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Tag: Buying a home

  • Public Improvement Districts (PIDs) in Texas: What Homebuyers Should Know

    Key takeaways

    • A Public Improvement District (PID) is a designated area where homeowners pay an additional assessment to fund public amenities and infrastructure.
    • PID assessments are separate from property taxes and may last 20 to 40 years.
    • Several states besides Texas — Arizona, Colorado, California, Florida, New Mexico, Nevada, Utah, North Carolina, and Georgia — use similar special assessment districts.
    • PIDs differ from PUDs and MUDs, and each affects your homeownership costs and community amenities in distinct ways.
    • Buyers should review PID disclosures, assessment schedules, improvement plans, and district maps before purchasing.

    What is a PID in real estate?

    A Public Improvement District (PID) is a defined area created by a city or county where homeowners pay a special assessment to fund public improvements benefiting the neighborhood. Under Texas Local Government Code Chapter 372, PIDs help communities add enhanced amenities and infrastructure without shifting costs to the entire city.

    Common PID-funded improvements include:

    • Decorative lighting
    • Landscaping and irrigation
    • Roadways and sidewalks
    • Parks, greenbelts, and trails
    • Neighborhood entry monuments
    • Drainage upgrades
    • Ongoing maintenance of shared areas

    These assessments are in addition to your normal property taxes.

    Example: What a PID assessment looks like

    To give you a better idea of what a PID fee actually costs, here’s a quick real-world example.

    Say you’re buying a home valued at $400,000, and the PID rate in that neighborhood is 15 cents per $100 of value. Here’s how it breaks down:

    • $400,000 divided by 100 = 4,000 units
    • 4,000 × $0.15 = $600 per year

    In this scenario, you’d pay about $600 annually as your PID assessment. This amount typically appears on your property tax bill, but it is separate from your actual property tax rate.

    How PIDs work in Texas

    Once a PID is established:

    • A service and assessment plan details the improvements and costs.
    • Cities or counties may issue bonds to cover upfront expenses.
    • Homeowners repay the cost over time through annual assessments.
    • Assessment durations typically run 20 to 40 years.
    • Fees may be a flat amount or based on property valuation.

    Example of PID-funded improvements

    A Texas neighborhood may use PID funds for:

    • A landscaped entry feature with stonework and lighting
    • A central park with a shaded pavilion
    • Walking trails, greenbelts, and common areas
    • Streetlight upgrades and improved sidewalks
    • Drainage and utility enhancements

    These features often make the community feel more polished and cohesive, but they come with long-term financial obligations.

    Are PIDs only in Texas?

    Not at all. While Texas is known for its widespread use of PIDs, similar special assessment districts exist in:

    • Arizona
    • Colorado
    • California
    • Florida
    • New Mexico
    • Nevada
    • Utah
    • North Carolina
    • Georgia

    Though names and rules vary, the core idea is the same: Property owners pay additional assessments to fund neighborhood-specific improvements.

    Advantages of buying a home in a PID

    1. Higher-quality infrastructure

    PIDs help fund enhanced improvements such as decorative lighting, wider sidewalks, and upgraded landscaping.

    2. Well-maintained common areas

    Assessments are used for ongoing maintenance, keeping the neighborhood clean, safe, and visually appealing.

    3. Faster development timelines

    Bond funding allows developers to complete infrastructure sooner, speeding up construction phases.

    4. Attractive amenities

    Parks, trails, and community features are often part of the package, adding daily value for residents.

    5. Potential for strong resale demand

    Upgraded amenities and consistent maintenance often make these neighborhoods more desirable to future buyers.

    Disadvantages of buying a home in a PID

    1. Added long-term cost

    PID assessments add to your annual housing expenses and can continue for decades.

    2. Variation between districts

    Assessment amounts and improvement plans differ widely across neighborhoods.

    3. Possible impact on resale

    Some buyers prefer to avoid special assessments, which may reduce the prospective buyer pool.

    4. Complexity for new buyers

    Understanding assessment schedules, payoff options, and tax bill formatting can feel overwhelming.

    PID vs. PUD vs. MUD: What’s the difference?

    What is a PUD?

    A Planned Unit Development (PUD) is a zoning and land-use designation allowing a mix of housing, amenities, and open space. According to Rocket Mortgage, many PUDs include shared features like parks and recreation areas and may involve an HOA. A PUD does not automatically include PID assessments.

    What is a MUD?

    A Municipal Utility District (MUD) provides essential services such as water, sewer, and drainage in areas not served by city utilities. MUDs levy their own tax rate, often higher than standard property taxes.

    Comparison chart

    Feature PID PUD MUD
    Purpose Infrastructure and enhancements Planned neighborhood design Water, sewer, and drainage
    Cost Special assessment HOA dues (in most PUDs) MUD tax
    Main benefit Improved amenities and maintenance Unified community layout Utility access
    Managed by City or county Developer or HOA Elected MUD board

    What homebuyers should do before purchasing in a PID

    1. Read the PID disclosure notice

    Texas requires sellers to provide a written notice outlining the assessment and your financial obligations.

    2. Review the service and assessment plan

    This document explains:

    • Assessment duration
    • Bond payoff timelines
    • Planned improvements
    • Whether a lump-sum payoff option exists

    3. Understand how assessments are billed

    Most appear on your property tax bill, but some are billed separately. Confirm payment schedules with your lender.

    4. Ask what improvements are complete vs. planned

    You may pay for amenities not yet built.

    5. Consider resale implications

    Higher assessments may reduce the number of buyers interested in your property.

    How to find out if you’re in a Public Improvement District

    Because PID assessments can affect your budget, it’s important to know whether a home is inside a PID.

    1. Check your property tax bill

    Look for a line item labeled “PID Assessment,” “Public Improvement District,” or a district name.

    2. Review your closing documents

    Texas requires a PID disclosure, which should appear in your purchase contract and closing paperwork.

    3. Use your city or county’s PID map

    Cities like Fort Worth, Dallas, McKinney, and Frisco publish interactive PID maps that show district boundaries and assessment rates.

    4. Contact the city or county

    Call your local planning department, PID administrator, or county tax office to verify whether your address falls within a PID.

    5. Ask your real estate agent or title company

    Agents familiar with Texas neighborhoods can quickly confirm PID status and provide assessment details.

    Frequently asked questions

    Are PID assessments tax-deductible?

    They are not standard property taxes, but portions may be deductible. Consult a tax adviser for accurate guidance.

    How long do PID assessments last?

    Most last 20 to 40 years or until the associated bonds or improvements are paid off.

    Is buying a PID a good idea?

    It depends on your priorities. PIDs can offer valuable amenities and improved maintenance, but they add long-term costs. Review the details carefully before deciding.

    Final thoughts

    Public Improvement Districts are a major part of how many Texas neighborhoods grow and improve. For many buyers, the enhanced amenities, attractive infrastructure, and long-term maintenance can make a PID community especially appealing. But those advantages come with additional assessments that deserve close attention.

    By reviewing the PID disclosure, checking city maps, and understanding what the fees support, you can make a confident, informed decision about whether a PID neighborhood is right for you.

     

    Jasica Usman

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  • Buying a House in Retirement: Pros, Cons, and How to Choose the Right Home

    Key takeaways:

    • Plan ahead for how you’ll pay for a home in retirement and what fits comfortably within your long-term budget.
    • Focus on finding a home and location that support your lifestyle, accessibility needs, and future comfort.
    • Consider how homeownership fits into your broader retirement plans, including taxes, maintenance, and estate planning.

    Buying a house in retirement can offer stability, comfort, and a lifestyle that better fits your long-term plans, whether you picture a quiet home in Scottsdale, AZ or a coastal condo in Charleston, SC. For some retirees, owning a home provides a sense of permanence and the freedom to personalize their space. However, the right choice depends on your financial situation, how long you plan to stay in the home, and what type of lifestyle you want in retirement. Understanding the pros and cons of buying a house in retirement can help you decide if homeownership is the right move.

