If you’ve been thinking about buying a house, you’ve probably heard that there aren’t that many homes for sale. And if you’ve been actively looking, chances are you can confirm that firsthand. Browsing listings often feels like looking for a needle in a haystack. You find a home you like, and before you can even schedule a showing, it’s already under contract.

If you’ve been following the market, you may have also heard that one solution to the housing shortage is for builders to put more new homes on the market. After all, it makes sense—if there’s not enough to go around, why not make more?

So here’s where things might start to feel confusing. Recent news headlines paint two very different pictures.

On one hand, an article from Fast Company points out that builders currently have the highest number of unsold new homes since 2009. That seems like a surplus, right? Surely that should ease the pressure on the market. But on the other hand, MSN recently reported that a lack of inventory, not rising interest rates, is the single biggest obstacle facing buyers.

It’s a bit of a head-scratcher: are there too many homes on the market, or not enough? And more importantly, how does it all affect you as a potential buyer?

If you’re feeling a bit perplexed by these seemingly contradictory headlines, you’re not alone. Real estate is complicated, and national news doesn’t always make it easier to get a clear picture.
The reality is, both statements can be true at the same time. It’s not as simple as one or the other.

Builders do have a lot of new homes sitting unsold. But the total number of new homes on the market is still a relatively small fraction of the overall housing inventory. At the same time, the existing home market is tight, with many homeowners hesitant to sell due to higher interest rates. Together, these factors create a market that can feel like feast or famine depending on where you’re looking.

Confused? That’s okay. The good news is, the housing market isn’t as hopeless as it might seem. It just requires a closer look.

Why Local Markets May Tell a Different Story

The first thing to know about the real estate market is that it’s not just local, it’s hyperlocal. National headlines give us big-picture trends, but what’s happening in your local market might tell a completely different story. For example, a rural, relatively undeveloped area experiencing a building boom may have a high number of unsold new homes. But a more developed neighboring town could be struggling with record-low inventory levels.

According to the National Association of Realtors, 4.38 million homes were sold in 2024. But according to Barron’s, approximately 683,000 of those sales were new homes—that’s about 16% of the total sales. Yes, new home inventory is high relative to recent years, but it’s still just a drop in the bucket compared to the overall market.

For buyers, this means that the availability of homes depends largely on where you’re looking and what kind of home you’re seeking. If you’re in a market where builders have overbuilt, you might find better opportunities to negotiate or score incentives like price reductions, upgrades, or assistance with closing costs. On the other hand, if you’re in a market with little new construction, the competition could be fierce for existing homes, especially in popular price ranges.

Another factor to consider is timing. Builders aren’t just sitting on these homes for fun. They’re anticipating a strong spring market in 2025, which means they’re likely to hold out for better prices rather than sell at a steep discount now. So while there might be more opportunities in certain markets, buyers should still act quickly and strategically.

How to Make Sense of Your Local Market

So what does all of this mean for you? First, it’s important to take a step back from the headlines and get a realistic picture of your local market. That’s where a real estate agent comes in. A knowledgeable agent can help you:

• Understand whether your area has a surplus of new homes, a shortage of homes overall, or something in between.
• Identify which price ranges are experiencing the most competition and which offer more opportunities.
• Spot potential deals on new homes in markets where builders are eager to sell.

If you’re in a market with a lot of unsold new homes, you might be in a great position to find a deal—but that doesn’t mean you should wait. Builders are betting on a strong spring market, so the incentives you see now might not be around in a few months.

If, on the other hand, you’re in a market where inventory is tight, it’s even more important to work with a local expert. They can help you navigate the challenges of competing with other buyers, whether that means finding off-market properties, crafting a strong offer, or simply understanding which neighborhoods offer the most value.

The Takeaway:

News headlines about the current real estate market seem to contradict each other. Some reports say there is more new home inventory on the market, which is supposed to help cut down on buyer competition and possibly lower prices. On the other hand, there are reports that there still isn’t enough inventory to satisfy demand!

While national trends are interesting (and confusing!), real estate always comes down to your local market and your specific situation.

If you’re considering buying a house, the best first step is to talk to a local real estate agent who knows the ins and outs of your area. They’ll be able to give you a clearer picture of what’s really going on and help you determine the best strategy for your home search. Whether you’re looking for a brand-new home with all the latest upgrades or hoping to find a hidden gem in a competitive market, the right guidance can make all the difference.

The post Too Many Homes for Sale, or Not Enough? Making Sense of Recent Headlines for Home Buyers appeared first on Lighter Side of Real Estate.

When it comes to home design, trends come and go faster than you can say “shiplap.” Every year, articles flood the internet with predictions from design experts and real estate professionals about what’s in and what’s out. One year, it’s all about farmhouse chic; the next, mid-century modern reigns supreme.

Let’s be real, though. Most people don’t pay much attention to any subtle shifts in decor. Who has the time or budget to spend on it year after year?!

But among all the shifting fads 2025 is predicted to bring about, a larger question has surfaced…

Is the dining room—an entire category of space—on the verge of extinction?

While jumping on the bandwagon of most home trends isn’t a big deal, hearing that the formal dining room is on its way out could have a major impact on your decision-making process if you’re a homeowner contemplating renovations or a prospective buyer weighing options in the coming year.

So, should you ditch your dining room? Maybe. Maybe not. The choice is yours, but it’s always better to make it with all the facts on the table—whether that table sits in a dining room or not.

What the Numbers Say (Or Don’t Say) About Dining Rooms

A recent article from the New York Post posed that very question, and while the article didn’t settle the debate one way or the other, they did suggest that they’re on the way out according to real estate experts:

There are a number of factors that would impact that percentage, but any real estate agent will tell you dining rooms are alive and well in more than one in four homes on the market. However, calling them a hot commodity might be a stretch.

The way people use their homes has evolved—a shift accelerated by the pandemic. Suddenly, dining rooms became home offices, classrooms, or workout spaces. For some, they’ve never gone back to their original purpose.

