Real Estate Investing News

What Does a Real Estate Agent Do? A Guide for Buyers and Sellers

Mon, 13 Oct 2025 21:28:39 +0000

If you’re planning on buying or selling your home this year, then chances are you’re considering working with a real estate agent. A great real estate agent can help make the homebuying or selling process easier, less stressful, and help you get the right deal. But, what exactly does a real estate agent do?

In this Redfin article, we’ll outline what a real estate agent does and their responsibilities. Whether you’re selling a house in Baltimore, MD, or buying a home in Charlotte, NC, here’s what you can expect from your real estate agent throughout the process.

Key takeaways

A real estate agent is a licensed professional who represents buyers or sellers in a home purchase or sale.
A good real estate agent understands the local housing market, guides you through the buying or selling process, and advocates for your goals.
They typically earn a commission, often a percentage of the home’s final sale price, though this amount is negotiable.

What does a real estate agent do?

A real estate agent is a licensed professional who assists clients in buying, selling, or renting properties. To become a real estate agent, individuals must complete state-required coursework and pass a licensing exam. Once licensed, agents typically work under a brokerage.

There are three common types of real estate agents:

Buyer’s agents: Buyer’s agents represent potential homebuyers. They show properties, answer questions along the way, and help make an offer on a home.
Seller’s agents: Sometimes called listing agents, a seller’s agent represents homeowners looking to sell. They market the property, attract buyers, and negotiate with potential buyers.
Dual agents: Represent both the buyer and seller in the same transaction. This practice is restricted or prohibited in some states due to potential conflicts of interest, so check your local laws.

What services do real estate agents provide?

A professional real estate agent is your personal advocate. They should be able to give you the insight and support you need to make informed decisions, whether you’re selling or buying. All real estate agents should be able to provide the following services:

Local market expertise	Provide knowledge about neighborhoods, home prices, and the local housing market. If you’re selling, your agent should know if now is a good time to sell, what other homes have recently sold for, and what buyers are looking for. If you’re buying, your agent should know the area’s inventory, find homes that match your criteria, and fit your budget.
Schedule showings and open houses	Guide you through a house tour, point out features, and give you additional information about the property Set up open houses for buyers to take a look
Guidance on the mortgage process	Help you understand pre-approval requirements Navigate financing options Find lenders who match your needs
Handle negotiations	Help you identify negotiation opportunities, concessions, and other compromises Negotiate repairs or a lower price before the sale is finalized
Manage necessary paperwork	Draft key documents like offer letters and purchase and sale agreements Help you complete additional paperwork like closing documents and more
Oversee the closing process	Update you on the transaction, answer your questions, and actively check in Recommend inspectors or other services like maintenance professionals or cleaners

What do buyer’s agents do?

Find homes to tour: Your agent should help you find homes that meet your requirements and budget. They’ll send you potential homes, listen to your wants, and suggest neighborhoods that meet your criteria and budget.
Give advice about a home: Real estate agents have experience touring and examining homes, so they can give you trusted advice about a property. For example, they may see red flags in a home that you may not. They likely have insight into why the home is on the market, if the sellers are in a hurry to sell, or if the home had recent renovations.
Recommend lenders and more: Agents work with numerous lenders in the area, so they can recommend lenders that meet your needs. Buyer’s agents should also know about homebuyer assistance programs you may qualify for. If you need a specialized home inspection, like sewer or termite, your agent can connect you with the right professional.
Write an offer and submit it: Your agent can guide you through the process of making an offer and negotiating the best deal. They’ll know what contingencies to include, what closing date to request, and more.

What do listing agents do?

Help price your home: Your agent will help you determine the right price to list your home. They’ll use comparable properties, which are recently sold homes in the area similar to yours, to help determine your home’s value. Your agent will ask you questions about your home’s features to ensure they’re pricing your house competitively.
Suggest minor updates and staging: Your agent knows what will help your home stand out. For example, they may suggest quick upgrades like a fresh coat of paint, replacing lightbulbs, and removing personal belongings from the home. If you have worn furnishings, they may recommend using a professional stager to make your home look up-to-date.
Market your home: Real estate agents are experts at marketing properties so they can help you sell your place. From coordinating listing photos and staging to marketing your home online and during home tours, your agent will highlight your home’s best features. They can also use their network to attract potential buyers.
Analyze offers: The highest offer isn’t always the best offer. If you have multiple offers on your home, your agent can help you choose the right offer and negotiate the best deal for your needs.

Real estate agent vs Realtor®

Your real estate agent may also be a Realtor®. A Realtor® is an agent or broker who belongs to the National Association of Realtors® (NAR). As of May 2025, there are about 1.45 million Realtors®. Realtors® must adhere to NAR’s Code of Ethics, which outlines professional standards for working with clients and other real estate professionals.

All Realtors® are real estate agents or brokers. However, not all real estate agents and brokers are Realtors®.

Real estate agent vs broker

You may have also heard the term real estate broker and wonder how that’s different from a real estate agent. A broker is a licensed agent who has earned additional certifications that allow them to manage a team of agents and open a brokerage company. Real estate agents must work under a brokerage. In states like Colorado and New Mexico, all agents need an associate broker’s license.

FAQs about real estate agents

How do I find a real estate agent?

There are plenty of ways to find a trusted real estate agent. For example, you can look online at real estate agents in your area, speak to family and friends, or ask your lender.

Who pays the real estate agent fees?

Buyers and sellers negotiate who pays the real estate agent fees. Prior to the NAR settlement in 2024, sellers typically paid both buyer’s and seller’s agents. Redfin anticipates that sellers will continue to cover the buyer’s agent commission fee in many transactions, but increasingly, these fees will be negotiated as part of the offer.

When am I obligated to work with a real estate agent?

You’re generally not required by law to work with an agent to buy or sell a home. If you choose to work with an agent, you may need to sign an agreement that outlines services and compensation. Buyers may be asked to sign a buyer’s agency agreement, while sellers sign a listing agreement before putting a home on the market.

At Redfin, buyer agreements are flexible. Before the first tour, clients sign a simple fee agreement online that doesn’t require exclusive representation. A buyer’s agency agreement is only needed when submitting an offer (unless required earlier by local law) and can be canceled if the offer isn’t accepted.

Other brokerages may have stricter terms and may charge buyers even if they don’t purchase a home. Always review cancellation terms before signing.

Do I need a real estate agent?

It’s possible to buy or sell a home without a real estate agent. Keep in mind a great agent can offer you invaluable insight about the local housing market, advise you along the way, and make the process less stressful.

What is a closing agent?

A closing agent is a real estate professional who manages the final steps of a real estate transaction. They ensure that all documents are properly executed and funds are distributed correctly. They coordinate between buyers, sellers, and lenders to verify that all legal and contractual obligations have been met before the property officially changes ownership.

What does a commercial real estate agent do?

A commercial real estate agent specializes in selling commercial real estate, like office buildings and shopping centers. They typically have the same responsibilities as residential real estate agents, but have additional experience in leasing commercial properties.

The post What Does a Real Estate Agent Do? A Guide for Buyers and Sellers appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Should I Sell My House Now?

Mon, 13 Oct 2025 20:20:00 +0000

Key takeaways:

It’s a good time to sell your house if you price correctly and are open to negotiation.
Mortgage rates are holding at 12-month lows, opening the door for some priced-out buyers to re-enter the market.
There are far more home sellers than buyers, tipping the scales toward buyers – but sellers can still get competitive offers.
Selling now could help you avoid potential price swings if the economy moves toward recession or inflation.

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

The typical monthly housing payment is over $2,800, and house prices have risen for more than two years straight. These costs have frozen the housing market, scaring buyers and prompting more sellers to stay put. On top of that, President Trump’s policies are rattling the economy, further weakening demand – even as mortgage rates fall.

The result is a housing market with more listings than buyers, affecting housing markets nationwide. The government shutdown is adding a layer of uncertainty.

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

From Redfin’s Chief Economist

“Home sellers should prepare for a buyer’s market,” said Daryl Fairweather, Redfin Chief Economist. “Rising inventory has given buyers more options, but near-record costs have made them wary. Falling mortgage rates haven’t brought buyers back, either. Those willing to brave today’s market are prepared to lead negotiations and pay a fair price.”

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

Nationwide, there are 500,000 more sellers than buyers. So to stay competitive, homeowners need to be flexible on pricing and willing to offer concessions. Many are doing so, but a growing share of would-be sellers are choosing not to list, or even delist their homes altogether, pushing prices higher.

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 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 are high, and economists are concerned that inflation could increase due to tariffs and immigration policies. However, the quickly slowing job market has had the beneficial effect of pushing mortgage rates down. Rates recently dropped and are holding near 12-month lows, helping buyers afford thousands more than they could in May.

“Mortgage rates have dropped, but with house prices near all-time highs, homebuyers are still struggling through an expensive housing market.” said Chen Zhao, Head of Economics Research at Redfin. “Unless the new tariffs are eliminated, inflation doesn’t increase, or the country falls into a severe recession, housing affordability and buyer activity are unlikely to improve substantially.”

Upcoming economic data may also influence rates, although it will likely be delayed due to the government shutdown. 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 autumn market, sellers should prepare 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 buyer demand. More buyers in the market often means higher prices, stronger offers, and possible bidding wars – good news for sellers. As rates drop, sellers should keep an eye out on local market trends.
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 – though this share is dropping.
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 and have a great agent, now may be a good time to sell a house.

However, home prices are sky-high and climbing, pushing more buyers to hold off or wait for a good deal. Sellers still don’t have the negotiating power they’re used to, so 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 real estate gives you access to top-tier marketing, pre-listing support, and award-winning local 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 – maybe you’re relocating, downsizing, or hoping to cash in on your home’s equity. You may also just need to move. There isn’t a right answer for everyone, but when selling 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.

Should I Rent or Buy a House? What to Consider When Renting vs. Buying a Home

Mon, 13 Oct 2025 18:40:50 +0000

Key takeaways

Renting vs buying depends on your finances, long-term goals, and lifestyle.
Buying a home helps build equity, has tax benefits, and gives you pride of ownership.
Renting gives you flexibility to move, stable monthly payments, and no repair costs.

Making the leap from renting to buying is a big decision that depends on factors like your long-term goals, finances, and lifestyle. Whether you’re moving to a new city or your lease is coming to an end, you may be wondering if you should rent or buy a house.

In this Redfin article, we’ve partnered with Kinda Frugal, a veteran-owned personal finance and lifestyle brand, to help weigh the pros and cons. If you’re moving to San Diego, CA, or looking at homes for sale in Richmond, VA, here’s what to consider when renting vs buying a home this year.

Renting vs. buying: pros and cons

As you decide whether you should rent or buy a house, consider the pros and cons of each.

Andreas Jones, from Kinda Frugal, says the biggest difference comes down to flexibility and control. “Renting gives you flexibility; you can move without the headache of selling, and if something breaks, you just call the landlord,” he explains.

“Plus, you’re not dropping tens of thousands upfront. The downside? Your rent money disappears every month instead of building equity. And your landlord can raise rent or decide to sell whenever they want.”

5 pros of renting a house

1. Home repairs: If something breaks in a home you’re renting, it’s typically the landlord’s responsibility to fix it. So when the air conditioning unit stops working in the middle of summer, you don’t have to spend thousands of dollars to fix it.

2. Monthly housing expenses: For the most part, when renting a house or apartment, your monthly housing costs will stay the same, aside from minor fluctuations in utility costs. Your base rent doesn’t change month to month after you’ve signed a lease, and you likely won’t need to budget for any emergency repairs, maintenance costs, or property taxes.

3. Flexibility: You can move out when your lease is finished or relocate to another city without having to worry about selling your home. Renting a house also allows you to see which home styles you like, which floor plans you don’t like, and if a neighborhood is the right fit, before buying a home.

4. Investment opportunities: Renting can free up some of your income, since you won’t be spending it on repairs or upgrades. You may have extra funds, also called disposable income, to invest in building your finances or saving for a down payment.

5. Time to improve credit: Renting also gives you the opportunity to pay off debts and help improve your credit score. A better credit score can give you better loan terms, so doing this can help you in the long run.

5 cons of renting a house

1. Temporary: As Andreas points out, “the biggest pro of renting is also the biggest con.” If you’re planning to live in a city for years to come, renting may not be the best option. Most leases last for only a year.

2. Uncertainty: There’s no telling when the property’s owner may decide they don’t want the responsibility of being a landlord anymore. They may decide to sell the property, which means you’ll need to relocate. Similarly, when your lease is up, your rental may not offer you the option to renew your lease.

3. Possible rent increases: As a renter, it’s possible that your rent will increase every time you renew your lease. Depending on whether you negotiate rent, the new cost may be out of your budget. In that case, you’ll likely need to find a new rental.

4. No home equity: As a renter, you don’t build any equity. Home equity is the percentage of the home’s value you’ve paid for, rather than what your lender still owns. When you pay your rent each month, you’re helping someone else build equity.

5. As-is home: You usually don’t have the option of modifying a rental to suit your needs. Some landlords may allow you to make small changes like painting the walls in your living space, but you’ll probably have to paint them back to the original color when you move out.

5 pros of buying a house

1. Building equity: When it comes to homeownership, Andreas says, “buying means you’re building equity with every payment, and it’s yours to paint, renovate, whatever you want.” You have the opportunity to potentially increase your home’s value over time. More equity can mean greater profits when selling and the ability to borrow for major expenses.

2. Customizable: Buying a home means it’s yours. You can paint it, remodel it, and customize the space to your liking without having to follow a landlord’s rules.

3. Stability: You won’t have to worry about a landlord who may decide to sell the home once your lease is up. You have the freedom to decide how long you want to stay in the home, and ultimately, if or when you want to sell.

4. Mortgage payments: When you own a home, you’ll have stable mortgage payments each month, as long as you have a fixed-interest mortgage. This stays consistent over time, and you won’t have to worry about a landlord raising your rent each year.

5. Tax benefits: There are several tax benefits of owning a home. Some homeowners qualify for tax breaks, which are reductions in federal or state taxes. Many first-time buyers can receive tax deductions, such as on their mortgage interest, which can save money at tax time.

5 cons of buying a house

1. Closing costs: Buying a home comes with closing costs, like inspections, title insurance, lender fees, and other costs, typically 2%–5% of the home’s purchase price. There are downpayment assistance programs that may help you cover these costs.

2. Home value: Ideally, your home’s value will increase between the time you buy and the time you sell, but it doesn’t always. Events outside of your control, such as a change in the economy, can potentially reduce your home’s value.

3. Home maintenance expenses: With owning a home comes the responsibility of home maintenance. If there’s a leak in the roof, it’s up to you to deal with and pay for repairs. You’ll also need to be prepared for emergency repairs, such as a burst pipe or broken heater.

4. Investment limitations: Buying a home ties up most of your money in one asset, leaving fewer funds for other investments. However, some home improvements can add value and pay off when you sell.

5. Property taxes: As a homeowner, another important cost to factor in is property taxes, which can be substantial depending on where you live. If you’re renting an apartment, you won’t pay property taxes (however, they may be factored into your rent).

Should I rent or buy a house? 4 questions to ask yourself

Everyone has a unique lifestyle, financial situation, and set of long-term goals that impact their decision whether to rent or buy a house. Consider the following four questions to help you decide:

1. Does renting or buying work with your timeline? If you’re not sure how long you’ll stay in one place, renting may make more sense. Andreas shares a practical guideline: “If you’re planning to stay somewhere for at least five years, buying usually makes sense financially. You’ll have time to recoup those hefty closing costs.

However, if there’s a decent chance you’ll move in the next few years, renting is probably smarter (selling a house quickly can actually lose you money).”

2. Where do you see yourself in 5 years? Do you want to move to a new city or state? Or are you looking to stay in your city for the foreseeable future? Answering these questions can help you determine whether to stay renting or consider buying. “If you’re in a settle-down phase, buying works,” Andreas says. “If everything still feels up in the air, don’t lock yourself in.”

3. How much can you afford? The costs of renting and buying vary, and your budget plays a big role in deciding which is right for you. “Don’t just compare mortgage to rent,” Andreas advises. “Factor in property taxes, insurance, and repairs as they add up fast. You’ll want 20% down plus a solid emergency fund, because homeownership throws curveballs.”

Buying a home requires upfront costs like a down payment and closing costs, which depend on your loan, lender, and housing market. You’ll need to budget for mortgage payments, maintenance, utilities, and homeowners’ insurance.
Renting typically has lower upfront costs, like an application fee, security deposit, and first and last month’s rent. You’ll need to budget for rent payments, utilities, and renters’ insurance.

4. Will renting or buying a home fit your lifestyle? Beyond finances, renting vs. buying is also a lifestyle choice. “Do you dream of renovating a kitchen, or does staying flexible sound better?” Andreas asks. “Can you handle surprise $5,000 repair bills? There’s no wrong answer; it depends on your priorities.”

Buying a home is a long-term commitment that allows you to build wealth over time. You can customize your space, whether that’s remodeling, painting, or making upgrades. If you want stability and to put down roots, homeownership may be the right move.
Renting offers flexibility and fewer responsibilities. You don’t have to worry about maintenance or unexpected repair costs. It can be beneficial if you move frequently or have a busy lifestyle.

Is it better to rent or buy a house?

Whether you make the decision to rent or buy a house, it’s a personal decision and one that means taking a look at different aspects of your life. From your finances to lifestyle, job situation, and long-term goals, many factors influence whether you should rent or buy a house. If you’re still unsure, calculate the cost of both options and speak with a mortgage lender or real estate agent who can help you understand what’s realistic for your budget and goals.

The post Should I Rent or Buy a House? What to Consider When Renting vs. Buying a Home appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Is Now a Good Time to Buy a House?

Mon, 13 Oct 2025 18:30:42 +0000

Key takeaways:

If you have the means, now may be a good time to buy a house.
Mortgage rates are holding near 12-month lows, continuing their long-term improvement and offering homebuyers a window of affordability.
It’s a buyer’s market – there are 500,000 more home sellers than buyers – giving homebuyers leverage.
Still, most consumers are wary due to high house prices, a slow job market, and broad economic uncertainty, leading to a slow housing market.

The seasons may be changing, but the housing market isn’t. After an unusually slow spring and summer, the same sluggish trends are persisting into fall: fewer home sales, limited listings, and stubbornly high prices.