    1. Plan how you’ll pay for a home in retirement 

    Before you start looking at homes, take time to understand your retirement home budget and how a new place fits into your long-term lifestyle. A little financial planning for a retirement home can help you feel confident about daily comfort, monthly cash flow, and how long you plan to stay in the home. 

    To explore different scenarios, you can use online tools to get a general idea of what may feel comfortable for you. Redfin offers a Home Affordability Calculator to estimate how much home might fit your budget and a Mortgage Payment Calculator to see how different down payments or loan terms could affect a monthly payment. These tools can help you compare options and begin thinking about what feels manageable in retirement.

    Can you get a mortgage in retirement?

    You may be wondering if you can get a mortgage in retirement, and the answer is yes. Lenders may consider retirement income sources when approving a mortgage in retirement, such as savings, pensions, or Social Security. From there, decide whether paying cash vs. a mortgage in retirement aligns better with your needs. Paying cash can offer simplicity and peace of mind, while financing a house after retirement may let you keep funds accessible for hobbies, travel, or future plans. The right approach depends on what provides the most comfort, flexibility, and security for your retirement lifestyle.

    Pros and cons: Paying cash vs. financing in retirement

    Paying cash in retirement

    Pros:

    • No monthly mortgage payments to manage
    • Can offer peace of mind and a sense of security
    • Simplifies the homebuying process and closing timeline

    Cons:

    • Ties up a large portion of your savings at once
    • Less flexibility if you want funds available for travel, hobbies, or future needs
    • May limit options for other retirement lifestyle goals

    Financing a home after retirement

    Pros:

    • Keeps more of your savings accessible for lifestyle priorities
    • Provides flexibility to invest, travel, or handle future expenses
    • Can allow you to buy the home that best fits your long-term needs

    Cons:

    • Monthly mortgage payments become part of your retirement budget
    • Requires approval and documentation of retirement income
    • May feel less simple or stress-free compared to owning outright

    2. Choose the right home and location for your retirement lifestyle

    When buying a house in retirement, think about the type of home and location that will support your comfort, routine, and future needs. Many people begin downsizing for retirement to make life more comfortable and manageable. They often search for the best homes for retirement living, like low-maintenance condos, single-story homes, or 55+ communities with amenities and social connection.

    From there, consider where you want to live. Some retirees prioritize retiring in warm weather or a strong sense of community, while others prefer retiring near family for support and connection. Look for areas that make daily life enjoyable. 

    What to look for in a retirement location

    Home features

    • Low-maintenance living (condo, townhouse, or single-story home)
    • Right-sized layout that fits your daily needs
    • 55+ or active adult community options

    Location & lifestyle

    • Near family, healthcare, recreation, and community activities
    • Walkable community with parks, shops, and everyday essentials close by
    • Social opportunities that support hobbies, connection, and long-term comfort

    3. Think long-term: Aging-in-place features and accessibility

    When buying a home in retirement, consider whether it will remain comfortable and practical as your needs change. Look for features that support aging in place and make daily living easier:

    Home accessibility features to consider:

    • Single-floor living or main-level bedroom and bathroom
    • Easy-entry home with minimal or no steps
    • Wide doorways and hallways
    • Walk-in shower with space for seating
    • Lever-style door handles and faucets
    • Good lighting and non-slip flooring
    • Laundry on the main level
    • Space for future accessibility additions (grab bars, ramps, etc.)

    4. Tax, estate, and planning considerations

    When buying a home in retirement, it’s important to think about how your property fits into your broader financial and estate plans. Owning a home can influence everything from long-term budgeting to how your assets are managed or passed on in the future.

    Start by reviewing how homeownership affects your overall retirement picture. Consider how long you plan to stay in the home, who might help with future decisions, and whether the property supports your comfort and financial goals as your needs evolve.

    It’s also worth noting that tax rules for homeowners can vary depending on where you decide to live. Property tax rates, exemptions, and programs designed to assist older homeowners differ by state and local jurisdiction. Because these factors can be complex and highly personal, many retirees choose to speak with a qualified tax advisor, estate planner, or financial professional for guidance specific to their situation.

    If you choose to speak with a professional, here are a few questions you might consider asking:

    • How could this property fit into my long-term estate plans?
    • What should I know about ownership or beneficiary options for a home?
    • Are there local or state tax considerations for retirement homes I should be aware of?
    • Are there any age-related property tax programs or exemptions in this area?
    • What general factors should people keep in mind when property planning in retirement?

    5. Explore retirement-friendly community options

    The type of community you choose can shape your lifestyle, social connections, and daily routines in retirement. Here are common retirement-friendly living options to consider:

    55+ active adult communities: Designed for adults 55 and older with amenities, social clubs, and age-friendly features.

    • Pros: Built-in social network, low-maintenance living, age-friendly amenities.
    • Cons: HOA fees and rules, age restrictions for younger visitors or long-term stays.

    Independent retirement communities: Offers a maintenance-free lifestyle with optional services like transportation, dining, or activities.

    • Pros: Convenience, community support, optional services that simplify daily life.
    • Cons: Monthly fees for services, less independence than a standard neighborhood.

    Resort-style or active lifestyle communities: Planned communities focused on recreation and amenities such as golf, pools, clubhouses, fitness centers, and group activities.

    • Pros: Year-round recreation, strong social environment, vacation-like setting.
    • Cons: Higher costs for amenities, may feel busy or structured for those who prefer quieter living.

    Traditional neighborhoods: Many retirees choose to buy homes in regular neighborhoods rather than age-restricted communities. These areas include residents of all ages and offer the familiarity of a typical residential setting.

    • Pros: Broader mix of neighbors and flexibility for hosting family or friends.
    • Cons: Fewer age-focused amenities and potentially more maintenance responsibilities.

    When buying a house in retirement may not be the best fit

    Buying a home isn’t right for every retiree. In some cases, flexibility, lifestyle changes, or financial uncertainty can make renting or other housing options a better fit. Here are a few situations where the downsides of buying in retirement may outweigh the benefits:

    • You value flexibility or expect to relocate. Frequent moves, travel, or uncertainty about your long-term location can make renting a smarter choice than committing to a home.
    • You want to simplify or avoid maintenance. Even low-maintenance homes still require some upkeep, which may not align with a lock-and-leave lifestyle.
    • Your financial picture may change. If income, savings, or healthcare costs feel unpredictable, avoiding a large purchase may help preserve flexibility.
    • You’re unsure how long you’ll stay. Since buying and selling come with costs, purchasing a home may not make sense if you don’t plan to remain there for several years.
    • You’re concerned about common mistakes retirees make when buying a home. Selecting a home that isn’t future-friendly (like multi-level living or high upkeep) may create challenges later.

    Renting vs. buying in retirement: Which is right for you?

    When deciding between buying vs renting in retirement, think about what’s more comfortable for this stage of life. There’s no single answer to whether retirees should rent or buy. Buying offers long-term roots and the ability to make a space your own, while renting provides flexibility, downsizing, and fewer responsibilities. The choice between a rental vs homeownership comes down to how settled you feel, how much maintenance you want to manage, and the lifestyle you prefer.

    Pros & cons of buying in retirement

    Pros

    • Long-term stability and a sense of home
    • Freedom to personalize and make updates
    • Can create roots in a community

    Cons

    • Ongoing home maintenance and upkeep
    • Less flexibility if you want to move or travel
    • More responsibility in managing the home

    Pros & cons of renting in retirement

    Pros

    • Flexibility to move or try new locations
    • Low-maintenance lifestyle with fewer responsibilities
    • Easier downsizing and simpler daily living

    Cons

    • Less control over the space and any changes
    • Possibility of needing to move if lease terms change
    • May not offer the same sense of long-term permanence

    Should you buy a home in retirement quiz

    Answer Yes or No to the statements below:

    1. I want long-term stability and a place that truly feels like home.
    2. I plan to stay in the same area for several years and feel settled about where I want to live.
    3. I’m comfortable managing some level of home upkeep or arranging help as needed.
    4. I want the freedom to personalize my space and make it my own.
    5. The idea of putting down roots in a community feels exciting and right for this stage of life.

