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Tag: home selling tips

  • What to Know About Gift Tax on Property: A Comprehensive Guide

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    Key takeaways:

    • Annual gift tax exclusion: $19,000 per person in 2025 ($38,000 for couples).
    • Lifetime gift and estate tax exemption: $13.99 million in 2025, but expected to drop in 2026.
    • Inheritance advantage: Stepped-up basis often saves heirs from significant capital gains taxes.
    • Trusts and spousal transfers: Effective tools for transferring property when dealing with larger estates or married couples.

    Gifting a property to a loved one can feel like a generous way to pass on wealth, but the stringent regulations and tax consequences of doing so are often overlooked. There are several strategies to avoid gift tax on property, but each comes with trade-offs that can have lasting financial effects.

    In this Redfin real estate guide, we’ll explore what strategies exist to minimize tax liability. So whether you’re looking to transfer ownership of your home in Birmingham, AL, to your spouse, or maybe your vacation house in Miami, FL, to your children, keep reading to help find the best path forward for you and yours.

    What is the gift tax?

    The gift tax is a federal tax applied to transfers of money or property from one person to another without receiving equal value in return. Unlike income tax, it is paid by the giver, not the recipient.

    • Who it applies to: U.S. citizens and residents who transfer assets above the annual or lifetime exemption thresholds.
    • When it applies: Only when gifts exceed the annual exclusion amount or when lifetime transfers surpass the federal estate tax exemption.
    • What counts as a gift: Real estate, cash, cars, jewelry, stocks, and even forgiving a loan.

    When evaluating gift tax, it is important to know the rules and regulations around annual and lifetime gift exemptions. This ensures that you are filing taxes appropriately and giving gifts in the most advantageous way for both you and the recipient of your gift.

    The annual gift tax exclusion

    Each year, the IRS allows individuals to gift up to a set amount per recipient without needing to pay taxes or even file a gift tax return. For 2024, the exclusion is set at $18,000 per recipient, and will rise to $19,000 in 2025. If you’re married, you and your spouse can combine exclusions, allowing a couple to gift $38,000 per recipient per year in 2025.

    This means you can give up to the exclusion limit each year, per person, without it counting toward your lifetime exemption. This method works best for lower-value properties, or in cases where you are willing to gradually transfer ownership over a long period of time. However, for higher-value properties, spreading out gifts over multiple years may be impractical.

    Lifetime gift and estate tax exemption

    Beyond the annual exclusion, the lifetime gift and estate tax exemption comes into play. Here’s what you need to know:

    • The 2025 exemption amount is set at $13.99 million per individual or $27.98 million for married couples.
    • If you gift property worth more than the annual limit, you must file IRS Form 709, and the excess amount is deducted from the total of your lifetime exemption.
    • The exemption amount is scheduled to drop significantly in 2026 when provisions from the 2017 Tax Cuts and Jobs Act expire.

    Understanding the lifetime gift and estate tax exemption is critical when deciding whether to gift or wait for it to be inherited. Using your exemption early reduces what’s left to protect your estate from federal estate taxes.

    6 ways to avoid gift tax on property

    1. Give portions of the property’s value over several years

    One effective strategy is to transfer portions of the property’s value over a series of years while staying within the annual exclusion limits. For example, in 2025, you could transfer up to $19,000 worth of property to a recipient without any tax implications. If you are married, this amount doubles to $38,000.

    Drawbacks:

    While this strategy can work well for properties with modest values, it becomes less feasible when dealing with expensive homes or commercial real estate, since it could take decades to fully transfer ownership.

    2. Split the gift between spouses

    Another method is gift splitting between spouses. This allows one spouse to make a gift on behalf of both, effectively doubling the amount that can be given tax-free in a single year. 

    To take advantage of this provision, both spouses must agree and file the appropriate paperwork with the IRS. This technique is particularly helpful for couples who wish to accelerate the gifting process without exhausting their lifetime exemptions prematurely.

    3. Use the lifetime gift and estate tax exemption

    For larger transfers, the lifetime exemption can be used. If you wish to transfer a property worth $500,000 to your child in 2025, for instance, you would report the gift to the IRS. While no immediate tax would be owed, the full value would be subtracted from your $13.99 million lifetime exemption.

    Drawbacks:

    This reduces the protection available for your other assets, which could lead to estate tax exposure later.

    4. Let the recipient inherit the property

    Another consideration is whether gifting property is the right decision at all. From a tax perspective, it is almost always better for the recipient to inherit property rather than receive it as a gift. When a person inherits real estate, its cost basis is stepped up to its fair market value at the time of the original owner’s death. This means that if you purchased a home decades ago for $100,000 and it is worth $500,000 at your death, your heir’s basis resets to $500,000. If they then sell the inherited home for the same price, there is little to no capital gains liability.

    Drawbacks of gifting instead:

    If you instead gift the property during your lifetime, the recipient inherits your original cost basis of $100,000. If they later sell it for $500,000, they would owe capital gains tax on the $400,000 difference. This illustrates why inheritance is often a more tax-efficient option.

    5. Transfer property to an irrevocable trust

    For individuals with larger estates, transferring property into an irrevocable trust can also be an effective solution. Once the property is placed in the trust, it is no longer considered part of your estate for tax purposes. This can help avoid estate taxes and may even protect the property from Medicaid estate recovery. However, the major drawback of this strategy is that it is irrevocable.

    Drawbacks:

    Once the property is placed into the trust, you cannot take it out, sell it, or use it as collateral for a loan. You must be certain that you are comfortable relinquishing control permanently.

    6. Gift the property to a spouse

    Another tax-efficient strategy is gifting property to a spouse. Under U.S. tax law, gifts between citizen spouses are unlimited and do not trigger any gift tax filing requirements. This means you can transfer property of any value to your spouse without worrying about taxes. It is important to note, however, that special rules and limitations apply if your spouse is not a U.S. citizen.

    Important non-tax considerations

    While avoiding gift tax may sound appealing, it is important to look beyond the tax implications of transferring property and weigh the potential consequences:

    • Loss of control: Once you gift a property, you no longer own it. That means you cannot sell it, borrow against its equity, or reclaim it if your financial situation changes
    • Medicaid “look-back” period: Gifting also triggers Medicaid’s five-year look-back rule, which may disqualify you from benefits if you apply within five years of transferring the property
    • Capital gains exposure: Capital gains tax remains a major concern for gifted properties, since the recipient inherits your original cost basis. This can result in a far larger tax bill than if the property had been inherited instead.

    Wrapping up: What to know about gift tax on property

    Avoiding gift tax on property requires careful planning and an understanding of both the annual exclusion and lifetime exemption. While strategies such as splitting gifts with a spouse, using a trust, or relying on the unlimited marital deduction can be useful, it is important to weigh the drawbacks. 

    In many cases, inheritance remains the most tax-efficient way to transfer property. However, since every situation is unique, consulting with a certified financial planner or tax advisor is advisable before making any decisions.

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    Cam Hayes

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  • What Is an Escrow Holdback in Real Estate? A Seller’s Guide

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    Key takeaway: An escrow holdback temporarily retains a portion of seller funds after to cover lender-required repairs. Once repairs are verified, the funds are released to the seller.

    An escrow holdback is a financial agreement, approved and monitored by the lender, that enables a home sale to proceed. It involves setting aside a portion of the seller’s proceeds to cover unfinished repairs or improvements after closing. This safeguard is enforced by the lender to ensure the property meets safety, livability, or appraisal standards. Upon completion and verification of the work, any remaining funds are returned to the seller.

    Whether you’re selling a home in Memphis, TN, Columbus, OH, or Sacramento, CA understanding how escrow holdbacks work can give you peace of mind and help you close on time. This Redfin guide will explain what an escrow holdback is, why it matters for sellers, and how you can prepare if it comes up in your transaction.

    What is an escrow holdback?