However, there is good news for homebuyers: Mortgage rates are holding near 12-month lows following a Fed rate cut, helping buyers afford thousands more than they could in May. Even so, many buyers aren’t taking advantage, as high prices and economic volatility keep them on the sidelines. The ongoing government shutdown is adding to the uncertainty. So it’s no surprise that people are wondering 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 today’s market trends to help you answer: “Should I buy a house now or wait?”

From Redfin’s Chief Economist

“Nationally, now is a good time to buy, if you can afford it. Prices keep climbing, but with falling mortgage rates and significantly more inventory, buyers have an upper hand in negotiations. A weak job market is making everyone uneasy, though, and local housing markets vary widely. 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 and could rise further

The median U.S. sale price is $436,000 – up 1.7% from a year ago. House prices have posted year-over-year gains for over two years and are 32% higher than they were five years ago.

Because affordability has been so strained, many of today’s prospective buyers are holding out for better deals, causing inventory to build up. Those who do enter the market are often willing to compromise on factors like crime rates and commute times to score a deal.

Sellers have recently begun taking notice, with more pulling their homes from the market in response. This push-pull dynamic is keeping prices higher and pushing demand down.

>> Read: Redfin’s 2025 Housing Market Predictions

Mortgage rates are down

As of October 13th, the daily average 30-year fixed mortgage rate sits at 6.32% – down from last week. A weak job market and a Fed rate cut have been the primary drivers behind the sustained improvement, which has boosted mortgage and refinancing applications.

“While mortgage rates remain lower, economic uncertainty means buyers should expect them to remain unsteady for the foreseeable future,” cautioned Chen Zhao, Head of Economics Research at Redfin. “The market – not the Fed – determines rates; they price in data well ahead of when it’s released. Recent job data has pushed rates down, but future improvement depends on favorable upcoming data or a rapidly weakening economy.”

Additionally, because the government is shut down, official economic reports will likely be delayed, which could have unusual effects on the market. Tariff and immigration policies are also wildcards.

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 the strongest buyers market in years: Housing inventory is rising across the country, particularly 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, though, high costs are keeping buyers on the sidelines and freezing home sales. Younger generations are being hit especially hard and increasingly relying on family support: Nearly a quarter of Gen-Z and Millennial homebuyers used family money to help with down payments.

Let’s dive a bit deeper into the data and look at two key market 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. This gives today’s buyers more leverage for concessions.

But many sellers are now starting to pull back after realizing they can’t fetch top dollar, which could cause trends to shift in the months ahead.

Demand is near an all-time low

Even with lower rates and more homes on the market, buyer demand remains sluggish due to high housing costs and economic uncertainty. 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 Midwest cities like Dayton 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, economists are concerned that inflation could rise due to evolving tariff and immigration policy, which would impact mortgage rates and affordability.

While inflation hasn’t spiked yet, it is creeping up, and experts assert that they will continue to climb if policies don’t shift. In fact, a recent report actually found that inflation should have dropped by about one-third if it weren’t for tariffs.

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

>> 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 still relatively high. 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

Personal considerations: Are you ready to buy and own a house?

When deciding whether to buy a home in today’s climate, you’ll want to think beyond market conditions and focus on your individual circumstances. Here are some personal considerations to keep in mind.

Financial health

Take stock of your current savings, credit score, and debt levels. Can you afford a house? Or does renting condo in Miami, FL or a starter home in Detroit, MI. Many insurers are ordering inspections, or even driving by homes, and requiring repairs before they’ll continue or renew coverage.

These days, you might be able to get homeowners insurance without an inspection — at first. But the reality is, most insurance companies require some form of inspection when applying for a policy or even renewing an existing one. Whether that’s done through drone imagery, a drive-by inspection, a 4-point inspection, or even a virtual visit, most policies have an inspection requirement — even if you don’t always see it coming.

Why do insurers usually require a home inspection?

When you apply for homeowners insurance, you’re protecting your home—but your insurer is taking on the financial risk of anything that could go wrong.To manage that risk, a lot of insurance providers require an inspection before finalizing your policy, during the policy period, or if your policy is up for renewal.

Sometimes the insurance company will ask for a copy of your home inspection report to assess risk. Other times, they will conduct their own 4-point inspection, which focuses on your roof, electrical, plumbing, and HVAC. The goal is to understand the age of the home, overall condition, any potential hazards, and how any issues might impact your eligibility for insurance or your premiums.

Assessing risk based on age and condition

A new construction home carries very different risks than one that’s 70 years old. Inspections help insurers understand the overall condition of your property and whether it’s been well-maintained, needs updates, or has issues that could become a claim sooner rather than later.

Identifying potential safety hazards

Homeowners insurance companies are also looking for red flags that might increase the likelihood of damage or accidents. Common high-risk areas are the roof (for leaks or storm damage), electrical systems (fire hazards), plumbing (water damage risk), and the foundation (structural stability).

Determining insurance eligibility and premiums

What the inspector finds directly impacts how much you pay for your insurance, or if you even qualify for coverage at all. Recent upgrades and a home that’s been well-maintained could equate to a lower premium. Finding repairs like outdated wiring, a worn-out roof, or even missing handrails might raise your rates or mean coverage is denied or delayed until the issues are fixed.

When insurance companies don’t require an inspection

More and more insurers are tightening their rules and requiring inspections before issuing or renewing policies. Still, there are some situations where you might be able to get coverage without someone coming out to look at your property.

The home is new or recently renovated

Older homes come with more risks like aging plumbing, outdated wiring, worn roofs that insurers want to check before offering coverage. But if a home is newly built or has just gone through major upgrades, insurers already know those systems are less likely to fail. For example, a new construction home in a suburban neighborhood with modern safety features is less likely to have a surprise claim than a fixer-upper from the 1960s. In those cases, some insurers are comfortable issuing a policy without an inspection.

The home is lower in value

Insurance is about risk and replacement cost. If your home would be less expensive to rebuild, the financial risk to the insurer is smaller. That sometimes means they’ll ease up on inspection requirements. A 1,200-square-foot bungalow in the midwest may not get the same scrutiny as a large historic home in Boston with custom finishes, simply because the potential payout is lower.

The property is low risk

Where a home is located can be just as important as its age or condition. A modest house in a safe neighborhood with low exposure to natural disasters or theft may not raise the same level of concern for insurers. On the other hand, that same house in a wildfire zone or within an intercity zipcode would likely provoke an inspection. The lower the overall risk, the more likely it is that an inspection might be skipped.

There has been a recent inspection

If the home has already been inspected within the last year or two, insurers sometimes accept that documentation instead of requiring a new inspection. For example, if you just bought the home and had it professionally inspected during the sale, an insurer may consider that report “good enough” to proceed. But if big issues were found on the inspection report, they would likely still need to be fixed before getting approved for coverage.

Using digital, remote, or delayed inspections

Instead of sending someone in person, insurers might rely on satellite imagery, tax records, or photos you upload yourself. Some even issue coverage right away and schedule an inspection within 30–90 days to confirm your details. This is convenient if you need proof of insurance quickly, like to close on a mortgage, but it also means the company can change your rate, require repairs, or even cancel coverage if issues show up later.

What to expect from a home insurance inspection

When an insurance company inspects your home, the goal is simple: to identify risks that could lead to future claims. Depending on the insurer and your property, the inspection might be quick and simple or more detailed. Drive-by inspections and 4-point inspections are the most frequently used methods insurers use to determine coverage.

Drive-by inspection: An exterior review where the inspector checks the roof, siding, and overall upkeep from the street. They’re looking for signs of neglect, like missing shingles, peeling paint, or overgrown trees that could be risky. You may not even know it happened until you get a notice in the mail.
4-point inspection: Focuses on four major systems: the roof, plumbing, electrical, and HVAC. These inspections are especially common for homes that are around 20-30 years or older. Inspectors want to know if the home’s systems are safe, in working order, and that liability is limited.
Full interior and exterior inspection: The most thorough option, covering everything from the foundation to the attic. Inspectors check for structural issues, water damage, safety features like smoke detectors, and exterior condition. This gives insurers the clearest picture of your home but can reveal issues to fix before coverage is finalized.
Virtual or photo inspections: With the rise of online-first insurers, virtual inspections are becoming more common. Homeowners upload a series of photos or do a live video walk-through with a representative, instead of having an inspector come out to the home. These inspections are convenient and quick, but the insurer may still follow up with an in-person visit if something seems unclear or in need of a more thorough inspection.

What home insurance companies are looking for:

Condition of the roof: the age, any leaks, storm damage
Electrical safety: outdated wiring, old or faulty panels
Plumbing risks: leaks, outdated pipes, water damage
Foundation and structural soundness: cracks in the foundation, rot, decay
Fire risks or visible hazards: wood stoves, missing safety equipment, proper ventilation, etc

How to get homeowners insurance without an inspection

Most insurers want to inspect your home before or soon after issuing a policy, but there are ways to improve your chances of getting coverage without a full in-person review.

Be upfront with basic home details

Before you start insurance shopping, pull together the essential information: home age, square footage, construction type, and any upgrades or renovations. Being able to point out things like a new roof, updated wiring, or a modern HVAC system helps show insurers your home is a safer bet.

Shop online or call insurers offering instant coverage

Many online-first insurers and some traditional carriers offer “instant coverage” or “same-day policies” relying on public records, satellite images, and your application details instead of a home visit. Checking online platforms and calling insurers directly can uncover options that aren’t always obvious, but you might pay a premium or have more limited coverage.

Ask about conditional coverage policies

It’s not always possible to skip the inspection, so ask whether the company offers conditional or provisional coverage. These policies work by starting coverage right away, but allow the insurer to schedule an inspection within the first 30 to 90 days. For example, you might close on a house and get coverage immediately to satisfy your lender, but the insurer will still schedule an inspection after you have moved in. Use that window to prepare your home and avoid surprises that could affect your rates or coverage.

Tips for passing an insurance inspection

Insurers want to know that the home is safe, maintained, and ready for the long haul. The more proactive you are, the fewer surprises you’ll face when your policy is finalized. A little prep work could even help you lock-in a better rate.

Tidy up the exterior: Clear away debris, trim overgrown trees or bushes, and make sure gutters are clean. Inspectors often notice signs of neglect first, and first impressions are important.
Check the roof and gutters: Replace missing shingles, fix leaks, and make sure gutters are properly attached and draining. A roof in good condition is one of the biggest factors in passing an inspection.
Update safety features: Test smoke detectors, install carbon monoxide alarms, and replace expired fire extinguishers. Missing or broken safety devices are easy fails.
Review electrical and plumbing systems: Take care of obvious issues like leaky pipes or outdated wiring. If you’ve had recent upgrades, keep documentation handy to show the inspector.
Take care of small repairs: Patch cracks, secure loose railings, replace broken steps, and address any visible water damage before the inspection. Problems that look small can actually be a sign of bigger issues.
Document recent upgrades: Save receipts or permits for major improvements like a new HVAC system, roof, or electrical updates. This evidence can support your case for lower premiums.

FAQs: Home insurance inspections

What happens if your home is uninsurable?
If an insurer decides your home is too risky to cover, you may have to make repairs before reapplying. In some cases, you can turn to state-run FAIR Plans or surplus-line insurers, which provide coverage when standard companies won’t. The trade-off is usually higher premiums and fewer coverage options.

Can I refuse a home insurance inspection?
You can say no to a home insurance inspection, but most insurers will cancel or deny coverage if you won’t allow an inspection. Since inspections are how insurers confirm the home’s condition and risk level, declining the process leaves them with too many unknowns. If you’re worried or don’t want the hassle, you can ask about alternatives like providing recent photos, repair receipts, or a past inspection report.

Is it normal for home insurance to take pictures of your house?
Yes. Inspectors will take photos during a drive-by or walk-through to document the home’s conditions. Sometimes insurers also use satellite images or aerial photography to aid in their inspection. The goal is to confirm that the property matches what’s listed in your application and to identify any risks that could lead to claims later on.

What is considered high-risk for home insurance?
“High-risk” can mean different things, but it usually includes older homes with outdated or damaged systems, properties in disaster-prone regions (like wildfire, hurricane, or flood zones), or houses with a history of frequent claims. Even cosmetic issues like missing shingles, peeling paint, or overgrown landscaping can flag a property as higher risk because they can suggest deferred maintenance.

Will an inspection raise my premiums?
An inspection can raise your premiums, but it can also lower them. If the inspector finds problems like a worn-out roof, old wiring, or signs of water damage, the insurer may adjust your rate upward or require repairs. On the other hand, if the inspection confirms your home is well maintained with modern upgrades, you could actually qualify for a discount. The inspection’s goal is to make sure your premium matches your home’s real level of risk.

The post Can You Get Homeowners Insurance Without an Inspection? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

What are phase inspections for new construction homes?

Fri, 10 Oct 2025 18:52:59 +0000

Buying a home comes with its fair share of stress, but building one adds a whole new layer of moving parts. Whether you’re building your dream home in Boise, ID, or watching a new construction rise in Atlanta, GA, one thing stays the same: you want confidence that it’s being built right.

When building a home, you’ll still want to get your new home inspected—not just before move-in, but at many different stages in the construction process. That’s where phase inspections come in.

What are phase inspections?

A phase inspection is specifically for new construction homes, when an inspector goes through the house at specific stages during the building process. Also known as a 3-phase inspection, this inspection process is used when building a home to catch problems early and while they can still be addressed.

Each inspection phase ensures that what is being built meets building codes, follows approved plans, and avoids mistakes that could get hidden as construction moves forward. Even brand-new homes can have issues with the framing, electrical, plumbing, or drainage that are harder to catch once drywall and flooring go in.

What are the phases in a new construction phase inspection?

Phase inspections are broken down into 3-4 phases, depending on if you’re buying a custom-built or production build home.

Phase 1: Pre-pour/pre-foundation
Before pouring the foundation slab, an inspector will look at the site prep, footing trenches, rebar, pipe sleeves, drainage, and plumbing stub-outs. This phase is meant to make sure the foundation is built correctly before the concrete hides any defects.

Phase 2: Framing/pre-drywall
After framing and mechanicals, but before insulation and drywall, you’ll want to get another inspection. This time, the inspector is checking the framing, structural connections, plumbing and electrical rough-in, HVAC ductwork, roof structure, fire blocking, and flashing. Ever wish you could open the walls of your home and see what could be wrong? Now is the time to get the behind-the-wall parts of the home inspected.

Phase 3: Final/pre-closing
When the home has mostly been completed, but before move-in, an inspector will do a full-system check, similar to a regular home inspection. They’ll be checking what is visible and operable, like the plumbing, electrical, HVAC, appliances, site grading, and exterior components, while also making sure everything is up to code. This inspection is separate to the blue-tape walkthrough you’ll do with the builder to check finishes and the final build.

Phase 4: 11-month warranty
This optional but valuable one-year warranty inspection takes place near the end of your builder’s warranty period. By this point, you’ve lived in the home long enough to notice small issues that might come up as the house settles. A licensed home inspector will perform a full review, similar to a standard home inspection. If they uncover any problems related to the original build, you’ll still have time to request repairs under the builder’s warranty before it expires.

How much does a phase inspection cost?

New construction phase inspections vary in price depending on the location, size of the home, and the number of inspection phases you schedule. On average, you can expect to pay between $100-$500 per phase, or around $800-$2000 for a full three or four phase package that covers your build from start to finish.

When to schedule each inspection

It’s a good idea to book your inspector early (ideally before construction starts) and share your builder’s timeline so they can pencil in tentative inspection dates. Inspectors often get busy during peak building seasons, and missing your inspection window can mean important areas get missed (like foundation footings or the systems behind the walls).

Pre-pour inspection: Schedule before the foundation concrete is poured (usually a one or two day window).
Pre-drywall inspection: After framing, plumbing, electrical, and HVAC rough-ins are complete, but before the insulation and drywall go in.
Final inspection: Schedule when the home is nearly finished, before your final walkthrough or closing.
One-year warranty inspection: Get the inspection between 10-11 months after the build has been completed, before the builder’s warranty expires.

What inspectors look for during each phase

A good phase inspector knows that every stage of construction reveals different potential issues. Their job is to make sure each part of your new home is built correctly, before it’s covered up or becomes expensive (or impossible) to fix later.

Pre-pour foundation phase

Before concrete is poured, the inspector looks at the groundwork that supports your entire home. The aim of this inspection phase is to help prevent long-term problems like foundation cracks or drainage issues.

They’ll look for:

Proper footing depth and width
Correct placement of rebar and post-tension cables
Plumbing and electrical conduit set and secured in the right locations
Adequate grading and drainage to prevent water pooling under the slab
Signs of poor soil compaction or improper vapor barriers

Pre-drywall framing phase

Once the framing, roofing, and systems are in place, but before the walls are sealed, inspectors will look at everything that lives within the frame of the house that can be expensive and complicated to fix later.

They’ll check for:

Framing quality: Straight, level, and properly braced walls and beams
Structural connectors: Missing or misaligned hurricane ties, joist hangers, or fasteners
Plumbing and electrical rough-ins: Proper placement, labeling, and support
HVAC ducts: Correct sizing, sealing, and routing
Fire blocking and insulation prep: Ensures code compliance and energy efficiency

Final completion phase

As construction wraps up, inspectors will do a full walkthrough of the finished home, similar to a standard home inspection to confirm the house is move-in ready and everything works as it should.

Inspectors will look over:

Major systems: HVAC, plumbing, electrical, and appliances
Roofing and exterior elements: Gutters, flashing, siding, and grading
Interior finishes: Doors, windows, flooring, cabinetry, and paint
Functionality checks: Outlets, switches, water flow, heating and cooling performance
Safety items: GFCI outlets, handrails, smoke detectors, and ventilation

One-year warranty phase

Before your home hits the 12-month warranty expiration, it’s a good idea to have an inspector return to evaluate how your home has settled. If they spot any defects linked to the original build, you’ll still have time to request warranty repairs before coverage ends.

They’ll look for:

Cracking or shifting in walls, ceilings, or foundations
Leaks or drainage issues that developed after seasonal weather changes
Mechanical wear in HVAC or plumbing components

How to use phase inspections during construction

Once each phase is complete, you’ll receive a detailed report with photos, notes, and recommendations for any issues found at each step.

1. Coordinate with your builder early

If you’re working with a builder or general contractor, share your inspection plans upfront, ideally before construction starts. Most builders are accustomed to third-party inspections and will schedule work around them. Confirm that your builder will pause work, if needed, to address any problems that were identified during inspection before proceeding to the next construction phase.