    How to reflect on your answers:

    • Mostly Yes: Buying may align well with the lifestyle you want in retirement.
    • Mostly No: Renting or exploring flexible housing options may better support your goals right now.
    • Mixed: Consider which factors matter most to you—stability or flexibility—and revisit the pros and cons before deciding.

    The bottom line when buying a house in retirement

    Buying a house in retirement is ultimately a lifestyle decision, one shaped by comfort, stability, and how you envision the years ahead. The best choice depends on your finances, long-term plans, and the type of home and community that support your future needs. Use these buying a retirement home tips as a starting point, and take time to explore your options so your next move truly enhances your retirement lifestyle. 

    FAQs on buying a house in retirement 

    1. Can you get a 30-year mortgage in retirement?

    Yes, retirees can qualify for a 30-year mortgage if they meet lender requirements; income can come from sources like Social Security, pensions, or retirement accounts.

    2. Is it better to buy or rent in retirement?

    It depends on your goals, buying offers stability and long-term housing, while renting provides flexibility and fewer maintenance responsibilities.

    3. What is the best age to buy a retirement home?

    There’s no set timeline – many people start planning or buying based on their lifestyle and long-term goals.

    4. Should I buy a retirement home before I retire?

    Some buy a few years before retirement to settle in gradually, while others wait until after retiring for simplicity, timing depends on your comfort and readiness.

    5. What should I look for in a retirement-friendly home?

    Look for features that support long-term comfort, like single-level living, minimal stairs, low-maintenance design, and convenient access to daily needs.

    6. Can I use retirement savings to buy a house?

    Yes, it’s possible, but withdrawals may affect long-term savings or have tax implications, so it’s helpful to review options carefully.

    7. Should I downsize when buying a home in retirement?

    Downsizing can simplify upkeep and space needs, but the right choice depends on your lifestyle and how much room you’ll use.

    8. Can buying a house affect my retirement income or taxes?

    Owning a home may impact your monthly expenses and taxes, and some areas offer property-tax programs or exemptions for qualifying homeowners.

    Holly Hooper

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  • How Much Is Earnest Money in Texas? What Buyers Should Know

    Key takeaways: 

    If you’re buying a home in Texas, you’ve probably heard the term earnest money, the deposit that shows a seller you’re serious about your offer. In most cases, earnest money in Texas ranges from 1% to 3% of the home’s purchase price, but the exact amount can vary depending on market conditions and your agreement with the seller. According to the Texas Real Estate Commission (TREC), buyers must deliver their earnest money to an escrow agent within the time frame listed in the contract; if the money isn’t delivered on time, the seller can terminate the deal or pursue remedies outlined in Paragraph 15 of the TREC contract.

    In real estate, a contract is only binding if there’s “consideration,” meaning both sides are offering something of value. In this case, the buyer’s promise to buy and the seller’s promise to sell fulfill that requirement. Because earnest money plays such a key role in this exchange, understanding how much to put down and when to deliver it can help you avoid delays or even losing out on your dream home.

    What is earnest money?

    Earnest money is a good-faith deposit that buyers include with their offer to show they’re serious about purchasing a home. It acts as a sign of commitment and gives the seller confidence that the buyer won’t back out without reason. 

    Once the offer is accepted, the earnest money is typically held in an escrow account managed by a title company or brokerage until closing. If the sale is completed, the deposit is applied toward the buyer’s down payment or closing costs. If the deal falls through for a reason covered by the contract, such as a failed inspection or financing contingency, the buyer may get their deposit back.

    When is earnest money delivered?

    In Texas, earnest money is typically due within three business days after the contract is signed; however, the exact deadline depends on the terms outlined in your purchase agreement. According to the Texas Real Estate Commission (TREC), the buyer must deliver the earnest money to the escrow agent or title company listed in the contract. If the deposit isn’t delivered on time, the seller has the right to terminate the agreement or pursue other remedies. Buyers usually submit earnest money via wire transfer, check, or money order to the title company.

    For example, if your offer is accepted on a Friday, you’ll generally need to deliver your earnest money by the following Wednesday to stay compliant with the contract terms.

    How much do you give for earnest money?

    Most buyers in Texas put down between 1% and 3% of the home’s purchase price as earnest money. For example, if you’re buying a $400,000 home, your deposit might range from $4,000 to $12,000. In a competitive market, you might offer a larger amount to stand out among other buyers; in a slower market, a smaller deposit may still be acceptable. The right amount depends on local norms, the property’s demand, and your comfort level.

    Is earnest money refundable?

    Yes, earnest money can be refundable in certain situations, depending on the terms outlined in your purchase contract. In Texas, most real estate contracts include specific contingencies, conditions that must be met for the sale to move forward. If one of these contingencies isn’t satisfied, the buyer may be entitled to a refund of their earnest money.

    Common refundable situations include:

    • Financing contingency: If you’re unable to secure mortgage approval within the agreed timeframe, you can typically cancel the contract and have your earnest money returned.
    • Inspection contingency: If a home inspection reveals significant issues and you decide to withdraw your offer within the allowed period, your deposit is usually refundable.
    • Appraisal contingency: If the home appraises for less than the purchase price and you can’t reach a new agreement with the seller, you may cancel and recover your deposit.
    • Title or seller default: If title issues arise or the seller fails to meet their obligations, buyers can often terminate the contract and get their earnest money back.

    It’s important to read your contract carefully and work closely with your real estate agent or attorney to understand your rights. Once all contingencies are met and the sale moves forward, the earnest money becomes nonrefundable and is applied toward your closing costs or down payment.

    When is earnest money nonrefundable?

    Earnest money becomes nonrefundable once all contract contingencies have been met and both parties are moving forward toward closing. At this point, the deposit shows your commitment to the purchase; backing out without a valid reason could cause you to lose that money.

    In Texas, your earnest money may become nonrefundable in the following situations:

    • You miss a deadline. If you fail to meet important timelines, such as inspection or financing deadlines, your right to a refund may expire.
    • You change your mind after contingencies are cleared. Once inspections, appraisals, and financing are approved, withdrawing your offer can forfeit your deposit.
    • You default on the contract. If you breach the terms of the agreement, for example, by failing to close on time without cause, the seller may keep the earnest money as compensation.
    • You waive contingencies. If you remove standard protections like inspection or financing contingencies to strengthen your offer, you also give up the right to recover your deposit if the deal falls through.

    At this stage of the transaction, earnest money becomes part of your financial commitment to the home purchase. Before signing, make sure you understand every clause in your contract and consult your real estate agent or attorney if anything is unclear.

    How to protect your earnest money in Texas

    Because earnest money represents a significant financial commitment, it’s important to take steps to safeguard it throughout the homebuying process. In Texas, buyers can protect their deposit by following these best practices:

    • Work with a licensed real estate agent. An experienced agent can ensure all contract terms, deadlines, and contingencies are clearly outlined and followed.
    • Verify the escrow agent or title company. Only deliver earnest money to a reputable and licensed escrow holder listed in the contract; never send funds directly to a seller or agent.
    • Pay by a traceable method. Use a wire transfer, certified check, or money order so there’s a clear record of payment and receipt.
    • Understand your contingencies. Review each contingency clause carefully, and make sure you know how and when to exercise your right to cancel if something goes wrong.
    • Get everything in writing. Always confirm changes, extensions, or releases of earnest money in writing and signed by both parties.

    By following these precautions, you’ll reduce the risk of disputes and protect your investment from potential loss. A clear understanding of the Texas Real Estate Commission (TREC) rules and your contract terms helps ensure your earnest money remains secure until closing.