    An escrow holdback is when a portion of the seller’s proceeds is temporarily withheld at closing and placed into an escrow account to pay for lender-required repairs or improvements that cannot be completed before closing. In some cases, the funds are drawn directly from the seller’s proceeds; in others, they may be placed into a separate account. Once the required work is finished and verified to meet lender requirements, the funds are released.

    >> Read: How Does Escrow Work When Selling a House?

    What causes an escrow holdback?

    There are several reasons a lender may require an escrow holdback. Understanding these reasons can help sellers anticipate and prepare for potential delays. Here are the typical causes:

    • Appraisal findings: Safety or livability issues flagged by the appraiser that must be addressed.
    • Inspection repairs: Issues with the foundation, roof, or other critical systems that must be resolved before the home is fully habitable.
    • Weather-dependent work: Seasonal projects like painting, landscaping, or exterior repairs that can’t be completed in winter.
    • Construction or renovation delays: New builds or remodels that aren’t fully finished by closing.
    • Permit or title requirements: Outstanding permits, septic certifications, or legal documentation that must be finalized.

    Who decides when an escrow holdback is necessary?

    The lender decides whether an escrow holdback is required, since it’s tied to the buyer’s financing. Even if the seller and buyer agree that repairs can be done after closing, the lender must approve  the arrangement for the sale to proceed. If the lender doesn’t allow it or if the repairs don’t meet their criteria, the transaction may be delayed until the work is completed.

    How this might look in practice:

    In Minnesota, a home seller received an appraisal in December requiring exterior painting. Since the work couldn’t be done during the winter, the lender approved an escrow holdback. Funds were withheld at closing to cover the painting, and once the project was completed in spring and passed final inspection, the remaining money was released back to the seller.

    What sellers can expect during the escrow holdback process

    To further understand the escrow holdback process as a seller, it’s important to look at each key step and see how the seller’s role fits in.

    1. Issues identified and an agreement is reached

    When an appraisal or inspection reveals necessary repairs, the buyer and seller agree on the work and escrow amount, documented in a purchase contract addendum.

    3. Lender reviews and approves the escrow holdback agreement

    The lender reviews the proposed escrow holdback agreement to ensure it meets their requirements and approves the arrangement.

    4. Seller funds are withheld at closing

    At closing, typically 100–120% of the estimated repair cost, is withheld from the seller’s proceeds and placed into an escrow account.

    5. Repairs are completed post-closing

    Following the close of sale, the seller is obligated to complete the agreed-upon repairs or improvements within the stipulated timeframe.

    6. A final inspection occurs and funds are released to the seller

    After the work is complete, a final inspection will confirm that the repairs meet the lender’s standards. Once approved, the remaining funds in the escrow account will be released to the seller.

    >> Read: What is Escrow? A Clear Guide to the Escrow Process

    Pros and cons of escrow holdback for sellers

    While sellers don’t always have control over whether an escrow holdback is used, since lenders may require one to approve financing, it’s still important to understand the benefits and drawbacks. 

    Pros of an escrow holdback

    • Keeps the sale on schedule: Allows the transaction to close on time despite unfinished repairs, preventing delays that could jeopardize the deal.
    • Helps secure the deal: Reassures the buyer, reducing the risk of cancellation or financing issues.
    • Facilitates lender approval: Ensures lender-required conditions are met, allowing the buyer’s financing to proceed.

    Cons of an escrow holdback

    • Proceeds withheld temporarily: A portion of the seller’s proceeds will be held back at closing, potentially affecting financial plans.
    • Underestimated repair costs: If repair costs exceed the escrow, the seller pays the difference.
    • Lender restrictions and limits: Escrow holdbacks may not be allowed by all lenders or loan types, or they may have strict limits on repair coverage, complicating the process.
    • Risk if repairs aren’t completed on time: Should the seller fail to complete repairs on time, they risk losing the withheld funds or facing buyer/lender complications.
    • Ongoing responsibility post-closing: The seller remains responsible for repairs even after closing.

    While these advantages and drawbacks give sellers a good sense of what to expect, escrow holdback rules vary with buyer financing, impacting the amount withheld, allowed repairs, and process flexibility.

    How loan types affect escrow holdbacks

    An escrow holdback’s allowance and amount depend on the buyer’s loan program, affecting the seller’s withheld proceeds and conditions at closing. Loan guidelines can change, so confirm details with the lender early in the process.

    • Conventional loans – more flexibility: Conventional loans typically allow more flexible escrow holdbacks, with lenders having greater discretion on repair types and fewer strict limits.
    • FHA loans – $5,000 cap: Federal Housing Administration loans limit holdbacks to a maximum of $5,000. If repairs exceed this amount, an FHA holdback likely isn’t an option.
    • VA loans – larger cushion required: VA loans typically require an escrow holdback of 150% of the estimated repair cost, temporarily withholding a larger portion of seller proceeds.

    >> Read: Types of Mortgage Loans

    Tips for sellers navigating an escrow holdback

    If you’re facing a holdback, here’s how to handle it with fewer surprises:

    • Get multiple repair estimates: Before agreeing to a holdback, get 2-3 detailed estimates from qualified contractors to ensure adequate funds and realistic costs.
    • Put details in writing: The escrow agreement addendum must clearly define the scope, timeline, and inspection requirements for fund release to avoid disputes.
    • Confirm lender approval early: Before closing, confirm with the agent and buyer’s lender that an escrow holdback is allowed and meets their loan program’s terms.
    • Stay involved in repairs: Though the sale is complete, you remain responsible for overseeing repairs, ensuring quality, and facilitating final inspection for fund release.

    FAQs: Escrow holdback

    1. Who pays for an escrow holdback?

    Typically, the seller funds the escrow holdback from their sale proceeds at closing to cover repairs or required work. However, arrangements can vary based on buyer, seller, and lender agreement.

    2. How long does an escrow holdback last?

    Lenders typically require repairs to be completed within 30-180 days of closing, though some projects (e.g., weather-related, large repairs) may be granted extensions.

    3. What happens if repairs cost more than estimated?

    Escrow accounts often include a cushion to cover unexpected overruns. If costs still exceed that cushion, the seller is usually responsible for covering the difference out of pocket.

    4. Can leftover escrow funds go back to the seller?

    Yes. If the repairs are completed under budget and the lender’s requirements are met, any unused funds are returned to the seller once the escrow account is closed.

    5. Are escrow holdbacks required?

    While escrow holdbacks are not required in every real-estate transaction, lenders may require an escrow holdback as a condition for financing. If so, both buyer and seller must agree to it for the sale to close, making it a required condition of the transaction.

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    Emily Pascale

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  • Assessed Value vs. Market Value Explained: What is My Home Actually Worth?

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    When you own or are buying a home, you’ll encounter assessed value and market value. While they both measure what your home is worth, they’re used for very different purposes. 

    Assessed value: The value your local government assigns to your home for tax purposes.

    Market value: The price a buyer would realistically pay for your home in the current real estate market.

    This Redfin real estate article dives deeper into the differences between assessed value vs. market value, helping you understand how each is determined, why they matter, and how they impact your finances.

    What is assessed value?

    The assessed value, also known as tax-assessed value, is the official value your local government assigns to your property for tax purposes. It’s not what you could sell your home for today – it’s a value used primarily to calculate your property tax bill.

    County or municipal tax assessors calculate this value using a combination of property details and market data. Factors often include:

    • Lot size and square footage
    • Home type (single-family, condo, multi-family, etc.)
    • Age and condition of the home
    • Location and neighborhood desirability
    • Recent renovations or improvements
    • Comparable home sales in the area

    Most jurisdictions apply an assessment ratio (a percentage of the home’s market value) to determine the assessed value. For example, if your home’s market value is $250,000 and your county uses a 60% ratio, your assessed value would be $150,000.

    This number is used to calculate your property tax bill. Your tax rate, often called a mill rate or levy rate, is then applied to the assessed value. Because assessments are tied to taxes – not necessarily the real estate market – assessed value is often significantly lower than market value.