2. Include inspection contingencies in your contract

When you’re under contract for a new construction home, consider adding inspection contingencies that allow you to review findings and request repairs before closing.

For custom built homes, include a clause that lets your inspector access the site during the key construction milestones mentioned earlier.
For builder developments or spec homes, your contract may specify when new construction inspections are allowed; review this carefully with your agent before signing.

3. Use inspection findings to request repairs or holdbacks

Once your inspector delivers the report, it’s important to communicate the findings with the builder. Some processes are similar to when requesting repairs from a seller in a regular real estate transaction, but in the case of a custom home, you have the right to address everything on the report—ideally in a collaborative manner. In some cases, you can also use the findings to negotiate a holdback, setting funds aside in escrow until the builder completes specific repairs.

Start with the facts: Reference specific items in the inspection report and share photos or page numbers, so there’s no confusion about what needs attention.
Keep everything in writing: Follow up verbal conversations with a quick email recap. This creates a paper trail of what was discussed, agreed on, and when fixes are expected.
Prioritize major issues: Focus first on safety, structural, or code-related concerns. Builders are more likely to act quickly on items that clearly affect performance or compliance.
Ask for realistic timelines: Most builders will need time to coordinate subcontractors for repairs. Confirm when each issue will be addressed and how it may affect your build schedule.
Stay professional: Avoid emotional language or placing blame. Approach your builder as a partner on a project with the goal being you both want the home finished correctly.
Request confirmation: Once repairs are complete, ask for photos or documentation showing the fix, or schedule a short site walk to verify it in person.

New doesn’t mean perfect

Just because a home is new, it doesn’t mean it’s perfect. Mistakes happen all the time, and the best way to protect your future home is to use phased inspections to check in at crucial points during the build process. The cost of getting your home inspected at each phase is minimal compared to the amount of protection it offers. Plan inspections ahead of time with your builder and inspector, and then rest easy knowing that your home has been thoroughly looked over—from the foundation to the finishes.

FAQs about phase inspections

Do phase inspections replace the municipal building inspections?
No. Municipal inspections are required by your city or county to ensure the home meets local building codes. A phase inspection is an independent, third-party check that goes beyond minimum code requirements to verify quality and workmanship. It’s an extra layer of protection.

Can a builder refuse a phase inspection?
Most reputable builders won’t (and shouldn’t) refuse a phase inspection. But it’s best to discuss your plans before construction begins and include inspection access in your contract. Some builders may require advance notice or request that inspections occur at specific stages to avoid delays in construction.

Are phase inspections mandatory or optional?
Phase inspections are optional but highly recommended for new construction homes. While municipal inspectors check for code compliance, a private inspector works solely for the buyer, identifying issues that could affect quality, safety, or long-term performance.

The post What are phase inspections for new construction homes? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

What Are Phase Inspections For New Construction Homes?

Fri, 10 Oct 2025 18:52:59 +0000

When building a home, you’ll still want to get your new home inspected—not just before move-in, but at many different stages in the construction process. That’s where phase inspections come in.

What are phase inspections?

What are the phases in a new construction phase inspection?

Phase inspections are broken down into 3-4 phases, depending on if you’re buying a custom-built or production build home.

How much does a phase inspection cost?

When to schedule each inspection

Pre-pour inspection: Schedule before the foundation concrete is poured (usually a one or two day window).
Pre-drywall inspection: After framing, plumbing, electrical, and HVAC rough-ins are complete, but before the insulation and drywall go in.
Final inspection: Schedule when the home is nearly finished, before your final walkthrough or closing.
One-year warranty inspection: Get the inspection between 10-11 months after the build has been completed, before the builder’s warranty expires.

What inspectors look for during each phase

Pre-pour foundation phase

They’ll look for:

Proper footing depth and width
Correct placement of rebar and post-tension cables
Plumbing and electrical conduit set and secured in the right locations
Adequate grading and drainage to prevent water pooling under the slab
Signs of poor soil compaction or improper vapor barriers

Pre-drywall framing phase

They’ll check for:

Framing quality: Straight, level, and properly braced walls and beams
Structural connectors: Missing or misaligned hurricane ties, joist hangers, or fasteners
Plumbing and electrical rough-ins: Proper placement, labeling, and support
HVAC ducts: Correct sizing, sealing, and routing
Fire blocking and insulation prep: Ensures code compliance and energy efficiency

Final completion phase

As construction wraps up, inspectors will do a full walkthrough of the finished home, similar to a standard home inspection to confirm the house is move-in ready and everything works as it should.

Inspectors will look over:

Major systems: HVAC, plumbing, electrical, and appliances
Roofing and exterior elements: Gutters, flashing, siding, and grading
Interior finishes: Doors, windows, flooring, cabinetry, and paint
Functionality checks: Outlets, switches, water flow, heating and cooling performance
Safety items: GFCI outlets, handrails, smoke detectors, and ventilation

One-year warranty phase

They’ll look for:

Cracking or shifting in walls, ceilings, or foundations
Leaks or drainage issues that developed after seasonal weather changes
Mechanical wear in HVAC or plumbing components

How to use phase inspections during construction

Once each phase is complete, you’ll receive a detailed report with photos, notes, and recommendations for any issues found at each step.

1. Coordinate with your builder early

2. Include inspection contingencies in your contract

When you’re under contract for a new construction home, consider adding inspection contingencies that allow you to review findings and request repairs before closing.

For custom built homes, include a clause that lets your inspector access the site during the key construction milestones mentioned earlier.
For builder developments or spec homes, your contract may specify when new construction inspections are allowed; review this carefully with your agent before signing.

3. Use inspection findings to request repairs or holdbacks

Start with the facts: Reference specific items in the inspection report and share photos or page numbers, so there’s no confusion about what needs attention.
Keep everything in writing: Follow up verbal conversations with a quick email recap. This creates a paper trail of what was discussed, agreed on, and when fixes are expected.
Prioritize major issues: Focus first on safety, structural, or code-related concerns. Builders are more likely to act quickly on items that clearly affect performance or compliance.
Ask for realistic timelines: Most builders will need time to coordinate subcontractors for repairs. Confirm when each issue will be addressed and how it may affect your build schedule.
Stay professional: Avoid emotional language or placing blame. Approach your builder as a partner on a project with the goal being you both want the home finished correctly.
Request confirmation: Once repairs are complete, ask for photos or documentation showing the fix, or schedule a short site walk to verify it in person.

New doesn’t mean perfect

FAQs about phase inspections

The post What Are Phase Inspections For New Construction Homes? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How to Fire a Real Estate Agent as a Buyer: What to Know Before You Make the Switch

Fri, 10 Oct 2025 17:59:58 +0000

Key takeaways

Check your contract: Know whether you signed an exclusive buyer’s agreement.
Communicate first: Sometimes issues can be resolved before ending the relationship.
Protect yourself: Always document termination in writing to avoid commission disputes.
Choose wisely next time: Interview agents and clarify expectations upfront.

Buying a home is stressful enough, but what if your real estate agent isn’t the right fit? Maybe they’re slow to respond, you feel a lack of trust in how they’re handling the process, or there’s a conflict of interest that makes you question if you’re truly being represented. If you’ve found yourself asking, “How do I end my relationship with my real estate agent as a buyer”, you’re not alone.

This guide explains how to review your contract, protect yourself, and find a better fit – whether you’re hunting for houses in Austin, TX, or exploring homes in Chicago, IL – so you can move forward with confidence.

What it means to “fire” your real estate agent as a buyer

When people talk about “firing” a real estate agent, it’s not the same as letting go of an employee. In real estate, the relationship between you and your agent is defined by a buyer’s agency agreement, a contract that spells out how your agent will represent you in the home search. Understanding what you signed is critical, as it determines whether you can switch agents right away or must formally end your existing contract first.

There are two main types of agreements:

Exclusive buyer’s agency agreement: This means you agree to work with only one agent for a set period of time. If you decide to end the relationship, you may need to formally terminate the contract before hiring someone else.
Non-exclusive buyer’s agency agreement: This gives you more flexibility since you can work with multiple agents. In this case, you usually don’t have to “fire” your real estate agent, you can simply stop working with them and continue with another agent.

Step 1: Review your buyer’s agency agreement

You can usually fire a real estate agent even if you’re under contract—but the details depend on what you signed. A buyer’s agency agreement explains how long your agent represents you and under what terms. Some contracts let you end the relationship with written notice, while others may still require you to pay commission if you buy a home your agent showed you. Before taking action, review the contract carefully and consider speaking to an attorney for specific guidance. Look for exclusivity clauses, the expiration date, termination conditions, and any potential fees or commission obligations if you switch agents early.

Look for:

Exclusivity clause: Does the contract prevent you from working with other agents?
Expiration date: When does the agreement end automatically?
Termination requirements: Are you required to give written notice or wait a set period?
Penalties or fees: Could you face fees for ending the relationship early?
Commission obligations: Will you owe your agent if you buy a home they introduced you to?

Step 2: Identify the reasons you want to move on

If your agent isn’t meeting your needs, you’re not stuck, you can take control of the situation. Common reasons buyers “fire” their real estate agent include:

Poor communication or unresponsiveness: Calls and emails go unanswered.
Pressure to buy outside your budget: You feel pushed toward homes you can’t afford.
Conflict of interest: Your agent may be working both sides of a deal (dual agency) or showing favoritism.
Lack of local expertise: They don’t know the neighborhood, schools, or market well enough.

Remember: Buying a home is one of the biggest financial decisions you’ll make. You have the right to work with an agent who listens, communicates clearly, and always puts your best interests first. If you’re unsure what qualities to prioritize in a replacement, check out this guide on how to choose a real estate agent for tips on spotting the right fit.

Step 3: Talk to your real estate agent first

Before cutting ties, it’s often worth having a direct conversation. Sometimes miscommunication is the real issue and can be resolved with clear expectations. Let your real estate agent know what’s not working – whether it’s availability, negotiation style, or lack of market knowledge – and give them a chance to adjust.

Approach the conversation professionally and clearly. You might say something like, “I feel like I need more frequent updates on new listings” or “I’m not comfortable with the homes I’ve been shown outside my budget.” Framing your concerns in this way can open the door to improvement without damaging the relationship.

A constructive discussion may fix the problem and save you time and potential legal complications.

Step 4: Formally terminate the relationship

If you decide it’s best to move on, the next step is formally ending the relationship.

If you’re under contract: Request a written release from your agreement. Your real estate agent or their broker may provide a termination form.
If you don’t have a contract: You can usually stop working with them immediately and choose a new agent.

The best practice is to send a polite, professional termination email or letter. Keep it brief, thank them for their time, and state clearly that you’re ending the agreement. Make sure that any termination notice or other communication follows your agreement’s termination requirements, if any.

Pro tip: If you’re mid-transaction (after submitting an offer) and thinking about changing agents, you’ll need to make sure you don’t miss any key deadlines or responsibilities as a result of the transition.

Sample agent termination letter script:

Hi [Agent’s Name], I wanted to thank you for your time and effort over the past few weeks. After careful consideration, I’ve decided to move in a different direction and will no longer need your services as my buyer’s agent. Please consider this email my formal termination of our agreement. I appreciate your help and wish you the best moving forward.

Step 5: Commission disputes

One of the biggest risks of switching real estate agents is a commission dispute between your former and new agent. These disputes usually involve the concept of “procuring cause,” which determines which agent was primarily responsible for the sale. Importantly, these claims are typically between agents or their brokerages – not between the agent and the client.

For example, if your first agent showed you a property and you later buy that same home through a new agent, the first agent might claim they were the procuring cause and pursue commission through their brokerage. While you’re usually not personally liable for these disputes, they can still cause confusion or delays in your transaction.

To avoid issues:

Get everything in writing: Request a signed termination release and keep a copy for your records.
Clarify with the broker: Ask them to specify which properties your former agent may still have rights to.
Don’t revisit old showings: Avoid touring or making offers on homes your first agent already showed you until you’re fully released.
Ask your new agent how they handle overlaps: In some cases, brokerages resolve these situations through referral fee agreements rather than declining representation. A transparent discussion upfront helps prevent misunderstandings.
When in doubt, consult an attorney: A quick legal review can prevent complications later.

Step 6: Find a new buyer’s agent who’s a better fit

Once you’ve closed the door with your old real estate agent, it’s time to find someone who’s a stronger match. Look for someone who listens, advocates for your goals, and makes you feel confident throughout the buying process. If you’re unsure where to begin, here’s a helpful guide on how to choose a real estate agent with practical questions to ask before hiring. When evaluating buyer agents, focus on:

Communication style: Do they respond quickly, clearly, and in the format you prefer (calls, texts, or email)?
Local market expertise: Can they provide insights about neighborhoods, schools, pricing trends, and future developments in your area?
Contract terms: Understand exclusivity and termination options before signing a new buyer’s agreement.
Reputation and track record: Check online reviews, referrals, or ask for recent client references.
Specialization: Some agents excel with first-time buyers, relocations, or specific property types. Choose one whose strengths align with your needs.

The bottom line when ending a buyer–realtor relationship

Ending your relationship with an agent comes down to knowing your rights and protecting your interests. Review your agreement, be clear about your reasons for leaving, and give your agent a chance to respond. If it’s still not working, end the contract in writing to avoid commission disputes and move on to someone who communicates well and understands your goals. Handling it professionally helps you avoid issues and find an agent who can guide you confidently to your next home.

FAQs on firing your agent

1. What happens if I fire my real estate agent while under contract?

You may still be responsible for commission if you buy a home that your former agent introduced to you. Your obligations depend on the terms of your buyer’s agency agreement and local law, so review your contract carefully and consider consulting a real-estate attorney before taking action.

2. Can I switch real estate agents after making an offer?

Yes, but only if your agreement allows it. Once your offer is accepted, your agent is generally tied to the deal through closing, but you may be able to change agents if permitted under your contract. Before making any changes, review your agreement and talk to your broker or a qualified attorney. It’s important to manage the transition carefully so you don’t miss key deadlines, disclosures, or other obligations in the process.

3. Can I work with multiple real estate agents at once?

Only if you haven’t signed an exclusive agreement. If you did, that agreement generally obligates you to work with a single agent for the term of the contract.

4. Do I have to pay my realtor if I don’t buy a house?

Typically no, but if you signed an exclusive buyer’s agreement, you may still owe fees depending on the contract terms. Always check the terms of your agreement.

5. What are the risks of firing a realtor?

The most common risk is a commission dispute—for example, if your previous agent claims they were the “procuring cause” of the home you purchase. Clear communication with the broker and written releases can help reduce this risk.

6. Can I fire my realtor without notice?

If you didn’t sign an exclusive agreement, usually yes. If you did sign one, you’ll likely need to provide written notice and follow the termination procedure in the agreement.

Disclaimer: This is not legal advice

The post How to Fire a Real Estate Agent as a Buyer: What to Know Before You Make the Switch appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

How to Sell and Buy a House at the Same Time: The Ultimate Guide

Fri, 10 Oct 2025 16:13:01 +0000

If you’re a homeowner looking to buy your next home, then you’ll likely have to juggle selling and buying at the same time. In an ideal world, you’d close on both homes on the same day, but that’s rarely the case. Expect some time between selling your house and buying a new one – or vice versa.

In this Redfin article, we’ll outline the steps for selling and buying a house at the same time. Whether you’re looking at homes in Indianapolis, IN, or in Lubbock, TX, here’s how to sell and buy a home at the same time – and what you can expect along the way.

Start by understanding your local housing market

The first step when buying and selling a home at the same time is to decide what to do first – sell or buy. Start by evaluating the local housing market to see which option makes the most sense. If you’re moving to a new city, the housing market may be different, so you’ll need to time your home sale accordingly. Understanding whether you’re in a buyer’s or seller’s market is a great starting place.

Is it a buyer’s market?

A buyer’s market means there are more homes for sale than buyers. As the buyer, you’ll likely have more options and negotiating power. However, it could take longer to sell your home than you’re anticipating.

Options to consider:

Home sale contingency: Allows you to back out of buying if your current home doesn’t sell. It’s useful if you’re relying on proceeds from the sale.
Extended closing: Gives you more time to sell your home before finalizing the purchase.

Is it a seller’s market?

A seller’s market means there are more buyers than homes for sale. As the seller, you’ll likely have an easier time selling your home. However, you may find it difficult to buy a home in this market.

Options to consider:

Settlement contingency: Used when you’ve accepted an offer on your home but need the sale to close before purchasing a new one.
Rent-back agreement: Allows you to temporarily rent your home from the new owner, giving you extra time to find your next home.

Sell or buy first – Which option is best for you?

The best approach depends on your financial situation, risk tolerance, and housing market conditions. Here’s what to consider:

Sell first if:	Buy first if:
You need the proceeds from your home sale for your next home’s down payment.	You have enough savings or financing options (like a HELOC or bridge loan) to cover a down payment before selling.
You want to avoid the risk of paying two mortgages at once.	You want to avoid the stress of finding temporary housing.
You’re in a buyer’s market, where homes take longer to sell.	You’re in a seller’s market, where homes sell quickly, and you may struggle to find a new home.

Pros of selling your home first

Less financial burden: You won’t pay for two mortgages at the same time.
Access to home sale proceeds: You can use the proceeds from your home sale for your next down payment.
No need to rush the sale: You won’t feel pressure to reduce your listing price to sell your home quickly.

Cons of selling your home first

Temporary housing: Finding a temporary place to live before buying a new home may be stressful.
Moving twice: You’ll probably have to move two times, which can be costly.
Tight timeline to buy: You may feel pressure to find a new home quickly.

Pros of buying a home first

More time to find the right place: Finding the right home may not be as stressful or rushed, especially if you have specific needs.
You only move once: There are no expensive storage fees or double moving expenses.
You have your old home: If something goes wrong during the homebuying process, you can stay in your current house.

Cons of buying a home first

Paying for two mortgages: You may end up paying for two homes until you sell your first house, which can be costly.
You may not qualify for a new mortgage: If you still have your existing mortgage, a lender may not approve your next one.
Fewer funds for down payment: If most of your money is tied up in your current home, you may not be able to make a larger down payment or buy a more expensive home.
Pressure to accept an offer: You may feel pressured to accept a lower offer on your house if you’re rushing to sell.
Challenges of renting your old home: If you decide to rent out your current home until it sells, you may face challenges that come with being a landlord.

