your neighborhood are selling for $450,000 and your basement recently had water issues, it makes sense to lower your asking price a bit. A fair, well-researched price can attract the right buyers and help you avoid drawn-out negotiations or a stalled sale.

6. Get creative with your marketing

Your listing needs to scream “opportunity” without being dishonest or misleading in any way. Hire a photographer who can make the undamaged rooms pop but won’t airbrush the reality of the situation away.

7. Be ready for questions

Buyers will likely send inspectors to check out your house. Expect them to find every flaw you disclosed, and even some you didn’t. Share your inspection report upfront to set expectations and show transparency. If you’re selling the home as-is, make that clear from the start, but be prepared for buyers to ask for credits or even walk away if the damage feels too overwhelming.

Traditional buyers with FHA or VA loans might bail if the damage makes the house uninhabitable by lender standards. Cash buyers or conventional loans may be your best bet.

Yes, you can sell a house with water damage

Selling a house with water damage is no walk in the park. Be honest, price it right, and target buyers who can see the dollar signs in your disaster. Whether you fix the home or sell it as-is, the key is momentum. Get a Redfin agent, create your plan, and sell your home the right way.

Selling a house with water damage: FAQs

Can I sell a house with water damage without making repairs?

Yes, you can sell a water-damaged home as-is, but it’s important to disclose all known issues. You may need to price it lower and target investors or cash buyers who are comfortable taking on repairs.

Will insurance cover the cost of water damage before I sell?

It depends on the cause of the damage and your policy. Insurance may cover sudden or accidental damage (like a burst pipe), but not gradual issues like long-term leaks or poor maintenance.

Do I have to disclose past water damage if it’s been fixed?

In most states, yes. Even if the issue was resolved, sellers are typically required to disclose any known history of water damage, flooding, or mold.

Can water damage lower my home’s appraised value?

Yes. Appraisers take the condition of the home into account, and visible or documented water damage can impact the final valuation—especially if it affects structural components or leads to mold.

Who buys homes with water damage?

Common buyers include real estate investors, house flippers, and some cash buyers who are willing to take on repairs. Traditional buyers using FHA or VA loans may not qualify if the home doesn’t meet habitability standards.

The post Can You Sell a House with Water Damage? 7 Steps to Success appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Selling a House With Unpermitted Work: A Basic Guide to Keep Yourself Covered

Mon, 30 Jun 2025 19:36:25 +0000

There’s a certain satisfaction that comes with taking on a project yourself—hauling in the lumber, getting the job done with your own two hands. But when it comes time to sell that home, if the work you did—or had done—was never officially green lit by the city, things are likely to get a little more complicated.

That said, don’t fret, you still have options. Whether you’re moving on from a house in Santa Cruz or putting your Boston home up for sale, you can sell your house with unpermitted work – as long as you do it the right way.

What is unpermitted work?

Unpermitted work means any renovation, repair, or addition to a home that legally required a permit but was done without one. This could be as simple as a deck extension or as major as converting a garage into a bedroom or even adding a bathroom.

You might have bought the place with the unpermitted work already done. You might’ve done it yourself, figuring “good enough” was good enough. Either way, if the local building authority doesn’t have it on record, it’s technically not up to code—even if it’s built to last.

Can you sell a house with unpermitted work?

Yes, you can sell a house with unpermitted work. There’s no law saying a home with unpermitted work can’t be sold. But there are steps, risks, and disclosures that come into play.

Here are the most common issues sellers run into:

Disclosure requirements: You’re legally obligated to tell potential buyers about known unpermitted work. Trying to hide it is not an option.
Lender hesitation: If a buyer needs a mortgage, the unpermitted work can spook lenders. They don’t like loose ends, and they definitely don’t want to loan on a house that could bring future liability.
Appraisal problems: Appraisers often can’t include unpermitted square footage in the home’s valuation. That sweet basement bar you built? Worth zilch in their eyes unless it’s legal.
Insurance risks: If something goes wrong in that unpermitted addition, insurance might not cover it. Something like an electrical fire in your DIY attic office will be entirely on you.

Assess the situation and document everything

Before you do anything, take stock of your situation in its entirety.

Pull records from the city or county: Your local building department can tell you what permits were issued. If there’s no record for that second story or bathroom, it’s time to start asking questions.
Get a contractor’s assessment: A licensed contractor can evaluate whether the unpermitted work was done to code—even if it wasn’t inspected. If it’s solid, you’ve got some ammo to reassure buyers.
Find a home inspector: A thorough home inspection, even one you pay for up front, can ease buyer fears later. Think of it as looking up your route before a long hike—you want to know what’s waiting for you.

Should you: fix it, permit it, or sell as-is?

Once you’ve sized up the situation, you’ve got a few ways to proceed. None of them are pain-free.

1. Retroactive permitting

Some jurisdictions allow you to apply for a “retroactive” or “after-the-fact” permit. This is often the best route if you’ve done high-quality work and have the time to deal with local government.

You’ll likely need:

Plans drawn up by an architect or engineer
Inspections (which may involve opening walls or ceilings)
Financial reserves to cover fees and possibly penalties

It’s not always easy, but retroactive permitting can help you sell with fewer complications.

2. Tear it out or fix it to code

In some cases, retroactive permits aren’t allowed or are more trouble than they’re worth. If the work is sloppy or dangerous, you might have no choice but to bring it up to code or remove it entirely.This costs money. Possibly a lot. But it can make the sale smoother and safer.

3. Sell as-is and disclose everything

This is the path of least resistance, and it’s legal—so long as you don’t intentionally hide anything. Disclose the work in writing. Spell it out. Be upfront and as clear as possible.

Buyers will still bite if the price is right or the work looks good. But you might limit yourself to cash buyers or investors who don’t need financing and are used to fixer-uppers.

Should you price a house with unpermitted work lower?

Usually, yes. Homes with unpermitted work tend to sell for less than similar homes that are fully permitted. Appraisers won’t factor in unpermitted square footage, and some buyers won’t want to deal with the extra risk.

That said, if the work is well done and visible, you may still get close to market value—especially in a hot market where buyers are willing to overlook issues. Just be prepared: every negotiation will likely circle back to the same question—“What happens if the city finds out?”

Unless you’ve resolved the issue beforehand, the answer is usually that the buyer takes on the risk.

Don’t skip the paperwork

Find a Redfin real estate agent who understands how to handle this kind of thing. You need clean, thorough disclosures. You might even want to consult a real estate attorney, especially if there’s a lot of money on the line or you’re dealing with serious violations.

Your goal isn’t to hide the past. It’s to sell your home honestly and avoid trouble down the line.

You can sell a house with unpermitted work

Selling a house with unpermitted work isn’t a dead end—it’s just a tougher trail to walk. You’ll face more questions, more paperwork, and probably a few costs you didn’t see coming. But if you go into the process with open eyes and a steady hand, you can still successfully sell your house with unpermitted work.

The post Selling a House With Unpermitted Work: A Basic Guide to Keep Yourself Covered appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Does the Seller Have to Be Present at Closing? Here’s What You Need to Know

Mon, 30 Jun 2025 18:42:43 +0000

When it comes to whether or not a seller has to be present at closing, the short answer is no. When selling a home, the seller can often close remotely or through a representative. If everything is signed in advance or via a power of attorney, their physical presence isn’t required. That said, laws and practices vary slightly by state, so it depends on how the title company, attorney, or escrow agent handles closings.

Whether you’re selling a home in San Diego or a condo in Boston, this Redfin guide breaks down what’s required of sellers at closing, how the process works in different states, and how to prepare if you won’t be there.

Can sellers skip the closing appointment?

Yes, sellers can often skip the in-person closing appointment. Whether you’re selling a home in Texas, Florida, or California, many closing agents now offer remote options that allow you to complete your part of the transaction without being physically present.

To close remotely, you’ll typically:

Sign documents ahead of time or electronically
Use a power of attorney to authorize someone to sign on your behalf
Work with a notary for required signatures, either in person or virtually

Just keep in mind that some states have stricter requirements around notarization, witness signatures, or attorney involvement, so your closing agent will guide you based on local rules.

Who needs to be present at closing?

The parties required to be present (or represented) at closing depend on the transaction and local practices. Here’s a breakdown of who typically needs to attend—or be represented:

Buyer: The buyer is usually present to sign loan documents (if financing) and other paperwork, like the deed and closing disclosure. If the buyer can’t attend, they may use a power of attorney (POA) or remote signing.
Closing agent: A title company representative, escrow officer, or closing attorney (depending on the state) oversees the process, ensures documents are signed correctly, and handles funds. They are always present.
Notary: If documents are being signed at closing, a notary is often present to verify signatures. For remote closings, the seller or buyer uses a local notary.

In some states (“attorney states” like New York or Massachusetts), a closing attorney must be present to facilitate the process. In others (“escrow states” like California), an escrow officer handles it.

What do sellers need to do to close on a home?

For a home sale to close, the seller must fulfill several key obligations. The minimum requirements typically include:

1. Provide a clear title

The seller must deliver a clean title, free of liens, encumbrances, or disputes, unless otherwise agreed (selling “as-is” with known issues). This often involves paying off any existing mortgages, resolving tax liens, or addressing other title defects before or at closing. A title company typically conducts a title search to confirm this, and the seller may need to sign an affidavit of title.

2. Sign the required documents

The seller must sign essential documents, either in person, remotely, or through a representative. Common documents include:

Deed: Transfers ownership to the buyer (e.g., warranty deed or quitclaim deed, depending on the sale).
Bill of sale: For personal property included in the sale (e.g., appliances).
Settlement statement (closing disclosure): Outlines the financial details, including proceeds to the seller and closing costs.
Affidavit of title: Confirms the seller has the legal right to sell the property.
Transfer tax declarations or exemptions: Required in some states or counties.

The exact documents vary by state and transaction type, like cash sale vs. financed.

3. Fulfill the purchase agreement

The seller must fulfill all obligations outlined in the purchase agreement, such as:

Making agreed-upon repairs or providing credits.
Leaving the property in the condition specified (e.g., broom-clean).
Including any personal property or fixtures promised in the contract.

Failure to meet these terms could delay or derail the closing.

4. Pay remaining balances

The seller must settle any financial obligations tied to the property, typically deducted from their proceeds at closing. This may include:

Remaining mortgage balance.
Property taxes prorated up to the closing date.
Homeowners association (HOA) fees or assessments.
Seller-paid closing costs, if negotiated (e.g., title insurance or buyer’s closing costs).

5. Vacate the property (if applicable)

Unless the contract allows for post-closing occupancy, the seller must vacate the property by the closing date or as agreed. This includes removing personal belongings and ensuring the property is in the promised condition.

6. Comply with local and state laws

The seller must meet any legal requirements, such as:

Providing mandatory disclosures (e.g., lead-based paint disclosure for homes built before 1978 or state-specific property condition reports).
Paying transfer taxes or recording fees, if applicable.
Obtaining a certificate of occupancy or smoke detector certification, if required by local ordinances.

How to prepare for a remote closing

If you plan to skip the in-person appointment, here’s how to make sure everything goes smoothly:

Confirm your closing method: Talk to your agent or closing company about remote signing, mail-away closings, or using a power of attorney.
Review documents early: Don’t wait until the last minute—ask to review the closing packet in advance.
Coordinate notary services: Some states allow online notarization, while others require in-person witnesses.
Plan for your mortgage payoff and utility shutoff: Handle these before the closing date to avoid delays.
Make sure the property is ready: Remove belongings and leave the home in the agreed-upon condition.

Bottom line: Sellers do not need to be physically present at closing

At the end of the day, the short answer to the question, does the seller have to be present at closing is no. The seller does not have to be physically present at a home closing. That said, they do need to show up on paper, and, depending on the state, send a legal representative.

The post Does the Seller Have to Be Present at Closing? Here’s What You Need to Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How to Include Furniture in a Home Sale: A Step-by-Step Guide

Mon, 30 Jun 2025 18:24:46 +0000

Whether you had custom furniture built specifically for your modern house in Denver or your buyers just really like your interior design work, there are a number of reasons why someone would want to package the furniture up with a home sale.

It’s not overly complicated, but there are a few important details to get right. This simple guide walks you through how to include furniture in your home sale with confidence.

1. Communicate clearly with the buyer

Be specific from the start. If you’re including furniture in the sale, the buyer—and everyone else involved – needs a clear, itemized list of what’s staying. Not “some stuff” or “maybe the dining set,” but a detailed, point-by-point list: the beige West Elm couch, the leather bar stools, the mounted TV in the den, and definitely not the signed Springsteen poster. Buyers will want to know what they’re getting, and agents, lenders, and underwriters are going to want that list in writing. Vagueness kills deals and opens the door up to problems down the line.

2. Choose furniture worth including

Not every piece of furniture is worth negotiating over. If you’re planning to include furnishings in the sale, think strategically. Focus on items that add real value or appeal to the buyer – not the old armchair you’ve been meaning to replace for years.

Start with furniture that’s:

In good condition or recently purchased: Pieces that look clean, modern, and gently used will appeal most. Scuffed, sagging, or worn-out items may actually hurt the perceived value.
Custom-made or hard to replace: Built-ins, banquettes, floating shelves, or anything designed specifically for the space can be a big selling point and may feel like a natural part of the home.
Scaled to the room: If a buyer loves the way your low-profile sectional fits the living room just right, they may prefer to keep it rather than start from scratch.

Think about what a buyer might reasonably want – and what you can live without. It’s better to keep anything sentimental or valuable to you personally than regret giving it up just to close a deal. A few well-chosen pieces can go a long way, and a curated approach feels more intentional than offering to include everything.

3. Time your negotiations carefully

It’s usually best to wait until after an offer is on the table to bring up furniture. That way, it’s treated as an add-on, not a condition of the sale. If the buyer expresses interest early on, be clear that any furniture discussion will happen separately from the home’s price and terms.

Once you’re aligned, work with your agent to negotiate the furniture’s value, create a written list, and formalize the agreement with a personal property addendum.

4. Keep everything organized

Then there’s the issue of value. This is the point where lenders come into the equation. Let’s say the house is selling for $500,000 and you’re tossing in $10,000 worth of furniture. You can’t just leave the sale price at $500,000 and call it a day. Lenders don’t finance throw pillows. If you try to slide furniture into the purchase price, the appraisal won’t support it, and the underwriter might have issues with this.

You’ll need to break it out: $490,000 for the house, $10,000 for the furniture. Yes, this is annoying. But that $10,000 is personal property, not real estate, and trying to fudge the numbers could throw a wrench into the whole deal.

5. Document everything

This brings us to documentation, the one thing you can never have too much of in a real estate deal. You’ll need to write all included furniture into the purchase agreement using a personal property addendum. A personal property addendum describes every piece of personal property, outside of the house itself, that is included in the deal. This needs to be written out in enough detail to prevent any misunderstandings during the final walkthrough. Pro tip: it might be a good idea to draw up a bill of sale just for the furniture for added protection.

6. Keep everything in the same condition

Once the paperwork is in place and everyone’s agreed on who gets what and for how much, it’s time for the final walkthrough and closing. The furniture must still be there, in the same condition it was when first agreed upon. You can’t just suddenly get nostalgic and swap out the cool leather chairs for grandma’s floral recliners.

You can include your furniture in your home sale

If you’re including furniture in your home sale, treat it like a mini-sale inside the bigger deal. Make a list. Set a value. Put it in writing. Separate it from the house price. Use a professional to handle the taxes.