    Example: If your assessed value is $150,000 and your county’s tax rate is 1.2%, your annual property tax bill would be $1,800.

    What is market value?

    The current market value of a home is the price it would sell for in today’s real estate market. Unlike assessed value, this figure is shaped by what buyers are willing to pay rather than a tax assessment.

    Market value is shaped by several key factors:

    • Comparable sales (“comps“): Recent sales of similar homes in your neighborhood.
    • Housing demand: Competition among buyers and the number of homes available.
    • Property features: Size, layout, upgrades, curb appeal, and amenities.
    • Economic conditions: Mortgage interest rates, inflation, and employment trends.
    • Timing: Seasonal market shifts or broader economic cycles.

    Real estate agents, appraisers, and buyers use market value to guide pricing and negotiations. Because it captures what buyers are willing to pay, your home’s current market value may differ widely from its tax-assessed value.

    Key differences between assessed value vs. market value

    Assessed Value Market Value
    Used by local governments to calculate property taxes Reflects the price a property would likely sell for in the current market
    Determined by local tax assessors Determined by market conditions, agents, and appraisers
    Typically reassessed every 1-5 years Fluctuates constantly based on real estate market conditions
    Calculated using a percentage (assessment ratio) of the market value Based on comparable home sales and buyer demand
    Affects property taxes Affects home sale price, refinancing, and home equity

    Why the difference between market value and tax-assessed value matters

    Whether you’re paying property taxes, selling your home, refinancing, or appealing an assessment, each situation depends on a different value.

    For sellers: Market value determines your sale price

    • Buyers and real estate agents ignore assessed value when making offers.
    • Your home’s selling price depends on market value, based on recent sales of similar homes.

    For homeowners: Property taxes are based on assessed value

    • Your assessed value determines your property taxes, not your home’s market value.
    • Even if home prices in your area rise, your property taxes won’t increase immediately because assessed values are updated periodically and are typically lower than market value.

    For refinancing or taking out a HELOC: Market value matters

    • Lenders base refinance terms and home equity loans on market value, not assessed value.
    • A higher market value means more home equity, which can help you qualify for better loan options.

    For appealing property taxes: Focus on assessed value

    • If your property tax bill seems too high, you can challenge the assessed value.
    • Providing evidence that similar homes are assessed for less, or that your assessment is outdated, could lower your property taxes.

    FAQs

    How can I determine the current market value of my home?

    There are several ways to estimate what your home could sell for in today’s market:

    • Online home valuation tools: The Redfin Estimate provides a free and instant estimate of how much your home is worth based on various data points, such as market conditions, your home’s features, location, etc.
    • Comparable market analysis (CMA): A real estate agent can create a report comparing your home to similar recently sold properties to estimate a realistic selling price.
    • Home appraisal: A licensed appraiser conducts a detailed evaluation of your home’s condition, features, and comparable sales, providing an official value often required for mortgages or refinancing.

    Using one or more of these methods gives you a clear picture of your home’s current market value and helps guide decisions about selling, refinancing, or leveraging home equity.

    What is appraisal value, and how is it different from market value?

    An appraisal value is determined by a licensed appraiser, often during the mortgage process. While market value reflects what buyers are willing to pay in the current market, an appraisal provides a professional opinion of value based on the home’s condition, location, and comparable sales. Lenders rely on appraisal value to ensure they’re not financing more than a home is worth.

    Why is my tax assessed value lower than my home’s market value?

    Local governments often set assessed values below full market value to stabilize tax bills and avoid sharp annual increases. This benefits homeowners by keeping property taxes more predictable, even when home prices rise quickly.

    Can you appeal your assessed value?

    Yes. Homeowners can challenge their property’s assessed value if they believe it’s too high. This typically involves filing an appeal with your local assessor’s office and providing evidence, such as recent sales of comparable homes or proof of inaccuracies in the assessment. A successful appeal could lower your property tax bill.

    Do improvements to my home affect assessed value or market value?

    Major improvements like renovations or additions can increase both assessed and market value, but assessed value may take time to reflect changes, depending on your local reassessment schedule.

    Can market value change even if the assessed value doesn’t?

    Yes. Market value fluctuates constantly due to supply, demand, and economic conditions. Assessed value is updated periodically, so it may lag behind market trends.

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    Mekaila Oaks

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  • Should I Sell My House Now?

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    Key takeaways:

    • It’s a good time to sell your house if you price correctly and are open to negotiation. 

    • Mortgage rates are holding at 11-month lows, keeping the door open for some priced-out buyers to re-enter the market.

    • There are far more home sellers than buyers, tipping the scales toward buyers – but sellers can still get competitive offers.

    • Selling now could help you avoid potential price swings if the economy moves toward recession or inflation.

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

    The typical monthly housing payment is close to $2,900, and house prices have risen for more than two years straight. These costs have frozen the housing market, scaring buyers and prompting more sellers to stay put. On top of that, President Trump’s policies are rattling the economy, further weakening demand. 

    The result is a housing market with more listings than buyers, affecting housing markets nationwide. Mortgage rates recently dropped, though, giving wary buyers a window of opportunity.

    So, what does this all mean for home sellers? Let’s dive into the data to help you decide if you should sell your house now, or wait.

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

    What sellers need to know about the housing market

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

    Buyers are in charge, mostly

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

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

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

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

     

    The economy is volatile

    House prices are high, and economists are concerned that inflation could increase due to President Trump’s tariffs. However, the now-slowing job market has had the beneficial effect of pushing mortgage rates down. Rates have hovered at 11-month lows for weeks, helping buyers afford $20,000 more than they could in May. 

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

    Upcoming economic data could also influence rates substantially. In these uncertain times, it’s essential to talk with your agent to decide if now is a good time to sell.

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

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

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

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

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






    If housing supply is low

    Fewer homes on the market can push prices up and lead to faster sales. That’s the case in many metros today, especially in the Midwest and East Coast, where demand outpaces supply.

    If mortgage rates drop

    Falling mortgage rates can spark a surge in buyer demand. More buyers in the market often means higher prices, stronger offers, and possible bidding wars – good news for sellers. As rates fall today, sellers should keep an eye on local market trends.

    If you need to sell

    Sometimes, life necessitates that you sell. Maybe your family is growing, you need to relocate for work, or want to be closer to family. In these cases, it may not matter if it’s an objectively “good” time to sell. 

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

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

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






    If mortgage rates are high

    Higher mortgage rates effectively shrink buyers’ budgets, meaning they get less house for the same amount of money. This often means fewer, lower offers. If you can’t command the price you want, it may be worth waiting to sell.

    If you’ve recently refinanced

    Selling soon after refinancing could wipe out any savings you gained from a lower rate, especially once you factor in closing costs and fees. Many sellers today are “locked in” to a pre-pandemic rate and see no reason to give it up.

    If your home needs work

    A home that needs some love can be harder to sell and may attract lower offers. If you have major repairs on your to-do list, consider tackling them before listing.

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

    So, should you sell your house now?

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

    However, house prices are sky-high and climbing, pushing more buyers to hold out for a good deal. Sellers still don’t have the negotiating power they’re used to, so you may need to offer incentives to attract serious offers.

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

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

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    Jamie Forbes

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  • Relisting Your Home: What You Need to Know Before Trying Again

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    Key takeaways

    • Home didn’t sell at first? Assess why before relisting your home.
    • Make necessary improvements and updates, adjust your pricing strategy, and enhance your listing photos and description.
    • Here’s how to make a stronger impression and guide the right buyer to your relisted home.

    Relisting your home: What you need to know

    Thinking about relisting your home after it didn’t sell the first time? It’s a common scenario, and with the right approach, you can increase your chances of success. As you think of relisting your home in Boulder or Miami, this Redfin real estate guide will walk you through the key considerations and steps for relisting your home effectively.