If you’re still unsure, consult a real estate agent who understands your local market and can guide you based on current conditions.

Selling your home before buying: Tips to help

Consider a rent-back agreement

A rent-back agreement is a temporary lease where you rent back your old home from the new owners once the sale is completed. This allows you more time to buy your next home or complete the sale if you’re already in the process of buying. Rent-back agreements can also be a good option, so you don’t have to move twice.

Request an extended closing date

You can ask for an extended closing date when selling your home. This gives you additional time to find your next home and ensure there’s little to no overlap when the sales close and you need to move.

Plan for temporary housing ahead of time

Whether you want to negotiate a rent-back agreement, find a short-term rental, or live with family or friends, it’s best to decide where you’re going to live before listing your home for sale.

Understand your budget for buying

If you’re planning to use the proceeds from your home sale to finance your next home, it’s important to come up with a budget in advance. You may have a number you’d like to sell your home for, but that may not be the reality. Determine a range for your budget in advance and price your home accordingly.

Buying a home before selling: Tips to help

Determine your financing options

Before you buy your next home, it’s important to determine how you’re going to finance the purchase. There are a few ways to finance your next home purchase if you can’t use the proceeds from your home sale. Some common financing options include using your savings, a home equity line of credit (HELOC), and a bridge loan.

Use your savings

It’s possible you have enough savings to cover a down payment, which can make it easier to buy a new home before selling. Keep in mind that you’ll also need enough funds for closing costs, additional fees, and moving expenses.

Use a home equity line of credit (HELOC)

For many homeowners, savings are tied up in their current home as “equity.” A home equity line of credit (HELOC) allows you to access your home equity in order to finance your next home purchase. If you qualify, this can be a good option to consider.

Use a bridge loan

A bridge loan is a short-term loan that allows you to cover the cost of a down payment until the home closes. Some banks offer this loan, but not all, and it can be difficult to qualify.

Consider a home sale contingency

Including a home sale contingency in your offer allows you to back out of the home sale if your current home doesn’t sell. In other words, buying a new home is contingent on the sale of your old home.

Request an extended closing

An extended closing gives you extra time, if you’re close to selling your old home. It can give you enough time to coordinate the sale of your home while purchasing a new one.

Rent out your old home

If you’re not close to selling your home, consider renting it out. Depending on the market conditions, this can be a good idea to help offset the costs of owning two homes.

FAQs about buying and selling at the same time

Should I buy or sell first?

It’s up to you and your circumstances whether you sell your current home or buy a new one first. There are pros and cons to both ways, but understanding your finances, determining a timeline, and working with a skilled real estate agent can help make the process that much easier.

What happens if I sell my home but can’t find a new one in time?

If you sell first but don’t have a new home lined up, you can consider a rent-back agreement, short-term rental, or staying with family or friends while you continue your home search.

How do I time selling and buying to avoid paying two mortgages?

To minimize overlap, you can:

Negotiate a contingency in your purchase agreement that depends on selling your current home.
Request an extended closing period for your new home.
Use a bridge loan if temporary dual payments are necessary.

What if my home doesn’t sell as quickly as I expect?

If your home takes longer to sell:

Consider lowering your asking price.
Improve staging and marketing with your real estate agent.
Look into renting out your home temporarily to offset costs.

Can I use my 401(k) to buy my next home?

You can withdraw or take a loan from your 401(k) to buy your next home. However, there are various penalties and strict repayment schedules associated with using your 401(k) funds. It’s best to talk with a financial advisor first.

Should I use the same real estate agent for selling and buying?

Using the same agent can simplify coordination and negotiations, but if you’re moving to a different city, a local expert in your new area may be more beneficial.

How do I make an offer on a new home without the proceeds from selling my current one?

You can include a home sale contingency, negotiate a longer closing period, or use a HELOC or bridge loan to finance the purchase temporarily.

The post How to Sell and Buy a House at the Same Time: The Ultimate Guide appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

What Is a 7/6 ARM? How This Adjustable-Rate Mortgage Works and When to Consider One

Fri, 10 Oct 2025 15:58:22 +0000

When shopping for a mortgage, you’ll likely come across different loan terms, fixed-rate, adjustable-rate, and hybrids like the 7/6 ARM. But what exactly does “7/6 ARM” mean, and how does it compare to a traditional 30-year fixed-rate mortgage?

Whether you’re buying a house in Los Angeles, CA or settling down in Dallas, TX, understanding how different mortgage structures work can help you make a confident financial decision. In this Redfin article, we’ll break down how a 7/6 ARM works, when it may be the right choice, and what pros and cons you should consider before deciding.

What does “7/6 ARM” mean?

The term “7/6 ARM” breaks down like this:

“7” = The number of years the interest rate stays fixed at the beginning of the loan.
“6” = How often the rate can adjust after the fixed period – in this case, every 6 months..

This structure is part of a newer generation of ARMs that adjust twice a year after the initial fixed term. For example, a 7/1 ARM (common in the past) adjusted once per year, but most modern ARMs now use a 7/6 format.

Example: If you take out a 30-year mortgage in 2025 with a 7/6 ARM, your interest rate will remain the same from 2025–2032. Starting in year eight, your lender will review and potentially adjust the rate every six months based on current market conditions.

>>Read: What Is an Adjustable-Rate Mortgage?

How a 7/6 ARM works

Here’s a step-by-step look at the life of a typical 7/6 ARM:

1. Fixed-rate period (years 1–7)

During the first seven years, your interest rate and monthly payments are stable. Many borrowers choose ARMs because the initial rate is usually lower than a 30-year fixed loan, which can make monthly payments more affordable during this period.

2. Adjustment period (every 6 months after year 7)

Once the fixed period ends, your interest rate adjusts twice a year. Each adjustment is based on:

A benchmark index (often the Secured Overnight Financing Rate, or SOFR)
Plus a margin set by the lender (e.g., 2%)

New interest rate = Index + Margin, subject to rate caps.

3. Rate caps

Lenders apply caps to protect borrowers from drastic increases:

Initial adjustment cap: The maximum your rate can increase the first time (e.g., 2%)
Subsequent adjustment cap: The maximum increase for each later adjustment (e.g., 1%)
Lifetime cap: The total maximum increase over the original rate (e.g., 5%)

Pros of a 7/6 ARM

Lower initial interest rate: This often translates to lower monthly payments during the fixed period.
Potential to money: If you plan to sell or refinance within 7 years, you may never face an adjustment while benefiting from the lower initial rate.
Flexibility: Ideal for buyers who don’t plan to stay in their home for the full 30-year term.

Cons of a 7/6 ARM

Rate uncertainty: Once the fixed period ends, your rate can rise, increasing your monthly payment.
Budget impact: Payment increases after adjustments can be significant if interest rates rise sharply.
Refinancing risk: If home values fall or credit conditions tighten, refinancing out of an ARM may not be easy or cheap.

When a 7/6 ARM might make sense

A 7/6 ARM can be a smart option if:

You plan to move or refinance within 7 years.
You expect your income to increase over time, making future payment hikes more manageable.
You want to lower your payments now to free up cash for other priorities, like renovations or investments.

On the other hand, if you plan to stay in the home long term, a fixed-rate mortgage may offer more stability and predictability.

7/6 ARM vs. 30-year fixed mortgage

Feature	7/6 ARM	30-Year Fixed Mortgage
Initial rate	Lower	Higher
Rate stability	Fixed for 7 years, adjusts semiannually afterward	Fixed for entire loan term
Best for	Short- to medium-term homeowners	Long-term homeowners
Monthly payment (initial)	Typically lower	Typically higher
Long-term predictability	Lower	High

7/6 adjustable-rate mortgage qualifications

While qualification requirements for a 7/6 ARM are similar to those for fixed-rate mortgages, lenders may have stricter standards because ARMs carry more risk once the rate adjusts. Here’s what lenders typically consider:

Credit score

Many lenders prefer a credit score of 620 or higher, though a score of 700+ may help you secure the most competitive rates. Because ARMs involve changing payments over time, lenders often favor borrowers with strong credit histories.

Down payment

You’ll generally need at least 5% down for a conventional ARM, though some lenders may require 10% or more depending on the loan amount, property type, and your financial profile. A larger down payment can help you qualify more easily and may lower your interest rate.

Debt-to-income (DTI) ratio

Lenders usually want your total monthly debts, including the projected ARM payment after the initial fixed period, to stay below 43% of your gross monthly income. Some lenders may allow a higher DTI for well-qualified borrowers.

>>Read: How to Get Out of Debt to Buy a Home

Income and employment verification

Stable income and employment are key. Lenders will typically review recent pay stubs, W-2s or tax returns, and bank statements to verify that you can afford the loan both now and after future rate adjustments.

>>Read: Can You Get a Mortgage with a New Job?

Loan amount and property type

Qualification standards can vary depending on whether the loan amount is conforming or jumbo, and whether the property is a primary residence, second home, or investment property. Jumbo ARMs usually require higher credit scores, larger down payments, and more documentation.

Some borrowers may also need to show they can afford the loan at the fully indexed rate, not just the initial teaser rate. This ensures you’ll still qualify even if rates rise after the fixed period ends.

>>Read: Types of Home Loans

Frequently asked questions about 7/6 ARMs

1. How often does the interest rate change with a 7/6 ARM?

After the 7-year fixed period, the interest rate adjusts every six months.

2. Can my monthly payment go down?

Yes. If the benchmark index falls, your rate, and therefore your payment, can decrease during an adjustment period.

3. Are there limits to how high the interest rate can go?

Yes. Rate caps limit how much the interest rate can increase at each adjustment and over the life of the loan, offering some protection against sharp spikes.

4. Is a 7/6 ARM better than a fixed-rate loan?

It depends on your goals and risk tolerance. A 7/6 ARM may save you money early on, but fixed loans offer more stability for long-term homeowners.

The post What Is a 7/6 ARM? How This Adjustable-Rate Mortgage Works and When to Consider One appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

18 Home Safety Tips Every Homeowner Should Know

Thu, 09 Oct 2025 23:13:56 +0000

Moving from an apartment to a house has its perks, from having more living space to finally being able to enjoy a lawn. However, it’s understandable if you feel a bit frightened by the possibility of intruders or other safety issues. After all, unlike apartments, which typically have their own safety measures in place, a new home is often a blank slate. The good news is that there are plenty of steps you can take to make your home safer.

Whether you’re moving into a home in San Francisco or a house in Dallas, the key to feeling safer is planning ahead and taking home safety into your own hands. We’ve put together a list of home safety tips you should know, covering everything from security to fire prevention and childproofing.

Home safety tips to maximize security

Vigilance is the name of the game when it comes to home security. There are plenty of simple steps you can take, along with affordable tools and smart devices to help you monitor your property and deter intruders.

1. Invest in a home security system

According to a recent study, a burglar strikes every 41 seconds in the US, adding up to more than a burglary per minute and over 2,000 burglaries per day. A home security system may be one of the best investments you can make when it comes to protecting yourself and your home. These can act as deterrents since burglars are less likely to target a home if they know a security system is installed.

2. Install more lights to increase visibility around your home

In addition to a security system, motion-detecting lights are a great way to deter potential burglars or other intruders. The sensor can pick up anyone who approaches your home and illuminate them in the spotlight. Install these lights near each entry point of your home for an inexpensive and effective way to feel more protected.

3. Upgrade to a smart doorbell

A smart doorbell is a Wi-Fi-enabled intercom system that connects to your phone and provides a live video feed of your front door. Having a smart doorbell can help prevent package theft and let you see who’s at the door before opening it. It’s a small upgrade that offers big peace of mind.

4. Secure your home with smart locks

Smart locks are Wi-Fi or Bluetooth-enabled smart home devices that allow you to lock and unlock doors with the tap of a finger or a simple voice command. They eliminate the risk of lost or stolen keys and make it easy to control access to your home.

5. Get to know your neighbors

You don’t have to become best friends with your neighbors, but taking the time to introduce yourself and become acquaintances can be valuable and can offer you an extra line of defense from intruders. Neighbors can alert you if they notice suspicious activity or unexpected visitors.

6. Close curtains and blinds at night

Once the sun goes down and you turn your interior lights on, it’s very easy for others to see inside your home and difficult for you to see them. To ensure others aren’t spying on you, make it a habit to close your curtains and blinds every evening for added home safety. Intruders will often observe homes before planning a break-in, looking for signs that a home is empty. Invest in some high-quality blinds, if you don’t already have some, to provide you with more security.

7. Buy a security door

A security door adds another layer of safety to your home’s entrance. A security door acts as another barrier between your front door and front porch. They have their own lock and are usually made of a metal screen and thick glass, allowing you to see and hear the person outside without allowing them access to your home. These doors offer another level of home safety and security and act as a deterrent to potential intruders.

8. Reinforce your windows to prevent break-ins

If all other areas of your home are locked and secure, an intruder might target your windows as a last resort. Glass can be easy to break, which is why windows are considered one of the weakest points when it comes to home security. If you want to strengthen your windows and increase the time it would take for someone to break them, invest in window security film, which is placed over your windows to keep glass from shattering in the event of a break-in attempt. This can buy you time to react and call for help if you hear someone struggling to break in.

9. Secure tools and ladders

The last thing you want to do is make an intruder’s job easier. Store all tools, ladders, and equipment in a locked garage or shed so they can’t be used to break windows or access upper floors.

10. Take extra steps to secure sliding doors

Sliding glass doors are beautiful but can be vulnerable. Add a security bar, door sensor, or multi-pane glass to strengthen them and make forced entry more difficult.

Fire prevention and safety tips

A house fire is one of a homeowner’s worst nightmares, but taking the right steps beforehand can mitigate the damage or prevent fires entirely.

11. Regularly test smoke detectors

Smoke detectors are a crucial line of defense when it comes to fire safety, as they can alert you to small fires before they spread. Make sure you test them monthly and replace the batteries every 6 to 12 months.

12. Have an escape plan

In any emergency, the last thing you want to do is panic, and having an established escape plan is an excellent way to ensure a quick and organized evacuation when you need to exit your home urgently. Make sure everyone who lives with you knows the escape plan, and practice regularly.

13. Practice safe habits in the kitchen

Almost half of all house fires start in the kitchen, so making sure you practice proper safety techniques there will significantly reduce the risk of one occurring. Keep towels, paper products, and curtains away from heat sources, and never leave cooking unattended.

14. Keep flammable items away from heaters

As winter approaches and you dust off your home heating system, make sure you take proper safety precautions to prevent fires. Flammable items near vents and space heaters can ignite, so make it a point to clear the area around them.

Home safety tips for childproofing your house

15. Secure hazardous materials

Kids have a way of getting their hands on things when they’re not supposed to. Store harmful chemicals, cleaning products, and medications in locked cabinets or on high shelves.

16. Cover electrical outlets

Simply covering all the outlets in your home is a great way to keep kids safe. Cover any outlets that are accessible to small children to prevent electrocution.

General maintenance tips

Home maintenance might not be the first thing that enters your mind when it comes to home safety, but a well-maintained home can go a long way towards keeping you safe. Fixing small issues early can prevent accidents and bigger problems later.

17. Inspect your home regularly

Keep an eye out for anything out of the ordinary around your home. Any unusual sights or sounds might be a sign of an underlying issue that threatens your home’s safety. Check locks on doors and windows to see if they work properly. Make sure older appliances don’t pose a fire risk, and address potential leaks or foundation issues promptly before they lead to bigger issues down the road.

18. Make sure your home’s exterior is well-maintained

In addition to improving your house’s curb appeal, seemingly mundane tasks like mowing your lawn regularly, landscaping, and painting your home’s exterior can also make it safer. Thieves target houses that look run-down or poorly maintained, so going the extra mile to keep your place looking nice might make them think again.

The post 18 Home Safety Tips Every Homeowner Should Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

18 Home Safety Tips Every Homeowner Should Know

Thu, 09 Oct 2025 23:13:56 +0000

Home safety tips to maximize security

1. Invest in a home security system

2. Install more lights to increase visibility around your home

3. Upgrade to a smart doorbell

4. Secure your home with smart locks

5. Get to know your neighbors

6. Close curtains and blinds at night

7. Buy a security door

8. Reinforce your windows to prevent break-ins

9. Secure tools and ladders

The last thing you want to do is make an intruder’s job easier. Store all tools, ladders, and equipment in a locked garage or shed so they can’t be used to break windows or access upper floors.

10. Take extra steps to secure sliding doors

Sliding glass doors are beautiful but can be vulnerable. Add a security bar, door sensor, or multi-pane glass to strengthen them and make forced entry more difficult.

Fire prevention and safety tips

A house fire is one of a homeowner’s worst nightmares, but taking the right steps beforehand can mitigate the damage or prevent fires entirely.

11. Regularly test smoke detectors

12. Have an escape plan

13. Practice safe habits in the kitchen

14. Keep flammable items away from heaters

Home safety tips for childproofing your house

15. Secure hazardous materials

Kids have a way of getting their hands on things when they’re not supposed to. Store harmful chemicals, cleaning products, and medications in locked cabinets or on high shelves.

16. Cover electrical outlets

Simply covering all the outlets in your home is a great way to keep kids safe. Cover any outlets that are accessible to small children to prevent electrocution.

General maintenance tips to keep your home safe

17. Inspect your home regularly

18. Make sure your home’s exterior is well-maintained

The post 18 Home Safety Tips Every Homeowner Should Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

18 Home Safety Tips Every Homeowner Should Know

Thu, 09 Oct 2025 23:13:56 +0000

Home safety tips to maximize security

1. Invest in a home security system

2. Install more lights to increase visibility around your home

3. Upgrade to a smart doorbell

4. Secure your home with smart locks

5. Get to know your neighbors

6. Close curtains and blinds at night

7. Buy a security door

8. Reinforce your windows to prevent break-ins

9. Secure tools and ladders

The last thing you want to do is make an intruder’s job easier. Store all tools, ladders, and equipment in a locked garage or shed so they can’t be used to break windows or access upper floors.

10. Take extra steps to secure sliding doors

Sliding glass doors are beautiful but can be vulnerable. Add a security bar, door sensor, or multi-pane glass to strengthen them and make forced entry more difficult.

Fire prevention and safety tips

A house fire is one of a homeowner’s worst nightmares, but taking the right steps beforehand can mitigate the damage or prevent fires entirely.