Do it right, and you’ve just made your buyer’s life easier, padded your sale price, and cleared out your house—all at once. Do it wrong, and you could be in for a world of headaches.

FAQs about including furniture in a home sale

Can I sell a house fully furnished?

Yes. You can sell a fully furnished home, but you’ll need to document the furniture separately from the home price and use a personal property addendum.

Should I include furniture in the listing price?

No. Furniture should be itemized separately from the home’s sale price to avoid appraisal and financing issues.

Can the buyer back out if the furniture isn’t there at closing?

Possibly. If the furniture was included in the purchase agreement and isn’t present or in the agreed condition, it could be considered a contract breach.

The post How to Include Furniture in a Home Sale: A Step-by-Step Guide appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

What Percentage of Your Income Should Go Toward Your Mortgage?

Mon, 30 Jun 2025 17:19:42 +0000

Key Takeaways:

Use the 28/36 rule as a starting point, but adjust based on your full financial picture and lifestyle.
There’s no one-size-fits-all percentage. Choose a monthly payment that leaves room for savings, emergencies, and long-term goals.

Determining what percentage of your income should go towards a mortgage is a crucial step in responsible homeownership. While there’s no one-size-fits-all answer, general rules and lender criteria can help you find the right balance between buying the home you want and staying financially stable.

Whether you’re buying a house in Denver or browsing homes for sale in Austin, this guide will help you figure out how much mortgage you can afford – and avoid stretching your budget too thin.

How to calculate your monthly percentage?

There’s no perfect number that fits everyone, but a few common rules can help you decide what’s affordable and sustainable. These guidelines are based on your gross monthly income (what you earn before taxes).

1. 28% / 36% Rule

This is one of the most widely used affordability benchmarks:

- Spend no more than 28% of your gross income on housing costs (including your mortgage, property taxes, and homeowners insurance).
- Keep total debt payments under 36%, including things like credit cards, student loans, and car payments.

Example (Gross Monthly Income: $8,000):

Housing: Max $2,240 (28%)
Total Debt: Max $2,880 (36%)

2. 25% Rule

This rule suggests capping your monthly mortgage payment—just principal and interest—at no more than 25% of your gross monthly income.

Example (Gross Monthly Income: $8,000):

Mortgage Payment: Max $2,000 (25%)

This rule is often considered a more conservative approach, but it’s important to note that it doesn’t include property taxes, homeowners insurance, HOA fees, or maintenance costs. So while it can help keep your housing costs in check, you’ll still need to budget separately for those additional expenses.

3. 30% Rule

Some people stretch the limit slightly, especially in high-cost cities. This rule allows up to 30% of your income for housing expenses, but make sure you still have room in your budget for other goals.

Example (Gross Monthly Income: $8,000):

Mortgage Payment: Max $2,400 (30%)

How do lenders determine your home affordability?

Mortgage pre-approval assesses your financial health to determine your borrowing limit, providing a clear house-hunting budget. Lenders assess your home affordability by evaluating a variety of factors to determine whether you can comfortably manage mortgage payments alongside your other financial obligations. Learning this information is key in determining, what percentage of your income should go to a mortgage. Here’s a breakdown of what lenders typically consider:

Credit score

Lenders prioritize your credit score, a key indicator of creditworthiness and financial responsibility. A higher score (ideally above 620) signals lower risk, increasing mortgage approval chances and potentially securing better interest rates.

Debt-to-income ratio (DTI)

Lenders use the debt-to-income (DTI) ratio to assess how much of your monthly income goes toward debt. Calculated by dividing total monthly debt payments by gross monthly income, a DTI below 43% is generally preferred, though some lenders may be flexible. This helps lenders evaluate your capacity for additional debt.

Income and employment history

Lenders require stable and sufficient income, usually two years in the same job or industry, for mortgage approval. Pay stubs and tax returns are common income verification documents.

Down payment

Your down payment impacts your loan amount, monthly payments, and interest rates. While conventional loans typically require 20% down, FHA or VA loans offer lower down payment options.

Assets and savings

Lenders assess assets, checking, savings, retirement, and investments to confirm financial stability. Adequate reserves demonstrate that you have a financial cushion for emergencies and can cover other expenses beyond the mortgage, such as closing costs and home maintenance.

Loan type and terms

Loan types (conventional, FHA, VA, USDA) vary in requirements and benefits, impacting interest rates and down payments. Lenders assess your financial readiness for homeownership, ensuring you can afford the mortgage and maintain financial health.

How to lower your monthly mortgage payments

When determining what percentage of income should go to a mortgage, these strategies can help you reduce your mortgage costs, save money, and achieve financial stability more quickly. Each option has its benefits, so consider your financial situation and long-term goals when deciding which strategies to pursue.

Make a larger down payment: A larger down payment reduces your mortgage, lowering monthly payments and total interest, and can help you avoid private mortgage insurance (PMI).

Consider the loan terms: Choosing a 15-year mortgage over a 30-year mortgage saves significant interest, though monthly payments are higher. Conversely, extending to a 30-year mortgage lowers monthly payments by spreading principal and interest over a longer term.

Make extra payments: Paying extra on your mortgage principal, even small amounts, can significantly reduce the total interest paid. Consider rounding up payments or making occasional lump-sum payments.

Refinance your mortgage: Refinancing your mortgage can lower monthly payments and interest costs by securing a lower rate. Compare offers, including fees, to see if it’s right for you.

So, what percentage of your income should go to your mortgage?

While rules like 28/36, 25%, and 30% offer guidance, your ideal percentage depends on your unique financial situation, including credit score, income, debt, and down payment. Regularly reviewing and adjusting your mortgage strategy (refinancing, extra payments, or term changes) ensures manageability and sustainability with your financial goals.

Frequently asked questions

Is the 28/36 rule a strict limit?

No, it’s a guideline. While lenders use it for qualification, your personal comfort level and financial situation may be different. However, exceeding these percentages significantly can put a strain on your budget.

Should I include utilities in the 28% housing costs?

The 28% typically refers to PITI (Principal, Interest, Taxes, and Insurance). While utilities are a housing expense, they are generally not included in this specific calculation for lending purposes. However, you should factor them into your overall monthly budget.

What if my income fluctuates?

If your income is irregular, it’s wise to base your mortgage affordability on your lowest consistent income or average your income over a longer period to ensure you can comfortably meet payments during leaner months.

Can I get a mortgage if my debt-to-income ratio is higher than 36%?

It might be more challenging, but it’s not impossible. Lenders may consider other factors like a strong credit score, a large down payment, or significant savings. However, it’s generally advisable to lower your debt-to-income ratio before applying for a mortgage.

The post What Percentage of Your Income Should Go Toward Your Mortgage? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

This reimagined landmark blends timeless craftsmanship with resort-style outdoor living, featuring a designer lap pool, chic glass cabana, and a storied past on prestigious Mount Royal. Extraordinary property of the day represented by Vivienne Huisman o

Mon, 30 Jun 2025 15:49:05 +0000

This reimagined landmark blends timeless craftsmanship with resort-style outdoor living, featuring a designer lap pool, chic glass cabana, and a storied past on prestigious Mount Royal. Extraordinary property of the day represented by Vivienne Huisman of Sotheby's International Realty Canada.

Summer Dangers: How to Keep Your Home and Family Safe This Season

Mon, 30 Jun 2025 15:00:30 +0000

As the days get nicer and invite us outside, summer brings a sense of joy in outdoor activities. Children no longer want to be cooped up and want to be free outdoors. However, it’s also a time when certain dangers become more prevalent around our homes.

As Ashlei Jackson of Ever After Baby notes, “Your backyard may feel like the safest place for your kids, but summer introduces hazards that deserve fresh attention. Heat, sun, and water play can all become risky without a few simple precautions. Avoid assuming familiarity equals safety; summer fun thrives best with a little planning and a lot of presence. Understanding these potential summer dangers can help you and your loved ones stay safe and truly enjoy the season.”

As you look to improve the safety of your home in Phoenix, apartment in Seattle, or rental home in Columbus, this Redfin article provides you with a guide you can easily follow.

How to stay safe at home during summer activities

Summer is a time for enjoyment, but it’s important to approach activities with safety in mind to avoid summer dangers. At home or out exploring, being aware of potential dangers can help you make the most of the season.

Sun protection: Always apply sunscreen with adequate SPF, wear hats, and seek shade during peak sun hours to prevent sunburn and long-term skin damage. Sara L. Schultz, poll manager at MottPoll, explains the need for sunscreen even beyond sunny days. She says, “Sunscreen isn’t just for bright and sunny days – children need sun protection even when it’s cloudy. However, the Mott Poll found that 1 in 3 parents do not reapply sunscreen to their child on cloudy days. Parents should choose a sunscreen with a sun protective factor (SPF) of at least 15 and reapply it every two hours, and more frequently if kids are swimming, sweating, or playing in the water.”

Pool Safety: “At our swim school, our top priority is keeping children safe in and around the water,” says Matt Hicks, Pool Manager of Houston Swim Club. “This becomes even more critical during the busy summer months, when we focus not only on teaching essential swim skills but also on reinforcing vital water safety practices. Swim lessons are just one part, as no child is ever truly ‘drown-proof.’ That’s why we emphasize the need for a designated Water Watcher: an adult whose only job is to actively supervise swimmers without distractions like phones, books, or conversations. The Water Watcher should remain within visibility of all swimmers, inexperienced or not, rotate duties every 15 to 30 minutes to stay alert, and wear a visible tag or badge to signal their role. It’s a simple but powerful way to ensure someone is always focused solely on swimming.”

Dehydration protection: Courtney Williams at America’s Kids Belong suggests, “Keeping children hydrated and safe in the heat is essential during the summer months. Encourage kids to drink water regularly before they feel thirsty, especially during outdoor play or physical activity. Offer water-rich snacks like watermelon, cucumber, and oranges to help boost hydration. Avoid sugary or caffeinated drinks, which can contribute to dehydration.”

Set up a safety routine: Stef Tousignant, Founder of Parenting with Gratitude®, notes, “Summer brings a surge of sunshine and schedule shifts, which can overwhelm even the most grounded parent. My advice? Focus on rhythm over routine. Build in simple, mindful touchpoints—hydration breaks with cold citrus water, five-minute shade rests or storytimes during outdoor play, or a mid-day gratitude pause for the whole family. These micro-moments of regulation help children stay safe and parents stay steady, even on the hottest days.”

Awareness of carbon monoxide: While often associated with winter, generators used during power outages in summer can also pose a risk. Ensure proper ventilation.

Common summer hazards around the house

Grill safely on patios and in backyards: Barbecues are a summer staple, but they come with fire risks. Ensure your grill is clean, away from flammable materials, and never left unattended. Inform children of dangers and keep them away from open flames.

Prevent pest problems in and around your home: Warmer weather can bring an increase in insects and rodents. Seal entry points, keep food stored properly, and address any standing water. Apply insect repellent to children to avoid ticks and mosquitoes.

Protect food safety during outdoor meals: Picnics and outdoor dining can increase the risk of food spoilage. Keep perishable foods chilled and practice good hygiene when preparing meals.

Avoid electrical issues from summer energy use: Increased use of fans and air conditioners can strain electrical systems. Check cords for damage and avoid overloading outlets to prevent fires.

Use caution with gardening tools and supplies: Spending time in the garden is relaxing, but tools can cause injuries. Wear appropriate protective gear and store sharp objects securely.

Final thoughts on summer dangers at home

By being mindful of these common summer dangers and taking simple precautions, you can ensure your home remains safe and enjoyable throughout the season. Embrace the warmth and fun that summer offers, secure in the knowledge that you’ve prepared for a safe and happy experience for everyone.

Frequently asked questions

What are the most common summer dangers?

The most common summer dangers around the home include grilling accidents, swimming pool incidents, dehydration, pest infestations, and foodborne illnesses.

Is carbon monoxide a concern in summer?

Yes, carbon monoxide can be a concern in summer, particularly if generators are used indoors or too close to windows during power outages. Always ensure proper ventilation.

What are some tips for preventing heatstroke?

To prevent heatstroke, stay hydrated by drinking plenty of water, avoid strenuous activities during the hottest parts of the day, and wear light, loose-fitting clothing.

How can I keep my food safe during summer outdoor gatherings?

To keep food safe, ensure perishable items are refrigerated or kept in coolers with ice, cook meats to the proper internal temperatures, and avoid leaving food out for extended periods.

The post Summer Dangers: How to Keep Your Home and Family Safe This Season appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Can You Take Your House Off The Market? What Sellers Need To Know

Mon, 30 Jun 2025 13:29:19 +0000

Selling your home is a major decision, and sometimes plans change. Maybe the market isn’t performing the way you hoped. Maybe life threw you a curveball. Or maybe you’re just having second thoughts.

Whatever the reason, it’s not uncommon to wonder: Can you take your house off the market? The short answer is yes. But there are a few important things to consider before making your move.

In this article:
How does it affect my property’s online presence?
Can I take my home off the market temporarily?
What happens if I get an offer while deciding?
Is it a bad idea to take my home off the market?
Can I sell my home off-market?
When should you take your house off the market?

Can you temporarily take your house off the market?

Yes, as the homeowner, you can take your house off the market at any time—unless you’re already under contract with a buyer. If your home is actively listed, you’re typically free to remove it from the market whenever you choose.

In most cases, the home is yours until the final papers are signed. That means you still control whether or not to continue the sale. However, if you’re working with an agent, there may be guidelines or clauses in your listing agreement that outline how and when this can happen. You may need to provide written notice or give a certain number of days’ warning before the listing is officially canceled or withdrawn.

Be sure to clarify whether you’re delisting temporarily or permanently. Discussing your options with your real estate agent can help clarify the next steps and avoid miscommunication.

Read>> Should I Sell My House Now?

Reasons to take your house off the market

There’s no single reason sellers choose to take their home off the market. Sometimes it’s a mix of timing, emotions, and practical needs. Here are several situations where taking your house off the market makes sense:

Stale listing

In May 2025, the median days on the market was 38 days. If your home has been listed for 60-90 without much interest, it might be a sign that the timing, or pricing, is off. Rather than keep it sitting stagnant, you might choose to withdraw and revisit your pricing or strategy. It could open the door to fresh interest from different buyers.

This can be especially helpful in a buyer’s market, where competition is high and offers may fall short of what you’re hoping for. Waiting for a more favorable market could help you attract stronger interest later on.

Unexpected personal changes

Life doesn’t always go according to plan. Job transfers, health issues, relationship changes, or family needs can quickly shift your priorities. In these moments, putting a sale on hold might be the most responsible move.

Change of heart

Selling a home can stir up emotions, especially if you’re still figuring out where to go next. Some sellers realize they’re not quite ready to leave or haven’t found a new place that meets their needs.

Home improvements

If your home isn’t selling, take it off the market and tackle a few renovations to boost its appeal. Since you still plan to sell, focus on updates that offer a strong return on investment. Your ROI will depend on the cost of the upgrades, your home’s current value, and how much more buyers are willing to pay once the improvements are made. Check out comps in the area to get a good idea of what upgrades are helping homes sell.

Or, if you have buyers backing out due to a physical issue with your home, it often makes sense to take your home off the market and make the necessary repairs before relisting.

Private sale opportunity

Sometimes, a buyer comes along outside of the public listing process. In this case, you might choose to remove your MLS listing and work directly with that individual, depending on any agreement you have in place.