    Why relist your home?

    Sometimes a home doesn’t sell for reasons beyond its inherent value. Market conditions might shift, the initial pricing could have been off, or perhaps the marketing didn’t reach the right buyers. Relisting offers a fresh start, allowing you to address any issues and reintroduce your property to the market, refreshed.

    Assessing why your home didn’t sell

    Before you relist, take an honest look at why your home didn’t attract a buyer the first time around. Taking your home off the market and relisting with no changes will yield the same disappointing results. The common questions to ask yourself for a stale listing are: 

    • Price: Was your home priced too high for the market? Overpriced homes often sit longer.
    • Condition: Did your home show well? Any necessary repairs or staging opportunities missed?
    • Marketing: Were the photos compelling? Was the description engaging and informative?
    • Market conditions: Did the local housing market slow down during your listing period?
    • Exposure: Was your home visible to enough potential buyers?

    Your real estate agent can provide valuable insights into these areas, offering data and observations to help you understand the previous outcome and plan for the future. 

    Making improvements and updates

    A fresh coat of paint, minor repairs, or decluttering can make a significant difference. Small updates can enhance your home’s appeal and justify a new listing. A well-presented, clean home will welcome buyers more than a cluttered, rushed listing. 

    With help from a home inspection, finding issues and fixing them can make your home more appealing. Consider focusing on areas that offer the most return on investment, such as kitchens and bathrooms. 

    Adjusting your pricing strategy

    When thinking of relisting your home, this is often the most critical factor. Work with your agent to analyze recent comparable sales in your area. Be realistic about your home’s value in the current market. Sometimes, a slight price reduction can generate new interest and activity.

    Enhancing your listing photos and description

    First impressions are everything in real estate. Invest in professional photography that highlights your home’s best features. Provide potential buyers with a clean, professional look at your home that lets them believe they can live there. Update your listing description to be more enticing, focusing on unique selling points and lifestyle benefits. 

    No one knows your home better than you do. Tell potential buyers what makes yours unique. If you’ve made improvements, be sure to showcase them.

    Working with an experienced real estate agent

    A knowledgeable agent is crucial for a successful relisting. They can help you:

    • Analyze market trends.
    • Strategize a new pricing point.
    • Suggest impactful improvements.
    • Create a robust marketing plan.
    • Navigate offers and negotiations.

    Is relisting the right strategy for you?

    Relisting your home can be a smart move to achieve your selling goals. It’s an important decision that must be strategically made. Working with an agent and taking a thorough look at your situation is necessary to make the right choices. By understanding the reasons your home didn’t sell previously and implementing a strategic plan, you can successfully re-engage buyers and secure a sale.

    Frequently asked questions about relisting your home

    How long should I wait before relisting my house?

    There’s no set rule, but generally, waiting a few weeks to a few months allows time for market conditions to shift slightly and for you to make any necessary adjustments. Your agent can advise on the best timing for your local market.

    Will relisting my home make it look like something is wrong with it?

    Not necessarily. Many homes are relisted. What matters is the reason for the relisting and the proactive steps you take to address any issues. A fresh perspective and new strategy can overcome past challenges.

    Should I use the same real estate agent when relisting?

    It depends. If you have a good relationship and trust your current agent, and they have a solid plan for the relist, then continuing with them can be beneficial. If you feel a new approach is needed, interviewing other agents might be a good idea.

    What are the costs associated with relisting?

    The costs are similar to your initial listing, including agent commissions when the home sells. You might also incur costs for any home improvements, staging, or professional photography you decide to do.

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    Pablo Alvarez

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  • Sales Comparison Approach: A Guide for Home Sellers

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    One of the most widely used methods real estate professionals use to determine the value of a home is the sales comparison approach. The sales comparison approach, also known as the market data approach, estimates a property’s value by comparing it to similar properties that have recently sold in the same area. 

    Think of it like this: if you want to know what your car is worth, you’d look at what similar cars of the same make and model have recently sold for. This technique helps both buyers and sellers understand a property’s true market worth. This Redfin real estate guide goes deeper into the sales comparison approach and how you can use it to your advantage as a seller.

    What is a sales comparison approach?

    The sales comparison approach is a real estate appraisal method that determines a home’s value by comparing it to similar properties’ sales data. Real estate professionals analyze listing and sales prices, market conditions, and the home itself to find its fair market value. A comparative market analysis, best performed by an agent or appraiser, helps understand price trends.

    An overview of how the sales comparison approach to valuing homes works

    • The sales comparison approach is a key component of a comparative market analysis used by real estate agents.
    • Agents identify recently sold properties that share as many similar attributes as possible with the subject property.
    • Real estate agents possess expertise in recognizing desired buyer attributes and their value contribution to a home.
    • Agents are adept at assessing a home’s condition and comparing it to recently sold homes.

    Find real estate comparables

    When using the sales comparison approach, an agent considers recent sales of homes with similar characteristics to the home being priced. Key factors include:

    • Location and neighborhood: Homes in the same neighborhood or subdivision to account for local market factors and school districts.
    • Home style and features: Looking for homes with similar styles, number of bedrooms and bathrooms, and other features.
    • Construction quality: Comparing homes with similar construction quality for an accurate comparison.
    • Age and condition: Finding homes of similar age and condition.
    • Square footage and lot size: Matching homes with similar house and lot sizes.
    • Recently sold area listings: Using the most recent sales data possible for accuracy.

    Make adjustments to comparables

    No matter how many comps you have to choose from, you’ll never find a house that’s identical to yours. As a result, even when using the most comparable home, you’ll still probably have to make some adjustments to the prices on the comps you find.

    Here are some factors you may use to make adjustments to comparable home values:

    • Market conditions: The real estate market can change quickly. Even if a comparable home just sold a month ago, the market could have changed since then, meaning you’ll have to make adjustments to the comparables to account for that.
    • Qualities and features: No two homes are identical. Even in two homes with similar characteristics, one could be worth more. Maybe one home has recently had its kitchen renovated or has a more on-trend style.
    • Location characteristics: Even two homes in the same neighborhood could have different values based on their location. Is one on a busy street while the other is on a quiet cul-de-sac? Is one closer to certain amenities?

    Analyze weight adjustments

    Once your real estate agent has completed the comparative market analysis, you’ll use a weighted average of the comparable homes to determine the fair market value of your home. When using a weighted approach, you’ll give the most weight to the homes that are most similar to your home, while homes that need more adjustments will have less weight.

    Sales comparison approach vs. cost approach

    Sales comparison approach:

    • Ideal for pricing homes in areas with abundant recent sales data (suburbs, established city neighborhoods).
    • Helps determine market value.
    • Less useful for unique properties, remote areas, or investment homes due to limited data.

    Cost approach:

    • An alternative when the sales comparison approach is less useful.
    • Estimates a home’s value based on rebuilding costs (land, structures, improvements, depreciation).
    • Has two types:
      • Reproduction cost: creating an exact duplicate with original materials.
      • Replacement cost: assessing how much a similar house would cost using modern materials and techniques

    The bottom line

    The sales comparison approach is one of the most popular methods for pricing homes. Whether you’re getting ready to buy or sell a home – or both – it’s important to understand how this strategy plays into the price you’ll pay for a home or how much you can get for your current home.

    If you’re getting ready to sell your home and need help setting an asking price, get connected with a Redfin Real Estate Agent and see which selling approach they offer.

    Frequently asked questions:

    When should you use the sales comparison approach?

    The sales comparison approach is best when you live in a large neighborhood or subdivision where there are plenty of comparable homes. If you live in a rural area or have a unique home, the sales comparison approach may not work.

    What is a “comparable” property?

    A comparable property is a recently sold property that is similar in characteristics to the property being appraised, located in the same or a very similar market.

    What is one weakness of the sales comparison approach?

    The biggest weakness of the sales comparison approach is that no two homes are identical. No matter how many similar homes you find, there will still be differences that can make pricing your home a challenge.