Yet, dining rooms aren’t universally unwanted. Just take a quick glance at the online comment section of that article in the Post and you’ll see that people are clearly divided. Some love dining rooms, some don’t, and others just want the option to customize the space. Many buyers still love the idea of a dedicated space for family meals or hosting holiday dinners, while others prefer an open floor plan where dining, living, and kitchen areas blend seamlessly.

Welcome to the world of real estate—where no single design choice pleases everyone.

Technically It’s Something You Can Change…

Real estate agents often advise buyers not to fixate on cosmetic elements that are easily changed about a house, like paint color, light fixtures, kitchen cabinets, or even the layout of a house if it can be renovated to their liking.

So, technically speaking, it’s a changeable feature, but remodeling to add or remove a dining room can be a major undertaking.

Why? Because dining rooms are often tied to the structural layout of a home. Removing one might mean tearing down walls, potentially load-bearing ones, and reworking the flow of adjoining spaces, and probably will entail renovating each of those rooms as well. Adding one could involve a similarly hefty renovation. Neither option is cheap or simple.

So, if you’re considering a renovation, the question isn’t just can you do it, but should you? Will the investment pay off when you sell? Or will it alienate buyers who might have preferred the space’s original use? Real estate is a delicate balancing act, and understanding your market is crucial.

The Risk of Going Rogue With Renovations

One of the biggest mistakes many homeowners make is diving into major renovations without consulting a local real estate agent. Agents have a finger on the pulse of buyer preferences in your area and can provide valuable insights. It’s common for sellers to find that they spent tens of thousands of dollars on a project that didn’t produce a positive return on their investment—or worse, makes their home more difficult to sell.

For example, if most buyers in your market value traditional dining rooms, converting yours into an open concept kitchen / family room area might not go over well. On the flip side, if dining rooms are considered outdated in your area, adding one might not add as much value as you’d hope. The key is to align your renovation plans with what buyers are looking for in your price range and neighborhood.

If you’re planning to stay in your home for years to come, the decision isn’t as critical. Renovate in a way that suits your lifestyle and makes your home more enjoyable for your family. After all, you should enjoy where you live!

However, if there’s a chance you’ll sell in the near future, your choices might need to reflect broader market trends. This is where your agent’s expertise becomes invaluable. They can help you gauge whether buyers in your area prioritize dining rooms or if other features take precedence.

Before choosing to do major renovation, especially if you are altering the way the space is used, it never hurts to speak with your local agent—they can help you make a more informed decision than an article about the latest trends.

The Takeaway:

Are dining rooms becoming a thing of the past? For some, they’re still very much a room they want and expect in a home. For others, they’re a useless room they’d rather convert into something else. As with most real estate questions, the answer isn’t one-size-fits-all.

Before making any major changes to your home—especially those that alter how a space is used—consult a local real estate expert. They can provide the perspective you need to make informed decisions based upon your local area. Understanding what buyers value in your market can save you time, money, and headaches down the road.

The post Ditching the Dining Room: Trendy or a Total Mistake? appeared first on Lighter Side of Real Estate.

For many buyers, deciding what to offer on a home is one of the most nerve-wracking parts of the process. Buyers often find themselves wondering whether they should offer more or less than the asking price.

On one hand, buyers have always wanted to snag a home at the best possible price. Who wouldn’t love the satisfaction of getting a deal? On the other hand, in recent years, many buyers have grown accustomed to bidding wars and offering above asking price just to secure a property. It’s a tricky dance between those two instincts—saving money and winning the house—and it leaves many wondering: How much should I really offer?

Whichever camp you’re in, it’d be nice to have some cut and dry guidance on when you can come in lower, when you have to offer more than asking, and even some insight into how much above or below asking you should come in with your offer.

For instance, while this recent Realtor.com article about whether to offer below or above asking price might sound promising, unfortunately it isn’t the hard and fast answer you may be looking for. The advice basically boils down to:

• If it’s a buyer’s market or the house has been on the market a long time, you can offer less than the asking price.
• If it’s a seller’s market or a brand new listing, you’ll probably need to offer more than the asking price.
• Either way, there’s no absolute answer to what you should do because it depends upon a lot of factors.
• Ask your agent for help figuring out what to offer given your specific market, and the house you’re about to make an offer on.

All of that is true, but it doesn’t really provide the answer you may be looking for. That’s because there is no absolute answer.

While you should certainly listen to your agent’s insight and advice, it’s ultimately your decision how much to offer for a house. That’s why the best strategy is to find your “regret-free” number—the price that leaves you confident no matter what the outcome.

What Is a Regret-Free Number?

Your regret-free number is the amount you’re comfortable with in every possible scenario. It’s a price you won’t second-guess if the seller rejects your offer, and one you won’t regret if the seller accepts it. Achieving this balance requires careful thought and preparation.

Think of it this way: If the seller rejects your offer, will you wish you had offered more? If so, you haven’t hit your number yet. On the other hand, if the seller accepts your offer, will you feel uneasy about paying too much? That’s a sign you’ve gone too high. Your regret-free number sits in that sweet spot where you can confidently move forward, regardless of the seller’s response.

Tips for Determining Your Regret-Free Number

It’s easy to get swept up in the excitement (or frenzy) when you find a house you want to buy. Emotions can easily override logic, especially if you find yourself in a bidding war. But whether there is stiff competition or not, the amount you are willing to pay for the house should be determined by you, not by how many other buyers are making offers, or how much the seller wants.

Whether your final offer is above or below asking, determining your regret-free number for any particular house takes preparation, research, and a clear understanding of your financial limits. Here are some steps to guide you:

1. Study the Market: Work with your agent to review comparable sales in the area. These comps give you an idea of what similar homes have sold for recently, helping you assess whether the asking price is fair. While many buyers wait until they are about to make an offer to review “comps” (and some never do!), you should begin reviewing sales data with your agent early on in your home search to get a feel for market values. This will help you make a much more informed decision than other buyers who are just reviewing sales data as they’re about to make an offer.
2. Consider How Long You Plan to Stay In the Home. If this is your forever home, you might be willing to stretch your budget slightly for the perfect fit. However, if you think you’ll move again in a few years, it’s wise to stay within a more conservative range to ensure you don’t overpay relative to market trends.
3. Know Your Limits: A mortgage pre-approval may say that you can technically afford the payments, but only you can determine if you can do so comfortably each month. Calculate how much you can comfortably afford, not just in terms of the purchase price but also monthly payments, closing costs, and future expenses.