Be sure to discuss your options with your real estate agent and review any agreements you have in place to understand any obligations or implications.

Seasonal timing

The real estate market tends to slow down during certain times of the year. If you’re selling in the middle of winter or during a local off-season, you may decide to wait for a more active buying window.

Your agent

Sometimes the issue isn’t the home or the market, it’s the agent. If you feel like communication has been inconsistent, your home hasn’t been properly marketed, or your concerns aren’t being addressed, you may decide to pause the listing and reassess your representation.

Is there a fee for taking my house off the market?

In many cases, there’s no direct fee for taking your home off the market especially if you haven’t received any offers or are withdrawing during a slow period. However, if you’re under a contract with a listing agent and back out early, you may still owe a fee or commission depending on the agreement.

If your agent has already invested time and money into marketing, professional photography, staging, or open houses, they may expect to be compensated for their efforts.

When pulling your listing might do more harm than good

Although you can take your house off the market, it isn’t always the best choice especially if you’re trying to sell again in the near future. Here are a few times when pulling your listing might work against you:

Too many starts and stops

If you’ve listed and delisted your home multiple times, buyers may start to wonder what’s going on behind the scenes. It can create a sense of uncertainty, even if the reasons were valid.

Your home is close to receiving offers

If you’ve had steady interest, showings, or buyers asking questions, pulling the listing might mean missing out on an offer. Even if it’s not your dream price, it could be close to what you hoped for or offer valuable feedback.

You’re under pressure to sell

If you’re relocating for a job, trying to avoid carrying two mortgages, or relying on this sale to fund your next purchase, delaying the process might add more stress and financial strain.

It hurts your online listing history

When a home is removed from the market, its listing history doesn’t disappear. Future buyers and agents can see when it was listed, how long it sat, and whether it was relisted at a different price. A pattern of delisting and relisting can give the impression that the seller is difficult or that the property has issues.

It’s already the slow season

While it might seem like a good idea to wait until “better timing,” a slow season such as mid-winter or periods with low buyer activity can actually work in your favor if your home is one of the few available.

With less competition, serious buyers may be more likely to focus on your property. Pulling the listing during a quiet season might mean losing out on motivated buyers who are still actively searching despite the seasonal lull.

How to temporarily take your home off the market

If your home is listed with a real estate agent, you likely signed a listing agreement. This document outlines the terms of your relationship, including how long the property will be on the market and what happens if you change your mind. Before pulling your listing, take a moment to:

Review the contract term: Is it a 3-month, 6-month, or longer agreement? Trying to cancel early may involve fees or require written notice.
Talk with your agent: A good agent can walk you through your options and help you avoid any penalties.
Ask about withdrawal terms: Some agreements include clauses about early termination, so it’s important to understand your responsibilities.

FAQs: Can you take your house off the market?

1. How does it affect my property’s online presence?

Online listing history remains visible, meaning that if you relist the property later, people will still be able to see that it was previously on the market. This can raise questions about what happened even if the pause was for a perfectly reasonable cause, it may still influence a buyer’s perception.

2. Can I take my home off the market temporarily?

Yes, taking your home off the market temporarily is an option in many cases. This approach is often used when sellers need to hit pause without canceling the listing entirely. This keeps the listing from actively showing up in search results while allowing you to return when you’re ready ideally with improved positioning and a clearer plan.

3. What happens if I get an offer while deciding?

Once an offer is submitted, it triggers the negotiation process, and your response matters. You can still decline or counter the offer, but if you’ve already entered into a formal agreement, and both parties have signed a contract, withdrawing from the sale could involve financial penalties, legal risks, or even the potential for a lawsuit.

4. Is it a bad idea to take my home off the market?

Taking your home off the market isn’t inherently a bad idea. If your situation has changed or the market isn’t aligning with your goals, stepping back can give you time to regroup and relist more strategically. A conversation with your agent can help you weigh the pros and cons based on your specific needs and the current real estate landscape.

5. Can I sell my home off-market?

Yes, you can sell your home off-market. Off-market sales are often done through word of mouth, private networks, or direct outreach from interested buyers. While this approach can offer more privacy and less pressure, it may also limit your pool of potential buyers. If you’re considering selling off-market, it’s still a good idea to consult a real estate professional who can help you evaluate offers and handle the paperwork properly.

6. When should you take your house off the market?

If your home’s been listed a while with little interest despite price/marketing adjustments, reevaluation may be due. Low buyer engagement or personal changes might mean waiting is better. Take your home off the market when selling no longer aligns with your priorities, goals, or market. Consult your agent, review feedback, and assess your readiness to decide.

The post Can You Take Your House Off The Market? What Sellers Need To Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Who Delivers Your Offer to the Seller?

Mon, 30 Jun 2025 12:58:16 +0000

Key takeaways:

In most home purchases, the buyer’s agent delivers the offer to the seller’s agent, who then presents it to the seller
If you don’t have an agent, you must submit the offer yourself—ideally with help from a real estate attorney.
Clean terms, proof of financing, and flexibility can help your offer get noticed—even as a backup.
Dual agency is where one agent represents both the buyer and seller but only legal in some states.

When you’re ready to make an offer on a home, it’s a big moment. You’ve found a property that feels right, you’ve done the financial homework, and now you’re ready to take the next step. But what happens after you decide to make an offer? Who delivers your offer to the seller and how does that process work?

In this Redfin article, we break everything down so you can feel confident navigating this exciting part of your homebuying process.

In this article:
What is a real estate offer?
Who delivers the offer to the seller?
What happens once the offer is sent?
How is the offer sent?
What is a good offer?
What happens if your offer is a backup?

First, what is a real estate offer?

A real estate offer is a formal, written proposal to purchase a home. It typically includes:

The purchase price
Contingencies (like financing or inspections)
Requests for the seller (such as covering closing costs or repairs)
Other key dates (including response deadline, closing date, etc.

It’s more than just saying “I want this house”—it’s a legally binding step that can set the tone for the entire transaction.

So, who delivers your offer to the seller?

Buying with or without an agent changes how offers are made. Here’s what you need to know.

If you’re working with a real estate agent

In most traditional real estate transactions, your buyer’s agent is the one who delivers your offer to the seller’s side. Here’s how it usually works:

You and your real estate agent prepare the offer together, making sure everything is filled out correctly and legally binding.
Your agent then submits the offer to the seller’s agent (also known as the listing agent).
The seller’s agent reviews the offer and presents it to the seller, often offering insights or guidance based on their expertise.

Your agent acts as a professional intermediary, ensuring the offer is complete, accurate, and delivered through the right legal channels.

If you’re not working with a real estate agent

Also known as purchasing “for sale by owner,” buying a home without a real estate agent means you’ll be responsible for drafting and submitting the offer yourself, handling all negotiations, and managing the paperwork.

It’s strongly recommended that you work with a real estate attorney to make sure everything is done correctly. Mistakes in your offer could delay the process, jeopardize your chances, or even expose you to legal risk.

Who else is involved in a real estate transaction?

In a real estate transaction, the primary parties involved include the buyer, the seller, and usually two agents—one for each side. Your buyer’s agent supports you in finding a home, preparing your offer, and negotiating terms, while the seller’s agent manages the listing and marketing for the seller.

Read: What Does a Real Estate Agent Do?

Can the same agent represent both buyer and seller?

Sometimes, a single real estate agent may represent both the buyer and the seller in a transaction. This is known as dual agency. While it can make the process feel more streamlined, it comes with important considerations and limitations.

Dual agency is legal in many states, but not all. Where it is allowed, the law typically requires full transparency and written consent from both the buyer and the seller.

With dual agency, the agent must remain neutral and cannot fully advocate for either party’s best interests. This means the agent may have limited ability to negotiate aggressively on your behalf or share confidential information that could benefit you.

If you find yourself in a dual agency situation, make sure to ask your agent to explain their legal obligations and what level of representation they can offer you.

What happens after your offer is delivered to the seller?

Once you make an offer and it is submitted, the waiting begins. But what actually happens behind the scenes? Knowing what to expect can make this period less stressful and help you stay prepared for your next move.

1. The listing agent reviews the offer

The seller’s agent is typically the first to review your offer. They’ll look over all the terms—including the purchase price, contingencies, financing details, earnest money deposit, and proposed timeline—and make sure everything is in order.

In competitive markets, this step is crucial as the agent may compare your offer with others.

2. The seller considers the offer

Next, the listing agent presents your offer to the seller. The seller will evaluate several factors:

Is the price acceptable or negotiable?
Are the contingencies reasonable? (e.g., home inspection, financing, appraisal)
Is the timeline convenient?
Is the buyer financially qualified and serious?

The seller may take a few hours or even a few days to make their decision, depending on their level of interest and whether they are juggling multiple offers.

3. The seller responds: accept, counter, or decline

After reviewing your offer, the seller will respond in one of three ways:

Accept: Your offer is approved as-is, and you move into contract. Your agent will guide you through escrow, inspections, and financing next.
Counteroffer: The seller proposes changes, such as a higher price, adjusted closing date, or modified contingencies. You can accept, reject, or negotiate further until agreement is reached.
Reject: If the offer doesn’t meet expectations or the seller accepts another, they may decline. Though disappointing, this frees you to keep searching with your agent.

Most offers include an expiration clause—typically 24 to 72 hours—which puts a time limit on how long the seller has to respond. If they don’t act within that window, the offer becomes void unless you agree to extend it. Your agent will monitor the timing and follow up as needed.

Is the offer sent electronically or in person?

Most offers today are delivered digitally, using secure platforms like DocuSign or Dotloop. These systems allow for quick signing, time-stamping, and easy document tracking, which helps move the deal forward efficiently.

However, in some markets or high-stakes scenarios, agents may still choose to present offers in person—especially if they believe a personal presentation can give their client a competitive edge. This tends to be more common in luxury sales or bidding wars especially for properties in big cities like Manhattan, NY.

What makes a good offer stand out?

A strong offer doesn’t just focus on price. Other key factors can make a seller take notice:

A realistic offer price based on current market conditions
Fewer contingencies or clean contract terms
Proof of pre-approval from a lender
A flexible closing date that works with the seller’s schedule

Your agent will help craft an offer package that gives you the best shot on paper and in presentation whether your dream home is on the beach in Malibu Beach, CA or on top of a mountain in Telluride, CO.

What happens if your offer is a backup?

If your offer wasn’t accepted, don’t lose hope. Sometimes, sellers keep strong offers on file as backup offers. This means if the first deal falls through for example, due to financing issues or a failed inspection the seller can quickly pivot to the next best option. Your agent can help you decide whether to stay in the running as a backup or move on.

Who delivers your offer to the seller? Your agent is your advocate

Your buyer’s agent does more than show homes and write contracts—they’re your advocate, helping craft and deliver your offer strategically and legally.

If the same agent represents both sides, transparency is essential. Know your rights, understand the limits, and make sure you’re comfortable with the process.

Buying a home is a big decision, but with the right agent and a clear understanding of who delivers your offer and how, you can move forward with confidence.

The post Who Delivers Your Offer to the Seller? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

House Hunting? Here Are 19 Types of Houses to Know

Sat, 28 Jun 2025 00:31:44 +0000

Whether you’re looking to rent or buy your next home, you’ll find that there are a plethora of different types of houses to choose from. No matter your budget or aesthetic preferences, there’s something for you. Are you looking for an expansive home with elaborate designs and luxurious amenities? Maybe you’re not quite ready to buy and a smaller rental property is more your speed? Whether you’re in the market for a mansion in Madison, WI, a duplex in Dallas, or a cabin in the countryside, you’ve come to the right place. Here are the many types of houses that could become your next home.

Single-family and detached homes

1. Single-family home

Single-family homes represent a traditional type of house, ideal for those seeking more space and privacy. These houses come in a variety of styles and typically feature their own yard, garage, and outdoor space, offering more freedom compared to shared housing options. Homeownership is common for this type, providing long-term investment opportunities and customization potential, but renting is also an option. They are often located in suburban or rural neighborhoods, catering to those who prioritize quiet environments and community settings.

2. Accessory dwelling unit (ADU)

ADUs, or accessory dwelling units, are small, self-contained types of houses located on the same property as a main home. They can be detached structures, converted garages, or basement apartments, providing extra living space whether you’re hosting guests or using it for rental income.

3. Mansion

Mansions are large, luxurious homes typically featuring expansive living spaces, high-end materials, and custom finishes. Mansions often have grand architectural elements, multiple bedrooms, en-suite bathrooms, formal dining rooms, home theaters, libraries, and private outdoor areas like pools or tennis courts. This luxurious home type can be found in expensive neighborhoods or sprawling estates and are a symbol of wealth and status. Mansions cater to those who prioritize space, privacy, and a high level of comfort and design.

4. McMansion

Owing its name to a particular fast-food chain, the term “McMansion” refers to a large, mass-produced home often built in suburban areas during housing booms. Typically, these types of houses prioritize square footage over quality craftsmanship, with features like large foyers, vaulted ceilings, and multi-car garages. While they offer plenty of space, they are sometimes criticized for their generic aesthetic and inefficient layouts.

5. Cabin

A cabin is a small, rustic home often found in rural areas, commonly used as a vacation retreat. Built from natural materials like wood or stone, cabins evoke a cozy, nature-inspired atmosphere. They typically feature open-concept designs, fireplaces, and outdoor porches to enjoy the surrounding environment. Cabins appeal to buyers who value privacy, nature, and a peaceful escape from urban life, with designs that prioritize warmth and charm over modern luxury.

6. Tiny house

Tiny homes are compact types of houses, typically under 500 square feet, designed for minimal living and efficient use of space. They appeal to people seeking affordability, sustainability, or mobility, with some models built on wheels for travel. Despite their small size, these types of houses manage to provide enough space homeowners to feel at home. Tiny homes can clock in at roughly 400 square feet, similar to the size of a small studio apartment, while providing the financial benefit of owning the house.

Multi-family homes

7. Apartment

An apartment is a self-contained living unit within a larger building or complex, typically featuring multiple units on separate floors. Apartments vary in size, ranging from studios to multi-bedroom layouts, and often share amenities like gyms, laundry rooms, or courtyards. These types of houses are commonly found in urban or suburban areas, providing convenience and proximity to public transportation and services. Apartments are ideal for renters or buyers seeking low-maintenance living and access to shared facilities. With shared walls and neighbors close by, apartments foster a sense of community while balancing privacy within each unit.

8. Condo

Condominiums, or condos for short, are a popular type of house for those who want to own a home without the upkeep of a single-family property. Condo owners purchase individual units within a larger building or complex and share ownership of communal areas like gyms, pools, and parking lots. Maintenance of shared spaces is typically handled by a homeowners’ association (HOA), which charges monthly fees.

9. Duplex

A duplex is a single building with two separate living units. They can be configured either vertically, where one unit sits above the other, or horizontally, meaning the units are side-by-side and share a common wall. In most cases, each unit has its own entrance. These types of houses are usually owned by a single landlord or entity who rents out the units to tenants.

10. Co-op

A co-op, or housing cooperative, is a unique type of house arrangement where residents own shares in the building instead of individual units. Co-ops are common in urban areas, such as New York City, where buyers purchase a share of the cooperative and gain the right to occupy a specific unit. This form of ownership requires approval from a co-op board, making the process more selective. Monthly fees cover building maintenance and living expenses, often making them a more affordable option compared to condos.