    Is the sales comparison approach always accurate?

    While highly reliable, its accuracy depends on the availability of truly comparable sales and the appraiser’s expertise in making appropriate adjustments.

    Can I use the sales comparison approach myself to estimate a home’s value?

    While you can certainly research recent sales data, a professional appraiser has the expertise to select the most relevant comparables and make precise, defensible adjustments.

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    Pablo Alvarez

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  • What Do I Need to Bring to Closing as a Seller?

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    Closing day is the final stage of the real estate transaction, and if you’re the one selling your home you may have asked yourself, what do I need to bring to the closing as a seller? 

    Typically, you’ll need a government-issued ID, all keys and access codes, the signed closing statement, and any repair receipts or agreements. Depending on your situation, you may also need mortgage payoff details, recent utility bills, HOA documents, or notarized forms if you’re closing remotely.

    Whether you’re selling your home in Boulder, CO, Asheville, NC, or Tempe, AZ, this Redfin guide will walk you through what to bring to closing as a seller and why each item is essential for a successful, hassle-free sale. 

    What to expect at closing

    Knowing what to expect on closing day will set you up for success. For most sellers, the process is straightforward, but it does involve several key steps before the sale is officially complete. 

    • Duration: The closing typically takes 1–2 hours, though time can vary based on if everything is in order versus delays in document review or fund transfers.
    • Document signing: You’ll sign closing documents that finalizes the sale, including the deed transfer, closing statement, and settlement forms. 
    • Funds transfer: Once everything is signed, your mortgage payoff, closing costs, and agent commissions are deducted, and the remaining proceeds are wired to you.
    • Key handover: After funds clear, you’ll hand over all access keys to the buyer. Some sellers arrange this earlier if they’ve already moved out.
    • Final recording: The deed is recorded with the county, which makes the transfer public record. 

    What do I need to bring to closing as a seller?

    Once you have an understanding of the closing process, the next step is to ensure you come prepared. Organizing your documents and items ahead of time will avoid delays and help keep the transaction moving smoothly. 

    >> Read: Closing Checklist for Sellers

    1. Government-issued photo ID

    You’ll need to bring valid identification to verify your identity before signing. Most title companies require one form, and some require two. Be sure to check expiration dates beforehand to avoid delays in paperwork.

    • Accepted: driver’s license, passport, or state-issued ID
    • Bring a backup ID just in case
    • If your name changed recently, bring supporting documents with you (e.g., marriage certificate)

    2. Keys, codes, and remotes

    You’ll want to provide the buyer with everything they need for immediate access to the property. This includes all physical keys and any digital or smart-home credentials. A smooth transfer helps prevent lockouts and follow-up calls after closing.

    • House, mailbox, gate, shed, and window lock keys
    • Garage door remotes (with fresh batteries)
    • Alarm codes, smart lock/app transfers, thermostat and camera logins
    • Leave quick instructions for any smart devices

    3. Personal checkbook

    While most figures are finalized beforehand, minor, last-minute adjustments may arise. A checkbook ensures that small differences don’t delay the closing.

    • Cover minor prorations (e.g., utilities) or document copies
    • Some offices still prefer checks for small incidentals
    • Ask the closing agent whether a checkbook is necessary for your state/office

    4. Cashier’s check or wire transfer details

    If you owe money at closing (rare for sellers but possible with tight net proceeds), you’ll be told the exact amount beforehand. If wiring funds, verify instructions directly with the closing office.

    • Get final figures from the closing agent 24–48 hours in advance
    • Confirm whether a cashier’s check or wire is required
    • Call (don’t email) to verify wire instructions to avoid fraud

    5. Final utility bills

    Bring proof that you’ve paid all utility bills through the possession or closing date. This ensures the buyer doesn’t encounter any unexpected charges.

    • Receipts/confirmations for electricity, gas, water/sewer, trash
    • Schedule shut-offs or transfers for the day after possession
    • Take final meter photos on move-out day for your records

    6. Signed closing documents

    Your packet will include the transfer documents prepared by the closing agent/attorney. Review them ahead of time when possible to keep the appointment efficient.

    • Common items include the deed (or deed of trust/transfer docs as applicable), bill of sale, seller’s affidavit, settlement statement
    • Keep digital and paper copies organized for taxes and records

    7. Proof of repairs or agreements

    Bring documentation of any agreed-upon repairs, replacements, or credits. This ensures a smooth process, preventing last-minute disputes and speeding up funding.

    • Contractor invoices, receipts, and paid-in-full confirmations
    • Warranties or service agreements for new systems/appliances
    • Photos or completion letters if access was limited

    8. Tax and HOA documents

    Bring records showing taxes and association dues are current. This helps the title company clear prorations and issue accurate final numbers.

    • Recent property-tax receipts or portal screenshots
    • Latest HOA statement and any special assessment proof
    • If required, an HOA clearance/estoppel letter

    Tip: Requirements can vary by state. Always check with your closing agent to see if your state has specific forms or notarization rules so nothing delays your closing.

    The final details of closing day

    For an extra layer of caution and to help guarantee a smooth closing day, keep these steps in mind as the date approaches.

    Use a power of attorney if you can’t attend closing day

    If you are unable to attend the closing in person, a power of attorney can authorize someone to sign on your behalf. This document must be notarized and approved by your closing agent in advance.

    Confirm the final walkthrough before closing

    Before closing, the buyer will likely conduct a final walkthrough to inspect the home’s condition. Verify that all agreed-upon repairs or conditions have been met to prevent any last-minute complications.

    Share mortgage payoff information with your closing agent

    Give your closing agent your mortgage account number and the payoff amount. To confirm these figures, contact your lender ahead of time.

    Review your seller’s closing statement

    Carefully review your closing statement to ensure all fees, commissions, and credits are accurate. Resolve any discrepancies before your signing appointment.

    Tips for remote closings

    Not every seller can make it to the closing table in person, whether because of travel, a busy schedule, or moving logistics. Closing remotely is becoming more common, and you can make the process just as seamless as attending in person.

    • Check the remote online notarization rules: Many states now permit notarizing documents over a secure video call, which can save travel time.
    • Courier or secure mail documents: Ensure your paperwork reaches the title company safely and on time.
    • Confirm notarization and submission requirements: Each state and title company may have slightly different rules, so double-check ahead of time.
    • Keep copies of all signed documents: Both digital and paper copies can help in case of any future questions or disputes.
    • Stay in close communication: Keep your real estate agent or closing team updated on your progress to address any last-minute issues quickly.

    >> Read: Does the Seller Have to Be Present at Closing?

    Wrapping up the transaction

    Closing day marks the final step in your home sale, and being well-prepared helps everything go smoothly. Even after the final signatures and key handoff, taking a few additional steps ensures the sale is fully wrapped up, giving you confidence and peace of mind.

    After closing, remember to:

    • Cancel/transfer insurance and utilities.
    • Keep copies of all closing documents for seven years.
    • Confirm deed recording with the county.
    • Notify neighbors/HOA of ownership change.
    • Update your mailing address.

    FAQ: What do I need to bring to closing as a seller?

    1. How do I present closing documents if I am selling my home remotely?

    For remote closings, your title company or closing agent typically sends documents via secure email or overnight mail. You’ll need to review, sign, and return these according to their instructions. Some states also permit Remote Online Notarization (RON), allowing you to sign during a video call with a notary.

    2. What happens if I forget to bring a required document on closing day as a seller?

    Forgetting a document can delay closing, but it doesn’t always stop the process completely. If the document can be emailed or faxed, your closing agent may accept it electronically. For originals, you might need to overnight the paperwork or reschedule the signing.

    3. Can I bring a real estate agent, attorney, or support person with me to the closing table?

    Yes, in most cases you can bring your real estate agent, attorney, or even a trusted friend for support at closing. Some states require an attorney to be present, while others leave it optional. Confirm with your closing agent beforehand if there are restrictions.