11. Regularly test smoke detectors

12. Have an escape plan

13. Practice safe habits in the kitchen

14. Keep flammable items away from heaters

Home safety tips for childproofing your house

15. Secure hazardous materials

Kids have a way of getting their hands on things when they’re not supposed to. Store harmful chemicals, cleaning products, and medications in locked cabinets or on high shelves.

16. Cover electrical outlets

Simply covering all the outlets in your home is a great way to keep kids safe. Cover any outlets that are accessible to small children to prevent electrocution.

General maintenance tips to keep your home safe

17. Inspect your home regularly

18. Make sure your home’s exterior is well-maintained

The post 18 Home Safety Tips Every Homeowner Should Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

What Does Homeowners Insurance Cover? Understanding Your Coverage, Costs, and More

Thu, 09 Oct 2025 20:43:10 +0000

Buying a home is one of life’s biggest investments, and protecting it should be a top priority. That’s where homeowners insurance comes in. Homeowners insurance helps protect your investment by covering unexpected damage, loss, or liability.

If something happens – like a fire, burst pipe, or break-in – your homeowners insurance helps pay for repairs, replaces lost belongings, and can even cover temporary housing while your home is being fixed. It’s one of the smartest financial protections a homeowner can have.

Whether you’re a first-time homebuyer or simply reviewing your current coverage, this guide will help you better understand what homeowners insurance is, what it covers, and what isn’t typically covered in standard policies.

What is homeowners insurance?

Homeowners insurance is a policy that helps cover the cost of repairing or replacing your home and belongings. It typically covers damage to your property, liability for injuries or damage you cause to others, and sometimes additional living expenses if your home becomes uninhabitable after a covered event.

If something happens, your homeowners insurance can help you recover from the unexpected without wiping out your savings. You pay a monthly or annual premium, and in return, your insurance company agrees to cover certain types of losses, up to the limits outlined in your policy.

How homeowners insurance works

When you purchase a homeowners insurance policy, you agree to pay a set premium in exchange for financial protection against specific types of losses. If a covered event happens, you file a claim with your insurer. They’ll review the details, possibly send an adjuster to assess the damage, and then pay for repairs or replacements minus your deductible (the amount you pay out of pocket).

What does homeowners insurance cover?

Homeowners insurance covers the cost to repair, rebuild, or replace your home and belongings after certain unexpected events, called covered perils. It also helps protect you financially if someone is injured on your property or if you can’t live in your home temporarily after a covered loss.

A standard homeowners insurance policy provides a combination of property protection (for your house and belongings) and financial protection (for liability and living expenses). Below is a breakdown of the main types of coverage included in most policies and how each one works.

1. Dwelling (structure) coverage

This is the core of your policy as it protects the physical structure of your home. Dwelling coverage pays to repair or rebuild your house if it’s damaged or destroyed by a covered event, such as fire, lightning, wind, hail, or vandalism.

It includes major parts of your home like the roof, walls, floors, foundation, and built-in systems such as plumbing, heating, cooling, and electrical wiring.

When choosing your dwelling coverage limit, aim for the amount it would cost to rebuild your home from the ground up at current construction prices, not its market or assessed value. Rebuilding costs often exceed what your home could sell for, especially when you factor in materials, labor, and local building codes.

2. Other structures coverage

This portion of your policy covers detached structures on your property, so think structures that aren’t physically connected to your main home. That includes things like:

Fences and gates
Detached garages
Garden sheds or workshops
Guesthouses or gazebos

Other structures coverage usually equals about 10% of your dwelling coverage, but you can increase that amount if you have significant detached buildings or outdoor features that would be expensive to replace.

For example, if your home’s dwelling limit is $400,000, you might automatically have $40,000 to cover other structures. If a windstorm knocks down your fence or a fallen tree crushes your shed, this coverage helps pay to repair or replace it.

3. Personal property coverage

Your home isn’t just the structure – it’s everything inside it. Personal property coverage protects your belongings if they’re damaged, destroyed, or stolen. That includes furniture, clothing, electronics, appliances, décor, and more.

Most policies automatically set personal property coverage at 50% to 70% of your dwelling coverage, but you can adjust it to match your lifestyle and possessions.

It’s also important to know that your belongings are typically covered even when they’re not at home. For example, if your suitcase is stolen while you’re traveling or a bike is taken from your car, personal property coverage can likely help replace it.

However, there are limits. Most policies cap payouts for certain valuables like jewelry, artwork, collectibles, and firearms. If you own high-value items, you can add a scheduled personal property endorsement to list them individually for their full worth.

4. Loss of use coverage

If your home becomes unlivable due to a covered loss, loss of use coverage – also called additional living expenses (ALE) – helps cover the cost of temporary housing and day-to-day expenses while repairs are made.

This can include:

Hotel or short-term rental costs
Meals and restaurant expenses
Laundry, pet boarding, or storage fees
Increased transportation costs

For example, if a burst pipe causes damage and forces you out of your home for a month, ALE can cover your hotel stay and extra costs that go beyond your normal living expenses. This coverage typically continues until your home is rebuilt or you permanently relocate, up to your policy limit.

5. Personal liability coverage

Homeowners insurance typically includes personal liability coverage, which protects you financially if someone is injured on your property or if you accidentally cause damage to someone else’s property.

Personal liability coverage helps pay for things like:

Medical expenses for injuries
Repair or replacement of damaged property
Legal defense costs if you’re sued

6. Medical payments to others

This coverage is designed for minor injuries that happen on your property, regardless of who’s at fault. If a guest twists their ankle on your stairs or a neighbor’s child gets scratched by your pet, medical payments coverage helps pay for their immediate care.

It typically covers smaller bills like doctor visits, X-rays, or ambulance fees, and usually comes with limits between $1,000 and $5,000.

These core coverages form the backbone of most homeowners insurance policies. But what they cover depends heavily on what events the policy includes and what it excludes.

Events that are typically covered

Homeowners insurance protects you against many unexpected events, often called “covered perils.” These are the specific causes of damage or loss your policy will pay for. Anything outside that list (or specifically excluded) won’t be covered.

Most standard homeowners insurance policies cover sudden and accidental damage caused by events that are out of your control. While every policy varies, the most common covered perils include:

Fire and smoke damage
Windstorms and hail
Lightning strikes
Explosion
Falling objects (like tree branches)
Theft or vandalism
Weight of snow, ice, or sleet
Water damage from burst pipes or appliance leaks
Damage caused by vehicles or aircraft
Accidental discharge of water or steam from household systems
Freezing of plumbing or HVAC systems
Sudden electrical surges or short circuits

If one of these events damages your home or belongings, your insurer typically helps pay for repairs or replacements, up to your policy limits.

For example: If a kitchen fire spreads smoke through the house, your policy covers cleanup and repairs. Or let’s say a heavy windstorm tears shingles off your roof – your insurer pays for roof repairs.

What’s not covered by standard homeowners insurance policies

Standard homeowners insurance doesn’t protect against every type of loss, especially those caused by long-term issues, lack of maintenance, or major natural disasters that require separate coverage.

Here are the most common exclusions:

Floods: Damage from rising water, overflowing rivers, or heavy rainfall is not covered. You’ll need separate flood insurance for that.
Earthquakes and land movement: Earthquakes, sinkholes, and landslides require an earthquake policy or endorsement.
Normal wear and tear: Aging roofs, leaky plumbing, and general deterioration aren’t covered because they’re part of regular home maintenance.
Pest infestations: Termites, rodents, and insects are considered preventable and not covered by insurance.
Sewer or drain backups: Water that backs up through drains or sump pumps isn’t included unless you add a sewer backup endorsement.
Mold or rot: Often excluded unless it results from a covered event, such as a sudden pipe burst.
Neglect or poor maintenance: If the insurer determines the damage was preventable, your claim could be denied.
War, nuclear hazards, or government action: Broad catastrophic risks like these are universally excluded.

Because every home and location are different, it’s important to review your policy carefully and talk with your insurance agent about add-ons or separate policies that fill these gaps, especially if your home is in a flood zone or if you live in a high-risk area.

This is also where the amount of coverage you carry becomes crucial. Even with the right types of protection, being underinsured can leave you paying thousands out of pocket after a major loss. Your policy should include enough dwelling coverage to fully rebuild your home, not just cover its market value, plus sufficient personal property and liability protection to safeguard your finances.

>> Read more: How Much Homeowners Insurance Do I Need?

Cost of homeowners insurance

The average cost of homeowners insurance in the U.S. ranges from $1,500 to $2,500 per year, but your rate depends on your home, location, and coverage choices.

Here’s what usually affects the price of homeowners insurance:

Location: Homes in areas prone to storms, wildfires, or high crime cost more to insure.
Home details: Size, age, and construction materials impact risk and price.
Coverage and deductible: More coverage or a lower deductible increases your premium.
Claims and credit history: Frequent claims or a lower credit score can raise rates.
Safety features: Alarm systems, smoke detectors, and newer roofs often earn discounts.

Your premium reflects the risk your insurer takes on, and small adjustments to coverage, deductibles, or home safety can make a big difference in what you pay. A few ways you can lower your premium include:

Bundling home and auto policies with the same insurer
Raising your deductible if you can afford a higher out-of-pocket cost
Maintaining good credit and a clean claims record
Upgrading your home’s safety features, like storm shutters or security systems

Is homeowners insurance required when buying a home?

Legally, homeowners insurance is not required by federal or state law. However, most mortgage lenders require it before finalizing a home loan. Lenders want to protect their financial interest in your property – if your home is damaged or destroyed, they need assurance that it can be repaired or rebuilt.

Even if your home is paid off, keeping an active homeowners policy is a wise decision. Without insurance, you’d be fully responsible for repair, replacement, or liability costs that can easily total tens or hundreds of thousands of dollars.

The po

When Selling a House, Who Pays for What?

Thu, 09 Oct 2025 18:08:32 +0000

Key Takeaways

What sellers pay for: Sellers usually cover real estate agent commissions (typically 3%-6% of the sale price), owner’s title insurance (around 0.5%-1% of the home’s price), and various closing costs that generally range between 2%-5%. These figures represent national averages — actual costs can vary significantly depending on location and property value.
What buyers pay for: Buyers typically pay for home appraisals (averaging $300–$700), loan-related fees (about 2%-5% of the total loan amount), and home inspections (usually $350-$750).
Regional differences and negotiation: Costs vary by region and can often be negotiated between the buyer and seller.

When selling a house, who pays for what?

Buying or selling a home involves more than agreeing on a price. From loan fees and title insurance to inspections and commissions, both parties share the financial responsibility for getting to the closing table. The exact breakdown depends on regional customs, lender rules, and how each side negotiates.

Although some costs can be negotiated, many follow long-standing norms. Understanding who typically pays for what helps you estimate your true costs and avoid last-minute surprises.

Fact: According to the National Association of Realtors (NAR), the average seller spends about 8-10% of their home’s sale price on commissions and related fees, while buyers usually pay 2-5% in their own closing costs.

Who pays what in a real estate transaction

Here’s a straightforward look at who typically pays for each major cost — and which expenses are open to negotiation. While some fees are standard practice, others can shift based on local customs or the strength of your negotiation.

Expense Type	Paid by Seller	Paid by Buyer	Negotiable
Real estate agent commissions
Appraisal fee
Home inspection
Escrow fees
Owner’s title insurance
Lender’s title insurance
Recording and transfer taxes
Home warranty
Land survey
Property taxes (prorated)
Repairs or concessions

Bottom line: Knowing these costs early helps both parties budget confidently and avoid last-minute stress. With clear expectations, closing day becomes much smoother for everyone.

What fees do sellers pay when selling a house?

Now that you know how costs are generally divided, let’s look closely at what sellers typically cover.

In most cases, sellers shoulder the heavier financial load because they’re cashing out on the property. Common seller costs include:

Real estate agent commissions: Typically 3-6% of the sale price, split between the listing and buyer’s agents.
Title insurance for the buyer: Protects the new homeowner from ownership disputes.
Transfer taxes: Usually paid by sellers and calculated as a small percentage of the sale price.
Escrow fees: Shared or fully covered by the seller, depending on local custom.
Repairs and concessions: Sellers often pay for repairs negotiated after inspection.
Outstanding bills and HOA dues: Prorated through the closing date.

Pro tip: Ask your Redfin agent for a net sheet early in the process to estimate your take-home proceeds.

Who pays escrow fees?

Escrow companies act as neutral third parties holding funds and documents until the deal closes. Fees vary by state: In California, buyers and sellers usually split escrow fees, while in Washington, the buyer may pay them in full.

Typical escrow fees range between 1-2% of the home price. In slower markets, sellers sometimes cover this cost to make their listing more attractive.

Who pays for the home inspection?

The buyer usually pays for the home inspection as part of their due diligence. According to Rocket Mortgage, the average inspection costs $300-$500.

Some sellers order a pre-listing inspection to identify potential issues early — a proactive move that can prevent surprises during negotiations.

Who pays for the appraisal?

Lenders require an appraisal to confirm the home’s market value before finalizing the loan. The buyer pays for the appraisal, typically between $400-$700.

However, in competitive markets, sellers sometimes agree to cover this cost as part of a negotiated offer.

Who pays for title insurance?

Two policies exist:

Owner’s title insurance: Paid by the seller for the buyer’s protection.
Lender’s title insurance: Paid by the buyer to protect the lender’s interest.

Regional customs determine who pays for which policy. In some areas, sellers cover both; in others, the costs are shared.

Who pays for a land survey?

A buyer usually pays for the land survey to confirm boundary lines. Costs range between $300 and $1,000, depending on lot size and location. Sellers occasionally commission a survey beforehand to address boundary concerns early.

Who pays real estate transfer taxes?

Transfer taxes (also called conveyance taxes) are typically seller-paid. These vary widely — from 0.1% to 2% of the sale price — depending on local laws.

Check your state’s requirements through Redfin’s home-selling cost guide.

Who pays for a home warranty?

Either party can pay for a home warranty, which typically costs $400-$700 per year. Sellers often include one to attract buyers and reduce post-sale disputes over appliances or systems.

Why would a seller pay closing costs?

Sellers sometimes pay part of the buyer’s closing costs — called seller concessions — to make the deal more appealing. This strategy works well in a buyer’s market or when a property has been listed for a while.

Covering costs like loan origination fees or prepaid taxes can help close deals faster, though it reduces the seller’s net proceeds.

Expanded breakdown: Who pays for what when selling a house

Closing Cost

Typical Payer

Negotiable?

Details

Loan origination fee (0–1% of loan amount)

Buyer

Charged by the lender for processing the loan.

Realtor commissions (5–6%)

Seller

Standard in most U.S. sales; rarely buyer-paid.

Processing fee ($300–$900)

Buyer

Paid to the lender for document preparation.

Underwriting fee ($300–$750)

Buyer

Covers the cost of evaluating loan risk.

Application fee ($200–$500+)

Buyer

Charged by the lender to process your mortgage request.

Credit report fee ($35)

Buyer

Covers the cost of pulling a credit report.

Home appraisal fee ($500–$1,000+)

Buyer

Sometimes covered by the seller to sweeten an offer.

Home inspection fee ($300–$500)

Buyer

Buyers usually pay; sellers may provide a pre-inspection.

Title search & title report ($300–$2,500+)

Split

Confirms clear title; cost division depends on region.

Lender’s title insurance ($300–$1,500+)

Buyer

Protects the lender’s interest.

Owner’s title insurance (optional)

Seller

Protects the buyer; often seller-paid.

Escrow fee ($350–$1,000+)

A Buyer’s Guide to the 8 Most Common Real Estate Contingencies

Thu, 09 Oct 2025 17:06:09 +0000

Contingencies are an important part of the homebuying process, giving buyers a safety net during the transaction. They are conditions written into the purchase agreement that must be satisfied for the sale to move forward, allowing either party to back out without penalty if specific terms aren’t met.

Although not required, contingencies are standard in most real estate contracts, and some are especially important depending on the location. For example, in wildfire-prone areas like Los Angeles, including a homeowners insurance contingency can ensure the property is insurable before you commit.

This Redfin real estate article explains how contingencies work, which ones to expect, and how they can help you avoid costly surprises during the homebuying process.

What are contingencies in real estate?

In real estate, a contingency is a condition written into a purchase agreement that must be met for the sale to move forward. In other words, it’s a clause that makes the deal dependent on certain requirements being satisfied – like the home passing inspection, appraising at value, or the buyer securing financing.

Contingencies act as a safety net. They protect buyers by allowing them to renegotiate or walk away without losing their earnest money deposit if a critical condition isn’t met. At the same time, they provide sellers with a clear framework and timeline, so everyone knows what steps need to be completed and by when.

For example, an inspection contingency might give a buyer ten days to review the property and request repairs or cancel the contract. During that time, the seller knows the process is moving forward and has a defined window to address any concerns.

What is a contingent offer, and how does it work?

When a buyer submits a contingent offer, it means they’re making an offer to purchase a home that depends on certain conditions being met, such as inspections, appraisals, or securing financing. The sale can only move forward if these conditions are satisfied.

Once the seller accepts the contingent offer, the home is usually listed as contingent, showing there’s an active offer but the sale isn’t final. Each contingency has a deadline, called the contingency period. Buyers must complete their due diligence and meet conditions during this set timeframe. Missing a deadline can put their earnest money at risk.

During the contingency period, buyers have opportunities to negotiate. For example, after a home inspection, they can request repairs, a reduced price, or credits to address any issues found.

If a contingency isn’t met within the agreed-upon timeframe, the buyer can terminate the contract and typically receive their earnest money back.

The top 8 most common contingencies to consider in your offer

When submitting an offer on a home, including the right contingencies is crucial. Contingencies give buyers the ability to confirm important aspects of the property, financing, and legal ownership before fully committing.

Below, we’ll explain how the following common real estate contingencies work and the protections they provide:

Home inspection contingency

Appraisal contingency

Financing contingency

Title contingency

Home sale contingency

Home insurance contingency

Kick-out clause

HOA contingency

1. Home inspection contingency

The home inspection contingency is one of the most frequently used contingencies in real estate. It gives the buyer the right to have the home professionally inspected, usually within 7 to 10 days after the offer is accepted. If the inspection uncovers significant issues, such as foundation damage, roof problems, or mold, the buyer can:

Request repairs or credits from the seller

Renegotiate the purchase price or contract terms

Cancel the contract and retain their earnest money deposit

➤ The home inspection contingency protects buyers from unexpected repair costs and ensures they know the true condition of the property before closing.