Deciding how much to offer on a home doesn’t have to be overwhelming. By focusing on your regret-free number—the amount you can commit to without second-guessing—you can approach the process with clarity and confidence. Do your homework, rely on your agent’s expertise, and stay grounded in both your financial and emotional priorities. At the end of the day, the right number isn’t just one that secures the house—it’s one that leaves you feeling at peace with your decision.

Partner with an agent who truly understands the local market. From the earliest stages of your search, they can educate you on property values and market trends, giving you the knowledge you need to make informed decisions. By preparing ahead of time, you’ll be able to approach offers with confidence—whether it means going above, below, or right at the asking price. The more you know upfront, the easier it becomes to navigate the process and find your regret-free number.

The Takeaway:

Deciding how much to offer on a home can feel daunting, but it doesn’t have to be. By understanding the market, doing your research, and setting a regret-free number, you can approach the process with confidence. Work closely with your agent, stay focused on your priorities, and remember that the goal isn’t to get the “perfect” deal—it’s to find a home you love at a price you’re comfortable with. When you do that, you’ll know you made the right decision.

The post How Much Should You Offer on a Home? Finding Your Regret-Free Number appeared first on Lighter Side of Real Estate.

For many first-time buyers, saving for a down payment feels like an impossible hurdle. That’s not surprising, considering many people still believe that you need 20% of the purchase price saved up to even qualify for a loan.

The truth is, you don’t need 20% down to buy a home. Many loan options exist that allow for much smaller down payments—10%, 5%, 3%, and even zero money down in some cases if you qualify. In fact, according to The Mortgage Reports, the median down payment for first-time home buyers was just 9% in 2024.

Despite the availability of low down payment options, the 20% myth persists for a reason: it was once the gold standard. And while there are advantages to putting 20% down—like avoiding private mortgage insurance (PMI)—it’s no longer the requirement many people think it is.

Even if they’re aware that there are lower down payment options, many potential buyers hesitate to take the leap into homeownership. The idea of saving thousands of dollars can be so intimidating that some people resign themselves to renting for the rest of their lives, and even rationalize that it’s the smarter choice.

While it might be daunting to save up a significant amount of money for a down payment, it might not be so painful if you look at it from a different point-of-view!

Rethinking the Down Payment

Let’s take a step back and think about what a down payment really represents. A down payment is your initial investment in a property—your “skin in the game,” so to speak. The great thing about real estate is that it’s one of the most accessible investments that provides significant leverage.

NYU professor and finance expert Scott Galloway explained this concept in a recent article. He points out how real estate is unique because it allows buyers to control an asset worth hundreds of thousands of dollars with just a fraction of that amount as an upfront investment.

Think about it this way: If you’re buying a $300,000 home, even a 5% down payment would be $15,000. That’s a big number, no doubt, but it’s a far cry from the $60,000 required for a 20% down payment. More importantly, that $15,000 gives you access to the full value of the home—not just $15,000 worth of it.

Compare that to other types of investments. As Galloway said in the article, you can’t buy $100 of Apple stock for $20. If you want to buy $15,000 worth of stocks—unless you get into trading risky and technical types of investments like options contracts and margin trading—you have to pony up the entire $15,000. On the other hand, real estate lets you leverage your investment in a way that few other asset classes can. And the benefits go beyond leverage.

It’s More Than an Investment—It’s a Home

Real estate is more than just an investment vehicle. It’s something everyone needs—a place to live. When you purchase a home, you’re not just building equity or benefiting from potential appreciation. You’re also securing your own space, locking in your housing costs (unlike rent, which tends to rise over time), and enjoying potential tax advantages.

These benefits are why many experts consider homeownership a cornerstone of building wealth. It’s an asset that serves multiple purposes: a roof over your head today and financial security for tomorrow.

Of course, like any investment, real estate does come with risks. Maintenance costs, market fluctuations, and the responsibility of managing a property are all factors to consider. But the long-term benefits of owning a home often outweigh these challenges.

Overcoming the “Too Complicated” Barrier

Perhaps for many people, the biggest obstacle to buying a home isn’t the down payment—it’s a mindset.

A recent article from CNBC highlighted a money bias called “complexity aversion.” Nearly 50% of Americans don’t own any investment assets, not because they can’t afford to, but because the process feels too overwhelming. While they were mainly talking about investing in the stock market, it could easily apply to many first-time buyers who feel like homeownership is too complicated and out of reach.

Of course it’s still a good idea to diversify and invest money in the stock market or other investment vehicles, but considering nearly half of people don’t, buying a home is a great way to invest in your future.

Buying a home might seem complicated, but it’s actually one of the most straightforward ways to start building wealth. Unless you never move out on your own, you’re going to have to pay to live somewhere, so it might as well be toward a mortgage that you’re paying down, and building up equity in a property you own.

And it can be even less complicated if you work with a knowledgeable lender and real estate agent…

If you’re still renting because you think you can’t afford a down payment, it’s time to take a closer look at your options. The first step is finding out how much you could be approved to borrow and how much of a down payment you’d need for different loan programs.

You might discover that you already have enough saved to make homeownership a reality. And if you’re not quite there yet, knowing your target can make the goal feel much more attainable.

So reach out to a local real estate agent and ask them for a list of lenders who specialize in first-time buyers. Together, they can help you explore options you may not even know exist, and will help make the process less complicated or intimidating than it may seem!

The Takeaway:

Saving for a down payment might feel like an uphill battle, but it’s one of the smartest financial moves you can make. A down payment is more than just an upfront cost—it’s the key to unlocking the full value of a home, thanks to the power of leverage. Even a small percentage of the purchase price gives you control over a significant asset, something few other investments can offer.

While it may take time and discipline to save, the benefits of homeownership—including equity, stability, and potential appreciation—make the effort worthwhile. Start by exploring your options with a trusted lender and real estate agent, and you may find that buying a home is closer to reality than you think.