11. Split-level house

A split-level house features a unique, multi-tiered design where living spaces are staggered on different levels, connected by short flights of stairs. Typically, the main floor includes common areas like the kitchen, dining room, and living room, while the upper and lower levels house bedrooms, living rooms, or utility spaces. This layout maximizes square footage while creating distinct zones for different activities. Popular in mid-20th-century suburban neighborhoods, these types of houses are known for their efficient use of space, appealing to homeowners seeking separation between living and sleeping areas.

12. Townhouse

A townhouse, or townhome, is a multi-story, single-family residence that shares one or more walls with neighboring homes in a row or cluster. Typically featuring multiple levels, these types of houses often include private entrances, small backyards or patios, and sometimes shared amenities within the community. This type of house style combines the benefits of single-family living with the lower-maintenance aspects of apartments or condominiums. Common in both urban and suburban areas, townhomes attract buyers looking for affordability, privacy, and a balance of convenience and community living.

Prefabricated and mobile homes

13. Modular home

A modular home is a prefabricated house built off-site in sections and then assembled on a permanent foundation. Unlike mobile homes, modular homes comply with the same building codes as traditional site-built homes and can include custom layouts and finishes. They offer flexibility in design, from small, budget-friendly options to larger, high-end constructions. The manufacturing process for these types of homes shortens construction timelines and often reduces costs, making them appealing to buyers seeking efficiency and affordability without sacrificing quality.

14. Mobile home

A mobile home, also known as a manufactured home, is a prefabricated structure built on a chassis and designed to be transported to a designated location. These homes can be placed in mobile home parks or on private property, offering an affordable housing option. These come in a variety of sizes and layouts, often featuring multiple bedrooms, kitchens, and living areas. Although they were once considered temporary housing, many newer models provide long-term living solutions with upgraded materials and designs, making mobile homes an accessible choice for budget-conscious buyers.

Waterfront and floating homes

15. Houseboat

Houseboats are the perfect home type for those hoping to combine residential living with the freedom of life on the water. Typically docked at marinas or moored on rivers and lakes, these types of houses can be stationary or mobile, depending on the design. They often feature full living amenities, including kitchens, bathrooms, and bedrooms, similar to traditional homes. Houseboat living is ideal for those seeking a waterfront lifestyle, with scenic views and access to boating activities.

16. Floating house

Floating houses are similar to houseboats, but they aren’t mobile. Instead, this type of house is built atop a floating foundation and is permanently docked in one area. You’re most likely to see these types of houses in west coast cities like Seattle and Portland.

Alternative and sustainable homes

17. 3D-printed house

3D-printed houses are an innovative type of house constructed using large-scale 3D printing technology to build walls, foundations, and other structural components. This process significantly reduces construction time and cost. The technology also allows for eco-friendly designs, with minimal construction waste and the use of sustainable materials. These types of houses can be customized to fit different layouts and styles, offering both durability and modern appeal, while showcasing how technology can reshape the future of homeownership and development.

18. Dome home

As the name implies, dome homes are a unique type of house known for their rounded, geometric shape, which enhances Seller concessions refer to closing costs or other fees that the seller agrees to pay on the buyer’s behalf. These concessions are negotiated during the offer process and help make the purchase more affordable for the buyer, without reducing the home’s sale price.

Whether you’re a first-time homebuyer buying a home in Charlotte, NC, or a seasoned buyer buying a house in Atlanta, this Redfin guide breaks down seller concessions to help you navigate negotiations more confidently.

What are seller concessions in real estate?

Seller concessions are financial contributions made by the seller to reduce the buyer’s out-of-pocket expenses at closing. These costs can include lender fees, taxes, insurance, or even home warranties.

For example, a buyer might ask the seller to pay $5,000 toward their closing costs. If agreed, this would be included in the contract and deducted from the seller’s proceeds at closing.

What can seller concessions cover?

Concessions typically include:

Title insurance
Appraisal or inspection fees
Loan origination charges
Recording or attorney fees
Prepaid property taxes or insurance
Mortgage points (to lower the buyer’s interest rate)
HOA transfer or document fees
A home warranty plan

Lenders limit how much sellers can contribute, depending on the type of mortgage involved.

Why do sellers offer concessions?

Sellers might agree to concessions to:

Help a buyer afford the home
Attract more offers in a slow market
Offset issues found during the home inspection
Speed up the closing timeline

In a buyer’s market or when a home has been sitting for a while, concessions can make the difference between closing a deal and continuing to wait.

Seller concession limits by loan type

Loan Type	Max Seller Contribution
Conventional (<10% down)	3% of the purchase price
Conventional (10–25% down)	6%
Conventional (25%+ down)	9%
FHA Loan	6%
VA Loan	4%
USDA Loan	No formal limit (but should be reasonable)

These limits are set by the loan program, not the seller, so both buyers and sellers should work with a lender to ensure compliance.

Pros and cons of seller concessions

For Buyers
Pros:

Lower upfront costs
More flexibility with savings
Easier to qualify (in some cases)

For Sellers
Pros:

Can attract more buyers
Helps keep the sale price intact
Useful in competitive or slow markets

Potential Downsides

May lead to appraisal issues if the total sale price is inflated
Could reduce the seller’s net profit
Less effective in a strong seller’s market

Tips for negotiating seller concessions

Understand how much you’ll need for closing costs before submitting an offer.
In competitive markets, offer a slightly higher price to offset the seller’s concession.
Be prepared to justify the request with your financing needs or inspection findings.
Work with an experienced Redfin real estate agent to guide your strategy.

A final note

The meaning of seller concessions extends beyond just financial help; they serve as a negotiation tool that benefits both parties when used strategically. Buyers can reduce upfront costs, and sellers can sell a home quicker without having to slash the price. Understanding how and when to use seller concessions gives you a stronger position in any real estate deal.

FAQs about seller concessions

What is the meaning of seller concessions in real estate?

Seller concessions are costs the seller agrees to pay on behalf of the buyer, typically to cover some or all of the buyer’s closing costs.

Are they negotiable?

Yes, they are typically negotiated as part of the initial offer and finalized in the purchase agreement.

Do they affect the loan or appraisal?

They can. If the concessions push the sale price above market value, the home may not appraise at the agreed price.

Can they cover the down payment?

No. Concessions can only be used for allowable closing costs and fees, not for the buyer’s down payment.

Are they common?

They are especially common with FHA, VA, and USDA loans or when the market favors buyers.

The post Seller Concessions 101: What They Are and How They Can Help You Save appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Buying New Construction? Here’s How to Get the Best Price from a Builder

Fri, 27 Jun 2025 21:29:16 +0000

Have your eye on a brand-new home, but it’s just out of budget? There’s actually ways to negotiate new construction homes so you leave with a good deal and your dream space. Whether you have your eye on a new-build in Rock Hill, NC or are about to buy a new construction home in Palm Springs, CA, take a look at everything you need to know about how to negotiate a new home price with builders in this Redfin article.

Key takeaways

New construction homes typically have less wiggle room on base price, but plenty of room on incentives.
Working with an agent familiar with new construction is your biggest advantage.
You’ll have the most leverage when the home is already built or the builder needs to close quickly.

What is a new construction home
- Pros of a new construction home
- Cons of a new construction home
Can you negotiate with a new construction home?
7 ways to negotiate the price of a new construction home
FAQs about negotiating new construction home prices

What is a new construction home

A new construction home is a new-build that has never been lived in and is typically sold by builders or developers. These homes include custom-builds, move-in-ready spec homes, and homes in new residential developments.

Pros of a new construction home

- Modern: Most new construction homes come with modern features like layout, design, and smart home technology. They could also include money saving elements like energy-efficient HCAC systems, thermostats, or double-pane windows.
- Lower maintenance and repairs: Since everything is brand-new, you’re unlikely to face major repairs or maintenance issues for a while. Many new homes also come with warranties that cover structural defects, systems, and workmanship.
- Customizable: If the home is still under construction, buyers may have the opportunity to choose design elements like flooring, cabinetry, and other fixtures.

Cons of a new construction home

Higher upfront costs: Most new construction homes are often more expensive than resale homes, especially with upgrades and customization.
Move-in timeline: If the home isn’t finished being built, you may face move-in delays due to construction schedule changes, weather, or supply chain issues.

Can you negotiate with a new construction home?

In short, yes – but maybe not in the way you’d expect. Builders are usually reluctant to drop the base price, since it affects the appraised value of other homes in the community. Instead, they’re more likely to offer incentives such as upgraded finishes, assistance with closing costs, or flexible move-in dates – especially if the home is already built or sales are slow.

Keep reading for strategies to help you get the best deal possible when buying a new construction home.

7 ways to negotiate the price of a new construction home

1. Work with a real estate agent

Opt for a real estate agent in your area with experience with new construction homes. They’ll be equipped with knowledge about the local market, builder pricing strategies, contract terms, and timelines to best advocate for you and help you secure the best deal.

2. Research the home

Take the time to look at recent sales of comparable new construction homes, price per square foot, builder reputation and inventory, sales pace, contingencies, and contract details to better understand the listing price. By understanding the home, you can determine if the price is fair, identify areas for negotiation, and gain leverage during the negotiation process.

3. Understand the local market

Similarly, being knowledgeable about the local market can help you in the negotiation process as you’ll better understand how the house’s listing price aligns with current demand, helping you justify your negotiations.

4. Research builders prior to negotiations

Exploring local builders before you choose a reputable one helps you gather crucial information on quotes and comparative negotiation terms, which can be useful in the negotiation process. We once again recommend using an agent experienced in new construction homes since they can often secure more concessions.

Know what you can negotiate

While builders may not budge much on base price, you can often negotiate other perks, including:

Upgrades like flooring, countertops, or appliances
Closing cost assistance
Lot premiums
Flexible move-in timelines
Home warranties or extended coverage

Builders often prefer offering incentives over lowering the price because it protects the value of other homes in the community. Just make sure you’re knowledgeable about the home, builder, local market, and work with an agent, before negotiating these terms.

5. Time your offer

Offering during a slower season, end-of-quarter or fiscal year deadlines, or if the builder has several unsold and uncompleted homes can give you a significant advantage when negotiating.

6 Negotiate on already built homes

If you aren’t interested in customization, builders are typically more willing to negotiate on already built homes, because they are costing the builder money every day they sit empty. Another plus is you won’t have to wait to move in.

7. Get it all in writing

Builder reps may promise perks verbally, but they don’t count unless they’re in your contract. Double-check all incentives, upgrades, and timelines are documented.

FAQs about negotiating new construction home prices

How much should you negotiate on a new construction home?

You’re likely to have a better outcome negotiating other perks like updates, closing cost assistance, or home warranties. If you do want to negotiate listing price, 1-5% off is typical, but we recommend working with an experienced agent on price negotiations.

Can you negotiate on spec homes?

Yes, you can negotiate on both spec and move-in-ready homes, but you’re likely to have more negotiation success with move-in-ready homes. If you’re looking to customize your home, consider negotiating updates with the builder on a spec home.

How do I know I’m getting a good deal with a new construction home?

Working with an agent can help ensure you’re getting a good deal along with understanding the local market, builder, comparables, and the home itself.

The post Buying New Construction? Here’s How to Get the Best Price from a Builder appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

First-Time Home Buyer Benefits and How to Qualify

Fri, 27 Jun 2025 21:22:33 +0000

Key takeaways:

Your first-time home buyer benefits include down payment and closing cost assistance, grants, tax benefits, and low-interest or forgivable loans.
Eligibility depends on factors like income, location, home price, and use of an approved lender.
Federal, state, local, non‑profit, and lender‑sponsored programs can unlock these savings.

Purchasing your first home is a major investment, and it often comes with a number of surprises. If this next chapter in life feels out of reach, rest assured there’s support available. There are a number of first-time home buyer benefits designed to make homeownership more affordable, from down payment assistance to tax credits and more.

Whether you’re buying your first home in Lansing, MI or Tucson, AZ, this guide will help you discover the benefits you can receive as a first-time home buyer and how to qualify. Let’s get started.

Are you considered a first-time home buyer?

If you are buying a home for the first time or haven’t owned a primary residence in the past three years, you’re considered a first-time home buyer.

Here are a few examples of who may be considered a first-time buyer:

You’ve never owned a home before.
You previously owned a home but haven’t in the past three years.
You shared ownership with a spouse in the past, but are now buying solo.
You’ve been renting, living with family, or haven’t held a mortgage in three years.
You’re buying in a designated redevelopment area, where some programs relax the rules (even for repeat buyers).

Note: The definition can vary slightly depending on the program, so don’t rule yourself out too quickly. If you’re unsure, talk to a mortgage lender, housing counselor, or real estate agent.

Who offers assistance for first-time home buyers?

First-time home buyer programs are available through a variety of local and national sources. Here are the main places to look:

State and local housing agencies: A lot of states and cities offer down payment assistance, grants, or low-interest loan programs through their housing finance agencies.
Federal programs: Many types of home loans including FHA, VA, and USDA loans can make buying a home more affordable with low down payments or flexible credit requirements.
Nonprofit organizations: Groups like NeighborWorks provide homebuyer education and financial support.
Banks and mortgage lenders: Many offer first-time buyer incentives, including reduced rates, special loan terms, or access to grant programs.
Credit unions: Member-focused lenders may offer more flexible terms and exclusive programs for qualified buyers.

First-time home buyer benefits and programs

Buying a home for the first time comes with plenty of challenges, but there are also several benefits and programs designed to make the process more affordable. Here are some of the most common benefits available:

Down payment and closing cost assistance

One of the most common dilemmas for new buyers is coming up with enough cash upfront. Many programs offer low-interest or no-interest loans to cover down payments or closing costs. In some cases, these loans are deferred until you sell the home (or even forgiven after a set number of years).

Grants

Unlike loans, grants don’t need to be repaid. These are typically offered by state or local governments and nonprofit organizations to help cover part of your down payment or closing costs. To qualify, you’ll typically need to meet certain income limits or agree to live in the home for a specific period.

Government-backed loans

Federal loan programs like FHA, VA, and USDA loans make it easier to qualify for a mortgage with a low down payment or less-than-perfect credit. This is especially helpful for buyers who do not meet conventional loan requirements. Let’s break it down:

FHA loans require as little as 3.5% down with a credit score of 580 or higher.
VA loans offer 0% down for eligible veterans, active-duty service members, and surviving spouses.
USDA loans provide 100% financing for homes in rural or suburban areas.

Tax Benefits

Some programs offer Mortgage Credit Certificates (MCCs), which let you claim a portion of your mortgage interest as a credit on your federal tax return.

Homebuyer education

Many assistance programs require or recommend completing a homebuyer education course. These workshops cover budgeting, understanding your mortgage, and maintaining your home.

How to find assistance programs available in your area

Visit your state or local Housing Finance Agency (HFA) website, which often lists available grants, loans, and down payment help.
Check the National Council of State Housing Agencies (NCSHA) website for links to programs by state.
Talk to approved mortgage lenders or local real estate agents.

How to qualify for first-time homebuyer assistance

Qualifying for first-time home buyer assistance depends on the program and your location. While each program has its own rules, these are some common requirements you’re likely to see:

Income and home price limits: Many programs are designed for low- to moderate-income buyers, so your earnings (and sometimes the price of the home you’re buying) may need to fall within a specific range. Check your state’s Housing Finance Agency via the National Council of State Housing Agencies site.
First-time buyer status: Most programs require that you haven’t owned a primary residence in the past three years. However, some options are available to repeat buyers under special conditions (i.e. purchasing in a redevelopment area).
Eligible occupation: Certain programs are designed for people in helping professions (i.e. teachers, nurses, and firefighters). These often come with additional savings or housing discounts.
Completion of a homebuyer education course: A homebuyer class is commonly required to qualify for grants, loans, or down payment assistance. Even when it’s optional, it’s a smart move.
Use of an approved lender: If you’re applying for a state or local housing program, you’ll usually need to go through a lender that’s authorized to work with that program.