    4. Do home sellers need original closing documents, or are digital copies acceptable?

    Most closing documents need original “wet” signatures for legal reasons. However, some supplementary documents, like photo IDs or utility bills, might be accepted digitally. Always check with your closing agent ahead of time.

    5. When should a home seller arrive or submit documents before the closing appointment?

    Arrive 15–30 minutes early for closing and submit documents to the title company 24–48 hours prior to allow for verification and prevent delays.

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    Emily Pascale

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  • Good Signs Your House Will Sell: How to Recognize the Right Time to List

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    Selling a home is one of the biggest financial and emotional decisions many people make. Whether you’re looking to upgrade, downsize, or relocate, you might find yourself pondering when you should sell your house. 

    Fortunately, there are plenty of indicators that are good signs your house will sell, and can they help you feel confident about putting your home on the market. So regardless of whether you are selling your family home in Birmingham, AL or your vacation house in Miami, FL, keep reading to discover “sell signs” that suggest you’re entering the market at just the right time.

    1. A strong local housing market

    One of the most important sell signs is the state of the housing market around you. A seller’s market, where demand outweighs supply, often means homes sell faster and at higher prices. Reviewing recent sales data can give you a clear picture of what to expect. Look at how long homes similar to yours stayed on the market and whether they sold above the asking price.

    A few clear market-based sell signs include:

    • Homes in your neighborhood are selling in under 30 days
    • Multiple offers coming in at or above the list price
    • Rising property values and competitive bidding

    When these conditions exist, it’s usually the right moment to list your property.

    2. A desirable location

    We’ve all heard the phrase “location, location, location.” Where your home sits plays a tremendous role in its marketability. Buyers tend to gravitate toward neighborhoods with top-rated schools, convenient shopping, low crime rates, and easy access to jobs or entertainment.

    If your home is located in a growing or desirable community, it will likely attract more attention and sell faster. On the other hand, if neighborhood changes, such as new commercial development or increased traffic, make your area more appealing, that too can work in your favor.

    However, if local amenities decline, the opposite may be true. Recognizing how these factors influence buyer demand is key when deciding when to sell a home and trying to identify signs a house will sell after listing.

    3. Curb appeal and interior condition

    First impressions matter more than most homeowners realize. Many buyers decide whether they like a property within seconds of seeing it. That’s why boosting your curb appeal is one of the strongest ways to improve your home’s marketability. A freshly mowed lawn, clean exterior, updated paint, and inviting landscaping can make a big difference. 

    Inside, cleanliness and maintenance are equally crucial. A home that’s clutter-free, staged, and updated, instantly communicates that it’s been cared for. Buyers don’t want to inherit a laundry list of repairs. If you’ve already addressed small issues and kept your home modernized, you’re much more likely to receive strong offers quickly.

    4. Establish a competitive pricing strategy

    No matter how desirable your home is, overpricing can stall your time on the market. A competitive listing price that reflects current market conditions is essential. Working with an experienced Redfin real estate agent can help you determine the right pricing strategy. They’ll conduct a comparative market analysis (CMA) and advise you on the best way to position your home.

    Signs your pricing strategy is working include:

    • High traffic during the first week of listing
    • Inquiries from multiple buyers’ agents
    • Early offers without steep negotiation requests

    A competitive pricing strategy that leads to high interest in your home is one of the best indicators that you’ve chosen the right time to sell.

    5. Positive buyer feedback

    Other good signs your house will sell come directly from the people walking through the door. If buyers and their agents consistently provide positive feedback, you’re in a strong position. Comments about the home’s layout, condition, and updates are often good predictors of a quick sale.

    When buyers show genuine engagement, like asking detailed questions, discussing potential changes, or even talking about timelines for moving in, you can be confident they’re interested. A steady flow of showings with minimal negative feedback is a reliable indicator that your property is appealing to the right audience.

    Bonus: More personal signs it’s prime time to sell

    Beyond market conditions and buyer behavior, personal circumstances also signal when to sell your house. If your current home no longer suits your lifestyle, whether it’s too small, too large, or in the wrong location, selling may be the right move.

    Some of the most common life-driven reasons include:

    • Outgrowing your space: Growing families often need more bedrooms and storage.
    • Downsizing: Retirees or empty nesters may prefer a smaller, easier-to-maintain home.
    • Lifestyle changes: Job relocation, retirement, or simply desiring a different environment.
    • Financial readiness: When your equity has grown enough to comfortably sell and upgrade.

    Ultimately, the best signs to sell are those that align with both market opportunities and your personal goals. 

    Wrapping up: Good signs your house will sell after you list it

    Recognizing good signs your house will sell is about paying attention to market conditions, property readiness, and buyer behavior. If your home is located in a desirable area, priced competitively, and receiving positive feedback, chances are you’re well positioned for a successful sale. By staying alert to these signs, you can list your home at the right time, attract motivated buyers, and secure the best possible outcome

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    Cam Hayes

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  • Closing Checklist for Sellers: Your Roadmap to a Smooth Sale

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    Selling a home can feel overwhelming, but a closing checklist for sellers helps keep everything on track. From gathering documents to scheduling the final walk-through and coordinating with your agent, lender, and buyer, it ensures a smoother, less stressful process.

    Whether you’re selling a home in Cedar Falls, IA, Morgantown, WV, or Flagstaff, AZ, this Redfin guide will walk you through a comprehensive closing checklist for sellers and explain why each step is crucial to completing a smooth, successful sale.]

    Pre-closing preparations 

    The best way to avoid anything going wrong on closing day is to prepare well in advance. By reviewing agreements, finishing repairs, and organizing documents ahead of time, you’ll create the foundation for a seamless closing.

    Review the purchase agreement

    Review the purchase agreement carefully to ensure details like terms, contingencies, the closing date, and included items like appliances or fixtures are accurate and clearly understood.

    Address inspection findings

    Address any home inspection issues promptly by completing repairs, offering a credit at closing, or negotiating the sale price. Being proactive helps keep the transaction on track.

    Schedule repairs and maintenance

    Make sure any required repairs or maintenance are completed in advance to ensure your home is in good condition for the buyer.

    Gather necessary documents

    Collect key documents in advance to avoid last-minute stress. This often includes the deed, recent title report, mortgage payoff statement, and any warranties for appliances, systems, or recent renovations. 

    Notify utility providers

    Coordinate with your utility providers regarding your move-out date. Ensure accounts are closed or transferred to avoid continued billing after the sale and to guarantee uninterrupted service for the buyer upon their move-in.

    Coordinate with your lender

    If you have a mortgage, contact your lender well in advance to request a payoff statement. This statement will detail the precise amount required to close your loan, including interest up to the closing date. Inquire about any potential prepayment penalties as well to prevent unexpected costs.

    Final walkthrough preparation

    Preparing for the final walkthrough and making sure the property meets the buyer’s expectations helps keep the sale on track. Use this checklist to move toward closing day with confidence.

    • Ensure all agreed-upon repairs are completed with proof of work from receipts.
    • Thoroughly clean the property to be move-in ready. 
    • All personal belongings and trash should be removed from the home, immediately. 
    • Leave behind any items included in the sale, such as appliances, fixtures, or outdoor equipment. 
    • Provide manuals and warranties for appliances, systems, or recent renovations.
    • Double-check that any agreed-upon upgrades or improvements (like new light fixtures or appliances) are completed.
    • Share alarm codes, smart home system instructions, and other access details with the new buyers
    • Check that utilities are functional so the buyer can test them during the walkthrough.
    • Secure the property by locking all doors and windows properly.

    Closing day essentials

    Closing day is the moment everyone’s been waiting for, so be sure you have everything you need to finalize the deal with this closing checklist for sellers.