The post First Home, Big Leverage: Why Your Down Payment Is a Better Bang for the Buck than Other Investments appeared first on Lighter Side of Real Estate.

If real estate agents earned a dollar every time they heard someone say, “I’m waiting until the new year to buy a house,” they wouldn’t retire rich, but it might be enough to fill up their gas tank…with premium!

They start hearing buyers say this just before the holidays, often from buyers who’ve spent months searching for their dream home. And the reasoning seems sound—December is hectic, inventory shrinks, and many hope for better options or lower rates in the new year.

However, there aren’t always drastic or noticeable changes to the real estate market the minute the confetti is cleaned up in Times Square on January 1st, which often leads to many home buyers following a similar pattern in the new year.

The Predictable Pattern of “New Year” Buyers

Here’s a prediction: many buyers who postponed their home search until the new year will follow a strikingly familiar arc to this in the coming months.

• They’ll begin the year excited and optimistic about buying a house in the coming year.
• In the first couple of months they’ll feel like the market hasn’t changed enough yet because rates haven’t dropped significantly or inventory hasn’t ballooned.
• They’ll feel like there’s plenty of time in a year and decide to wait until the spring market officially begins to get serious about looking for a house.
• Spring arrives, bringing more listings…but also more competition.
• They struggle to stand out in bidding wars, losing out to better-prepared buyers.
• They’ll decide to pause their house-hunting efforts for a little while and wait until competition dies down, or more houses hit the market.
• Summer will come and they’ll blame vacations for a lack of inventory, or their reason for not being able to look at houses.
• The holidays return, and they’re back to saying, “We’ll wait until next year.”

Sound familiar? If so, don’t feel bad, it’s a cycle agents witness many buyers go through each year. But the beginning of 2025 might hold a subtle, game-changing opportunity to help you avoid repeating it, while other buyers fail to recognize the opportunity at hand!

What Most Buyers Will Do (and Why You Shouldn’t)

According to recent Redfin data, the number of homes for sale has hit a four-year high, rising 12.1% year-over-year. Even more notable, over half (54.5%) of active listings have been on the market for at least 60 days without going under contract.

Many of these “stale” listings are sitting on the market because they were simply overpriced, which is a golden opportunity for buyers who get out there as soon as the new year begins and start making offers.

Properties that aren’t perfectly priced or move-in ready linger almost always linger on the market. But the fact that many buyers took some time off for the holidays adds to why there are more homes on the market and they’re taking longer to sell. And a house often loses even more appeal to buyers as it racks up more and more “days on market”. So a lot of the houses that are sitting on the market will easily be ignored by other buyers.

Many buyers will wait for new listings to come on the market in spring, or pounce on any new listings that come on before then if they’re priced right and/or in great condition. But they’ll just end up facing stiff competition from other buyers for those listings.

This makes the next month or two prime time to scoop up a house with less competition and possibly for a better price.

Instead of competing with a crowd, savvy buyers can take advantage of the quieter winter months to go after the homes that others are ignoring. It’s also the perfect time to consider homes that have been sitting on the market because the sellers are often more willing to accept offers below asking price or agree to favorable terms.

Your January 2025 Home-Buying Game Plan

Here’s how to make the most of these market conditions:

1. Ask your agent to search for homes that have been on the market for 60+ days, or whatever they feel constitutes “stale” in your market area.
2. Also ask if they can look for any properties that may be off-market currently, due to the holidays. Some sellers pull their listings in winter, intending to relist in spring. Have your agent reach out to the listing agents of home sellers that may have taken their homes off the market to see if they are still open to offers.
3. Be patient and don’t get discouraged. Even if you aren’t able to get a house under contract in the first few weeks of the year, stay focused and continue to remain active in the market. This will help you compete against other buyers who enter the market in the months to come.

The Takeaway:

When the holiday season rolls around, many buyers often put off looking for a home until after the new year. However, they often end up pushing that start date off until the spring market begins.

But you may want to start your search in January or February in order to avoid the competition that will surely increase in the spring market, as well as take advantage of the fact that there are currently more homes sitting on the market unsold than there have been in the past four years!

The post New Year, New House? Here’s Why You Shouldn’t Wait past February to Start Searching appeared first on Lighter Side of Real Estate.

Before the early 2000’s, you may have had a general idea about how much your house was worth at any given moment. But to get an accurate sense of it, you would’ve needed to ask a real estate professional to do some research, analyze it, and then give you their opinion.

However, even though most agents would provide it as a free service, it was still more effort than most people wanted to go through. Most people didn’t bother because it felt like too much effort, or they worried about wasting an agent’s time and being pestered with endless follow-up calls to list their home for sale. So, most homeowners relied on their gut, and the value of their home was just something they didn’t think much about on a regular basis unless they had a good reason.

That all changed in 2006 when Zillow introduced the Zestimate. Suddenly, anyone could get an instant valuation of their home with just a click. The Zestimate became an obsession for some—a real estate stock ticker tracking the “value” of their home. (Along with the homes of their neighbors, friends, enemies, coworkers, or even someone they just met at a party!)

If that sounds all too familiar to you, you may want to go back to the old way of doing things and rely more heavily on agents’ advice. Because according to this recent Business Insider article, Zestimates are screwing up the homebuying process…

Why Real Estate Agents Cringe at Zestimates

You know who doesn’t love Zestimates? Real estate agents.

And it’s not because they see it as a threat to their existence. Agents have been fighting the good fight for many years, trying to caution people about putting too much stock in what it says the value of their house is.

It’s because they’re quite often inaccurate. And agents have to deal with the fallout of misinformed homeowners when they present them with a researched (and realistic) valuation of their home.

Imagine spending hours researching and providing a carefully analyzed, realistic home valuation, only to have it dismissed because it doesn’t match the Zestimate. Agents are left in the awkward position of being the bearer of bad news, trying to explain that an algorithm doesn’t know the market as intimately as someone who lives and breathes it every day.