Why first-time home buyers should get assistance

Without the advantage of home equity or years of savings, getting into the market can feel out of reach. Here is why support for first-time home buyers matters, and why it benefits everyone:

Home prices are steep. With today’s housing costs and interest rates, saving up for a down payment isn’t easy, especially when starting out.
Many buyers have limited savings. First-time buyers often haven’t built up equity or long-term savings yet.
Homeownership builds wealth. Buying a home helps you build equity and invest in your future.
It supports the housing market. Starter homes make room for others to move up, keeping the housing market healthy and active.
It strengthens communities. Homeownership encourages long-term neighborhood involvement and stability.

The bottom line on first-time home buyer benefits

Buying your first home is a huge step and yes, it can feel overwhelming. But the good news is, you don’t have to do it alone. First-time home buyer programs are here to help, offering everything from down payment assistance and low-interest loans to educational tools.

If you’re wondering how to buy your first home, a great place to start is by exploring what first-time homebuyer programs are available in your state. A trusted lender or real estate agent can walk you through your options and help you figure out what fits your budget and lifestyle.

Frequently asked questions

Is there an income level to qualify?

Yes, many first-time home buyer programs have income limits. These vary depending on where you live and the size of your household. Normally, these limits are designed to help low and moderate-income buyers, so you may still qualify if you earn a steady income.

To find current income limits, check your state’s Housing Financing Agency (HFA) website, which can be found on the National Council of State Housing Agencies site.

Can you qualify for a first-time home buyer loan if you have student loans?

Having student loans doesn’t automatically disqualify you. Lenders will consider your debt-to-income ratio to see if you can comfortably manage a mortgage along with your other monthly payments.

Are there any federal or state tax credits for first-time buyers?

There’s no federal tax credit available right now, but some states and local governments offer tax incentives. It’s worth checking with your state’s housing agency to see what’s available near you.

What is the $15,000 first-time homebuyer tax credit?

This proposed first-time homebuyer tax credit would give eligible buyers 10% of the home’s purchase price (up to $15,000) as a refundable credit to help cover down payment or be claimed on tax returns. While widely discussed, this specific federal tax credit has not been enacted.

How much do I need for a down payment on a house?

It varies depending on your financial position, goals, and loan type. While 20% is preferred by lenders, many first-time home buyer programs now allow for much lower down payments.

>>Read: Down Payment on a House: How Much Do You Really Need?

The post First-Time Home Buyer Benefits and How to Qualify appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Buying a House in a Flood Zone: What You Need to Know

Fri, 27 Jun 2025 20:49:56 +0000

Key takeaways:

Buying a house in a flood zone comes with financial and safety risks, including high insurance costs, property damage, and potential resale challenges.
Flood insurance is essential – and often required – if the home is in a high-risk area.
There can be advantages like lower purchase prices and waterfront locations, but they should be weighed carefully against the risks.
Do your research early. Check flood maps, review the property’s flood history, and ask the right questions before making an offer.

Buying a house in a flood zone can come with serious risks. From higher insurance costs to potential damage and resale challenges, there are a lot of factors to weigh. But if your dream house on the lake happens to be in a flood zone, it doesn’t have to be a deal breaker.

In this Redfin article, we’ll go over what flood zones are, the pros and cons of buying in one, and what to consider before making an offer. Whether you’re buying a home, renting a house, or living in an apartment, understanding how flood zones affect properties can help you make a smarter, safer choice.

What is a flood zone?

A flood zone is a geographic area identified by the Federal Emergency Management Agency (FEMA) with a specific level of risk for flooding. The FEMA flood zones range from high-risk to low-risk. They are assigned based on factors like weather patterns, elevation, and historical flood data.

Special Flood Hazard Areas (SFHAs) are the highest risk zones, and have over a 1% chance of flooding annually. While 1% may not seem like a high percentage, this adds up to a one in four chance of flooding over the course of a 30-year mortgage.

How can you check if a house is in a flood zone?

The easiest way to find out if you’re buying a house in a flood zone is by checking the address on FEMA’s Flood Map Service Center. Flood zone details may also appear in the seller’s disclosure, but this isn’t a requirement for every state.

It’s important to do your own due diligence to understand your risk. Even homes outside a SFHA can still be at risk for flooding. Consult multiple sources, like county records, elevation maps, and a home’s claim history for the most accurate picture and updated flood information.

Pro tip: When you’re looking at Redfin’s real estate listings, you can view climate risks, flood zones, and more in the property details.

Start research early in the home buying process to make sure you start your search in areas that match your comfort level with risk.

>>Read more: Is My House In A Flood Zone?

6 risks to consider when buying a house in a flood zone

The risks of buying a home in a flood zone should not be considered lightly. Be sure to carefully review some of the highest risks listed below before proceeding.

Expensive flood insurance: Depending on the level of risk, flood insurance can be extremely costly, especially in coastal states, homes at lower elevations, and regions prone to hurricanes. Make sure to factor this into your home affordability calculations.
Different types of flooding: A river swell and a hurricane are very different events, but both can end up flooding your home and causing serious damage. Knowing what to expect will help you prepare your home and yourself for a major event.
Extensive damage: Even an inch of water can cost thousands of dollars in repairs. Flooring, drywall, and electrical systems may all need replacing in the event of a flood, not to mention furniture and personal items.
Difficult to resell: Flood risks can lower a home’s value due to associated risks and insurance costs, and buying in a flood zone might be a tricky investment to sell later on.
Evacuation and safety concerns: Severe flooding can force you to evacuate, so having an emergency plan is essential when living in a flood-prone area.
Emotional distress: With the added risks comes additional stress. Flooding can take a toll on your mental health—causing stress, anxiety, and emotional strain, especially if you experience a major loss.

Are there any advantages to buying a house in a flood zone?

Despite the risks, there can be some good reasons to buy a house in a flood zone, including:

Lower purchase prices: Even though this is considered a risk for resale, you can take advantage of the lower prices as a buyer. You may be able to afford buying a home in a flood zone that would be out of your budget otherwise.
Less competition: There may be fewer buyers interested in homes in flood zones, so you won’t have as much to worry about when it comes to bids.
Waterfront property: If you’re someone who dreams of sunny beachfront properties or enjoying your morning coffee with a view of a lake, you’re probably more willing to accept the potential flood risks and invest in the insurance costs.

Can you still get a mortgage on a house in a flood zone?

Yes, getting a mortgage on a house in a flood zone is very similar to getting a mortgage anywhere else. However, if the house is in a SFHA, your lender will likely require you to purchase flood insurance before approving the loan.

Some government loans also have specific requirements for high-risk properties. Be sure to review these carefully before beginning your home search.

Do you need flood insurance?

If you’re buying a home in a flood zone, you absolutely need flood insurance. Even if your lender doesn’t require it, traditional homeowners insurance does not cover flooding. You’ll want to check with your provider or look into other options, like the National Flood Insurance Program (NFIP), to get a quote. Knowing what you’ll pay for monthly insurance before making an offer will help you budget your mortgage costs.

>> Read more: What Does Flood Insurance Cover?

Important questions to ask before buying

While you might have some answers from the seller’s disclosure or your real estate agent, make sure to ask and answer some of these important questions to best prepare yourself for buying a house in a flood zone:

What is the classification of the flood zone in this area?
Has the property flooded before?
What is the claim history of the property?
How often does the property flood?
What is the estimated cost for flood insurance in this area?
What has the community or government done to protect the area and mitigate floods?
What has been done to the property to mitigate floods?

Buying in a flood zone is a personal decision

There is no one answer when considering whether or not you should buy a house in a flood zone. The risks, costs, and stress are real, but it’s not always a deal breaker. With proper precautions, flood protection, and often lower prices, it could still be the right move, especially if living near the water is your dream. Ultimately, the decision depends on what’s best for you.

FAQs about buying a home in a flood zone

Should I buy a house in a flood zone?

Whether or not you should buy a house in a flood zone is a personal decision on whether the risks outweigh the benefits. Carefully reviewing the zone’s classifications and understanding the preventative measures required or already in place is essential. And if the added cost of flood insurance pushes you outside of your ideal budget, it might be time to move on.

Can the flood zone be changed?

Yes, the flood zone can be changed. FEMA regularly reviews flood maps and data, and climate change has made more changes necessary over the years. Just because a house isn’t currently in a high risk area doesn’t mean it won’t change. You can also request to change your flood zone if you believe your house was incorrectly zoned in a SFHA.

Will homeowners insurance cover a flood?

No, standard home insurance does not cover floods of any kind. You will need a separate policy for flood insurance. Look into whether your area can be covered by the federally funded NFIP. Private insurance companies also offer options for coverage.

How do I find out if a home has flooded before?

Since not every state requires that a seller’s disclosure includes floods, it’s important to do some of your own research. Search local government records or past insurance claims, check for signs of water damage, or talk to neighbors to get a personal perspective on neighborhood flood risks.

How do I protect the house from floods?

Flood insurance is the number one way to assure your home—and your wallet—are protected in the event of a flood. Learning more ways to protect your home from floods

How Many Houses Do People Look at Before Buying and When to Make an Offer

Fri, 27 Jun 2025 20:49:00 +0000

Key Takeaways:

On average, most buyers view 8-10 houses before making an offer
Influencing factors: goals, budget, timeline, location, and market speed
Tips for efficiency: creating a plan, working with a real estate agent, using online resources, touring in-person, and taking notes
Common mistakes: skipping pre-approval, seeking the perfect home, not preparing for the tour, or not asking enough questions

Searching for the right home can take time. You want to keep your options open, but not waste time walking through homes that clearly aren’t right. So, how many houses do people look at before buying? On average, most homebuyers tour 8 to 10 homes before making an offer. But the truth is, there’s no magic number. Some people fall in love with the first home they see, while others need a few weeks of touring open houses.

In this Redfin guide, we’ll walk through the factors that influence how many homes buyers view and tips to help you know when it’s time to move on from browsing.

How many houses should people look at before buying?

There’s no perfect number of homes to tour before making an offer, but most buyers end up viewing 8 to 10 properties before finding the one. That said, your personal “magic number” might be higher or lower, depending on your goals, timeline, and the local housing market conditions.

If you’re torn between a few homes or feel unsure after multiple showings, don’t rush. Take your time, ask questions, and trust your instincts. On the flip side, if you fall in love with house number three and everything checks out, there’s nothing wrong with making an early offer.

>>Read: How to Buy a House in 2025

What about as a first-time home buyer?

If it’s your first time buying a home, you might need to view a few more homes to get a feel for pricing, layouts, and what your budget really gets you. Touring different properties can help clarify your priorities and build confidence in your decision.

What factors influence how many homes buyers view?

Personal preferences take time to clarify. You might start out dreaming of a big backyard and end up prioritizing a bright kitchen instead. Touring homes helps refine what matters most to you.
Market conditions can speed things up or slow them down. In a fast-paced market, you’ll need to act quickly, while in a slower market, you may have more time to compare options.
Time constraints play a big role. If you’re relocating for a new job or aiming to move before the school year, you may be viewing fewer homes and making decisions faster.
Budget can narrow your choices. A clear price range helps eliminate homes that don’t meet your needs financially, focusing on the most realistic options.
Location impacts inventory and competition. In some areas, homes sell quickly with limited inventory. In others, you’ll have more listings to consider, extending your search.

>>Read: Is Now a Good Time to Buy a House?

Tips to make your house hunting more efficient

Have a plan and stick to it

Define your must-haves, nice-to-haves, and deal breakers before you start touring. This helps you filter out homes that don’t truly meet your needs.

Work with a real estate agent

A knowledgeable real estate agent can help narrow down listings, schedule tours, and guide you through competitive markets with confidence.

Leverage online resources

Thanks to online listings, virtual home tours, and 3D walkthroughs, buyers can now filter through many options from the comfort of home before heading to an open house. For example, you can explore listings, track price changes, and set up alerts on Redfin to stay on top of new homes that match your search.

Visit houses in person, too

Touring homes in person is key. Visiting different properties gives you the chance to compare features, layout, neighborhood feel, and other intangibles that are hard to judge through a screen.

Take notes and compare as you go

After a few showings, it’s easy to forget which house had the charming front porch or the dated kitchen. Snap photos (with permission), jot down thoughts, and rank each home so you can reflect clearly.

Mistakes to avoid when looking at homes

House hunting comes with plenty of emotions and sometimes a bit of stress. Avoiding a few common mistakes can make the home buying process smoother and more successful.

Not getting pre-approved for a mortgage

Jumping into showings without knowing your budget can lead to heartbreak. Get pre-approved by a lender before you start touring. It not only gives you a clear price range, but also shows sellers you’re serious when it’s time to make an offer.

Getting caught up in finding the “perfect home”

It’s easy to hold out for a dream home that checks every box, but that can prolong your house hunting journey. In most cases, even the best-fit home may require a few compromises. Instead, prioritize what to look for when touring homes for a more realistic approach.

Not properly preparing for the tour

Never show up to the house tour without doing your homework. If you don’t know the neighborhood, the home’s history, or what to look out for, you might overlook important details. To avoid this, research the area, review the listing carefully, and jot down any questions ahead of time.

Not asking enough questions

Many buyers are hesitant to ask questions during the tour, but it’s the perfect time to gain clarity. Don’t be afraid to ask about the age of the roof, recent repairs, utility costs, or anything else that might affect your day-to-day.

Ready to make an offer? Here’s how to know for sure

This is a huge decision, so it’s completely normal to feel the weight of wanting to “get it right.” But how do you know when to move forward? There’s no set number of homes to see. What matters most is feeling confident, not rushing.

If you’re unsure, take a step back and ask yourself:

Can I picture myself living here?
Does the home meet my most important needs?
Have I considered what the neighborhood is like at different times of day?
Have I reviewed the pros and cons compared to other homes I’ve seen?
Do the costs (price, potential repairs, and monthly payments) align with my budget?

Bringing a trusted friend, partner, or family member can also be helpful to spot details you might miss. If you’re still torn after several showings, it’s okay to take a break. Ultimately, making an informed decision is about knowing your priorities, trusting your instincts, and feeling at peace with your choice.

The post How Many Houses Do People Look at Before Buying and When to Make an Offer appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

17 First-Time Homebuyer Mistakes to Consider and How to Avoid Them

Fri, 27 Jun 2025 18:27:27 +0000

Key Takeaways:

Shopping mortgage rates, reviewing your credit report, and looking into first-time home buyer programs can improve your financial situation and increase your choices.
Making emotional decisions can lead to overpaying or buying a home that doesn’t fit your long-term needs. Stay grounded by focusing on your priorities and budget.
Don’t skip critical steps like the home inspection or negotiating closing costs. These can greatly affect both the quality of your purchase and your bottom-line expense.

You’ve saved for a down payment and spent more time scrolling through listings than you’d like to admit. One thing is clear; you’re ready to dive into homeownership. But before you sign on the dotted line, it’s important to know that even the most prepared buyers can still make mistakes.