2. Appraisal contingency

The appraisal contingency comes into play when a buyer is financing a home. Lenders require an appraisal to confirm the property’s value supports the loan amount. If the appraisal comes in lower than the agreed purchase price, the buyer can:

Cover the difference in cash

Renegotiate the price

Exit the contract

Renegotiation is common, giving both the buyer and seller a chance to adjust the price or terms to reflect the home’s appraised value.

➤ The appraisal contingency protects buyers from overpaying and lenders from financing more than the home is worth.

3. Financing (mortgage) contingency

A financing contingency, also known as a mortgage contingency, allows the buyer to back out of the sale if they’re unable to secure mortgage approval, usually 21 to 30 days. Reasons for denial can include credit issues, job changes, or changes in loan terms.

If financing falls through, the buyer can withdraw from the contract and get their earnest money back. However, many buyers work with their lender to explore alternative financing options before canceling.

➤ This contingency protects buyers from being contractually obligated to purchase a home they can’t afford to finance.

4. Title contingency

A title contingency gives the buyer the right to review the results of a title search and cancel the contract if any issues related to ownership or property rights are discovered. The title company usually conducts this search shortly after the contract is signed.

Common title issues include:

Unpaid property taxes or contractor liens

Boundary disputes or easements

Undisclosed heirs or prior claims of ownership

Errors in public records or deeds

If a problem is found, the seller is generally given a window to resolve it, such as clearing a lien or correcting a legal error. If they can’t deliver a clear title by the closing date, the buyer can back out and recover their earnest money.

➤ This contingency protects buyers from inheriting legal, financial, or ownership complications tied to the property.

5. Home sale contingency

A home sale contingency makes the purchase dependent on the buyer selling their current home within a specified period. If the buyer cannot sell their home in time, they can cancel the contract without losing their earnest money.

This contingency is often used by buyers who need the proceeds from their existing home to complete the purchase. Sellers may view these offers as less attractive because they can introduce uncertainty or delays.

Contracts with this clause typically specify key details, such as whether the buyer’s current home is already under contract and the timeframe for completing the sale. Sellers may include a kick-out clause, which permits them to continue marketing the home and accept backup offers.

➤ The home sale contingency protects buyers from being obligated to purchase a new home before they’ve sold their current one.

6. Homeowners insurance contingency

A homeowners insurance contingency allows the buyer to confirm they can obtain adequate homeowners insurance for the property at a reasonable cost. If the buyer is unable to secure coverage – due to factors like location, condition, or risk exposure – they can cancel the contract without penalty.

This contingency is especially important in areas prone to natural disasters, such as floods, wildfires, or hurricanes, where insurance may be limited or expensive.

➤ The homeowners insurance contingency protects the buyer from being locked into a purchase they cannot insure or afford to insure.

7. Kick-out clause/contingency

A kick-out clause is a contingency used by sellers when accepting an offer that includes a home sale contingency. It allows the seller to continue marketing their property and accept backup offers even after entering into a contract with a buyer.

If another buyer submits a stronger offer, the seller can notify the original, bumpable buyer, who typically has 24 to 72 hours to either:

Remove their home sale contingency and proceed with the purchase, or

Walk away and allow the seller to accept the new offer

This clause must be clearly outlined in the purchase agreement, including the required notice period and response timeframe.

➤ The kick-out clause protects the seller from being locked into a lengthy contract with a buyer who may not be able to close, giving them the flexibility to pursue better-qualified offers.

8. Homeowners association (HOA) contingency

A homeowners association (HOA) contingency applies to homes or condos governed by an HOA. It gives buyers the right to review HOA agreements, rules, and financial documents before fully committing to the purchase.

If the buyer doesn’t receive the necessary documentation in time, or if they disagree with the HOA’s obligations or restrictions, they can cancel the contract without losing their earnest money.

➤ The HOA contingency protects buyers from unexpected fees, rules, or restrictions that could affect their ownership experience.

What happens if a contingency isn’t met?

If a contingency isn’t satisfied within the agreed-upon timeframe, the buyer typically has the right to terminate the contract and get their earnest money back. Buyers can also choose to renegotiate instead of walking away. For example, after an inspection reveals issues, the buyer might request repairs, credits, or a price reduction.

Remember: deadlines are critical. Buyers must complete all contingency-related tasks within the specified periods. Missing a deadline without an extension could result in losing the earnest money or other legal consequences.

If a contingency isn’t met and the buyer terminates, the seller will typically relist the home or put it back on the market, opening the door for other buyers to submit offers.

FAQs about contingencies in real estate

What does contingent mean in real estate?

In real estate, contingent means a home is under contract, but the sale depends on certain conditions (called contingencies) being met. If those conditions aren’t satisfied, the buyer can usually back out without losing their earnest money.

What contingencies should I include when buying a house?

Which contingencies you should include will ultimately depend on factors such as the home’s condition, location, and your financial situation. That said, most buyers benefit from including inspection, appraisal, and financing contingencies, especially if they’re receiving a mortgage loan.

In certain areas, additional contingencies may be especially important. For example, if you’re buying a home in St. George, UT where wildfires are a risk, or in coastal Florida cities like Fort Lauderdale or Naples that are prone to hurricanes and flooding, it can be wise to include a home insurance contingency.

Are contingencies required in a real estate contract?

No, but they’re common. Buyers often include them to protect against risks like failed financing or major home defects. Waiving contingencies can strengthen an offer but increases the buyer’s exposure to risk.

Solar panels are becoming a popular choice for homeowners nationwide, but a common question is: does solar increase home value?

In short, yes—adding solar to your home can increase value. In fact, homes with solar panels typically see up to a 6.9% increase in value. This depends on several factors, including local electricity rates and state policies, the age and efficiency of the system, whether it’s owned or leased, and the demand for sustainable homes in your area.

In this Redfin article, we’ll cover the key factors that affect value, the pros and cons, and the typical installation costs. So whether you’re a homeowner in Washington, DC or Chicago, IL, you can make an informed decision about adding solar to your home.

Table of contents

Do solar panels increase home value?

Should you install solar panels?

How much does it cost to install panels?

Are solar panels the right choice for you?

FAQs: Does solar increase home value?

Do solar panels increase home value?

Yes, solar panels increase home value. Studies show that homes with solar panels not only increase in value, but tend to sell for roughly 6.9% more than comparable homes without solar. That said, because the percentage is based on the home’s value, the actual dollar increase will vary—6.9% of a $500,000 home is about $34,500, while the same percentage on a $900,000 home approaches $62,100.

That said, the return on investment (ROI) from solar panels can vary based on a few key factors:

Which factors impact how much value solar panels add to a home?

Local electricity rates: If you’re unfamiliar with how solar panels work, you might think it’s all about getting plenty of sun. However, state policies and electricity rates play a bigger role, and how much solar pays off really depends on where you live. Here are the 10 best states for home solar, where you’re most likely to get the best return on your investment.

System age and efficiency: Newer, more efficient solar systems add more value than older or less efficient panels.

Ownership: Owned systems generally increase home value because buyers take over a fully paid asset, while leased systems or power purchase agreements (PPAs) may complicate sales or reduce the premium since the new owner inherits the contract.

Market demand: The popularity of sustainable homes in your area can impact how much value solar panels add.

>> Read: How Do Solar Panels Work? What Homeowners Need to Know

Should you install solar panels?

Whether solar panels are worth the investment depends on your location, budget, local electricity rates, and state policies. Talking to a professional solar installer is a smart first step to explore your options and find the best fit for your home.

Solar installation pros and cons:

Pros Cons

Increased home value – homes with solar panels typically sell for more. High upfront cost – installing solar panels can be expensive depending on where you live.

Lower energy bill – solar panels can significantly reduce or even eliminate your electricity bill. Savings depend on location – the financial benefit depends on your state.

Government incentives and tax credits – many areas offer rebates or tax credits that help reduce the initial cost of solar installation. Not all homeowners qualify – eligibility varies by location, income, and property type.

Environmentally friendly – solar energy is clean and renewable. Aesthetic concerns – the design of solar panels may look out of place, especially in HOA or historic areas.

How much does it cost to install panels?

So, what do solar panels cost in 2025? Let’s be honest: we all know installing solar panels isn’t cheap, but the good news is that prices have dropped a lot over the years. In fact, the cost to install a residential solar system has dropped by nearly $15,000 over the past two decades. In 2025, the average cost to install a home solar system in the U.S. is around $29,360 before any incentives.

Luckily, most homeowners can qualify for the federal Residential Clean Energy Credit, which knocks 30% off the cost, bringing the average down to around $20,552. There may also be state and local incentives available, which could help reduce the price even more.

Here are other factors that can affect how much you’ll actually pay for solar panels:

System size: Larger systems come with a higher price tag, but they also generate more electricity—which can lead to bigger savings over time.

Panel quality: More efficient panels usually cost more upfront, but they take up less space and can last longer.

Battery storage: Adding a battery for backup or energy storage can bump up your total by $10,000 or more.

How you pay: Paying in cash tends to be the most cost-effective option. Financing with a loan spreads out payments, but it can increase your overall cost by as much as 47% in the long run.

How can you finance solar panels?

Paying with cash is the simplest option and offers the highest long-term savings, since there are no interest charges or loan fees. But if that’s not feasible, there are several ways to finance solar panels, depending on your budget and goals:

Personal loan: A flexible, unsecured option that’s usually quick to obtain, though it may come with higher interest rates.

Home equity loan or HELOC: Lets you borrow against your home’s value, often with lower interest rates and potential tax benefits.

FHA 203(k) loan: Allows you to include the cost of solar installation in your mortgage when buying or refinancing a home.

Contractor financing: Offered by many solar installers for convenience, but terms may be less competitive—be sure to compare options.

Each financing route has its pros and cons, so choose the one that best fits your financial situation and long-term goals.

Tips for maximizing your solar system’s value

“To protect your solar investment, keep good documentation — proof of ownership, warranties, and production data all help reassure future buyers, ” says Emily Walker, director of insights at EnergySage. “Maintenance is simple, but occasional system checks or monitoring of performance data can prevent small issues from becoming costly problems. In terms of upgrades, adding battery storage is one of the smartest moves since it boosts both your home’s resilience and its market value.”

“When deciding how to pay for solar, if you’re considering a lease or power purchase agreement, be sure to review the fine print regarding transferability to new homeowners,” Emily advises. “While these agreements can maximize your available capital, they can also complicate the home sales process.”

Are solar panels the right choice for you?

While the exact return varies based on location, budget, local electricity rates, and state policies, solar panels do increase home value. Some states offer strong incentives, higher electricity costs, and policies that make installing solar panels a smart investment. In other places, the financial benefits and impact on home value might be less significant.

The best move? Reach out to a local solar expert who can help you understand your options and see if solar is a good fit for you.

FAQs: Does solar increase home value?

Do solar panels increase home value?

Yes, homes with solar panels tend to sell for more, especially in states with strong solar incentives and high electricity rates. However, the actual value added depends on factors like system age, efficiency, and local market demand.

How much value can solar panels add to a home?

On average, homes with solar panels can sell for about 4–7% more than similar homes without them. That could mean tens of thousands of dollars, depending on your location and system size.

Are there places where solar doesn’t add much value?

Yes. In states with low electricity rates, fewer incentives, or less demand for solar homes, the increase in home value may be smaller. It’s always best to check with a local solar installer or real estate agent.

>>Discover: Selling a House with Solar Panels: Will it Make or Break the Sale?

Do solar panels make it harder to sell your house?

No, solar panels generally don’t make it harder to sell your home—in fact, they are a selling point for many buyers. Not only do they require minimal maintenance, but they can also reduce—or even eliminate—monthly utility bills, increase your home’s resale value, and make you eligible for valuable tax credits and rebates.

Will solar panels save you money?

Solar panels typically pay for themselves in about six to ten years, though the timeline can vary based on factors like location, energy usage, and system size. While installation can be pricey—sometimes reaching $40,000 for larger setups—savings on your electricity bill, along with tax credits and incentives, can significantly reduce the overall cost.

To maximize your return, make sure your system is properly sized for your home and keep your panels well-maintained over time.

Do solar homes sell faster?

Yes! In many cases, solar-equipped homes can sell notably faster than homes without solar. Especially when systems are owned (not leased), solar can signal energy efficiency, lower utility costs, and modern infrastructure—qualities that make a home more desirable and market-ready. In fact, the National Renewable Energy Laboratory reports that homes with solar panels sell 20% faster than comparable homes without them.

Is solar for your home a good investment?

It can be—especially if you plan to stay in your home for a while. While the upfront cost of solar can be steep, the long-term savings on energy bills, tax credits, and improved efficiency often make it worth it. Plus, it may even boost your home’s resale value down the line.

The post Do Solar Panels Increase Home Value? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

What Does a $200K House Look Like In 2025? Listings Across the U.S.

Thu, 09 Oct 2025 12:00:37 +0000

Prices keep rising, but bargains haven’t disappeared

Thirteen years ago, the U.S. median home sale price was $190,000, and a household needed $35,600 in annual income to afford it. Today, the picture looks very different.

Housing affordability has since fallen to record lows after two years of price growth, with the typical home selling for $440,000 in August. Even with mortgage rates dropping, buyers still need to earn over $112,000 annually to afford a median-priced home – roughly $25,000 more than the typical household income and three times what they needed in 2012. The result? Slower sales, fewer listings, and hardly any buyer activity.

Still, affordable options haven’t disappeared. In parts of the Midwest, South, and Northeast, many homes go for less than $200,000, with some dipping into the low-$100,000s. And across the country, there are affordable gems waiting to be discovered – even in the most expensive markets.

Let’s explore what you can buy for less than $200,000 in ten cities across the U.S. We’ll highlight three listings per city to give an overview of what that price point looks like.

>> Read: The Most Affordable Cities in the U.S. in 2025

How much income do you need to afford a $200k house?

As of September 2025, buyers need to earn about $50,000 to comfortably afford a $200,000 house. This assumes a 20% down payment on a median-priced home ($444,000), a 6.4% mortgage rate, and typical tax and insurance costs.

You can calculate your specific monthly housing costs using Redfin’s Mortgage Calculator.

It’s worth noting that many buyers shopping in the $200,000 range may earn less than their city’s median income, so even if a market appears affordable on paper, it may not be affordable to populations who need it.

What do 200K houses look like across America?

1. Detroit, MI

Median sale price: $220,000 | Median household income: $39,209

Detroit is the most affordable major city in the nation, with almost half of homes sitting near the $200,000 mark. Prices are low in this Rust Belt mecca for a variety of factors, but the primary ones are population loss, economic disinvestment, and an aging housing stock. However, the city has seen a strong revitalization effort in recent years, attracting new businesses and residents.

Here are a few examples of homes that go for $200,000 or less.

8229 Carlin St, Detroit, MI 48228: $200,000 | 4 bed, 1.5 bath, 1,973 sq ft

23424 Clarita St, Detroit, MI 48219: $145,000 | 4 bed, 1.5 bath, 1,495 sq ft

14985 Tacoma St, Detroit, MI 48205 7: $75,000 | 3 bed, 2 bath, 2,000 sq ft

2. Los Angeles, CA

Median sale price: $909,000 | Median household income: $82,263

As one of the most expensive cities in America, it might surprise you that Los Angeles still has housing options around $200,000. Generally, homes in Southern California go for well over $1 million, with people battling to live among the cultural icon’s sprawling, glitzy streets – especially in luxury enclaves like Beverly Hills and Hollywood. That said, prices are beginning to return to a more “normal” state, although they’re certainly not affordable.

For those looking to buy a home in LA on a $200K budget, you’ll have to settle for very small condos or living on the city’s edges. Here are some examples.

617 Cedar Ave #11, Long Beach, CA 90802: $200,000 | 0 bed, 1 bath, 392 sq ft

13050 Dronfield Ave #7, Sylmar, CA 91342: $195,000 | 1 bed, 1 bath, 595 sq ft

18645 Hatteras St #187, Tarzana, CA 91356: $182,000 | 1 bed, 1 bath, 472 sq ft

3. Cleveland, OH

Median sale price: $255,000 | Median household income: $43,383

A former industrial icon quickly turning lively tech hub, Cleveland hits a sweet spot between old and new – keeping its affordability while investing in new infrastructure and amenities. Many homes remain affordable, though some areas still struggle with disinvestment and aging housing stock. Housing investors have also started buying up lower-priced options, which is putting a strain on supply and upward pressure on prices.

Here is a sampling of what $200,000 can buy you in Cleveland.

6014 Laverne Ave, Cleveland, OH 44129: $199,900 | 3 bed, 2 bath, 1,220 sq ft

10009 Parmelee Ave, Cleveland, OH 44108: $144,900 | 4 bed, 2 bath, 1,358 sq ft

7710 Goodman Ave, Cleveland, OH 44105: $84,999 | 3 bed, 1 bath, 1,085 sq ft

4. Seattle, WA

Median sale price: $840,000 | Median household income: $118,745

Greenery abounds in the Emerald City, but affordable housing is increasingly rare. Home prices in Seattle have surged 169% in the past 13 years – 37% more than the national rate – driven by a tech boom, investor activity, and acute housing shortage. In fact, they have increased so much that over one-third of all homes are now worth at least $1 million.

Despite slowing demand, prices remain high. Buyers can still find smaller condos and studios under $200,000, though.

138 SW 116th St Unit G15, Seattle, WA 98146: $199,999 | 1 bed, 1 bath, 774 sq ft

110 SW 116th St, Seattle, WA 98146: $185,000 | 1 bed, 1 bath, 672 sq ft

19428 Aurora Ave N #332, Shoreline, WA 98133: $185,000 | 1 bed, 1 bath, 605 sq ft

5. Pittsburgh, PA

Median sale price: $267,000 | Median household income: $66,954

A city built on steel and industry, Pittsburgh has started transitioning into a modern hub of technology and growth. House prices are rising but still low, and incomes have grown enough that the typical resident can afford a home. In fact, buying is cheaper than renting in Steel City – the only major metro in the nation where this is still true.

Plenty of listings go for $200,000 or less. Here is a sampling.

131 Friday Rd, Pittsburgh, PA 15209: $200,000 | 3 bed, 2 bath, 990 sq ft

11505 Clematis Blvd, Pittsburgh, PA 15235: $199,000 | 3 bed, 2 bath, 1,552 sq ft

19 Mackey St, Pittsburgh, PA 15213: $150,000 | 3 bed, 1.5 bath, 1,056 sq ft

6. New York, NY

Median sale price: $800,000 | Median household income: $81,228

New York is not an affordable city. Roughly three million households spend more than a third of their income on housing, with 20% spending more than half every month. Even rent-stabilized units, which make up half of the city’s rental stock, are out of reach for many residents. The situation doesn’t improve for buyers, either, as limited supply continues to drive up costs.