It gets worse when clients assume agents are undervaluing their home to make a quick sale or question their expertise altogether. That misplaced trust in a Zestimate can damage an agent’s credibility, sometimes driving clients to work with someone else who just agrees with the algorithm.

The Problem with Algorithms

At one point, Zillow got into the business of buying and flipping homes, but it didn’t end well. Their algorithm, which should have made it difficult for them to fail, couldn’t accurately predict the value of houses. The result? Zillow had to pull the plug on its home-buying program, lay off a quarter of its workforce, and watch its company valuation drop by billions.

Even Zillow acknowledges the limits of its Zestimate. Their website lists disclaimers about accuracy, but many people likely skip over them. According to their website, the nationwide average margin of error is 2.4% for homes on the market and a much larger 7.49% for off-market homes. For a $500,000 home, that 7.49% translates to nearly $40,000—a big difference.

One reason Zestimates are more accurate for on-market homes is that they pull in detailed information provided by real estate agents. Agents have typically helped sellers price their homes accurately from the start, which improves the algorithm’s estimate.

But for off-market homes, it’s a different story. Zillow’s data shows that its Zestimates are within 20% of the actual sales price most of the time. So for a $500,000 home, that’s a range between $400,000 and $600,000. A $100,000 swing is hardly the pinpoint precision homeowners think they’re getting.

To be fair, they aren’t the only platform providing this type of info. But they were the first one people became acquainted with, and it’s still one of the most recognized and utilized by consumers. But many real estate websites offer the ability to look up the value of your home using “automated valuation models.”

Regardless of which one you may find yourself using, just keep in mind that they probably aren’t as accurate as you may think, and it might be a good idea to poke around and find out how accurate they actually claim to be.

Trust a Pro Over a Program

At the end of the day, a home’s value isn’t determined by an algorithm. It’s determined by what a buyer is willing to pay. To get the clearest picture of what your home might sell for in today’s market, you need more than data. You need context.

A real estate professional brings more than just market knowledge. They bring experience, insight, and an eye for details that no algorithm can match. They’ve toured countless homes and can draw nuanced comparisons based on factors like location, condition, and current buyer demand.

So, if you’re curious about your home’s value, don’t hesitate to ask an agent for their opinion. Most would be happy to provide a market analysis, no strings attached. After all, they’d much rather you trust their expertise than rely on an algorithm that could steer you wrong.

The Takeaway:

Zestimates can be a fun starting point for estimating your home’s value, but they’re no substitute for the expertise of a real estate professional. Algorithms may crunch numbers, but they can’t account for the nuances of the market. Before you make decisions based on an automated valuation, reach out to an agent or appraiser for a more accurate and informed perspective. Your net worth deserves better than guesswork.

The post Why Online Valuations Like Zestimates Miss the Mark—and Why a Real Estate Agent Offers More Accuracy appeared first on Lighter Side of Real Estate.

We’ve all been there. Standing in a long line at a busy coffee shop, stomach rumbling as you wait for a table at a popular restaurant, or holding on the phone as elevator music plays endlessly. You glance at your watch, shift from foot to foot, and start to wonder if it’s worth the wait. The line inches forward, and you weigh your options.

Maybe you stick it out, thinking you’re already invested this far. Other times, you hit that breaking point, throw in the towel, and move on. Either way, there’s a strange satisfaction in making the choice—even if it’s just to leave and grab a sandwich somewhere else.

There’s something empowering about deciding enough is enough. No one likes waiting for the unknown, and we’re often torn between patience and action. Sometimes walking away feels like the smartest move. Other times, persistence can pay off, and we’re glad we waited—whether it’s for that perfect table or a situation with bigger stakes, like buying or selling a home.

Real estate is full of these moments. Buyers and sellers alike face decisions where waiting feels endless and impatience starts to creep in. Should you hold firm and stay patient? Or cut your losses and move on? The challenge is knowing which is the right choice, especially when emotions run high and the stakes are significant.

It Takes Time for Your Brain to Figure Out if It’s Worth the Wait…

According to a recent study, our brains have a built-in system that helps us decide whether to keep waiting or call it quits.

It’s more than simple patience or impulsivity. Different regions of the brain actually calculate the value of sticking it out versus walking away, adapting in real time as the situation unfolds. In other words, our brains are constantly performing mental math, weighing whether the reward is worth the wait.

Sometimes persistence is the right move, and sometimes quitting is the smartest decision. The key is knowing which path to take, which the study showed can take time for your brain to analyze in order to make accurate predictions and judgment calls.

In real estate, this decision-making process becomes even more challenging because it’s not something people tend to do frequently and emotions often come into play. Buyers and sellers need to evaluate when patience will pay off based upon little experience, and with a lot of money on the line.

There are times throughout the process that it can be tempting for both buyers and sellers to call it quits, when patience is actually what’s needed.

Here are common situations where sellers struggle to decide whether to wait or move on:

• When they’re waiting for offers to come in.
  It’s hard to stay patient when offers aren’t rolling in as quickly as hoped, particularly in a slower market. But sometimes you just need to wait for the right buyer to come along.
• When they’re considering lowering their price.
  When it comes to lowering their asking price, sellers often wait too long, rather than address the issue as soon as it becomes apparent that their price is too high.
• When they aren’t getting many buyers coming to see their house.
  A lack of activity can feel discouraging. Many sellers faced with this consider pulling their home off the market or switching agents, but sometimes the issue comes down to market conditions—not the home itself or their agent.
• When there are delays during escrow.
  Even after accepting an offer, closing isn’t always quick or smooth. Title issues, buyer financing delays, or paperwork problems can stall the process, testing a seller’s patience. At times, it can seem like a better decision to just cancel the contract rather than just being patient and letting things get done even if they are delayed.
• When they think the market isn’t good enough.
  If market conditions take a downturn, some sellers feel like they should take their house off the market and wait for it to bounce back. While that may be a smart decision, it can also be a horrible one depending on their personal situation. Markets don’t always bounce back quickly and it could go down even more before it starts to creep back up over a number of years.