    FAQs about earnest money in Texas

    Who holds the earnest money in Texas?
    Earnest money in Texas is typically held by a title company or escrow agent named in the purchase contract. They keep the funds in a secure escrow account until closing or until the contract is terminated according to its terms.

    Can you lose your earnest money?
    Yes, you can lose your earnest money if you default on the contract, miss key deadlines, or back out of the purchase after all contingencies have been cleared. Once those protections expire, the seller may keep the deposit as compensation for taking the home off the market.

    Does earnest money come off the purchase price?
    Yes, in most cases, earnest money is applied toward the home’s purchase price at closing. The deposit typically goes toward your down payment or closing costs, reducing the total amount you’ll need to bring to the closing table. Think of it as an early payment that shows the seller you’re serious about buying.

    The money remains in an escrow account until the sale is finalized; once the deal closes, it’s credited back to you as part of your total home purchase. However, if the transaction falls through for a reason not covered by your contract, the seller may be entitled to keep the earnest money as compensation for lost time or opportunity.

    What to remember about earnest money deposits

    Earnest money plays a key role in every Texas home purchase; it shows your commitment and helps the seller feel confident moving forward. While it’s usually refundable under specific conditions, understanding when it becomes nonrefundable and how to protect it is crucial. By working with a licensed real estate agent, reviewing your TREC contract carefully, and meeting all deadlines, you can make sure your deposit stays secure and goes toward your dream home when it’s time to close.

     

    Jasica Usman

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  • How To Convince a Seller To Accept Your Offer

    Key takeaways

    • Strong offers balance price, financing strength, and clean terms. 
    • Sellers prefer certainty—limiting contingencies and offering flexibility can help. 
    • Emotional appeal and professional representation both play key roles in acceptance. 
    • Speed matters: competitive buyers act quickly in active markets.

    How to convince a seller to accept your offer in today’s competitive market

    Buying a home isn’t just about finding the perfect property—it’s also about persuading the seller that your offer is the right one. The National Association of Realtors (NAR) reports that homes in 2024 received an average of 2.7 offers nationwide, underscoring the continued competitiveness of the market.

    According to Redfin’s article “Highest and Best Offer: How to Win the House You Want,” sellers often value a smooth, certain closing over simply the highest bid. The strongest offers balance financial strength, clean terms, and respectful communication, giving sellers the confidence to say yes.

    1. Lead with your strongest offer

    Competitive pricing remains the most important factor in convincing sellers to accept an offer. Redfin data shows that homes priced accurately typically sell within about 15 days, while underpriced bids often fail to receive a counteroffer.

    Lead with your strongest price, especially in a multiple-offer situation. Even a small increase of 1% to 2% above the list price can help your offer stand out when others cluster at asking.

    2. Show solid financing

    A preapproval letter from a reputable lender, such as Rocket Mortgage, signals reliability to sellers. In fact, sellers view preapproved buyers as 58% more likely to close smoothly than those who are only prequalified.

    Always provide updated preapproval documentation and proof of funds for your down payment. Whenever possible, work with a well-known local or national lender recognized by listing agents; this helps reassure sellers that your financing won’t hold up the deal.

    3. Offer a competitive earnest money deposit

    Earnest money shows the seller you’re serious about buying their home. Most buyers put down 1% to 2% of the purchase price, but increasing your deposit to 3% to 5% can make your offer stand out. Some buyers even make a portion of their deposit nonrefundable once contingencies are cleared, an extra signal of commitment.

    4. Limit contingencies

    Contingencies are designed to protect buyers, but they can also create uncertainty for sellers. Shortening inspection timelines, covering potential appraisal gaps, or reducing financing or sale contingencies can make your offer more appealing. The fewer the unknowns, the more confident sellers feel about moving forward with you.

    5. Be flexible with closing and possession

    Timing can be just as important as price. Some sellers want to close quickly, while others may need extra time to move. Ask your agent to find out what works best for the seller, and consider offering a rent-back option if they need more time. A little flexibility can go a long way toward making your offer more attractive.

    6. Write a personal letter (with care)

    A short, sincere note can help you stand out in a sea of offers. Keep your buyer letter focused on what you love about the home and how you see yourself living there. Avoid making assumptions about the seller; instead, express genuine appreciation for their property. It’s a small, human touch that can make a big impression.

    7. Work with an experienced agent

    In a competitive market, having a skilled real estate agent can make all the difference. A reputable agent communicates clearly with the listing agent, anticipates counteroffers, and knows how to highlight the strengths of your offer. Their professionalism can help your bid get noticed and taken seriously.

    8. Consider a cash or near-cash offer

    Cash offers tend to stand out because they eliminate financing uncertainty and can close more quickly. If you can’t offer all cash, increasing your down payment or showing proof of additional funds can help demonstrate your financial strength and reliability.

    9. Add an escalation clause

    An escalation clause automatically increases your offer up to a set limit if another buyer bids higher. It’s a smart way to stay competitive without overpaying. Be sure to work with your agent to structure the clause clearly and transparently so both sides feel confident about the process.

    10. Offer creative incentives

    Small gestures can help your offer rise to the top. Consider covering a portion of the seller’s moving costs, offering flexible leaseback terms, or including a home warranty to ease post-sale concerns. These thoughtful extras can make your offer feel more personal and appealing without necessarily increasing your price.

    Frequently asked questions

    1. Should I waive the home inspection to make my offer stronger?
      Not entirely. Instead of waiving it, shorten the inspection period or agree to limit repairs to safety issues. This keeps your offer competitive without taking unnecessary risk.
    2. Does offering over the asking price guarantee acceptance?
      No, but it increases your chances. Sellers often weigh overall terms, not just price. A clean, well-structured offer may beat a higher but riskier one.
    3. How fast should I act once I find the right home?
      Immediately. Homes in many markets go under contract in less than two weeks. Quick action shows motivation and can help secure the deal before others bid.

    How to convince a seller to accept your offer and close the deal.

    Convincing a seller to accept your offer takes more than enthusiasm; it requires strategy, speed, and preparation. By combining strong financial footing, clear communication, and the guidance of a skilled agent, you can stand out in any market. Whether you’re a first-time buyer or moving up, these strategies can help turn your dream home into your new address.

     

    Jasica Usman

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  • What Stays, What Goes: A Beginner’s Guide to Inclusions and Exclusions in Real Estate

    Key takeaways: 

    • Confirm every detail in writing. Don’t assume what you see stays. Always verify inclusions and exclusions in real estate in your purchase agreement before signing. 
    • Understand the difference. Inclusions are items that are built in or attached to the property, while exclusions are personal or removable features the seller plans to take. 
    • Lean on your agent’s expertise. A knowledgeable real estate agent can help you negotiate clearly, avoid misunderstandings, and ensure the contract reflects your expectations.

    You’ve finally found it: the home that checks every box. Whether you’re a first-time buyer or relocating for new opportunities, this one feels special. There’s a tranquil koi pond in the backyard and a custom-built refrigerator in the kitchen that fits perfectly with the design. You make an offer, it’s accepted, and moving day can’t come soon enough.

    But during your final walkthrough, you notice something’s missing: the pond is empty, and the refrigerator is gone.

    Welcome to the world of inclusions and exclusions in real estate, where what stays with the home and what goes with the seller can sometimes surprise even the savviest buyers.

    What are inclusions and exclusions in real estate?

    When buying a home, it’s easy to assume that everything you see during a showing will stay after closing, but that’s not always the case. What remains or is removed depends on what’s listed in your purchase agreement or MLS description.

    Here’s a quick breakdown:

    Inclusions – Items that stay with the home after the sale. These are typically built-in or permanently attached, such as:

    • Kitchen appliances (like built-in ovens or dishwashers) 
    • Light fixtures and ceiling fans 
    • Landscaping or outdoor structures that are attached to the property

    Exclusions – Items the seller plans to remove before closing. These are usually personal property or easily detached, such as:

    • Freestanding refrigerators or washers and dryers 
    • Window treatments or decorative mirrors 
    • Portable garden décor, even that koi pond setup

    Understanding inclusions and exclusions helps buyers clarify what’s part of the deal and avoid last-minute surprises before move-in day.