In this article, we’ll outline 17 common mistakes for first-time homebuyers. Whether you’re purchasing your first home in Phoenix, AZ or in Trenton, NJ, here’s what you need to know before starting the homebuying process.

1. Not getting pre-approved for a home loan before starting your search

A common mistake for first-time homebuyers is jumping into the search without first getting pre-approved for a mortgage. Mortgage pre-approval serves several purposes:

Determines how much you can afford to borrow
Signals to agents and sellers that you’re more reliable
Expedites the mortgage application process
Locks in an interest rate for that specific period

Here’s what to do instead:

Take the time to get pre-approved by a lender before starting your home search. Start by researching reputable lenders and comparing their offerings, submit accurate documentation to them, and respond promptly to their requests. Preapproval typically lasts 60 to 90 days, so it’s best to apply when you’re ready to start seriously looking for a home.

2. Only getting one mortgage rate quote

Many first-time buyers make the mistake of going with the first lender they talk to, not realizing that interest rates, fees, and loan terms can vary widely from one lender to the next.

Even a small difference in your mortgage rate can really add up over the life of the loan, so it’s worth your time to shop around. For instance, on a $350,000 mortgage, a 3.5% interest rate instead of 4% can save you over $35,000 in interest payments over 30 years.

Here’s what to do instead:

Request quotes from at least three different lenders and compare more than just the interest rate. Take note of closing costs, loan terms, and any additional fees. A little extra research goes a long way.

3. Overlooking your credit score

Your credit score plays a major role in whether you’ll qualify for a mortgage loan and the interest rate you’ll secure. Still, many first-time buyers start the process without reviewing their credit report or knowing where they stand. Since lenders use your credit history to assess risk, it’s essential to make sure everything on your report is accurate and up to date.

Here’s what to do instead:

Check your credit score early and review your credit report for any errors or red flags. If you’re trying to improve your credit score for what is needed to buy a house, focus on paying your bills on time, paying down debt, and avoid maxing out your available credit. During the homebuying process, you should also avoid applying for new credit cards or loans and taking on additional debt as these can impact your credit score and mortgage approval.

4. Missing out on first-time homebuyer programs

Between saving for a down payment and covering closing costs, buying a home can feel financially overwhelming. What many first-time buyers don’t realize is that there are national, state, and even local programs designed to help break down these barriers for new buyers.

Here’s what to do instead:

Research the first-time homebuyer programs available to you. These are tailored specifically for first-time buyers offering down payment assistance, grants, or credits to reduce how much you pay in interest on your loan. This step can make a meaningful difference in affordability.

5. Not taking advantage of government-backed loans

A common first-time homebuyer mistake is overlooking government-backed loans when these programs can make homeownership more accessible. Options like FHA loans, VA loans, and USDA loans offer low down payments and more lenient credit guidelines. It’s important to note that they have very specific eligibility requirements, but they are worth looking into.

Here’s what to do instead:

Ask your lender about any government-backed loan programs you might qualify for. FHA loans are ideal for buyers with lower credit scores, VA loans are for eligible military members and veterans, and USDA loans support buyers in certain rural areas.

6. Making the right down payment

Some first-time buyers believe it’s necessary to put down 20% when buying a home, but that’s not always the case. Although 20% can be ideal to avoid PMI and lower your monthly payment, many loan programs allow for much less.

Here’s what to do instead:

Talk to your lender about different loan options and how they’ll affect your monthly costs. Then, choose a down payment that makes sense for your financial situation.

7. Choosing an inexperienced real estate agent

Your real estate agent is your guide, advocate, and negotiator throughout the buying process, so having the right one matters. First-time buyers sometimes choose an agent based on convenience rather than experience, which can lead to missed opportunities, poor communication, or deals that fall through.

Here’s what to do instead:

When choosing a real estate agent, interview at least three candidates. Prioritize agents with strong local market knowledge, a proven history of working with first-time homebuyers, and a compatible working style.

8. Spending more than you can afford

Falling in love with a home just outside your budget is all too easy, especially when it has the kitchen of your dreams or a backyard that’s perfect for summer parties. But stretching your finances too thin can lead to years of stress, missed payments, or even having to sell before you’re ready.

Remember, buying a home is about more than the purchase price; it’s also about managing the ongoing costs that come with it.

Here’s what to do instead:

Use an affordability calculator to set a realistic budget before you start house hunting. Make sure to factor in all the extras like property taxes, insurance, maintenance, HOA fees, and monthly debts.

It’s also smart to stick to the 28/36 rule: you shouldn’t spend more than 28% of your income on housing costs, and your total debt should not exceed 36% of your annual income. This leaves breathing room in your budget for unexpected expenses and long-term financial goals.

9. Underestimating the costs of homeownership

Your mortgage isn’t the only expense that comes with owning a home. First-time buyers are often surprised by the ongoing costs; things like maintenance, repairs, utilities, landscaping, and unexpected fixes that renters never had to worry about.

Here’s what to do instead:

Build room in your budget for regular upkeep and surprise repairs. A good rule of thumb is to set aside 1% to 2% of your home’s value each year for maintenance. Planning ahead can help you stay on top of costs and enjoy your new home with confidence.

10. Depleting your savings account

It can be tempting to dip into your savings account to cover your down payment, closing costs, and moving expenses. If you spend all (or the majority) of your savings, you’ll be in a vulnerable position when life brings unexpected bills or emergencies. Making sure you have a financial cushion at all times is a good call.

Here’s what to do instead:

In line with financial standards, you should aim to maintain at least three-to-six months’ of your living expenses in a savings account. This way, you’ll be protected in case of emergencies.

11. Ignoring moving and upfront costs

Once your offer is accepted, it’s easy to shift into celebration mode, but don’t forget about the costs that come after closing. These include moving costs, setting up utilities, furnishing your space, covering deposits, and more. These upfront expenses can add up fast and catch first-time buyers off guard.

Here’s what to do instead:

Leave some wiggle room in your budget for move-in expenses and surprise costs. And if you’re trying to save, don’t be afraid to tackle parts of the move yourself. Just try to be realistic about what you can handle and what’s best left to professionals.

12. Letting emotions drive the decision

Buying your first home is a major milestone and it’s only natural to experience a range of emotions. Anxiety, attachment, or even social pressure can cloud your judgment, leading to decisions that don’t align with your budget and long-term goals.

Here’s what to do instead:

It’s a good idea to create a clear list of priorities and budget you’re committed to sticking with. If you find yourself emotionally attached to a home outside your budget, take a step back and talk it through with your agent.

13. Holding out for your dream home

It’s easy to picture your dream home. But waiting for a house that checks every single box can leave you stuck in an endless search, especially in a competitive market. The truth is, even the most beautiful homes come with a compromise or two.

Here’s what to do instead:

Focus on your must-haves versus your nice-to-haves, and prioritize the things that can’t easily be changed, like location or layout. Cosmetic fixes can come later, but a solid foundation and good bones are worth snapping up when you see them.

14. Not touring the neighborhood

A home is part of a larger community. What many first-time homebuyers forget is to explore the surrounding neighborhood. Reflect on things like your daily commute, noise levels, grocery store proximity, and anything else that might affect your daily life.

Here’s what to do instead:

Visit the neighborhood during different times of the day. Check your commute, visit nearby shops, and see what weekends feel like. If possible, try making conversation with a few neighbors. If the neighborhood doesn’t match your lifestyle or feel like a good fit, the home might not be right for you.

15. Not considering the resale value of your home

When purchasing your first home, it’s easy to get caught up in your current living plans. However, one day, you might outgrow the home or need to relocate. I

How Much House Can You Afford with $100k Salary: Interest Rates, Down Payments, Loans and More

Fri, 27 Jun 2025 18:03:00 +0000

So you’ve finally cracked into the six-figures, and you’re now dreaming of finally owning property. No more landlords, rent increases, and noisy upstairs neighbors in your apartment in Portland, OR. But before you can browse homes for purchase in Portland, OR after moving out of your rental house in Beaverton, OR, you need to first figure out how much house you can afford with your $100k salary.

Using Redfin’s mortgage calculator, on a $100k salary with you can afford homes valued at $425,000 and below — this is with zero current debts, 20% down payment, and a 36% debt-to-income ratio. Of course, this is a quick answer to a more complex question. How much house you can afford on a $100k salary depends on a variety of factors that will be explored in this Redfin article.

Factors that affect what you can afford:
What’s your credit score?
How large of a down payment can you afford?
What’s your debt-to-income ratio?
What are the current interest rates?
Where are you trying to live?
How much work does the house need?
The bottom line: know what you can afford

What’s your credit score?

Key takeaways: A higher credit score may qualify you for better loans with lower interest rates, allowing you to afford a house with a higher asking price.

If you’re paying cash for your house, skip this section. Sellers don’t really care about your credit score as long as you can pay for the house in full. However, if you’ll need financing to move into your new home – like most Americans – your credit score can play a large role in what you can afford.

Exceptional (800+): You qualify for the best rates available and can have your pick of lenders.
Very good (740-799): These borrowers also tend to qualify for high-quality interest rates
Good (670-739): This is where you’ll start to see a slight increase in interest rates, but this range is considered favorable.
Fair (580-669): Interest rates in this range can start to increase more.
Poor (579 or lower): If you’re in this range, you’ll pay significantly more in interest, and securing a mortgage can become much harder.

Don’t worry if your credit score is toward the lower end of this range, there’s still plenty you can do to improve it and save thousands in interest on your home loan. If you want to improve your credit score, make sure to pay your loans on time, don’t get too close to your credit limit, and decrease your outstanding debt.

How large of a down payment can you afford?

The bottom line: Aim to pay a 20% down payment if you can afford it and still have enough saved to cover any emergency expenses. The larger the down payment, the smaller your monthly mortgage payments will be.

The size of your down payment directly affects how much house you can afford with a $100k salary. If you’re able to save the coveted 20% down payment, you can avoid paying private mortgage insurance (PMI). With a down payment less than 20%, most lenders will require you to purchase PMI, which can run between 0.5 to 1.5% of your loan amount per year. PMI is designed to protect the lender’s investment, but reaching the 20% down payment threshold often allows you to forgo this extra expense.

The larger the down payment, you’ll often be looking at a less expensive monthly payment on your mortgage. So, it’s often a good idea to put down as much as you can without tying all your money up in your property.

What’s your debt-to-income ratio?

In summary: Aim for a DTI that is less than 36%, meaning 36% of your monthly gross income goes to paying debts. Ideally, you’ll want only 28% of your gross monthly income to be spent on total housing expenses, but this can be pushed if you’re willing to budget a little more.

Debt-to-income (DTI) ratio is a way to compare your monthly debt payments with your gross monthly income. Lenders will use this ratio as a way to determine your ability to repay your loans. A higher DTI could result in increased mortgage rates, while a lower DTI suggests a stronger ability to manage debt and is more favorable to lenders. To calculate your DTI, follow the formula below:

DTI = (Total monthly debt payments / gross monthly income) x 100

Let’s say you spend $1,500 a month on credit card minimums, a car payment, and student loans. With an annual gross income of $100k, your monthly gross income would be $8,333. Therefore, your DTI would look something like this:

DTI = ($1,500 / $8,333) * 100 = 18%

This means that 18% of your income is going to paying off monthly recurring debt payments. Most lenders prefer a DTI that is less than 36%, but many lenders offer exceptions for ratios up to 45% or 50% for an FHA loan.

Using the 28/36 rule

Even though you could get approved for a mortgage, it’s usually a good idea to follow the 28/36 rule. The 28/36 rule states that you should spend a maximum of 28% of your gross monthly income on total housing expenses (mortgage payments, property taxes, homeowners insurance premiums, and homeowners association fees) and no more than 36% on total debt service.

Following the 28/36 rule may increase your chances of securing a mortgage at a favorable rate without risking defaulting on your debts. When trying to decide how much house you can afford with $100k, it’s important to keep in mind your debts. Lenders pay attention, and it can affect which types of properties you can consider in your price range.

What are the current interest rates?

Key takeaways: Knowing the current interest rates can be helpful, but be careful not to get paralyzed waiting for a drop that may never come. The best time to buy how house is when you can afford it.

Even the slightest change in interest rates can have you paying or saving thousands of dollars in interest. Higher rates will push down the ceiling of what you can afford, while lower interest rates can give you a little extra wiggle room to stretch to a home with a larger asking price.

There may be the temptation to wait and continually ask yourself, “Is now a good time to buy a house?” Waiting for interest rates to drop is unpredictable and usually not recommended. The best time to buy a house is when you can afford it. You can always refinance later if rates drop and your credit is in good shape.

Where are you trying to live?

Main points: If you’re willing to live in a more rural area, you may be able to afford a little more house on your $100k salary.

Location, location, location. Depending on where you want to live, your $100k could get you a three-bedroom house in Tulsa, OK, or a two-bedroom condo in Portland, OR. Of course, your location options can be impacted by where you work. With a remote job, you have more flexibility if you’re looking at moving to a different state.

However, you don’t need to move to a different state to stretch your $100k a little further. Sometimes living just a few extra minutes out of the city can afford you the opportunity to stretch up to a bigger house with an extra bedroom or some more land. Location, location, location – there’s a reason real estate agents say it so much. It really is an important factor in where you choose to live.

How much work does the house need?

In a nutshell: You can be able to get more house on your $100k if you have the skills and time to put in some sweat equity.

For those handy with a toolbelt and YouTube, purchasing a house that needs some work can help you get a little bit more bang for your buck. There is a fine line, however, between a house that needs a new coat of paint and a house with significant structural damage. Before closing on a home, make sure to get a home inspector to check out the property and report their findings.

The bottom line: know what you can afford

Now that you’ve got a better idea of all that goes into deciding how much house you can afford with a $100k salary, you’re better prepared to start touring homes and making offers. To get a better understanding of exactly how much you can afford, play around with Redfin’s mortgage calculator to calculate a DTI that works for you and start to look at homes in your price range where you’re wanting to settle down.

The post How Much House Can You Afford with $100k Salary: Interest Rates, Down Payments, Loans and More appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

15 Essential Tips for Renting an Apartment

Fri, 27 Jun 2025 18:02:23 +0000

Renting an apartment can be exciting, but also stressful if you’re not prepared. Whether you’re a first-time renter or moving into a new place, it’s important to know what to expect and what to watch out for. From understanding your lease to spotting hidden fees, this Redfin article shares 15 apartment renting tips to help you make smart decisions and avoid costly mistakes. Whether you’re touring apartments in Austin, TX or narrowing down listings in Chicago, IL, this guide will help you rent with confidence.

Quick answer: What are the most important tips for renting an apartment?

Top tips for renting an apartment include:

Create a realistic rental budget
Check your credit score and rental history
Make a list of must-haves and deal-breakers
Ask smart questions about utilities, policies, and fees
Read the lease in full before signing

Below, we’ll walk through each one of these and more in more detail.

1. Know your budget before you start searching

Before browsing listings, figure out how much rent you can afford. Experts recommend spending no more than 30% of your gross monthly income on rent. But don’t stop there—factor in utilities, parking, Wi-Fi, renter’s insurance, and other monthly expenses. If you’re relocating to a new city, research the average costs of living in the area. Tools like rent calculators can help break it down.

You can also explore our full budgeting guide: Budgeting for Rent: Know How Much Rent You Can Afford.

2. Check your credit score

Most landlords run credit checks to assess whether you’re a reliable tenant. A good credit score (usually 670 or above) shows you pay bills on time. If your score is lower, you may be asked to pay a higher deposit or bring on a co-signer. Check your credit ahead of time and resolve any errors or outstanding balances to improve your chances.