And here are some common scenarios where buyers grapple with the decision to wait or quit:

• When they can’t find the “right” home.
  The search can take longer than expected, particularly in competitive markets. Sometimes it’s a matter of being patient and waiting for the right opportunity. Sometimes they need to be more realistic with their expectations. But it can be tempting for buyers to just give up entirely.
• When they keep getting outbid by other buyers.
  Losing out time after time in bidding wars is exhausting and can make buyers think about giving up their home search. Unfortunately, no matter what the market is like, if there’s a well-priced house that is appealing to one buyer, there’s a good chance there will be another buyer competing for it. Continuing to try and always making the strongest offer possible is usually the better decision than giving up and hoping they’ll find their dream home and no other buyer will want it too.
• When there are delays during escrow.
  From title searches to final loan approvals, delays often feel never-ending and buyers often feel like they’re being asked to jump through too many hoops. While it can be aggravating, there’s always a possibility that something will cause a delay no matter what house you’re buying, and giving up midway through won’t get you into a new home any faster than dealing with the issues at hand.
• When they’re waiting for a seller to respond to their offer.
  Buyers often find themselves anxiously waiting for sellers to respond to their offer. Is the seller stalling for a better offer? Are they playing hardball? The wait can be maddening, but rescinding your offer may not be the best move.
• When there aren’t enough homes on the market.
  In low-inventory markets or periods of high demand, buyers may feel forced to wait for new listings to hit the market. Some buyers get so aggravated that they have to wait for new inventory that they just put their entire search on hold, which is basically doing the same thing the market has forced them to do… So usually it makes more sense to continue actively looking, and be patient.

Those are just a few of the instances buyers and sellers respectively have to weigh the pros and cons of being patient—and there’s no absolute right or wrong answer that can apply to every situation, buyer, or seller.

The study on patience showed that our brains need time to evaluate whether waiting will pay off. But for buyers and sellers, real estate isn’t something they navigate often. Without experience, it’s easy to misjudge when to stick it out and when to pivot. That learning curve can be costly—both financially and emotionally.

…Which Is Why Having an Experienced Real Estate Agent Is So Important

Agents bring an objective point of view, grounded in experience and market knowledge, to help buyers and sellers make informed decisions in many ways, such as:

• Helping you evaluate the situation objectively.
• Giving you data and advice to help guide your decisions.
• Providing emotional support to help you make calm, rational decisions.

Whether it’s knowing when to wait, when to act, or when to try something different, an agent’s perspective can help you avoid costly mistakes.

The Takeaway:

Real estate is full of moments that test your patience. For buyers and sellers alike, it’s natural to feel torn between staying the course and making a change. Understanding when to wait and when to act isn’t easy—but it’s a decision that can make or break your real estate experience.

While persistence often pays off, knowing when to pivot is just as important. A trusted real estate agent can provide the clarity, experience, and guidance you need to navigate these moments with confidence. After all, real estate isn’t just about patience; it’s about making the right moves at the right time.

The post How to Know When to Be Patient (Or Call It Quits) When Buying or Selling Real Estate appeared first on Lighter Side of Real Estate.

Buying your first house has never been easy, but for today’s younger generations, it’s increasingly out of reach. High interest rates, soaring home prices, and the heavy burden of student loan debt have made it difficult for young folks to purchase a home on their own.

Even cutting out lattes or avocado toast doesn’t do much to bridge the gap. And forget about hanging out with friends and taking memorable trips together if you’re trying to buy a house. Saving up to buy a home can feel like you’re forgoing the fun of life itself, while not making much progress toward homeownership anyway.

But what if there were a way to combine the two? What if you could own property and spend quality time with your friends enjoying some food and drink in the comfort of your own home?

Well, if that sounds great to you, perhaps you should consider pooling your resources and buying a “friend compound” together.

According to a recent article in The San Francisco Standard, buying friend compounds has become increasingly appealing, and data shows that 14% of millennials have purchased property with friends, and a whopping 70% of Gen Z say they’re open to the idea.

Here are a few things that make co-buying appealing:

• Affordability – The cost of entry into the housing market is a major driver of this trend. A recent survey found that 44% of co-buyers cited affordability as their primary motivation. Pooling resources means you’re not solely responsible for the down payment, mortgage, taxes, or maintenance. Imagine splitting the cost of a $600,000 home among four friends instead of shouldering it alone. Not only does this make the financial leap less daunting, but it also allows co-buyers to purchase homes in areas that might otherwise be unaffordable.
• Social Connection – But it’s not all about dollars and cents. In an increasingly isolated world, the idea of living closer to your friends is incredibly appealing. Nearly 20% of co-buyers prioritize proximity to friends, and many dream of creating a community where dinners, bonfires, and shared experiences are just steps away. The U.S. Surgeon General recently warned about the mental health impacts of loneliness, highlighting the importance of social bonds. For many, friend compounds offer more than housing—they’re a lifestyle.
• Creative Housing Options – Friend compounds can take many forms. Some groups opt for large single-family homes with converted spaces, while others buy adjoining properties or develop land together. The flexibility allows groups to find or create spaces that suit their collective vision.

While this all might sound exciting and prompt you to start planning to buy your own friend compound with a bunch of friends over beers in front of a fire pit, it’s important to stay grounded and be practical if you really want to make it happen.

So let’s look at some pros, cons, and tips you should consider before putting your plan in motion…

The Pros of Buying with Friends

Co-buying with friends can be a path to financial stability and a richer social life. Here’s why it works for many:

1. Affordability: Splitting costs allows buyers to access better mortgage terms and reduces individual financial strain.
2. Shared Vision: You get to handpick your neighbors and build a community that reflects shared values and priorities.
3. Built-In Support: Living with close friends provides a natural support system, whether it’s help with childcare, errands, or simply companionship.

The Cons of Buying with Friends

While the concept is appealing, it’s not without its challenges. Co-buying comes with its own set of risks and complications.