    • Bring required identification: A valid government-issued ID is required on the day of closing to prove verification. Confirm with your real estate agent if you will need multiple forms of ID.
    • Review the closing disclosure: Double-check the sale price, prorated taxes, concessions, and closing closets meet your expectations. 
    • Sign the deed and other documents: Carefully review and sign the key closing documents. These may include affidavits, settlement statements, and property condition disclosures.
    • Deliver access items: Hand over keys, garage door openers, gate passes, and remotes to the new homeowners.
    • Confirm transfer of funds: Confirm with your lender or title company how and when you’ll receive your proceeds, then keep the transfer details on record.
    • Confirm deed recording: Your closing agent or attorney will file the deed with the county to officially transfer ownership.

    >> Read: Closing Documents for Sellers

    Seller expenses at closing

    On top of any remaining mortgage, sellers can typically expect to pay about 5–10% of the home’s sale price in closing costs. Common expenses include:

    • Real estate commission (usually 3–6%)
    • Taxes, utilities, and insurance
    • Escrow, title, and attorney fees
    • Warranty payment, if required
    • HOA dues, if applicable

    These are the typical costs, but your sale may include additional fees or paperwork. Your agent will guide you through what’s required.

    After paying off your loan and agent commissions, you’ll receive a check for the remaining profit at closing. If the proceeds aren’t enough to cover costs, you may need to bring a check—ask your agent for the exact amount so you can prepare a cashier’s check if needed.

    Post-closing actions

    There are some steps you will need to take after closing day as a seller. 

    • Cancel homeowners insurance: Once the sale is recorded, cancel your homeowners insurance policy.
    • Keep copies of closing documents: Properly store key documents, such as the settlement statement and deed for tax and record-keeping purposes.
    • Notify change of address: Update your address with the USPS, banks, and any other relevant institutions.
    • Transfer or close accounts: Close or transfer any local utility, subscription, or service accounts connected to the property.
    • Confirm final financials: Confirm that your mortgage, property taxes, and other obligations have been paid off or prorated correctly.

    FAQs: Closing checklist for sellers

    1. Do I need to attend the closing in person, or can I sign remotely?

    No, you don’t have to attend the closing in person and can sign remotely. Be sure to ask your agent or closing attorney about your options.

    >> Read: Does the Seller Have to be Present at Closing?

    2. Who pays closing costs when selling a home?

    Closing costs are most often paid by the buyer, but sellers may choose to cover some or all of these expenses as part of negotiations. However, there are sometimes disadvantages for sellers paying the closing costs, such as reducing your net proceeds and potentially setting a precedent for further concessions. 

    3. How long does the closing process usually take?

    The entire closing process can take several business days to finalize, however, closing day itself often takes less than an hour. 

    4. What happens if the buyer’s financing falls through before closing?

    If the buyer can’t secure financing, the deal may be delayed or canceled depending on the terms of the contract. In many cases, the buyer forfeits their earnest money deposit if they fail to meet financing contingencies.

    5. Will I owe taxes on the money I make from selling my home?

    You may be subject to capital gains tax if the profit from your home sale exceeds IRS limits, though many homeowners qualify for exemptions. Keep track of selling expenses like agent commissions, certain repairs, and closing costs, as these can reduce your taxable gain.

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    Emily Pascale

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  • Disadvantages of Sellers Paying Closing Costs: 6 Things to Consider

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    Key takeaways: 

    • Sellers sometimes agree to cover closing costs to attract buyers or speed up the sale, but this concession comes at a cost.
    • On a $400,000 home, a 3% closing cost concession could reduce your net proceeds by $12,000.
    • Raising the sale price to offset these costs may create appraisal or financing challenges, while also lowering the buyer’s financial commitment.
    • Before agreeing, weigh alternatives such as repair credits, flexible closing dates, or using a discount brokerage to keep more of your proceeds.

    Covering a buyer’s closing costs can be a strategic way to attract buyers and speed up the selling process, but it isn’t always to the seller’s benefit. The disadvantages of sellers paying closing costs include cutting into your final profit, weakening your negotiating position, and potentially making your property seem less competitive if buyers expect similar concessions elsewhere. In some cases, it could even affect how buyers view your home’s value, leading to challenges during appraisal or financing.

    Whether you’re selling a home in Newton, MA, Holmdel, NJ or Sammamish, WA this Redfin guide will walk you through the disadvantages of sellers paying closing costs and key factors to weigh before deciding if it’s the right move for your situation.

    6 key disadvantages sellers should consider before paying closing costs

    Buyer closing costs are the fees and expenses a buyer must cover at the end of a real estate transaction, such as loan origination charges, appraisal fees, title insurance, escrow services, and property taxes. These costs can quickly add up to thousands of dollars, possibly creating a financial strain on buyers.

    Some sellers will consider covering a buyer’s closing costs as a strategic move, but it’s important to weigh the financial and negotiation risks. 

    1. Reduced net profit

    If a seller agrees to pay part of the buyer’s closing costs, it comes out of the seller’s profit. For example, on a $350,000 home, a 3% concession would reduce the seller’s net proceeds by $10,500.

    2. Buyer has lower financial commitment

    When buyers don’t have to cover closing costs themselves, they may feel less financially committed. This can increase the risk of the buyer backing out or encountering financing issues before closing.

    3. Higher overall closing costs

    Sometimes, when a seller agrees to cover closing costs, the buyer will increase their offer price to balance it out. While this might seem like it cancels out, it can actually raise the total closing costs (since they’re based on the purchase price) and make the negotiations more complicated.

    4. Negotiation weakness and buyer expectations

    Once a seller agrees to cover certain costs, buyers may use that as leverage to request additional concessions, such as repairs or other financial incentives. It can set a precedent for further negotiation demands.

    5. Appraisal and financing risks

    Increasing the sale price to cover closing costs can affect the loan-to-value ratio, possibly creating complications with the buyer’s financing or appraisal. Lenders (FHA, VA, USDA, conventional) also cap how much sellers can contribute, which may limit what you can offer.

    6. Tax implications and mortgage impact

    While less obvious, paying a buyer’s closing costs can have tax implications and may affect the seller’s mortgage or future financing plans. Consulting a tax professional is recommended to understand potential consequences.

    How location and market conditions affect these disadvantages

    While considering the disadvantages of sellers paying closing costs, it’s worth keeping in mind that location and market conditions can affect these disadvantages as well. In a seller’s market, where buyers are competing, sellers usually have little reason to offer concessions. But in a buyer’s market, covering closing costs can make a home more attractive and help it sell faster.

    Market type City Effect of covering closing costs Is it a disadvantage?
    High demand/competitive (seller’s market) Austin, TX Covering costs isn’t necessary and only reduces the seller’s net profit. Yes – unnecessary concession
    Balanced market Raleigh, NC Can make a listing more attractive and may speed up the sale without cutting into profits. Sometimes – helpful in moderation, but reduces net gains.
    Slower market (buyer’s market) Toledo, OH Can motivate buyers who are likely to hesitate. Often the difference between closing a deal or sitting on the market. Less of a disadvantage – may be worth the trade-off.

    >> Read: Is it a Buyer’s or Seller’s Market?

    Why sellers consider paying buyers’ closing costs

    Sellers sometimes agree to cover part or all of these costs as a strategy to make their home more appealing and move the transaction forward, often for reasons such as:

    • Attract more buyers: Paying closing costs can make a property more attractive to buyers, particularly in competitive markets.
    • Speed up the sale: Offering this concession may encourage quicker offers and reduce time on the market.
    • Help first-time or cash-strapped buyers: Buyers can struggle with down payments, so closing cost assistance can be helpful for home purchases.
    • Simplify negotiations: By easing financial pressure on the buyer, sellers can avoid a prolonged closing process.