3. Make a list of must-haves and deal-breakers

Define your priorities before you get swept up in listings. Do you need pet-friendly policies, in-unit laundry, or a parking space? Would you prefer a walkable neighborhood or access to public transit? Separate must-haves from nice-to-haves to narrow your options and avoid wasting time touring places that don’t meet your needs.

4. Start your apartment search early

Apartment hunting can take longer than expected—especially in competitive rental markets. Begin looking at least 30–60 days in advance. Peak rental seasons (spring and summer) often have more availability but higher demand. Starting early gives you more options and time to compare listings, negotiate rent, or wait for the right unit to become available.

5. Use multiple apartment listing sources

Expand your search beyond just one platform. Use a mix of national rental websites (like Redfin Rentals, Rent.com, or ApartmentGuide), local Facebook groups, neighborhood bulletin boards, and property management company sites. Some landlords only post on local platforms or physical signs outside the unit—so drive around areas you’re interested in if possible.

6. Tour the unit in person (or virtually)

Never sign a lease without seeing the unit first. In-person tours let you spot potential issues like water damage, mold, pests, or noise. If you’re moving long-distance, ask for a live video tour and request to see inside appliances, under sinks, and the view from the windows. Don’t assume the photos show the full picture—they rarely do.

7. Ask smart questions

During your tour, don’t hesitate to ask questions like:

Are any utilities included in rent?
What’s the average monthly utility cost?
What’s the policy for repairs or emergencies?
Are there move-in or admin fees?
What’s the guest policy or parking situation?

These questions help uncover hidden costs and ensure you know what you’re signing up for.

For more ideas, check out our full list of 66 Questions to Ask When Renting an Apartment or House.

8. Take photos of the unit before move-in

Once you’ve chosen a place, document its condition before moving in. Take timestamped photos or videos of every room, including any dents, scratches, stains, or appliance issues. Share them with the landlord or property manager and save copies for yourself. This can help protect your security deposit when it’s time to move out.

9. Review the lease thoroughly

Don’t rush through your lease—read it carefully before signing. Look for:

Lease start and end dates
Rent amount and due date
Late payment penalties
Rules about subletting or roommates
Maintenance responsibilities

If anything seems unclear or unfair, ask the landlord to clarify or adjust it in writing. Never rely on verbal promises.

10. Understand the security deposit terms

Security deposits usually equal one month’s rent, but this varies by state and landlord. Make sure the lease explains:

The exact amount of the deposit
What could cause you to lose part of it
How long the landlord has to return it after move-out

Document everything at move-in and move-out to avoid disputes.

11. Consider getting renters insurance

Many landlords now require renters insurance—and even if they don’t, it’s a smart move. This low-cost policy protects your belongings from fire, theft, or water damage, and may even cover temporary housing if your unit becomes unlivable. Most policies cost less than $20/month and offer peace of mind.

12. Gather your documents early

Landlords often rent to the first qualified applicant. Be ready by preparing:

Government-issued ID
Proof of income (pay stubs, W-2s, or offer letter)
Credit report (optional)
Rental references or contact info from past landlords
Co-signer details (if needed)

Having these ready to go can give you an edge. Want to better understand the application process? Read our guide: Apartment Applications: What to Expect and How to Land the Perfect Pad.

13. Know your renter rights and local laws

Tenant rights vary widely by state. Some states limit how much a landlord can charge for deposits, how quickly they must make repairs, or what notice is required for eviction. Look up your state or city’s tenant handbook or fair housing agency to understand your legal protections.

14. Do a full inspection before moving in

Schedule a move-in inspection with the landlord. Use a checklist to examine floors, windows, doors, appliances, plumbing, and outlets. If something is broken or damaged, request repairs in writing and keep a copy. Signing off on the unit’s condition upfront can prevent deposit issues later.

15. Get everything in writing

Verbal promises don’t hold up in disputes. If the landlord agrees to repaint, waive a fee, or fix something before move-in, ask them to include it in the lease or confirm it in an email. Clear communication protects both you and the landlord and helps avoid confusion down the line.

The post 15 Essential Tips for Renting an Apartment appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How to Sell Your House: A Comprehensive Guide

Fri, 27 Jun 2025 17:39:15 +0000

Selling your home is a big move – whether you’re relocating, downsizing, or just ready for something new. It can feel overwhelming, but the process doesn’t have to be. With the right strategy and guidance, you can sell your house quickly and for the best possible price.

This step-by-step guide covers everything you need to know: from prepping and pricing to marketing and negotiating. So whether you’re selling a home in Pittsburgh, a condo in Phoenix, or something in between, we’ve got your game plan covered- start to finish.

What home sellers can expect this year

The 2025 housing market isn’t as red-hot as years past, but sellers still have solid opportunities. While high mortgage rates and growing inventory have made buyers more selective, well-maintained homes that are priced right are still selling. You may need to wait a bit longer, be open to negotiations, or offer small incentives, but strong prep and realistic pricing can pay off. Sellers who approach the market with strategy and flexibility are still seeing successful outcomes.

To sell successfully in today’s market:

Price competitively
Make your home show-ready
Stay flexible on timing and terms

Selling a home today takes more than just listing and waiting. Here’s a step-by-step guide to help you navigate the process, from preparing your home to closing the deal.

How to sell a house: Step-by-step

Selling a house involves more than just putting a sign in your yard. It’s a process that requires preparation, strategy, and an understanding of the market.

1) Hire a home inspector

You might be thinking, isn’t that the buyer’s responsibility? You’re not wrong; buyers typically pay for their own home inspection. So why get one yourself?

A pre-listing home inspection helps you identify and fix issues before negotiations even start. It also strengthens your position in negotiations. Buyers often use inspection findings to request concessions, like price reductions. If you’ve already handled repairs, there’s less for them to negotiate, giving you more control over the deal.

2) Make repairs and small upgrades to your house

Before listing your home, address any necessary repairs and consider small upgrades that add value.

Fix what stands out: Address noticeable issues like leaky faucets, chipped paint, or squeaky doors.
Boost curb appeal: A well-maintained lawn, trimmed hedges, and fresh mulch create a great first impression.
Brighten and refresh: Upgrade lighting, repaint walls in neutral tones, and open up spaces with natural light.

Minor, strategic updates can make your home feel more inviting and move-in ready, helping it sell faster.

4) Find a real estate agent

Finding a real estate agent is easy, but finding a great real estate agent can be a challenge. Getting referrals and reading online reviews is a great way to narrow down your options. Here are some questions to consider asking any potential candidate:

How many clients have you served this year?
Has a client ever filed a complaint against you?
What is your fee?
What services do you offer beyond negotiations and escrow?
What tools and resources are available to you?

After you decide on a real estate agent, you and your agent should devise a plan of action for how to sell your house.

5) Price your house to sell

Setting the right price is key to attracting buyers and securing a strong offer. While online tools provide rough estimates, they don’t account for market shifts or unique property features.

A real estate agent can conduct a comparative market analysis (CMA), using recent sales of similar homes (comps) to set a competitive price. Agents also understand local trends, helping you avoid overpricing or underpricing.

You can also get a professional appraisal, where an appraiser assesses your home’s condition, upgrades, and market value. While it is more common for buyers, it can be useful for sellers seeking an unbiased valuation. Pricing your home for sale correctly from the start increases your chances of a faster, smoother sale.

6) Stage your home to sell

A well-staged home helps buyers envision themselves living there, leading to faster and higher offers. Whether you hire help or go the DIY route, focus on these key areas:

Declutter and depersonalize: Remove excess items and personal belongings to create a clean, neutral space.
Deep clean everything: Wash windows, dust baseboards, and scrub bathrooms until they shine.
Rearrange furniture: Keep rooms open and inviting, ensuring they feel spacious and flow well.
Maximize natural light: Remove or pull back heavy curtains to let in more light.
Show off flooring: Buyers love hardwood—remove rugs and polish floors to make them stand out.

Small changes can make a big impact. The goal is to help buyers picture themselves at home from the moment they walk in.

7) Get professional photos taken of your home

Nothing sells a house faster than professional photos. This is especially true now, as many prospective buyers start their journey online. Poorly photographed listings will likely see very little traffic, and houses with professionally shot photos, on average, sell for more money than other listings. Aerial photography and 3D walkthroughs have become increasingly popular with buyers looking online.

8) List your home to sell

Your real estate agent will list your home online on the MLS (Multiple Listing Service) for it to start showing up on real estate websites for potential buyers. Also, don’t limit the marketing of your house to your real estate agent and online search. Market the house yourself with social media. Also, ensure you know when it’s the best time to sell a house to give yourself the best advantage.

9) Have a plan in case your home doesn’t sell quickly enough

Not every house sells quickly, so it’s important for you and your agent to be prepared if your listing takes longer than expected. Many factors are at play, and depending on the condition of the housing market in your area, your real estate agent may have to use other strategies in their arsenal to sell your house, like lowering the price or holding more tours and open houses.

10) Negotiate the sale price of your home

One thing to consider is that both you and the buyer are trying to get the best possible price for your home. There will be multiple factors to consider, as each home sold and purchased differs.

This is where your agent really steps up. They will help you navigate every step of the negotiation process and will offer advice on how to proceed when offers are being made.

11) Sign and close

You and your agent have been working towards this moment. You’ve agreed on a price with the buyers, all inspections and appraisals of your home have been completed, and you are now ready to sign the papers and close the transaction.

At closing, you’ll review the final documents, including the settlement statement and deed, to ensure everything is accurate. Once you’ve signed all of the paperwork and paid for seller closing costs, congratulations, you’ve sold your house.

FAQs: How to Sell a House

What is the best time of year to sell a house?

Spring and early summer tend to attract the most buyers, though market conditions can vary.

Do I need to stage my home to sell it?

Staging isn’t required, but it helps sell homes faster and often for more money.

Can I sell a house without a real estate agent?

Yes, but it requires more time, marketing knowledge, and legal expertise.

How much does it cost to sell a house?

Typical costs include agent commissions (5-6%), closing costs (1-3%), and repair/staging expenses.

How long does it take to sell a house?

Depending on the market, location, and condition of the home, most homes sell within 30–90 days.

The post How to Sell Your House:

Is it Worth Replacing Windows Before Selling a House?: Pros, Cons, and What to Consider

Fri, 27 Jun 2025 17:33:24 +0000

Quick Answer: Is it worth it?

Worth it: Your windows are damaged, drafty, outdated, or hurting energy efficiency or curb appeal.
Not worth it: Your windows are in good shape or you’re selling in a competitive market where buyers prioritize layout and location.
Return on investment: ~63%-70% depending on material.
Alternatives: Repairs, cleaning, re-caulking, or new weather stripping.

If you’re getting ready to sell your home, you’ve probably asked yourself: is it worth replacing windows before selling a house? It’s a common dilemma if you’re hoping to make smart updates that will pay off at the closing table. The answer? It depends on several factors, including your home’s condition, market demand, and your budget.

In this Redfin article, we’ll walk you through the pros and cons, the potential return on investment, and other factors you should consider behind window replacements. Whether you’re hoping to command top dollar for your Saint Louis, MO home or just want your Raleigh, NC home to stand out in a competitive market, here’s what you should know before replacing windows.

In this article:

Why should you replace windows before selling?
Why shouldn’t you replace windows before selling?
When is window replacement worth it?
Average cost of window replacement
Is it worth replacing windows before selling your house?
Resources

Why should you replace your windows before selling?

Replacing your windows before listing your home offers a handful of benefits that appeal to today’s buyers. Especially in competitive markets, upgrades like window replacements can help your listing stand out.

Increases home value

New windows are an upgrade buyers notice and appreciate. A clean, modern look signals to buyers that the home is move-in ready, which can help justify a higher asking price.

Improves curb appeal

First impressions matter. Windows can greatly improve the overall appearance of your home’s exterior, especially if your old ones are cloudy, cracked, or covered in peeling paint.

Increases energy efficiency

Energy efficient windows are a top selling point, especially in regions with extreme climates like Phoenix, AZ and Minneapolis, MN. Double or triple pane glass, low-E coatings, and insulated frames help reduce heat transfer and cut energy bills.

Soundproofing

If you’re located in busy areas or near highways, schools, or airports, upgraded windows can significantly reduce the noise. Features like double-pane glass and better insulation can create a more peaceful interior, which can be a major selling point for buyers seeking comfort and privacy.

Home security

Modern windows are typically equipped with advanced locking systems, impact-resistant glass, and reinforced frames, making them less vulnerable to break-ins.

Why wouldn’t you replace your windows before selling?

While new windows can add appeal, they aren’t always the most cost-effective upgrade when you’re selling your home. It’s important to think about whether the return on investment will justify the expense. For example, if your bathroom or kitchen is outdated and needs attention, directing your budget there instead of toward window replacements could bring a bigger payoff.

High upfront costs

Window replacements can be a major expense, especially if you’re updating an entire house. Depending on the materials and number of windows you plan to replace, costs can quickly climb into the tens of thousands. If your current windows are still functional and show minimal wear, you may want to look into other ways to increase your home value on a budget.

Time intensive

Replacing your windows before selling can also be time consuming. Between scheduling consultations, shipping your custom order, and waiting on installation, this process may even delay your listing date. If it’s peak season and you’re aiming to sell your home quickly, it might be worth skipping these updates.

Market-dependent value

Before considering window replacement, take a look at your local housing market. If homes are selling quickly, buyers may overlook older (but functional) windows in favor of location, layout, and price.

When is window replacement worth it?

Replace if:

If your windows aren’t functioning properly: If it’s difficult to open and close your windows, or if you’re experiencing water or air leaks, you have a clear signal to replace your windows.
There are noticeable drafts: Beyond making your space less comfortable, drafty windows can lead to higher energy bills and impact your air quality, allowing allergens and pollutants to enter your home.
There is excess condensation: Increased condensation can lead to molding, damage to the wood and paint, and sometimes even structural damage.
There is visible damage to the windows: Frames that are rotting, cracking, or deteriorating may not be structurally sound.
Windows are 20+ years old: While not all older windows are in need of replacement, aged windows can lack the efficiency of modern designs. As a rule of thumb, it might be worth contemplating window replacement if your windows are 20 years or older.

Repair or refresh if:

The frames are intact and the glass isn’t damaged: A professional repair can address issues like broken locks, faulty seals, or minor drafts.
The windows look dull or dirty: A deep cleaning can make them look newer and more polished.
Small updates are needed: Updates like re-caulking or replacing weather stripping can improve efficiency and appearance without the high cost of a full-replacement.

Average costs of window replacement

On average, windows cost anywhere from $300-$2,500 to replace. This all depends on the materials used and the style. Vinyl windows tend to be more budget-friendly, while wood or custom designs can push the price higher. Labor, installation complexity, and the number of windows you’re replacing will also factor into the total cost. Getting multiple quotes can help you understand your options and stay within budget.

Best materials for ROI

Choosing the right window material can affect everything from cost to curb appeal. Below is a quick breakdown of the pros, cons, and return on investment (ROI) for the two of the most common options:

Material	National average cost of replacement	Resale value	ROI
Vinyl	$21,264	$14,270	67.1%
Wood	$25,799	$16,222	62.9%

Pros and cons to vinyl windows

Vinyl is one of the most budget-friendly and low-maintenance window materials on the market. It’s resistant to moisture, doesn’t require painting, and typically offers solid energy efficiency.