    How to negotiate inclusions and exclusions in real estate

    Once you understand what stays and what goes, make sure those details are clearly outlined in your offer. During negotiations, buyers and sellers can agree on which items are included or excluded from the sale, and it’s essential to document everything in writing.

    When you submit your offer, your agent will list specific inclusions and exclusions in the purchase contract, such as appliances, window coverings, or outdoor features. Clear documentation protects both sides; buyers know exactly what they’re getting, and sellers can avoid disputes later in the process.

    Tips for negotiating effectively

    Negotiating inclusions and exclusions can feel tricky, especially for first-time buyers. The key is to stay clear, flexible, and focused on what matters most.

    Here are a few smart strategies:

    • Prioritize your must-haves. Decide which items are nonnegotiable before submitting your offer, such as a custom refrigerator or patio furniture. 
    • Put everything in writing. Verbal agreements can lead to confusion, so have your agent include all inclusions and exclusions in the contract. 
    • Stay realistic. Sellers may have sentimental attachments to certain items, like chandeliers or garden statues; be open to compromise if the overall deal works in your favor. 
    • Ask early. If you’re unsure whether an item stays, ask your agent during the showing before you get attached. 
    • Lean on your agent’s expertise. Experienced agents know how to structure offers that balance your priorities with what the seller will accept.

    By addressing exclusions upfront, buyers can move forward with confidence, knowing exactly what’s included in their new home.

    Real-world example: When inclusions get confusing

    Here’s a real-life scenario that shows why it’s important to double-check your contract.

    A Maryland buyer toured a home that included window air-conditioning units, as noted in the listing. After the seller accepted their offer, the Non-Realty Items & Exclusions page of the initial contract was left blank. The buyer’s agent asked for the air-conditioning units to be added, and when the updated contract came back, it unexpectedly included additional appliances — a washer, dryer, and microwave — that weren’t part of the original offer.

    Once both parties signed, those items became enforceable parts of the contract. If the seller had added them by mistake or refused to provide them later, it could have led to a dispute.

    The takeaway: Always review every page of your purchase agreement carefully and confirm all inclusions and exclusions before signing. If anything seems unclear, consult your agent or a real estate attorney for clarification.

    Frequently asked questions

    1. Can I negotiate what’s included or excluded in my offer?
      Yes. Buyers and sellers can negotiate inclusions and exclusions as part of the offer. Once both sides agree, those terms must be listed in the written contract to be enforceable.
    2. Are inclusions and exclusions legally binding?
      Yes. After both parties sign the purchase contract, all listed inclusions and exclusions become legally binding. If a seller fails to leave an agreed-upon item, the buyer may have grounds for dispute. Always review your final contract before closing.
    3. Can exclusions affect a home’s value?
      They can. A home with high-end appliances or custom features included in the sale may attract more buyers. Removing key fixtures or appliances, however, could reduce the home’s perceived value or lead to tougher negotiations.

    Final thoughts on inclusions and exclusions in real estate

    Buying a home involves a lot of moving parts, and knowing what stays and what goes is one of the most important. By understanding inclusions and exclusions, you can avoid surprises and feel confident about what’s truly part of your new home.

    Work with your agent early to document everything clearly, so when closing day arrives, you’ll get exactly what you expected, and nothing you didn’t.

     

    Jasica Usman

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

    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

    Holly Hooper

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  • A Beginner’s Guide to Understanding Housing Market Trends

    Co-authored by Redfin and Mike Larson, Editor-in-Chief at MoneyShow

    If you’re just starting out in real estate, the housing market might feel like a puzzle with too many moving pieces. Prices rise, then fall. Homes seem plentiful one year and scarce the next. If interest rates climb before you’ve locked in a mortgage, your potential monthly payment may change drastically.

    Learning how to recognize and adapt to these housing market trend shifts can help you whether you’re thinking about buying, selling, or simply keeping an eye on the market.

    To help break it all down, we’ve partnered with MoneyShow, where leading voices in real estate recently shared their insights on the firm’s Virtual Expo platform. In this Redfin guide, we’ll walk through key forces shaping real estate today, then take a closer look at expert perspectives on what’s happening in 2025. Whether you’re eyeing a home in Los Angeles, CA or in Boston, MA, this piece aims to give you the context to read the market with more clarity.

    Why market trends matter

    Trends are more than talking points; they provide context and guardrails for decision-making. Without them, you can easily misinterpret short-term spikes or dips as something more permanent.

    Here’s what Redfin data shows right now:

    • In August 2025, U.S. home prices rose 1.5% year-over-year, with a median sale price of about $439,419.
    • Meanwhile, the number of homes sold declined 2.5%, while active listings increased 10.1% over the same period.
    • One telling statistic: there are nearly 500,000 more sellers than buyers in the U.S. market, so far the largest gap on record per Redfin’s data. 
    • And just over 28% of homes are selling above asking price, down from around 32% a year ago.

    What this data suggests:

    • The fact that listings are rising while sales are falling points to loosening demand and more room for negotiation.
    • The surplus of sellers relative to buyers is a classic signal of a buyer’s market in many places, meaning buyers might gain more leverage.
    • Slower sales and softer competition reduce the likelihood of intense bidding wars, making timing a little less frantic (though local dynamics still matter a lot).

    In short, trends turn noise into a pattern, helping you see when markets might be cooling, heating, or settling into balance.

    Core factors that shape the market

    To make sense of trends, it helps to understand the forces at play. Below are the big factors and how they show up in today’s data:

    • Supply and demand: The balance between available homes and eager buyers shapes prices and negotiation power.
    • Interest rates: Higher rates make mortgages more expensive, reducing affordability and often cooling demand. Lower rates can draw more buyers in. Check Redfin’s mortgage calculator to see how rates affect monthly payments.
    • Regulations and policies: Local or state rules, like short-term rental restrictions or new tax proposals, can shift the profitability of owning property in certain areas.
    • Investor activity: From small landlords to larger investors, their decisions to buy or hold properties can influence both supply and competition.

    Think of these as the “levers” that keep the housing market in motion.

    Read>> Is Now a Good Time to Buy a House?

    A look at the current real estate market

    So, what do these trends look like right now? According to MoneyShow contributing experts, 2025 is shaping up to be a year of transition, where stability is starting to return, but not without a few surprises.

    Multifamily opportunities may be emerging

    Kathy Fettke, founder of RealWealth.com, says multifamily is entering a “very different world” than recent years. With less new supply coming online compared to 2023–2024, she expects pricing and rents to stabilize. She calls this period a potential “sweet spot” in the cycle for investors.

    When supply is constrained, the existing rental stock gains importance. For anyone watching markets with strong demand for rentals, that could mean more steady cash flow and less volatility than in oversupplied conditions.

    Single-family homeowners are holding steady

    Fettke also pointed out that today’s homeowners aren’t facing the same struggles seen during the mid-2000s housing bust. Because so many are locked in low, fixed-rate mortgages, they’re not under pressure to sell even if rates are high now. That stability makes a widespread housing crash unlikely.

    For everyday buyers, this means that while prices may still feel high, they’re less likely to see sharp, destabilizing drops. It’s a reminder that not all “slowdowns” in the market are the same.

    Foreign buyers and life changes are bringing movement

    Patrick Duffy, senior real estate economist at U.S. News & World Report, notes that foreign buyers are gradually returning, adding to housing demand. He also highlighted how the so-called “lock-in effect” is fading. Even with low-rate mortgages, people eventually need to move for new jobs, growing families, or other life changes.

    This is an important reminder that the housing market is never static; life events and outside buyers create churn even when affordability is tight.

    Investors remain an active presence

    Thomas Malone, principal economist at Cotality, observes that small and mid-size investors still account for about “25–30% of market activity.” Even as the broader market cools, their continued presence supports stability in certain segments.