However, if you are willing to sacrifice size and amenities, there are still options under $200,000.

63-61 99th St Unit A4, Rego Park, NY 11374: $200,000 | 0 bed, 1 bath, 550 sq ft

83-60 118 St Unit 11H, Kew Gardens, NY 11415: $200,000 | 0 bed, 1 bath, 595 sq ft

34-43 60 St Unit 2B, Queens, NY 11377: $200,000 | 0 bed, 1 bath, 450 sq ft

7. Oklahoma City, OK

Median sale price: $275,000 | Median household income: $70,040

Oklahoma City is a basketball haven known for its Midwestern charm, climate, and prices. The typical house goes for nearly half the national average, with many falling into the $100K range. Even so, not all locals can afford a $200,000 home. According to a recent study, the city actually has the widest “middle-class” income range in the nation; the lowest earners fall well below the $50,000 needed to comfortably afford a $200,000 home.

Here’s what $200,000 and under can buy you in Oklahoma City.

5021 Union Cir, Oklahoma City, OK 73135: $200,000 | 3 bed, 2 bath, 1,773 sq ft

2904 Rosewood Ln, Oklahoma City, OK 73120: $155,000 | 2 bed, 2 bath, 1,817 sq ft

2221 N Jordan Ave, Oklahoma City, OK 73111As we fully embrace the cozy arms of autumn, our outdoor spaces transform in the most amazing way. The warm vibes of fall make us want to soak up the great outdoors even more. And guess what? You don’t have to stop having outdoor fun just because summer is over. In this Redfin article, we’re all about cool backyard upgrades that’ll totally amp up your autumn chill zone. Whether you’re in sunny San Marcos, CA, or the chillier climes of Rochester, NY, we’ve got a bunch of ideas to help you turn your backyard into an uber-comfy oasis for fall.

1. Popular Fall upgrades to add to your backyard

“Some popular outdoor upgrades for the changing weather are fire pits, pergolas/pavilions, and outdoor kitchens,” says Blue Mountain Landscaping. “Fire pits help bring everyone together, even during the cooler months. Pergolas/pavilions provide coverage and warmth from weather factors, while outdoor kitchens allow you to serve guests and enjoy the comfort of your outdoor living.

Make sure you regularly clear outdoor features from leaves, berries, and other debris that come during fall weather. It’s crucial to do this before rainy days to avoid stains and pigment indentures. If this doesn’t work, you can do a yearly power wash to maintain lasting appeal.”

2. Maintain your deck

“Maintaining upgraded outdoor spaces during fall and beyond is crucial for lasting appeal, regardless of the decking material,” suggests YourDeckBuilder.com. “For redwood, regular maintenance to preserve its natural beauty is essential, including sealing to protect against the elements. Ipe wood requires similar care to retain its luster, including routine cleaning and protective treatments. Trex composite decking requires minimal maintenance, but regular cleaning and checks for wear and tear ensure longevity. Also, consider seasonal landscaping updates and applying appropriate treatments to enhance the durability and aesthetics of your outdoor space.

Embrace sustainable practices in fall outdoor upgrades by choosing eco-friendly materials such as Trex composite decking, known for its recycled content and low environmental impact. Alternatively, redwood and Ipe wood are both sustainable choices due to their durability and long lifespan. Combine these choices with energy-efficient lighting to create an environmentally conscious design for the fall season.”

Courtesy of YourDeckBuilder.com

3. Keep it simple by emphasizing your backyard’s beauty

“I live on a canyon in Southern California, so to be honest, I prefer to emphasize my backyard’s natural beauty rather than overloading it with decorations,” says Dan Troha from Draftsim. “I’m also a no-nonsense type of person, with a serious love for nature. We prioritize warm lighting, like string lights for a subtle glow. I also really enjoy my firepit because it offers both warmth and a gathering spot as the nights get (somewhat) cooler. For sustainability, we love native plants. They require less water and are accustomed to our climate. They also blend in well with the other plants in our canyon. For me, the fall is all about maximizing our enjoyment of the oasis that is our backyard, even if the days are getting shorter.”

4. Plan out multipurpose spaces

“It all starts with the clarity on the purpose of the outdoor space,” shares Sari Lampinen, a MSGD Landscape and Garden Designer from Garden Design Stories. “The better you know it, the easier it is to plan multipurpose spaces. You can, for example, extend the garden season around the year by creating an outdoor pavilion with several views of the garden and sliding glass doors. It gives shelter from the sun and offers a lovely place to dine even when it might rain. With an infrared heater and lighting, you lengthen the season to late fall, and if you add a fireplace in a corner and close the sliding doors, you have a cozy place to toast marshmallows even during the winter. Consider spaces like your decking where you can combine the needed space for socializing and still have some extra space to enjoy yoga in the morning. It’s so much about knowing what you need space for, designing around it, and sizing accordingly.”

Courtesy of Garden Design Stories

5. Incorporate a storage shed

“Investing in a storage shed for your backyard during the fall is a practical choice,” recommends South River Structures. “It provides a secure space to store seasonal items, outdoor furniture, and tools, protecting them from winter’s harsh weather. With various shed styles and customization options available, you can choose one that complements your backyard’s aesthetics and caters to your specific storage needs. Beyond storage, sheds offer versatility, serving as workshops, home offices, studios, or play areas, enhancing your property’s functionality. Be sure to check local regulations, establish a sturdy foundation, and with proper maintenance, a storage shed can keep your outdoor space organized and add value to your property.”

6. Customize your shed to best fit your needs

“Fall is a season of pruning and planting – essentially getting your yard ready to fare through the winter. Proper preparation in the fall will return amazing benefits in the spring because it’s really the best time to get your yard ready for early spring growth,” suggests custom shed builders Shedscape.

“Basically, fall prep equals spring pep. Having a customized storage shed, with your own personal organization and needs in mind, makes the process of fall preparation so much more convenient and efficient. Maximize your shed storage space by installing adequate shelving, hooks, and hangers for all your yard tools and equipment.

Custom sheds are built around your personality, meaning, they’re designed with your outdoor project needs and design style in mind. They don’t have to just look like a boring box in your yard. With the right accessories and color choices they can actually be an attractive focal point to dress up your yard.”

Courtesy of Shedscape

7. Be mindful of the rain when designing your outdoor space

“When I think about fall and the changing seasons, temperature is always first on my mind,” says Yard to Table Creations. “Being an edible gardener I am always closely in touch with the upcoming weather changes and the cooling, wet weather we are about to receive. When looking at upgrades to your outdoor space we need to keep rain in mind. Not only do your upgrades need to stand up to the wet weather, but this as an opportunity to include some sustainable practices into your landscape. One thousand square feet of roof space will collect six hundred gallons of water per hour given one inch of rain. Instead of allowing all of that water to run off into the storm drains, we can create a water catchment system to collect and reuse that water in your landscape at a later date.

I also love to incorporate fresh food into any outdoor space. A garden is basically the kitchen gathering space, only outside. Knowing that your landscape is providing for you brings joy and a sense of satisfaction like nothing else. Adding edible plants to your space is also a great way to add your own little touch to your space.”

8. Add accent lighting for cozy evenings

Fall evenings are perfect for outdoor gatherings, and the right lighting can enhance the ambiance. Considering various types of accent lighting to create a cozy atmosphere. String lights are very popular, as you can drape them along a pergola or wrap them around tree trunks in your backyard. As the sun sets, these lights create a magical atmosphere, casting a warm and inviting glow over your outdoor seating area. It’s like having your own private outdoor bistro.

These days, smart outdoor lighting systems can be controlled via a mobile app or by motion, offering unparalleled convenience. Some come with adjustable brightness, color, and timing with a simple tap on your phone, allowing you to set the perfect mood for different occasions while saving on energy.

It’s crucial to maintain outdoor lighting if you want it to last long. Make it a point to regularly inspect and clean your lighting fixtures to ensure they remain in good working condition. It’s also recommended to use weather-resistant lighting solutions, and, if applicable, storing delicate string lights during harsh winter conditions to prolong their lifespan.

9. Pergolas for shelter and warmth

To maximize the functionality of your outdoor space during the fall, adding a pergola is a game-changer. Imagine hosting a fall gathering under a stylish pergola. As the leaves start to fall and the air gets crisper, your guests remain warm and comfortable beneath this elegant structure. It provides shelter from unpredictable weather factors while also creating a cozy and inviting atmosphere. This structural addition extends the usability of your backyard throughout the changing seasons. The pergola acts as a visual focal point while also serving as a functional, stylish retreat for you and your guests.

When considering a pergola, think about materials you’d want to use. Wooden pergolas can add a touch of rustic charm to your backyard. However, maintenance can be a bit more involved. Alternatively, there are low-maintenance vinyl or metal pergolas that offer durability and require less upkeep. Regularly inspect your pergola for any signs of wear and tear. Make it a point to clean and seal your wooden pergola to protect it from the elements. For metal or vinyl pergolas, a quick wash to remove dirt and debris should do the trick. Adding weather-resistant outdoor curtains can also enhance the cozy atmosphere and extend your pergola’s lifespan.

10. A DIY fire pit

When it comes to creating an inviting outdoor retreat for the fall season, a DIY fire pit is a must-have feature. It’s a place where people can gather to stay warm, share stories, and enjoy the outdoors. Whether you want to roast marshmallows, sip hot cocoa, or just bask in the warmth of the flames, a well-designed fire pit can transform your backyard into a retreat.

While planning your DIY fire pit, there are several factors to consider. You can choose between wood-burning, propane, or natural gas fire pits, each with its own advantages. One might opt for a classic stone fire pit, a modern steel design, or even repurpose an old washing machine drum – the possibilities are endless.

Safety is paramount, so ensure the fire pit is well-ventilated and located a safe distance from your home and other structures. Research local regulations and your HOA community rules, as they might have specific guidelines for outdoor fire features.

To keep your DIY fire pit looking its best, make sure to clean out ashes regularly, remove any debris, and store firewood in a dry place. For propane or natural gas fire pits, inspect the fuel lines and connections to ensure everything is in working order. Additionally, consider investing in a weather-resistant cover to protect your fire pit when not in use, extending its lifespan for seasons to come.

11. Comfy outdoor seating

When it comes to creating a comfortable outdoor seating area for your backyard retreat, especially around a fire pit, there are several factors to consider. Here’s some advice on making the most of your comfy outdoor seating:

Choose weather-resistant furniture: Opt for outdoor furniture designed to withstand the elements. Look for materials like aluminum, teak, or high-quality resin wicker, as they are durable and weather-resistant.

Invest in quality cushions: The key to comfortable outdoor seating is high-quality cushions. Select cushions made from weather-resistant materials designed to repel moisture. Quick-drying foam or polyester fill cushions with removable, machine-washable covers are excellent options.

Consider fire pit proximity: When arranging your seating, ensure that it’s positioned at a safe and comfortable distance from the fire pit. This provides a cozy atmosphere without feeling overwhelmed by the heat. Ensure that the seating arrangement allows easy access to the fire pit for roasting marshmallows or staying warm.

Versatility and flexibility: Opt for seating that offers versatility. Modular or sectional pieces can be rearranged to suit different gatherings and occasions. Consider lightweight chairs or benches that can be moved easily if you want to shift the focus away from the fire pit temporarily.

Shelter and accessories: Depending on your climate, you might want to consider adding a pergola or outdoor umbrella to provide shelter from the elements. Cozy throws, blankets, and outdoor pillows can add extra comfort and style to your seating area.

Maintenance: Regularly maintain your outdoor seating by cleaning cushions and furniture as recommended by the manufacturer. Th

15 Halloween Scents to Bring in the Spooky Spirit

Wed, 08 Oct 2025 18:00:05 +0000

As the leaves begin the change color and the days grow shorter, the aroma of Halloween starts to fill the air, setting the perfect backdrop for the season of spooks and thrills. From warm, spicy fragrances that evoke cozy gatherings to mysterious, earthy scents that transport you to haunted woods, these 15 Halloween scents will ignite your senses and elevate your festive spirit.

Whether you’re hosting a ghoulish gathering in your apartment in Annapolis, MD, or curling up with a good horror novel in your house in Harrisburg, PA, these captivating aromas will create an atmosphere that’s both haunting and inviting, making your Halloween experience unforgettable.

1. Smoky vetiver, earthy patchouli, and rich oud

Smoky vetiver, earthy patchouli, and rich oud are distinct fragrance notes known for their deep, woody, and musky aromas. Combined, they create a dark, alluring scent perfect for Halloween scents.

“My favorite Halloween scent is a blend of smoky vetiver, earthy patchouli, and rich oud, reminiscent of crisp autumn air and the lingering smell of campfires,” shares Casa dell’Unknown. “It evokes the feeling of gathering around the fire under a canopy of stars as the leaves crunch beneath your feet. The deep, smoky notes capture the essence of fall’s mystery and warmth.”

2. Smoke and leather

Smoke and leather are bold, rugged fragrance notes that evoke a sense of warmth and mystery. Together, they create a rich, smoky aroma with a hint of earthy sophistication.

The Sojourn Company says, “Our favorite scent during Halloween has to be the smoky, rustic, and spooky blend of smoke and leather. The wood smoke and worn leather notes transport you to cozy autumn nights by the bonfire. This scent perfectly captures the essence of fall — it’s like wrapping yourself in flannel while you pop on your favorite Halloween horror flick.”

3. Patchouli

Patchouli is an earthy, musky-scented essential oil derived from the leaves of the patchouli plant, commonly used in perfumes, incense, and aromatherapy for its rich aroma.

“When I think of Halloween, the rich earthy scent of patchouli comes to mind,” states Clayton of Candle Crowd. “The aroma reminds me of witches’ brews, smoky bonfires, and the thrill of a spooky adventure.”

4. Woodlands-based Halloween scents

Woodlands fragrances evoke the fresh, earthy scent of a forest, with notes of pine, moss, and damp wood.

“My favorite scent during the Halloween season is Woodlands, with its smoky teakwood, pepper, and warm allspice notes. It evokes the mystery of autumn nights and the earthy, spicy aromas of the season. This scent always reminds me of bonfires and crisp fall evenings, making it perfect for Halloween,” notes Deloyce of Mahogany Brown Candle Co.

5. Smoky embers

Smoky embers fragrances carry the scent of smoldering firewood, evoking warmth and the aroma of a campfire.

“Our favorite scent for the Halloween season is of smoky embers because it creates an atmosphere of coziness, mystery, and reminiscence, feelings we associate with fall,” remarks Bittersweet Candle Co. “It can remind us of roasting marshmallows, fun nights around a fire pit with friends, or warm, relaxing evenings by the wood stove. It blends well with many other notes and adds a unique depth to candles.”

6. Oak and honey bourbon

Oak and honey bourbon fragrances combine the rich, woody aroma of aged oak barrels with the sweet, warm notes of honey and bourbon.

One might gravitate to all things pumpkin and cinnamon, but we’re reaching for warm and woodsy with our top picks. Oak and honey bourbon, infused with leather, midnight orchid, and stave oak make for the perfect potion brewing in our cauldron,” raves Lindsay of Von Wieting Co.

7. Pumpkin

Pumpkin is a warm and inviting scent, often associated with the cozy ambiance of fall. Its rich, sweet notes evoke nostalgia for autumn festivities, making it a perfect addition to seasonal home fragrances.

Celestial Infusions remarks, “Our favorite scent for the Halloween season has to be pumpkin. Its warm, spicy aroma evokes memories of freshly baked cookies, cakes, and seasonal drinks, setting the perfect mood for the festive months ahead.”

Pumpkin crunch

“Nothing says fall like our pumpkin crunch candle. The sweet warm aroma fills the air, welcoming the fall season. The fall season being our time to shine, the whole of Nashville comes alive like few others can,” states Rich of Twisted Wick Candle Company based in Nashville, IN.

Pumpkin pie

“Celebrate Halloween with the warmth of spiced pumpkin pie. Perfect for setting a cozy and festive ambiance during the spooky season,” says Stone Candles.

Pumpkin spice latte

“Our favorite scent for the season is pumpkin spice latte,” shares Forever Wick Candle. “There’s something about the warm blend of cinnamon, nutmeg, and clove with a hint of creamy vanilla that transports you to cozy fall nights, pumpkin patches, and the magic of Halloween.”

8. Orange peel and redwood

Orange peel and redwood combine vibrant citrus notes with the earthy richness of wood, creating a refreshing yet grounded Halloween scent.

Grace Hendricks of Rust & Wicks states, “I love making handcrafted candles because it allows me to create scented soy candles like orange peel and redwood, which perfectly capture the essence of the fall. The fresh citrus mixed with peppercorn and earthy evergreen notes reminds me of crisp autumn air, Halloween nights, and the warm, cozy feeling that comes with the season.”

9. Vanilla birch

Vanilla birch features the warm, sweet aroma of vanilla intertwined with the crisp, woody notes of birch, making it a classic among Halloween scents.

“Vanilla birch is the perfect scent to get me in the Halloween spirit,” remarks Happy Scents. “The earthiness from the birch and the sweetness from the vanilla transports me to a cool evening outdoors, trick or treating with friends and family.”

10. Cinnamon and leaves

Cinnamon and leaves combine the warm, spicy scent of cinnamon with the crisp, earthy aroma of fallen leaves.

“Cinnamon and leaves is the perfect way to evoke the nostalgic spirit of Halloween. Its comforting aroma, reminiscent of walking through crunchy leaves on a crisp autumn night, will transport you back to childhood memories of trick-or-treating and spooky stories,” notes Michelle of Abboo Candle Co.

11. Cinnamon and clove Halloween scents

Cinnamon and clove have rich, aromatic notes that remind of freshly baked treats and the crackle of a glowing fire.

“This rich, spicy blend transports me back to childhood nights spent near the fireplace, where the air was filled with the warmth of mulled cider and the delightful anticipation of trick-or-treating,” shares Vaishali of DolCasa. “The scent encompasses everything magical about Halloween: it invites thoughts of cozy gatherings with friends and family, the crisp autumn air, and the sweet thrill of ghost stories shared under the stars.”