While it’s not always the most durable long-term, vinyl windows tend to offer a better return on investment, especially if you’re looking for a quick, cost-effective upgrade before selling.

Pros and cons to wood windows

Wood windows are a timeless option that offer a higher-end look, which can be especially appealing in older or more traditional home styles. They’re also recyclable and can be refinished, adding to their longevity.

Something to think about, however, is that they usually come with a higher price tag and require more upkeep like painting and sealing.

The big question: Is it worth replacing windows before selling your house?

Replacing your windows before selling can boost your home’s value and appeal, especially if they’re outdated, damaged, or causing high energy bills. But if your windows are still in good condition, simple repairs or a thorough cleaning may be a more cost-effective choice.

Before making any major updates, it’s a good idea to estimate your home value and walk through your home with a trusted real estate agent. They’ll help you determine whether or not it’s worth replacing your windows before selling, as well as prioritize the upgrades that are most likely to pay off at the closing table.

Resources

Before deciding on a full replacement, check out these resources to explore costs, energy efficiency options, and rebate programs that may help reduce your expenses.

Topic	Resource
Find certified window installers	Angi Home Window Installers Near You
Compare window costs	Forbes Window Replacement Cost Estimator
Energy efficiency guidelines	ENERGY STAR Windows Guide
Window ratings	National Fenestration Rating Council (NFRC) Label
Rebates and incentives	DSIRE Database of State Incentives for Renewables and Efficiency
Window safety and security	A kick-out clause is a real estate contract provision that allows a seller to accept an offer from a buyer with a home sale contingency while still marketing the home to other buyers. If a better offer comes along, the seller can “kick out” the first buyer unless they remove their contingency within a specified timeframe, usually 72 hours. Whether you’re listing your home for sale in Denver or buying a house in Raleigh, this Redfin guide breaks down how a kick-out clause works, who it benefits, and when it’s worth using. What is a kick-out clause? A kick-out clause gives home sellers the right to continue marketing their home after accepting a contingent offer, typically when the buyer needs to sell their current home first. If another qualified buyer submits a stronger offer, the seller can notify the original buyer, who must then either remove their home sale contingency and proceed with the purchase or walk away from the deal. Why do real estate contracts include kick-out clauses? Kick-out clauses are common in competitive housing markets, especially when: Buyers include a home sale contingency in their offer Sellers want to minimize downtime on the market The home is likely to attract multiple offers Including a kick-out clause helps protect the seller from being tied up in a slow-moving transaction, while giving the buyer time to sell their current home. How a kick-out clause affects buyers The pros Offers flexibility to sell your current home first, avoiding two mortgages Provides a grace period to line up financing or make a firm decision The cons Risk of losing the home if another buyer makes a better offer Added pressure to sell your current home quickly or secure bridge financing How a kick-out clause affects sellers The pros Keeps the property actively listed and available to other buyers Strengthens your negotiating position with interested parties It can help speed up the closing process if a stronger offer comes in The cons The second buyer could back out, delaying the sale even further May introduce uncertainty and extra paperwork for all parties How does a seller use the kick-out clause? To exercise the clause: Notify the original buyer in writing that another offer has been received. Provide a response window (typically 72 hours) for the buyer to act. The original buyer must choose to either remove their contingency and proceed or step away from the deal, typically with their earnest money refunded. How to avoid this clause as a buyer If you’re a buyer and want to avoid being kicked out of your dream home: Sell your current home first and rent temporarily Consider bridge loans to cover the gap between selling and buying Avoid including a home sale contingency in your offer if possible When a kick-out clause may hurt your offer In a seller’s market, kick-out clauses can hurt your chances. Sellers often receive multiple offers and are less likely to accept one with a contingency, especially if another buyer is ready to close without strings attached. Is a kick-out clause right for you? A kick-out clause can protect both parties, but it’s not always the best course of action. If you’re a seller, it gives flexibility. If you’re a buyer, it buys time but carries risk. Always consult a real estate agent or attorney to determine whether a kick-out clause is in your best interest. FAQs about kick-out clauses What does a 72-hour kick-out clause mean? It gives the original buyer 72 hours to remove their home sale contingency after the seller receives a better offer. Can a seller accept another offer with a clause in place? Yes, but the first buyer must be given a chance to respond and either proceed or withdraw. Is this clause standard in real estate? Yes, especially when buyers are dependent on selling their current home before they can purchase. Who benefits more: the buyer or the seller? It depends on the market. In a seller’s market, the seller benefits more. In a buyer’s market, it can give buyers breathing room. The post What is a Kick-Out Clause and How Do You Use It? appeared first on Redfin \| Real Estate Tips for Home Buying, Selling & More. Currently operating as a private resort, this tropical oasis offers a pool, lush gardens, gazebos, and beach access. Extraordinary property of the day represented by Curacao Sotheby's International Realty. Fri, 27 Jun 2025 15:50:05 +0000 Currently operating as a private resort, this tropical oasis offers a pool, lush gardens, gazebos, and beach access. Extraordinary property of the day represented by Curacao Sotheby's International Realty. How to Prepare for a Home Appraisal (and What You Need to Know) Fri, 27 Jun 2025 14:15:28 +0000 If you’re getting ready to sell or refinance your home, knowing how to prepare for a home appraisal is key. The appraisal helps determine your home’s value, and influences how much a lender will finance or how much equity you can access.. Whether you’re selling your home in Newport News, VA or refinancing in Suffolk, VA, a strong appraisal can make all the difference. In this Redfin article, we’ll walk you exactly how you need to prepare your home so it stands out and appraises for top dollar. In this article: What is a home appraisal? How to prepare for a home appraisal What do home appraisers look for? What can hurt your home appraisal? What can help your home appraisal? Why do home appraisal values matter? Home appraisal FAQs What is a home appraisal? If you’re selling your home or refinancing your mortgage, you’ve probably heard the term “home appraisal” thrown around. But what exactly is it? Simply put, a home appraisal is an unbiased assessment by a professional who determines your home’s fair market value. They evaluate factors like your home’s condition, location, and comparable sales in the area. This estimate helps lenders decide how much money they’re willing to loan you—or how much your home should sell for. Types of home appraisals Not all appraisals are done the same way. Depending on the lender, the type of loan, and the condition of the home, you might encounter one of the following: Full (traditional) appraisal: A licensed appraiser inspects the home in person, measuring its condition and comparing it to recent nearby sales. Drive-by appraisal (exterior-only): The appraiser only assesses the exterior and relies on public records, photos, and comparable sales. Common for lower-risk and some refinance loans. Desktop appraisal: The appraiser relies solely on online data, MLS listings, tax records, and comparable sales without visiting the property. Used for faster, low-risk valuations. Hybrid appraisal: A trained inspector or third-party data collector visits the home and shares findings with a licensed appraiser, who completes the valuation remotely. No matter which one is used, the goal is the same: to provide a fair, unbiased estimate of your home’s value. When do you need an appraisal? Lenders typically require an appraisal when you’re buying a home with a mortgage or refinancing an existing loan. Think of it like this: the lender wants to make sure they’re not handing over more cash than how much your home is actually worth. It protects them—and you—from paying or borrowing too much. You’ll usually need an appraisal in a few situations: When you’re selling your home: the buyer’s lender orders it to confirm the price matches the market. When you refinance your mortgage: your lender wants to know your home’s current value. When applying for a home equity loan or line of credit: the appraisal helps determine how much equity you have to borrow against. What happens during an appraisal? Usually, the appraiser will spend about 30 minutes to an hour walking through your home, taking notes and photos. Then they’ll compare what they see with data on similar homes in your area. After that, it usually takes a few days to get the full appraisal report. This report is what the lender uses to make their final call. How to prepare for a home appraisal Getting ready for an appraisal is a lot like getting ready for a buyer walkthrough—you want your home to look its best, feel inviting, and show that it’s been well taken care of. Here’s how to prepare your home for an appraisal: Clean thoroughly: A deep clean goes a long way. Vacuum, mop, wipe down surfaces, clean windows, and make sure bathrooms and kitchens sparkle. Declutter your space: Put away personal items, clear off countertops, and tidy up closets and storage areas. A cleaner space feels more spacious and well-kept. Tackle small repairs: Fix that dripping faucet, squeaky door, chipped paint, or loose cabinet handle. These little details can add up in the appraiser’s overall impression. Boost curb appeal: Mow the lawn, trim hedges, sweep walkways, and make sure the exterior looks neat and welcoming. A fresh-looking front door and a clean porch can set the tone before the appraiser even walks inside. List your upgrades: Write down any improvements you’ve made—new roof, HVAC system, kitchen remodel, flooring updates, etc. Include receipts, permits, and installation dates if you have them. Make all areas accessible: Unlock gates, remove obstacles, and ensure the appraiser can access the garage, attic, basement, and any outbuildings or additional structures. Know your comps: While you don’t need to provide a full market analysis, it’s helpful to be aware of similar homes that have sold in your area recently. If you have information you think could help, you can politely share it. Be available, but not intrusive: You don’t need to hover, but being around in case the appraiser has questions can be helpful—especially if your home has unique features or recent upgrades you want to point out. What do home appraisers look for? When an appraiser steps inside your home, they’re not just glancing around—they’re carefully evaluating factors that help determine its value. Here’s what they typically focus on: Overall condition of the home: Appraisers look for signs that the home has been well cared for. Damage, wear and tear, or needed repairs—like peeling paint or a leaky faucet—can affect their assessment. Size and layout: The amount of livable space matters. Appraisers measure square footage, count bedrooms and bathrooms, and evaluate how the space flows. A functional, well-designed layout can add value. Updates and upgrades: Renovations like updated kitchens, bathrooms, new flooring, or energy-efficient systems can boost your appraisal—especially if they’re done professionally and well-maintained. Curb appeal: First impressions matter. The condition of the exterior, lawn, landscaping, and front door all set the tone before the appraiser even steps inside. Location and neighborhood: Your home’s location plays a big role. Good school districts, nearby amenities, and overall neighborhood appeal can raise your value. Conversely, poorly maintained surrounding homes can lower it. Comparable homes: Appraisers compare your home to recently sold properties of similar size, style, and location. If nearby comps sold for less, that can impact your appraisal value. What can hurt your home appraisal? Just like there are things that can help your home appraise higher, there are also factors that can work against you. Some of them are out of your control—but many are fixable with a little effort. Here’s what might bring your appraisal value down: Visible signs of neglect or deferred maintenance: Leaky faucets, cracked tiles, peeling paint, broken windows, or aging systems (like an old water heater or HVAC unit) can suggest bigger problems and lower your home’s perceived value. Outdated interiors: While you don’t need a brand-new kitchen, dated finishes, old appliances, worn carpet, or heavily lived-in bathrooms can drag down your home’s appeal in the appraiser’s eyes. Clutter and poor presentation: A messy or overcrowded home can make rooms feel smaller and distract from the home’s features. It may not officially lower the value, but it can leave a negative impression. Unpermitted or DIY work: Home improvements without proper permits or projects that look unfinished or poorly done may be ignored in the appraised value—or worse, raise red flags about code violations. Lack of curb appeal: Overgrown landscaping, chipped paint, or a damaged fence or driveway can start the appraisal off on the wrong foot. Nearby negative influences: Unfortunately, things like foreclosures, unkempt neighboring properties, or declining local market trends can also impact your home’s appraised value—though these are outside your control. The good news? Many of these are easy to address before the appraisal takes place. A little cleaning, fixing, and organizing can go a long way toward protecting your home’s value. What can help your home appraisal? While the housing market is beyond your control, there are plenty of steps you can take to give your home the best chance at a strong appraisal. Here are some key factors that typically help boost your home’s value in the eyes of an appraiser: Recent upgrades and renovations: Improvements in important areas like kitchens, bathrooms, and energy-efficient systems can add value—think new appliances, updated flooring, fresh paint, or a modern HVAC system. Just make sure everything is finished and in good working order. Clean, well-maintained interiors: A tidy, clutter-free home looks larger and more inviting. When your space feels cared for, it leaves a positive impression. Great curb appeal: First impressions matter! A freshly mowed lawn, trimmed bushes, clean driveway, and a welcoming front door signal that the home has been well cared for. Documented improvements: Providing a list of upgrades with receipts or permits shows the appraiser your renovations are legitimate and professionally done, supporting a higher valuation. Desirable location and market trends: If your neighborhood is popular or home values are rising, that naturally helps your appraisal. Proximity to good schools, parks, shops, and public transit adds extra appeal. Functional layout and usable space: Well-designed layouts that maximize living space are attractive. Finished basements, attic conversions, or other added usable areas can be a plus. Why do home appraisal values matter? When you apply for a mortgage, refinance, or take out a home equity loan, your lender usually requires an appraisal to establish your home’s value. This appraised value determines your home equity—the difference between your home’s worth and any outstanding loans. It directly impacts how much you can borrow, how much equity you have, and in many cases, what kind of interest rate and loan terms you’re offered. If your appraisal comes in lower than expected, it can cause delays, limit your loan options, or even derail the deal altogether. Here’s how it affects different types of loans: Home equity investment (HEI): You receive a lump sum of cash upfront in exchange for a share of your home’s future value. Your eligibility depends on your home’s appraised value and current equity. Home purchase: If the appraisal is lower than the purchase price, your lender may only finance the appraised amount. This means you’ll need to pay the difference or renegotiate with the seller. On the flip side, a higher appraisal means instant equity on closing day. Home equity loan or HELOC: These loans are based on your equity—meaning the difference between your home’s appraised value and what you still owe on your mortgage. For example, with a $600,000 home and $400,000 owed, you could borrow up to 85–90% of the difference, depending on the lender. Refinance: The appraisal sets the loan-to-value (LTV) ratio for your new loan, affecting eligibility, interest rates, and whether you’ll need additional cash. If your appraisal is too low, you might not qualify for a refinance at all. Bottom line: Your home’s appraised value isn’t just a number on paper—it directly impacts your financing, your equity, and in some cases, your ability to move forward with a loan or purchase. Home appraisal FAQs 1. Should I be home during the appraisal? You can be, but it’s not required. If you are home, keep interactions friendly and brief. You can offer a list of upgrades or point out important features, but it’s best not to follow the appraiser around or try to influence their evaluation. *>> Discover:* Checklist for the Home Appraisal Process 2. What happens if the appraisal comes in low? A living piece of Canadian architectural history, this iconic residence features floor-to-ceiling glass, cedar beams, and breathtaking river views. Extraordinary property of the day represented by Marco Chiappetta and Lamees Chiappetta of @sothebysrealty Wed, 25 Jun 2025 21:09:38 +0000 A living piece of Canadian architectural history, this iconic residence features floor-to-ceiling glass, cedar beams, and breathtaking river views. Extraordinary property of the day represented by Marco Chiappetta and Lamees Chiappetta of @sothebysrealtycanada. Perched above the Coral Sea, this award-winning retreat offers floating walkways, an infinity pool, and a seamless connection to Hamilton Island’s breathtaking beauty. Extraordinary property of the day represented by Carol Carter and Wayne Singleton of Q Mon, 23 Jun 2025 16:14:39 +0000 Perched above the Coral Sea, this award-winning retreat offers floating walkways, an infinity pool, and a seamless connection to Hamilton Island’s breathtaking beauty. Extraordinary property of the day represented by Carol Carter and Wayne Singleton of Queensland Sotheby's International Realty.

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