    That mix of participation helps explain why supply imbalances don’t always lead to large price declines — investor demand can absorb some slack, especially in markets with rental demand or upward momentum.

    The takeaway

    Housing market trends can seem complicated at first, but they’re really just the push and pull of supply, demand, interest rates, and human behavior. Learning to recognize these signals helps you put the news you hear and the listings you see in context.

    For anyone beginning their journey in real estate, the goal isn’t to predict the future; it’s to understand the forces at play so you can make informed, confident decisions when the time is right.

    Freda Nkrumah

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  • 14 Tips for First-Time Homebuyers, Straight From Reddit Homeowners

    Buying your first home is a thrilling and often overwhelming process. Whether you’re buying a home in Seattle, WA or a house in Los Angeles, CA, there’s a lot to consider from the initial tour to signing the final paperwork. 

    For a first-person perspective, Redfin reached out to homeowners on Reddit to ask the one thing they wish they’d known before buying their first home. From shopping around for the best mortgage rate to talking with neighbors to get the inside scoop on the area, these Reddit-sourced tips will help you feel more confident as you step into homeownership.

    1. Shop aggressively for rates

    It’s easy to get caught up in the excitement of getting a loan, but make sure you shop around, as this Redditor advises.

    bespoketranche1: “I wish I would’ve shopped for rates aggressively. We were so caught up on finding the right home, that we missed an opportunity to get a lower rate and save ourselves hundreds each month.”

    2. Introduce yourself to the neighbors

    Before putting an offer in, be a good future neighbor and knock on some doors in your neighborhood to get the insider scoop.

    Rorschach_1: “Knock on all the neighbors’ doors and introduce yourself as a potential buyer as a way to ‘find out.’ Know traffic patterns, East, West, where the sun sets/rises, wind, etc.”

    3. Set plans and boundaries for DIY renovations

    If planning on doing maintenance yourself, talk with any other parties living in the house to confirm expectations and boundaries around the work.

    Professional-Cap-822: “We bought an old, beautiful bungalow with plans to do a lot of updates. My husband wanted to do the work himself. I didn’t grow up in houses we owned, so I knew nothing of renovations. 

    I wish I had known to talk through what he had planned, what it would cost, and how long he thought it would take. Folks should also really consider whether they are okay in living through the mess. And they should make agreements about boundaries around projects.”

    4. Find joy in the process

    Buying a home can be exciting and stressful. Try to find joy whenever you can, as this Redditor explains.

    LongSupermarket2646: “I’m in the industry, and there’s a laundry list of what people should know before buying a home. It’s become one of the most stressful things you’ll do in your lifetime, and it can cause a divorce if you have a hard time finding the joy, happiness, and excitement of what you’re accomplishing – even when small delays may happen. It’ll be the best reward for everyone involved in your transaction.”

    5. Know that an inspection might not catch everything

    Although home inspections can catch a lot before you close on the house, be prepared that some things can sneak past a standard inspection.

    Ykohn: “I wish I’d known how much can hide outside a standard inspection. Things like sewer lines, drainage, or an undersized electrical panel can cost a fortune later, but don’t always show up on the report.”

    Another Reddit user agreed that they’d have extra inspections done if they could go back in time.

    Magnificentbunny_: “I wish we’d listened to the inspector and gotten all those extra inspections like roof, plumbing, etc. We didn’t realize we could have just gotten people to come out and give us an estimate for fixing those things. You don’t necessarily have to ‘pay’ for more inspections.”

    6. Understand your full monthly payment

    When buying a home, your monthly housing expenses aren’t just limited to the mortgage. You’ll also be paying taxes, insurance, and HOA fees.

    LetMany4907: “Understanding how mortgage rates and closing costs impact monthly payments would’ve saved me a headache. I focused on the sticker price but ignored the long-term payment picture. Running numbers multiple ways and factoring in taxes, insurance, and HOA fees is critical before signing.”

    7. Hire an arborist if you have mature trees

    It can get expensive quickly if you need to have an arborist out to look at your trees. Try to plan ahead before closing on the home.

    LackVegetable3534: “If the property has a lot of mature trees OR any trees of heaven, have an arborist check everything out. The trees of heaven and any sick or diseased trees will need to be removed, and that is expensive and should be part of your negotiations.”

    8. Expect the unexpected and work with people you trust

    For this Reddit user, it doesn’t hurt to be overprepared and have a rainy day fund in case things come up during your first few months of owning a home.

    Civil-Shelter9892: “I’ve been a realtor for 20+ years, and the first thing I would say is expect the unexpected. In my experience, things often come up that were not found in the inspection or not what the buyers were expecting. Make sure to have some remaining funds or a rainy day fund for the unexpected. Something will come up!!

    Work with people who you trust and respect. This is often the most important financial decision you will make, usually up until that point. Work with people who have your back. Your mortgage broker, realtor, lawyer, and anyone else like an inspector or contractor are supposed to be there for you. Surround yourself with good people. Don’t just use someone because they are your cousin or because your mom used them; find someone who you feel will help you in what can be a stressful yet exciting time!”

    Another Reddit user made sure to drive home the importance of being prepared for hidden costs.

    Widelyesoteric: “Buying a house has a lot more hidden costs associated with it than you know. Governments can change laws. Increase taxes. Design requirements. Repairs. Weather damage. Theft. Bad neighbors.

    You don’t just buy a house. You get the homeowner experience. Good and the bad.”

    9. Consider fire and flood activity

    With the increase in fires and floods in recent years, where you choose to purchase a home can also affect your insurance options and costs.

    Poptart4u2: “If I had known that insurance companies could cancel based on new fire and flood activity, I would have been more careful in selecting the location of my new home. Lucky for me, so far so good, but I do live in a high-fire area in Southern California and that could change at any time. I know people close to my location who have had their insurance go up by thousands of dollars, which of course, made their mortgage go up too. Now their mortgages are too expensive for them to afford.”

    10. Take your time to explore each step of the process

    Although it’s exciting when you find a home you like, make sure you’re going through each step carefully, as this Redditor touches on.

    Pale_Natural_7261: “I think that during the buying process – some are jumping really quickly because they found the right house. I think it’s really important to take time to understand the process. How long is it going to take from offer to closure? What type of issues come up if buying an old house vs new build? How do I build the right team to buy a house? Is a realtor enough? Should I use my brother to do the inspection (the answer is always no), etc. There are so many aspects of homeownership that are overlooked, and sometimes even with the best intentions forward, there is not enough time to explore all the aspects. I think one thing that is definitely doable: be curious, ask questions, not just about where and the price, but how!”

    11. Question anything that looks out of the ordinary

    When doing a walkthrough of the house, make sure to point out anything that looks strange. Don’t be afraid to ask questions.

    skoltroll: “Do a detailed inspection yourself. Why is that ceiling cracked? Can you prove when the mechanicals were last serviced/upgraded? How old is the roof? What are these water stains? Does the insulation in the attic look good? Compare disclosure to what you see. Is it downplaying issues? Is the grading of the land outside going away from the foundation?

    This may not change your mind on the purchase, but it should put you in a solid place to know what you’re buying, and know what you’re willing to accept as far as future maintenance.

    tl;dr: Screw cosmetic updates. Prove the basics are solid.”

    For one Reddit user, looking under a suspiciously placed dish towel could have saved a headache down the line.

    FewTelevision3921: “To look under the decorative dish towel, laying lovingly over the edge of the countertop, that when not there after buying allowed me to see that there was a 3 inch chunk of laminate missing underneath.”

    12. Buying early can help you build equity

    If you can afford it, buying a home early can help you start building equity instead of paying rent instead of paying rent without a future return.

    Simple-Airport1357: “I wish I had bought my first home years before I did. Instead, I spent my 20’s renting and paying someone else’s mortgage. When I did the math, I realized I paid over $500,000 in rent in that decade. That’s half a million dollars I’ll never get back.”