Photo courtesy of DolCasa

12. Chai

Does Landscaping Increase Home Value? Here’s What You Should Know

Wed, 08 Oct 2025 13:01:45 +0000

If you’re thinking about selling your home or just want to boost its curb appeal, you’re probably wondering: Does landscaping increase home value? The short answer is yes, it can. In fact, the American Society of Landscape Architects (ASLA) estimates that investing in landscaping can boost a home’s value by as much as 15% to 20%.

But like most home improvement projects, the impact depends on what you do, how well you do it, and what buyers in your area are actually looking for.

Whether you’re looking to upgrade your landscaping in Portland, OR or Denver, CO we’ll break it down so you can decide what’s worth the effort (and the investment).

Table of contents

Does landscaping increase home value?

Why landscaping matters to homebuyers

Landscaping projects that add value

Factors that increase the value of landscaping

What to avoid when refreshing your landscaping

Budget-friendly landscaping upgrades

Should you go pro or DIY?

Smart landscaping is a win for homeowners and buyers

Does landscaping increase home value?

Your first instinct might be to check how much your home is worth if you’re in the process of selling or just considering small upgrades to boost its resale value. While that’s a great starting point, it’s important to make sure your home is in tip top condition first—because even small updates can have a big impact on its value.

Landscaping might not be the first thing that comes to mind when you think about boosting home value, but it can make a surprisingly big impact. The American Society of Landscape Architects estimates that quality landscaping can add anywhere from 15% to 20% to your home’s overall value.

Not sure which home improvement projects add the most value? We’ll start with one of the most popular upgrades: landscaping. It not only enhances curb appeal but also offers a strong return on investment (ROI).

Why landscaping matters to homebuyers

First impressions count. For buyers, that impression usually starts at the curb—and yes, we’re talking about your landscaping. As appraiser Spencer W. Webb of A-Tech Appraisal advises, “Curb appeal creates a strong first impression. Focus on landscaping, exterior paint, and a clean, welcoming entry.”

Well-maintained landscaping sends a strong signal that the home is cared for. On the other hand, overgrown shrubs or patchy lawns can raise concerns about the overall condition of the property before buyers even step through the door so it is important to stay on top of your yard.

Landscaping projects that add value

Not all yard upgrades are created equal. Based on Angi recommendations, here are the projects that deliver the biggest impact and ROI:

Improvement type Why it adds value How much value

Healthy, manicured lawn Makes a strong first impression; shows consistent care; appeals to buyers looking for move-in-ready outdoor spaces 217% ROI on maintenance; reseeding costs $400–$1,600

Upgraded front walkway Enhances visual entry; uses attractive materials like flagstone; inexpensive yet high impact 100% ROI; material cost ~$2–$6/sq. ft.

Planting trees Adds privacy, energy savings, shade, and visual interest; mature trees are highly valued Increases value by $1,000–$10,000 per tree

Landscape lighting Adds ambiance and usability at night; increases curb appeal and safety Adds ~$2,500 in value; 59% ROI

Deck or patio Expands usable living space; considered a high-ROI hardscaping upgrade Deck: 89% ROI; Patio: 95% ROI

“When it comes to landscaping and enhancing your home’s value, my 25 years in the business have shown that the most cost-effective approach is to choose perennials that return each year,” says Bryan Clayton, CEO of GreenPal. “Plants like Lantana or ornamental grasses are excellent examples.”

Factors that increase the value of landscaping

Size and design: A layout that fits your yard and complements your home makes a big difference. Balanced plantings, clear paths, and usable outdoor spaces really boost curb appeal.

Quality: Mature trees, healthy plants, and good materials like stone or pavers show the landscaping was done right. Buyers pick up on that quality instantly.

Maintenance: A yard that’s easy to care for — without looking empty — is a big plus. Think low-maintenance plants, a neat lawn, and clean edges. It should look cared for, not like a lot of work.

What to avoid when refreshing your landscaping

Too much personalization: “I would steer away from water features and things like toes or Zen gardens. They tend to be high-ticket items, and most homebuyers don’t value them as much as the person purchasing them might.” says Bryan.

Overdoing it: Landscaping should complement your home, not compete with it. Clean, simple, and well-maintained usually wins.

Artificial grass: It might seem like a low-maintenance win, but some buyers see it as a negative. It can get hot, doesn’t always look natural up close, and isn’t the most eco-friendly choice.

Seasonal plants: Try not to rely only on plants that shine for a month or two. Go for greenery that looks good year-round so your yard stays inviting no matter the season.

Budget-friendly landscaping upgrades

Buyers tend to prefer low-maintenance landscaping that looks neat and well cared for. If you don’t have a huge budget, don’t worry — even small improvements can make a big difference:

Choose native plants: They’re easier to care for and thrive with less water.

Swap annuals for perennials: Plant once, enjoy for years.

Skip the grass:Try ground cover, gravel, or mulch for a no-mow yard.

Add mulch: It keeps weeds down and gives everything a fresh look.

Use drip irrigation: A set-it-and-forget-it way to keep plants happy.

Go drought-tolerant:Less water, less work, still beautiful.

Pick easy shrubs and grasses: Think evergreens and ornamental grasses that look good year-round.

Keep edges clean: Defined beds and tidy walkways make a big difference.

Should you go pro or DIY?

When it comes to landscaping your home to increase its value, deciding whether to tackle the project yourself or hire a professional can feel overwhelming. Both options have their perks, but if you don’t know where to start, understanding the benefits of each approach can help you make the best choice for your budget, timeline, and vision.

Here’s a quick comparison from Nicolock that breaks down what it would be like to DIY or hire a professional, depending on your area of concern.

Category DIY Hiring a professional

Design control Full creative freedom to design as you envision. Expert guidance ensures design meets aesthetic and functional standards.

Cost Allocate more funds towards materials and features like fire pits or outdoor kitchens. Professional fees may limit budget for additional features.

Skill level Gain hands-on experience and a deeper understanding of landscape design principles. Benefit from professional expertise and quality assurance.

Time commitment Requires significant personal time investment. Professionals manage the project efficiently, saving your time.

Material access Limited to retail materials; may not have access to premium resources. Access to high-quality materials and industry connections.

Risk Management Higher potential for mistakes; may lead to costly corrections. Professionals ensure compliance with codes and standards, reducing risk.

Smart landscaping is a win for homeowners and buyers

So, does landscaping increase home value? Absolutely — especially when it’s well-planned and maintained. Whether you’re prepping to sell or just want to take more pride in your yard, thoughtful landscaping can pay off big time, both financially and emotionally.

It doesn’t have to be over-the-top or expensive. Just start with the basics: keep things neat, healthy, and welcoming. Your home (and your future buyer) will thank you.

The post Does Landscaping Increase Home Value? Here’s What You Should Know appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Reporting a Home Sale On Your Tax Return: What You Need To Know

Tue, 07 Oct 2025 14:37:00 +0000

Key Takeaways

Not every homeowner has to report a sale on their tax return, but if you receive Form 1099-S or your gain exceeds IRS limits, reporting is required.

The ownership and use tests determine whether you can exclude up to $250,000 ($500,000 for joint filers) in profit from your taxes.

Special situations like divorce, death, or relocation may still allow you to claim a full or partial exclusion.

Detailed records of purchase price, improvements, and closing costs are essential for accurate reporting and avoiding penalties.

Selling a home is a major life event. While most of the focus tends to be on moving logistics, closing paperwork, and finding your next home, many sellers are left asking: “Do you have to report the sale of a home on your tax return?”

The answer isn’t a simple yes or no. In many cases, especially if you lived in the home as your primary residence for years, you may not owe any taxes or need to report the sale. But in other cases — such as when you make a significant profit, don’t meet the IRS’s residency rules, or receive a Form 1099-S — you’ll need to report the sale.

This Redfin real estate article breaks down the tax rules surrounding home sales, from when you must report to how exclusions work, with examples and guidance for unique circumstances.

When you must report the sale of your home

You are only required to report the sale of your home on your federal tax return in certain situations. Let’s explore them in detail:

1. You received Form 1099-S

At closing, the settlement agent may issue Form 1099-S, Proceeds from Real Estate Transactions.The IRS also receives a copy, which means they’ll expect to see this transaction on your return. If you fail to report it, you could trigger an IRS notice or audit.

Example: If you sold your home for $450,000 and received a 1099-S, but your gain is fully excludable, you still must file the form to explain why no tax is owed.

2. Your capital gain exceeds the exclusion

Another situation arises if your capital gain exceeds the exclusion limit: The IRS capital gain exclusion is $250,000 for single filers and $500,000 for married couples filing jointly. Any gain above that amount must be reported as taxable income.

Example: You purchased a home for $200,000, spent $50,000 on renovations, and later sold it for $600,000. Your gain is $350,000. If you’re single, $250,000 is excluded, but the remaining $100,000 is taxable and must be reported.

3. You don’t qualify for the exclusion

If you fail the ownership and use tests, you cannot claim the exclusion. Common reasons include selling too soon after buying or using the home primarily as a rental property.

Example: You bought a condo as an investment, lived in it for only six months, and then sold it. Because you don’t meet the two-year residency rule, your entire gain is taxable.

4. You choose not to claim the exclusion

Sometimes homeowners strategically delay claiming the exclusion to save it for a larger gain on another property. If you do this, the sale must be reported, even if you technically qualify for the exclusion.

How to qualify for the gain exclusion

The IRS allows homeowners to exclude part or all of their capital gain if they meet certain criteria. This is often referred to as the ownership and use test. The ownership test requires that you have owned the home for at least two of the five years leading up to the sale.

The use test requires that you lived in the home as your primary residence for at least two of those same five years, though the years do not need to be consecutive. Additionally, you cannot have excluded gain on the sale of another home within the two years prior to the current sale. These criteria may sound strict, but they provide a clear framework that benefits long-term homeowners.

Special circumstances allowing flexibility

Sometimes life doesn’t fit neatly into IRS timelines. You may still qualify for a full or partial exclusion if you sold due to:

Divorce or separation: If a divorce decree transfers the home to one spouse, ownership time from the other spouse still counts.

Death of a spouse: The surviving spouse can often claim the full $500,000 exclusion if the sale occurs within two years.

Military service or official extended duty: Active-duty members may suspend the five-year test period for ownership and use for up to ten years during any period served on “qualified official extended duty”.

Partial capital gains exclusion

Partial exclusions apply in situations where life events force you to sell sooner than planned. For example, if you relocated for a job more than fifty miles away, needed to move for health-related reasons, or experienced major family changes such as divorce, the IRS may allow you to exclude part of your gain even if you didn’t live in the home for the full two years.

Example: Suppose you lived in your house for only one year before relocating for a new job. The IRS might grant you half the exclusion, up to $125,000 for single filers or $250,000 for joint filers.

Selling multiple homes

It’s also important to remember that exclusions apply only to your main home. If you own multiple properties, such as a vacation home or rental, the gain from selling those properties is fully taxable.

The IRS determines your primary residence based on where you live most of the time, where your mail is delivered, and even where you are registered to vote. For example, selling your main home and a vacation lake cabin in the same year means only the main home can qualify for the exclusion; the cabin’s profit must be reported and taxed.

Mortgage debt and foreclosure

Complications also arise when mortgage debt is involved. If part of your mortgage was forgiven or canceled — whether through a foreclosure, short sale, or loan modification — the forgiven amount may be considered taxable income. While certain laws, such as the Mortgage Forgiveness Debt Relief Act, provide exceptions, not every case qualifies.

Example: If $50,000 of your mortgage is forgiven in a short sale, you may need to report that as income unless excluded by law.

How to report the sale on your tax return

When you do need to report a sale, the process involves using Form 8949 and Schedule D. On Form 8949, you’ll record the details of the sale, including the purchase price, selling price, and improvements made. Schedule D summarizes your capital gains and losses for the year. To do this accurately, you must gather relevant information:

Information you’ll need

Original purchase price (from your settlement documents).

Selling expenses (agent commissions, closing costs).

Capital improvements (renovations, new roof, kitchen remodel).

Tip: Keep receipts and contracts for every home improvement. Without proof, you can’t adjust your cost basis.

How to avoid receiving a form 1099-S

If your sale qualifies for a full exclusion, your closing agent doesn’t have to issue Form 1099-S if you provide certification stating that:

The home was your primary residence. This means you lived in the property as your main home for at least two of the last five years leading up to the sale. The IRS typically defines “primary residence” as the place where you spend most of your time, receive mail, and are registered to vote, so it’s important to be able to prove this if questioned.

The sale price was $250,000 or less ($500,000 for joint filers). Staying under this threshold ensures that any potential gain can fall within the IRS exclusion limits. Even if you invested in improvements that boosted your profit, as long as your final sale price fits within these limits and you qualify otherwise, you likely won’t need to report the sale.

The entire gain is excludable. This means your profit does not exceed the maximum amount allowed by the IRS for single or joint filers. When the gain is fully excludable, there’s no taxable portion left to report, which streamlines your return and reduces the likelihood of triggering IRS scrutiny.

This prevents the IRS from expecting the sale to appear on your return in the first place. However, if the sale exceeds these limits, the form will almost always be issued.

Do an IRS section 1031 exchange

For investment properties rather than primary residences, another option is the IRS Section 1031 exchange. This rule allows you to defer paying capital gains taxes if you reinvest the proceeds from the sale into another like-kind property of equal or greater value.

It’s a popular tool for real estate investors who want to keep building their portfolios without facing immediate tax liabilities. The rules are strict, however: you must identify a replacement property within forty-five days and close on it within one hundred eighty days, or the exchange fails.

How to calculate capital gains tax

Calculating capital gains tax may sound intimidating, but the formula is straightforward. Use the following steps to calculate your capital gain:

Cost basis = purchase price + improvements – depreciation

Proceeds = selling price – selling costs

Gain = proceeds – cost basis

Apply exclusions and tax rates

Example: If you bought a home for $250,000, invested $40,000 in renovations, sold it for $500,000, and paid $25,000 in selling expenses, your cost basis is $290,000, your proceeds are $475,000, and your gain is $185,000. As a single filer, this falls below the $250,000 exclusion limit, meaning no reporting is required.

Property and transfer taxes

Beyond federal capital gains, sellers must also consider local property taxes and transfer taxes. Property taxes are prorated, so you are only responsible for the portion of the year you owned the home. Once the sale closes, the buyer takes over.

Transfer taxes, on the other hand, are imposed by states or municipalities whenever property changes ownership. Rates vary widely. In some areas, transfer tax may be a flat fee, while in others, like New York City, it can range from 1% to over 1.4% of the sale price, adding thousands to your closing costs.

Keep detailed records for future reference

Maintaining thorough records protects you during an audit and ensures accurate reporting.

Keep copies of:

Settlement statements (HUD-1 or Closing Disclosure)

Receipts for renovations or repairs

Closing costs and real estate commissions

Mortgage payoff statements

Annual property tax bills

Tip: Create a digital folder with scanned receipts, photos of improvements, and closing documents.

FAQ’s about reporting a home sale on your tax return

What documents do I need for taxes if I sold a house?

At tax time, gather these documents to make accurately calculating your gain a breeze:

Form 1099-S (if issued)

Settlement statement showing sale price and costs

Proof of improvements (receipts, permits, contracts)

Mortgage statements showing payoff amounts

Property tax records

Does selling a house count as income for Social Security?

No. The money received from selling a house is not considered “earned income” and does not reduce Social Security benefits. However, capital gains may increase your adjusted gross income, which can affect how much of your Social Security is taxable. For retirees with large gains, this can push more of their benefits into the taxable range.

If you sell your house, do you have to pay taxes?

It depends on the size of your gain, whether you qualify for exclusions, and if the home was your main residence. In many cases, homeowners don’t owe taxes on the sale of their primary residence. But if you sold a rental, second home, or investment property, taxes are much more likely.

Do I pay taxes if I sell my house and buy another?

Not anymore, the IRS used to allow a “rollover” into a new property to avoid taxes, but this rule ended in 1997. Today, buying another home does not shield you from taxes. The only way to avoid paying is by qualifying for the ownership and use exclusion.

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Real Estate Investing News

What Does a Real Estate Agent Do? A Guide for Buyers and Sellers

Key takeaways

What does a real estate agent do?

What services do real estate agents provide?

What do buyer’s agents do?

What do listing agents do?

Real estate agent vs Realtor®

Real estate agent vs broker

FAQs about real estate agents

How do I find a real estate agent?

Who pays the real estate agent fees?

When am I obligated to work with a real estate agent?

Do I need a real estate agent?

What is a closing agent?

What does a commercial real estate agent do?

Should I Sell My House Now?

Key takeaways:

From Redfin’s Chief Economist

What sellers need to know about the housing market

Buyers are in charge, mostly

The economy is volatile

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

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

So, should you sell your house now?

Should I Rent or Buy a House? What to Consider When Renting vs. Buying a Home

Key takeaways

Renting vs. buying: pros and cons

5 pros of renting a house

5 cons of renting a house

5 pros of buying a house

5 cons of buying a house

Should I rent or buy a house? 4 questions to ask yourself

Is it better to rent or buy a house?

Is Now a Good Time to Buy a House?

Key takeaways:

From Redfin’s Chief Economist

What buyers need to know about the housing market

House prices are high and could rise further

Mortgage rates are down

How mortgage rates affect housing costs

Buyers have the upper hand

Inventory is at a five-year high

Demand is near an all-time low

Inflation could rise

How to buy in an uncertain economy

Personal considerations: Are you ready to buy and own a house?

Financial health

In this article:

Why do insurers usually require a home inspection?

Assessing risk based on age and condition

Identifying potential safety hazards

Determining insurance eligibility and premiums

When insurance companies don’t require an inspection

The home is new or recently renovated

The home is lower in value

The property is low risk

There has been a recent inspection

Using digital, remote, or delayed inspections

What to expect from a home insurance inspection

What home insurance companies are looking for:

How to get homeowners insurance without an inspection

Be upfront with basic home details

Shop online or call insurers offering instant coverage

Ask about conditional coverage policies

Tips for passing an insurance inspection

FAQs: Home insurance inspections

What are phase inspections for new construction homes?

What are phase inspections?

What are the phases in a new construction phase inspection?

How much does a phase inspection cost?

When to schedule each inspection

What inspectors look for during each phase

Pre-pour foundation phase

Pre-drywall framing phase

Final completion phase

One-year warranty phase

How to use phase inspections during construction

1. Coordinate with your builder early

2. Include inspection contingencies in your contract