1. Lifestyle Conflicts: Living with friends sounds idyllic, but differing lifestyles can create friction. Maybe one person is a night owl while another values early morning quiet, or one friend is more lax about shared expenses.
2. Financial Complexity: Establishing ownership shares, dividing costs, and managing joint finances require meticulous planning. Without a solid agreement, disagreements can arise.
3. Uncertain Futures: Life happens. Friends may move away for jobs, get married, or face other life changes, potentially leaving the group scrambling to fill their spot or buy them out.
4. Limited Inventory: Finding the right property—one that meets everyone’s needs and fits within budget—can be time-consuming and frustrating. There’s not always a lot of houses that will have the size needed, or a group of homes right next to each other to purchase and turn into a “compound.” Also keep in mind that it can be difficult for two people to agree on the perfect home, so when you add in several more to the decision-making process, it can be even more so.

Tips for Making Friend Compounds Work

To turn the dream of communal living into reality, it’s crucial to approach the process with a mix of practicality and foresight.

1. Map Out Priorities – Before you start house hunting, make a list of must-haves and deal-breakers as a group. Consider location, amenities, school districts, and proximity to nature or urban centers. Everyone should feel heard and represented in the decision-making process.
2. Draft a Legal Agreement – Put everything in writing—financial contributions, ownership shares, rules for shared spaces, and plans for resolving disputes. This agreement is the foundation for long-term harmony and protects everyone’s interests. It’s kind of like starting your very own homeowner association, but you all get say in the rules and regs from the get-go.
3. Plan for the Future – Life changes are inevitable. Discuss scenarios like marriage, children, relocations, or career changes, and agree on how these will be handled. If someone moves out, will their space be able to be sold to someone else? If so, how will new owners be vetted? How will shares be sold or transferred?
4. Work with Professionals – Enlist the help of experts to navigate the complexities of co-buying. A real estate agent can identify suitable properties, while a lawyer can draft agreements and ensure compliance with local laws.
5. Be Patient – The right property might not appear overnight. Be prepared for a longer search and keep communication open throughout the process.

The Takeaway:

“Friend compounds” are a creative way for anyone struggling to afford homeownership on their own to buy a home by pooling resources. But not only does it curb costs, it also provides the opportunity to handpick your neighbors, and create a lifestyle filled with supportive friends right next door.

But success requires thoughtful planning, open communication, and the right professional support. However, with the right mix of friends, foresight, and guidance, you can turn the dream of owning a home into a reality. Whether it’s shared morning coffees or a backyard barbecue, the memories you create could make the effort more than worth it.

The post “Friend Compounds”: The Pros and Cons of Buying Real Estate With Your Besties appeared first on Lighter Side of Real Estate.

Homebuyers often have mixed feelings about homeowner associations (HOAs)…

On one hand, they can add value to your investment by maintaining neighborhood standards and offering amenities like pools or parks.

On the other hand, they come with monthly fees (which can be steep) and rules and regulations that can make buyers feel stifled.

So if you’re in the market to buy a home, it’s understandable if you’re wondering if the benefits truly outweigh the costs, or if life in an HOA might feel a little too… controlled.

However, whether you’re for them or against them, there’s an increasing chance you might fall in love with the perfect house, and it happens to be a part of an HOA.

It’s Getting Harder to Avoid HOAs

According to a recent CNBC article, the number of HOAs has skyrocketed in recent decades. In 1970, there were only about 10,000 community associations with about 2.1 million residents nationwide. Today, HOAs are now managing about 30% of all U.S. housing stock, representing 75.5 million residents.

Between 2009 and 2023, the percentage of homes built within an HOA went from 49% to 65% of single-family homes.

With so many homes being built within HOA communities, avoiding them is becoming increasingly difficult. Even more so if you’re in certain areas like Florida, which tops the charts with more than 4 million homes in HOAs housing 66.86% of the population!

While some buyers may prefer the freedom of non-HOA neighborhoods, there are certainly buyers who are drawn to the amenities, uniformity, and community aspects these associations provide.

So if you’re in the market for a home, you should probably give some thought to your feelings about them.

Weighing the Pros and Cons of HOAs

If you’re not entirely thrilled with the idea of living in an HOA, you’re not alone!

According to a recent study by Frontdoor, 70% of homeowners said they would prefer not to live in a home that is part of an HOA, and 63% said they wouldn’t even recommend buying a home in one.

That said, around 60% of the respondents said they were satisfied with their HOA.

Obviously there are some strong opinions for and against HOAs, but your opinion is the only one that truly matters when buying a home, so let’s take a look at some of the pros and cons to help you figure out which way you lean:

Pros

• They may provide amenities you couldn’t afford. Many HOAs provide shared amenities like swimming pools, gyms, playgrounds, and clubhouses, which may not be available in other homes in your price range.
• They can be great if you’re not handy, or just don’t like doing chores. HOA fees often include exterior maintenance of your home, along with the landscaping around your home or unit, as well as the common areas. This can be extremely appealing to people who aren’t able to (or just into) the typical outkeep a house often requires.
• They make sure you aren’t affected by neighbors who don’t upkeep their home. Uniform guidelines for exterior maintenance help HOA neighborhoods maintain a polished look, which can maintain (and even increase) your property value.
• They can also improve your home’s saleability. Selling a home next door to a neighbor who just doesn’t maintain their home can often turn off potential buyers. But with all of your neighbors being held to high standards, you won’t have to worry about that.

Cons

• The monthly and yearly fees can be pretty steep. Fees will vary from one HOA to another, and even from one home or unit to another within an HOA, but they can range from low to extremely high. Depending on the area and development you’re in, you might pay as low as $100 a year to more than $1,000 a month. (For example, it’s an average of $971 per month in the NY/NJ metro area!)
• And the costs usually go up, not down… Not only do the monthly fees tend to increase over time, and rarely go down, but it can also happen frequently.
• There might be some rules you don’t want to follow. HOAs often enforce rules about exterior appearances, landscaping, and even the types of vehicles allowed on properties. So if you have visions of painting your house lime green, hanging the flag of your college alma mater on your porch, and parking a work van with your logo in your driveway, an HOA might not be a great fit for you.
• If you don’t follow the rules, be prepared for it to cost you even more money. 1 in 6 of those surveyed said they’d been fined for breaking HOA rules, and those who had said they were fined an average of two times. The most common violations cited were yard maintenance (42%), and for the number or types of vehicles they had on their property (15%).
• You might end up paying for amenities you don’t need or use. If you’re not interested in pools or tennis courts, paying for them might feel like a waste.