    13. Make sure to include the little things in your inspection

    Aside from the bigger systems getting checked, it’s easy to overlook the smaller things like windows not opening, as this Redditor explains.

    ansibley: “Just sold my departed mother’s house. Her inspector had me repair a window that didn’t stay up correctly. So I just assumed when I found a new house this month that my inspector would do that, too. Nope. Don’t forget the little things amongst the big systems checked! The house I just closed on today I found out a few hours later had only 5 of 11 windows that I can open.”

    14. Check any storage rooms or garages during the final walkthrough

    Before closing, make sure you check any place where unwanted items could be stored. There might be something hiding in the garage you don’t want to deal with.

    RTMichigan24: “Always check the garage & any storage rooms on the final walkthrough. People are lazy and put their old stuff there instead of the curb..”

    Bottom line: you can’t be overprepared

    When it comes to first-time homebuying, it’s always helpful to be overprepared. Don’t be afraid to ask questions during the process to ensure you’re getting correct information and nothing is getting swept under the rug. Homebuying can be stressful, but being prepared can help mitigate that stress and the chances of anything unexpected coming up in the future.

    Jeremy Steckler

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  • What is a Bedroom Community and Is It Right for You? 

    If you’re a professional or just someone who loves the excitement of a big city but prefers to come home to peace and quiet at the end of the day, a bedroom community might be exactly what you’re looking for. These residential towns are close enough to major cities like Atlanta, GA or Denver, CO for daily commuting yet offer a slower pace and more space.

    Let’s explore what defines a bedroom community, its history, the pros and cons of living in one, and how to decide if it’s the right move for you.

    In this article: 
    What is a bedroom community?
    History of bedroom communities
    Advantages of bedroom communities
    Disadvantages of bedroom communities
    How to choose the right community
    Should you move to a bedroom community? 
    FAQs

    A bedroom community is a residential area where most people commute to another city for work. While residents may spend their workdays in the city, they return to their neighborhood for life outside of work, social connections, and relaxation.

    These areas often feature larger single-family homes instead of apartments or condos. Individuals and families who work in larger cities but prefer to live in more peaceful surroundings make up a large portion of the population. 

    Although sometimes confused with suburbs, there are differences. Suburbs typically border city limits and offer more access to shopping, public transit, and diverse amenities. Bedroom communities, on the other hand, are usually located farther from urban centers called exurbs in more rural areas, providing a small-town atmosphere with fewer conveniences but more space and affordability.

    Read>> Exurbs vs Suburbs

    A brief history of bedroom communities 

    The rise of bedroom communities can be traced back to the mid-1900s. After World War II, families grew quickly and many wanted to leave behind crowded city living. With the increased availability of cars and highways, people were able to live farther from their workplaces and still commute. This trend laid the foundation for today’s commuter towns, which remain popular among those seeking balance between city opportunities and suburban comfort.

    Bedroom communities offer several benefits that can make them appealing to homebuyers.

    More space for less money

    Homes in bedroom communities typically come with larger yards, garages and driveways. Buyers often find that their budget stretches further compared to the higher prices of city apartments or condos. 

    A close-knit atmosphere

    In a smaller community, it’s easier to get to know your neighbors. Many residents form strong friendships and support systems, creating a true sense of belonging. 

    Education

    Bedroom communities are often known for their strong focus on education. Many have schools that benefit from active community involvement, well-supported programs, and smaller student populations. This creates opportunities for students to thrive academically while also building close connections with teachers and peers. 

    Access to public transportation

    Many bedroom communities are designed with commuters in mind, so you’ll often find reliable public transit options for those who prefer not to drive daily.

    Disadvantages of bedroom communities

    Bedroom communities aren’t perfect for everyone. Here are some common drawbacks to consider. 

    Longer commutes 

    Living farther from the city often means more time spent in traffic or on trains. The added cost of fuel, parking, or transit passes should also be factored into your budget.

    Less walkability

    Unlike city neighborhoods, bedroom communities tend to be car-dependent. Walking to restaurants, shops, or work is usually not practical.

    Limited nightlife and entertainment

    If you enjoy bustling nightlife, trendy dining, or cultural events, you may need to head back into the city for those experiences. Life in a bedroom community can feel quieter and slower paced.

    Not all bedroom communities are the same, so it’s important to weigh your lifestyle and needs before moving. Ask yourself: 

    • How long will my daily commute take and how much will it cost?
    • Does the community have reliable public transit or will I need a car?
    • Are schools in the area strong and suited to my needs?
    • What is the overall cost of living compared to the city?
    • Will I feel socially fulfilled in a quieter environment?

    Working with a real estate agent who knows the area well can also help you make an informed decision. 

    A bedroom community offers the best of both worlds: access to city jobs and opportunities combined with a quieter, more spacious lifestyle. While they may not offer the same conveniences or entertainment as an urban neighborhood, they’re a wonderful fit for those who value peace, space, and a sense of community.

    Read>> How to Decide Where to Live

    FAQs: Bedroom communities 

    What is the difference between a bedroom community and a suburb? 

    Suburbs are usually located right outside city limits and offer easier access to shopping, transit, and services. Bedroom communities are typically farther out, giving them a more rural, small-town feel.

    Do bedroom communities have good public transportation? 

    It depends on the location. Many are built around transit routes for commuters, but others may require a car for daily travel.

    Are homes cheaper in bedroom communities?

    In many cases, yes. Buyers often find that they can get more square footage and land for their money compared to city properties.

    If you value space, safety, and a strong sense of community, a bedroom community can be a great fit. However, those who thrive on city nightlife and walkability may prefer to stay closer to downtown.

    Kierra Todd

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  • Letter to Seller of Home: How to Write One That Stands Out

    Key takeaways:

    • A letter to a seller of a home can help your offer stand out in a competitive market.
    • Focus on genuine connection and financial readiness, but avoid personal details that raise Fair Housing concerns.
    • Use clear, professional wording, and keep your letter short and focused.

    Buying a home is still competitive, even if not as frenzied as during the pandemic’s peak. A common misconception is that 26% of buyers are facing bidding wars — but according to the National Association of Realtors, that figure actually represents the share of buyers who paid all cash for their homes in late 2023 and early 2024. While bidding wars have cooled, competition remains: recent reports show that around 20% of homes nationwide received multiple offers in mid-2025. One way to stand out in today’s market is by writing a “buyer love letter,” a short note to the seller that explains who you are, why you love the home, and why they can feel confident choosing you. This Redfin real estate guide will walk you through how to write the perfect note to the seller without being too over-the-top.

    Why writing a letter to a home seller matters

    Even in today’s cooler market, competition is still real. Writing a personal letter to the seller can give your offer an edge by creating connection, showing sincerity, and boosting seller confidence.

    • Connection: Sellers often want to know their home will be appreciated.
    • Differentiation: In a multiple-offer situation, a letter can humanize your offer.
    • Confidence: Expressing financial readiness can reassure sellers.

    What to include in your letter to the home seller

    When crafting your buyer letter, keep it personal yet focused. Including the right details can help sellers connect with you while also showing that you’re a serious and prepared buyer. Here’s what your letter should include to accomplish that: 

    • A warm introduction and brief information about who you are.
    • Specific details about what you love about the home.
    • How do you see yourself living there?
    • A short note on your financial preparedness.
    • A polite thank-you.

    What not to include in a letter to a home seller

    Realtors sometimes warn against personal letters because of Fair Housing Act concerns. Sharing too much personal information — such as family status or religion — could create bias and potential liability. To stay safe:

    • Avoid mentioning protected characteristics (race, religion, marital status, etc.).
    • Keep the letter focused on the house and your ability to purchase.
    • Don’t compare your offer to others or pressure the seller.