Tips for Buying in an HOA Community

After considering all of the pros and cons, here are some tips to ensure you’re ready for life in a managed community if you find yourself open to buying a home in an HOA:

• Read all of their rules and regulations before buying. Request a copy of the HOA’s covenants, conditions, and restrictions (CC&Rs) and review them carefully before signing a contract to purchase a home within the community. Make sure you can live with all of them, because they’re not suggestions, and you can’t bend or change the existing rules.
• Follow the rules! Once you’ve purchased, adhering to the HOA’s guidelines will save you headaches and fines.
• Stay informed. Keep abreast of any proposed changes in rules or fees by reading all communications they send, and the board’s meeting minutes.
• Attend board meetings. Reading the minutes is great, but being present for the actual meetings is even better. Being involved helps you stay informed and gives you a say in community decisions.
• Join the board. If possible, serving on the HOA board lets you directly influence policies and advocate for your interests.

As you can see, homeowner associations aren’t entirely good or bad; they simply cater to specific needs and preferences. By understanding the pros and cons and evaluating your priorities, you can make an informed decision. And if you’re still unsure, your real estate agent can be a valuable resource to help you figure out if HOA living is right for you.

The Takeaway:

Whether buying a home within an HOA is right for you depends on your personal preferences and lifestyle. If you value amenities, uniform aesthetics, and community engagement, HOAs could be a great fit. But, if you prefer the freedom to live your own way— and want to avoid additional fees or restrictions—they may not align with your priorities.

The post Buying a Home in an HOA Is Becoming More Common. Is It Right for You? appeared first on Lighter Side of Real Estate.

The holiday season is a busy time for most people filled with shopping for gifts, going to parties, hosting guests, and perhaps traveling to visit loved ones. Amid all the holiday cheer and festivities, shopping for a home often doesn’t make the list of top things to do.

Besides being busy—and spending more than usual!—many potential buyers assume there won’t be homes worth looking at during the holidays. So it’s not uncommon for people planning on buying a home to say they’re waiting until the spring market when their lives settle down, and there are more houses for sale.

There’s nothing wrong with taking that approach. But there are certainly some advantages to looking for a house during the holidays that people who wait miss out on…

The Benefits to Looking for a Home During the Holidays

When it comes to real estate, timing can be everything—and the holiday season offers a unique opportunity to explore the market on your terms. While it’s not the busiest time of year for buying or selling homes, that can work in your favor. In fact, stepping into the market now could give you an edge over the competition and help you discover hidden opportunities that other buyers might overlook.

Here are four reasons why searching for a home during the holidays might be one of the smartest moves you make this year:

1. There’s less competition. With most other buyers preoccupied with holiday festivities, you’ll find fewer people vying for the same properties, which can mean fewer bidding wars, and potentially better deals. That’s always a bonus at this time of year, but even more so considering how stiff competition has been in many areas over the last few years.
2. Sellers may be more motivated. If a home is on the market during the holidays, the seller is probably very serious about selling their house. Perhaps they’re relocating for a job, are going through a divorce, or simply need to sell in order to buy their dream home. Whatever their reason, it could also mean they’ll be more willing to negotiate.
3. You’ll gain insights into the market ahead of your competition. Even if you don’t end up finding and buying a house during the holiday season, just kick-starting your search process will give you a better handle on the market than a buyer who starts looking after the new year. Diving into the market during the holidays allows you to familiarize yourself with pricing, inventory, and neighborhood trends.The better you understand the market and process, the more ready you’ll be to pounce on your perfect home when you see it, and make a solid offer.
4. You may have more time to look. While it obviously depends upon your particular job and work responsibilities, holiday vacations or slower work schedules can provide a bit more flexibility to browse listings, schedule showings, and do some thoughtful research without the usual weekday hustle.

Don’t Let the Downsides Get You Down

House hunting during the holidays comes with some unique advantages—but like any real estate journey, it’s not without its challenges. The key to success is being prepared for the potential downsides while keeping your eye on the ultimate goal of finding your dream home. With a little patience and the right perspective, you can navigate these seasonal hurdles and make the most of your home search.

Here are a few common drawbacks to consider, along with tips to help you stay on track and keep things in perspective:

• There may be a limited number of homes to look at. There typically aren’t as many homes on the market in December as there will be in the spring. That said, inventory has been limited throughout the year in many areas for quite some time, so that shouldn’t be a deal breaker right now. Just don’t let yourself get discouraged and stop looking, because you never know when a great house will hit the market, and pausing your home search until the spring could lead to missing one you would have loved.
• You might need to be patient about getting a showing scheduled. Keep in mind that sellers may be hosting visitors, getting ready for a party, or simply enjoying some quiet downtime at home, and may not allow you to come see their house on the exact day and time you’d prefer. Just be patient and understanding and schedule a time that works for both you and the seller.
• There could be delays in the buying process. If you find the perfect home and make an offer that gets accepted, some aspects of the process could take longer than usual. There are a lot of professionals involved in a real estate transaction—lenders, inspectors, appraisers, and title companies—and any one of them may also be juggling vacation schedules. Again, just be patient and relish the fact that you were able to get a house under contract while other buyers were taking a break from even looking at houses.

Even with those drawbacks, the holiday season offers unique opportunities to gain a competitive edge. So if you’ve been planning on waiting until after the new year to buy, consider getting the ball rolling now!

The Takeaway:

While it may not seem like the most festive activity, starting your home search during the holidays can be a smart move. You’ll face less competition, encounter motivated sellers, and get a jumpstart on understanding the market—advantages that can put you ahead of the pack when the spring buying season heats up.

Yes, there are some challenges, like limited inventory and potential delays, but they’re manageable with patience and flexibility. Even if you don’t buy a home right now, getting familiar with the process and market conditions will prepare you to hit the ground running in the new year.

The post Why Shopping for a Home During the Holidays Might Be the Best Gift You Give Yourself appeared first on Lighter Side of Real Estate.