    Step-by-step guide: How to write a letter to a home seller

    1. Start with a greeting (e.g., “Dear [Seller’s Last Name] Family”).
    2. Introduce yourself briefly without including personal details that raise fair housing risks.
    3. Mention specific features you admire about the home.
    4. Express how you envision living there.
    5. Highlight your seriousness and financial readiness.
    6. End with gratitude and a polite closing.

    Sample letter to a home seller

    Formal option:

    Dear [Seller’s Last Name] Family,

    Thank you for taking the time to consider my offer on your home. From the moment I visited, I was impressed by the abundance of natural light in the living room and the warmth of the backyard. I can easily imagine creating a lasting home here and truly appreciate the care you’ve put into maintaining it.

    Please be assured that I am financially prepared and ready to move forward without delay. I have already secured pre-approval from my lender, which means I can move quickly and confidently through the closing process. My goal is to make this transition as smooth as possible for you.

    I am grateful for your consideration and the opportunity to present my offer.

    Sincerely,
     [Your Name]

    Friendly option:

    Dear [Seller’s Last Name] Family,

    I truly enjoyed walking through your home—it immediately felt welcoming. The open kitchen and cozy fireplace especially stood out to me, and I can already picture hosting friends and sharing special moments there. I love the idea of creating a home filled with warmth, laughter, and lasting memories.

    I also want you to know that I’m fully prepared to move forward financially. I’ve secured mortgage pre-approval and am ready to take the next steps quickly, making the process as smooth and stress-free as possible for you.

    Thank you so much for considering my offer.

    Best,
     [Your Name]

    How do you say thank you to a seller of a home?

    Keep it simple and professional. A short line such as “Thank you for your time and consideration of my offer” is polite and effective.

    FAQs

    What is a love letter to the seller of a house?
    A love letter to the seller of a house is a personal note from the buyer to the seller that explains why the buyer loves the property and wants to purchase it.

    Do seller letters actually work?
    Yes, they can. A letter won’t replace a strong financial offer, but it can make you more memorable in a competitive market.

    Why do realtors warn against writing personal letters to home sellers?
    Because sharing personal details may risk Fair Housing Act violations. It’s best to keep your letter focused on the home and your financial readiness.

    How do you write a letter to a home seller?
    Keep it short, professional, and focused on the home. Mention what you love about the property, express your readiness, and thank the seller.

    Should I send a letter with every offer?
    Not always. Some sellers prefer not to receive letters, and some agents discourage them. Ask your real estate agent what’s best for your situation.

    Wrapping up: Writing a letter that works

    A letter to the seller of a home can give your offer a human touch, but it should always be professional, brief, and focused on the property. By striking the right balance, you can stand out in a competitive market without creating risk.

     

    Jasica Usman

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  • This Work Policy is Driving More Millennials to Buy a Home in Suburbia | Entrepreneur

    This Work Policy is Driving More Millennials to Buy a Home in Suburbia | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    In the grand game of real estate, there’s a new king on the board. The suburbs are not just surviving, they’re thriving, and it’s all thanks to the game-changer that is flexible work. Who needs a skyscraper view when your office is your living room, and your commute, is a mere amble from bed to desk?

    “We expect the ability to WFH to remain an incentive for young families to seek out more remote suburban and rural markets where housing may be more affordable,” a recent Bank of America report suggests. It’s like swapping a sardine-can city apartment for a comfortable, spacious home. It’s not rocket science; it’s simply the art of making work work for you.

    The five-day office week, like the dodo, is heading for extinction. Lawrence Yun, the chief economist at the National Association of Realtors, says, “A little bit of a longer commute is not a hindrance” if you’re not in the office Monday to Friday, 9-5. Not when you’ve got the flexibility to decide where and when you work. Why endure the daily urban rat race when you can occasionally roll with the relaxed suburban pace instead?

    Related: A New Remote Work Trend is Helping Employers Retain Talent Amid Labor Market Pressures

    Millennials: Not so urban after all

    Remember when we thought millennials were city slickers, with their Uber rides and brunch habits? Turns out, they’re embracing the suburban dream as eagerly as a kid pouncing on the last slice of pizza.

    Hyojung Lee, a professor of housing and property management at Virginia Tech, humorously notes, “We’ve always talked about millennials as urban people… But it turns out they’re not that cool anymore.” Indeed, some 45% of millennials now plan to buy homes in the suburbs, according to a recent Bank of America survey. That’s up from 33% in 2015. Perhaps it’s not about being “cool” anymore but about being “smart.”

    The gourmet exodus: A culinary revolution in suburbia

    This new suburban migration is not just about homes and workplaces. It’s also transforming the gastronomic landscape. Urban retail vacancies surpassed suburban ones in 2022, for the first time since 2013, according to the Wall Street Journal. Like ants to a picnic, restaurants and retailers are flocking to these thriving town centers.

    Consider the salad chain, Sweetgreen. Once a downtown staple, it’s now making the suburbs its main stage with 50% of its locations nestled there. And it’s not just salad — even big-name chefs are choosing suburban towns for their next culinary adventures. It’s as if suburbia has become the new Manhattan for the restaurant world.

    The face of suburbia is changing, too. Long associated with homogeneity, suburbs are now outpacing the national average for racial diversity, according to a Brookings Institution analysis. The stereotype of the white picket fence is slowly giving way to a vibrant mosaic of cultural diversity.

    The city still stands: A reality check

    Despite this suburban boom, downtowns aren’t ready to throw in the towel just yet. Yun reminds us that people are returning to city centers, even in the hybrid work era. And while suburbs close to cities are flourishing, demand in the far-out ‘burbs has dropped significantly since the pandemic’s peak.

    So, in this grand game of real estate, it’s not about cities losing or suburbs winning. It’s about recognizing that the playing field is changing. As we embrace the flexibility that technology affords us, our living preferences are evolving in turn. As I tell my clients whom I helped figure out their return to office and hybrid work plans, you need to go where your employees are, rather than simply trying to impose a top-down command-control structure on them — at least, if you want to retain your top talent.

    Related: You Should Let Your Team Decide Their Approach to Hybrid Work. A Behavioral Economist Explains Why and How You Should Do It.

    Cognitive biases: Unseen forces shaping our choices

    Underneath our decision-making processes, cognitive biases often run the show. They’re like puppeteers, subtly influencing our choices and judgments. Two key biases that might be influencing this suburban migration are the status quo bias and the anchoring bias.

    First, let’s consider the status quo bias. This is our tendency to prefer things to stay the same by doing nothing or maintaining our current or previous decision. With the onset of the pandemic, the status quo was disrupted, forcing us to adapt to a new “normal” — working from home.

    For many, this temporary change has transformed into a comfortable routine. The novelty has worn off, replaced by the status quo bias. We’ve become accustomed to the convenience, freedom and flexibility of remote work. The prospect of returning to our previous lifestyle — the daily commute, the rigid office hours — seems more daunting than sticking to the new status quo.

    The anchoring bias, on the other hand, refers to our tendency to rely too heavily on the first piece of information we encounter (the “anchor”) when making decisions. When the pandemic hit, the “anchor” for many was the vision of a lifestyle free from daily commuting and office constraints. This initial impression has strongly influenced subsequent decisions about work and living arrangements.

    Moreover, as we have seen suburban life flourish — with burgeoning retail spaces, diverse communities, and the promise of a more balanced lifestyle — these positive first impressions have only been reinforced. The anchor has been cast, and it’s landed firmly in suburban territory.

    By understanding these cognitive biases, we can make more informed decisions about our work and lifestyle choices. As we navigate this era of change, it’s crucial to challenge our biases, question our assumptions, and remain open to all possibilities. Only then can we truly make the most of the opportunities that the future of work presents.

    Conclusion

    In the end, whether it’s the city’s siren call or the suburb’s sweet serenade that wins your heart, it’s clear that flexible work has forever changed the way we live. It’s reshaped not just our working lives, but our homes, our communities and our landscapes. The suburbs are having their moment in the sun, not as a retreat from the city, but as a compelling alternative.

    Gleb Tsipursky

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