    Alternatives to covering buyer closing costs

    If the disadvantages of paying closing costs outweigh the benefits, sellers have other ways to make their home attractive without reducing net proceeds:

    • Raise the listing price to offset concessions: By adjusting the asking price slightly higher, sellers can cover buyer incentives without losing as much net profit.
    • Offer repair credits instead of cash: Rather than paying closing costs, provide credits for necessary repairs or updates, giving buyers flexibility while limiting out-of-pocket expenses for the seller.
    • Split the costs with buyers: Meeting in the middle can reduce the buyer’s burden without requiring the seller to cover everything.
    • Provide other incentives: Options like offering a home warranty, allowing a flexible closing date, or leaving behind appliances can make the deal more attractive without directly paying closing costs.

    Tips to mitigate the risks if you do pay

    If you do decide to cover some or all of a buyer’s closing costs, there are ways to minimize the potential downsides. 

    • Cap the dollar amount you’ll contribute: Set a limit on how much you’re willing to pay so the concession doesn’t spiral beyond what you’re comfortable with.
    • Make seller concessions transparent in the contract: Spell out the details in writing to avoid misunderstandings and ensure both parties are clear on the terms.
    • Work with your agent to price strategically: An experienced real estate agent can help you adjust the listing price to account for concessions while keeping your home competitive.
    • Structure the concession as a closing credit, not a blanket cover: Framing the contribution as a credit tied to specific costs gives you more control over how funds are applied.

    Weighing the decision

    While covering a buyer’s closing costs can attract offers and accelerate a sale, the disadvantages of reduced profits, weaker negotiating power, and possible financing challenges are significant. Before agreeing, calculate your net proceeds with and without concessions, and explore alternatives that preserve your earnings while still appealing to buyers.

    FAQs: Disadvantages of seller paying closing costs

    1. How much do closing costs typically run for buyers?

    Buyer closing costs can vary by state and depend on several factors. In New Jersey, they usually range from 2% to 5% of the home’s purchase price. This includes fees like loan origination, appraisal, title insurance, escrow, and prepaid property taxes or insurance. For example, on a $400,000 home, closing costs might total $8,000 to $20,000.

    2. Can sellers deduct closing costs they pay on taxes?

    Generally, sellers cannot deduct closing costs they pay on a personal residence as an expense. However, some costs may reduce the taxable gain on the sale of the home. Consulting a tax professional is recommended to understand the specific implications.

    3. Are there closing costs if the buyer pays in cash?

    Yes, there are still closing costs if the buyer pays in cash, but they’re typically lower. Cash buyers avoid lender fees, but they’ll still pay for things like title insurance, escrow services, transfer taxes, and recording fees.

    >> Read: Are There Closing Costs if You Pay Cash for a House?

    4. What’s a reasonable concession in today’s market?

    A typical seller concession today is often 1% to 3% of the sale price, depending on the region and market conditions. For example, on a $350,000 home, a reasonable concession might range from $3,500 to $10,500, enough to help the buyer with closing costs without significantly impacting the seller’s net proceeds.

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    Emily Pascale

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  • Home Appraisal Tips for Sellers: What Hurts (and Helps) a Home Appraisal?

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    When it comes to selling your home, first impressions matter, especially for the home appraisal. To boost your chances of a higher valuation, sellers should focus on improving curb appeal, completing minor repairs, decluttering, and providing accurate records of upgrades. 

    Whether you’re selling a home in Austin, TX, Denver, CO, or Raleigh, NC, this Redfin guide will walk you through practical tips to prepare for your appraisal, why it matters in the selling process, and how it can impact your final sale price.

    What is a home appraisal and why is it important?

    A home appraisal is an assessment of a property’s market value, typically a prerequisite for lenders to approve a mortgage. An unbiased appraiser evaluates the home’s condition, features, and comparable sales in the area to determine its worth. 

    The appraisal protects both the lender and the buyer by ensuring the purchase price aligns with the property’s actual market value. Without it, a buyer could end up overpaying, or a lender could risk financing more than the home is worth.

    >> Read: What is a Home Appraisal? Everything You Need to Know About the Home Appraisal Process

    Home appraisal tips for sellers

    • Work with a real estate agent: A real estate agent can guide you through the appraisal process, provide market insights, and help prepare comparable sales data to support your home’s value.
    • Schedule smartly: Book your appraisal for a time when your home shows its best, such as during daylight hours when the light hits your home.
    • Document maintenance: Keep records of routine upkeep, like HVAC servicing, pest control, or insulation upgrades, to show your home is consistently cared for.
    • Highlight energy efficiency: Point out solar panels, new windows, or smart thermostats that may not be immediately obvious but add long-term value.
    • Prepare utility and tax records: Having these ready can help the appraiser understand your property’s full cost picture and efficiency.
    • Choose the best offer: If you receive multiple bids, consider not just the price but also terms like appraisal contingencies, which can make the process smoother and less risky.
    • Communicate openly: Be present to answer any questions and provide information, but refrain from overselling. A direct approach helps appraisers view you as cooperative and transparent.

    How much does home appraisal cost?

    The cost of a home appraisal varies based on location, property size, and complexity of the appraisal. On average, you can expect to pay between $300 and $500 for a standard single-family home. Larger homes, unique properties, or those in rural areas may cost more due to additional research and travel. While the buyer typically pays for the appraisal as part of closing costs, the fee is a small investment compared to the overall purchase price.

    How long does a home appraisal take?

    A home appraisal is a multi-step process that involves both an in-person evaluation and detailed research afterward. The timeline can vary depending on your property type but in some cases, it’s wrapped up in just a few days, while larger or more complex homes can span over a few weeks.

    On-site visit

    The first step of the process is an on-site visit. Depending on the size and condition of the home, this can take 30 minutes to a few hours. For instance, if your property is a standard 3-bedroom in Wyckoff, NJ, the on-site visit could last 45 minutes. But if you’re selling a farmhouse on several acres of land outside of Poughkeepsie, NY, the appraisal could take several hours and require extra research to complete the evaluation. 

    Full process

    After the on-site visit, the appraiser spends several days reviewing comparable sales, analyzing the market, and finalizing the report. In most cases, you’ll receive the completed appraisal within a week, though timelines can vary based on market demand and scheduling availability.

    What do home appraisers look for?

    Appraisers determine a property’s market value by considering several factors, such as:

    • Property size and layout: total square footage, number of bedrooms and bathrooms
    • Condition: structural integrity, maintenance, and any needed repairs
    • Upgrades and features: renovations, energy-efficient systems, high-end finishes
    • Location: neighborhood desirability, proximity to schools, parks, and amenities
    • Comparable sales: recent sale prices of similar homes in the area
    • Lot size and use: outdoor space, landscaping, and potential for expansion

    What hurts a home appraisal?

    Several factors can lower a home’s appraised value — here’s how they might play out in real life:

    • Deferred maintenance or visible disrepair (peeling paint, roof damage, leaky plumbing). For example, a seller in Raleigh, NC learned their appraisal came in low because the appraiser flagged an aging roof that would likely need replacing within a year.
    • Outdated or poorly executed renovations. A Columbus, OH homeowner who tried a DIY bathroom remodel saw their valuation drop when the appraiser noted uneven tile work and missing permits.
    • Over-personalized design choices that don’t appeal to buyers. Think bold wall colors, built-in aquariums, or a home theater taking up a bedroom. They may be features you love but not every buyer will value.
    • Negative neighborhood changes, such as increased vacancy or crime rates. A home in Nashville, TN appraised for less than expected after several nearby properties sat vacant for months.
    • Comparable homes in the area selling for less. Even if your home is in better shape, a foreclosure or quick-sale price on the same street can pull down your appraisal.
    • Environmental or location-based issues, like proximity to noisy roads or flood zones. A seller’s home in Florida could lose value because the property is inside a newly expanded floodplain.

    A successful home appraisal checklist

    With the right home appraisal tips for sellers and some preparation, you can help your property stand out and support a stronger value.

    • Tidy up: Clean and declutter every room, including closets and storage areas, to make the home feel well-maintained and spacious.
    • Complete minor repairs: Fix leaky faucets, patch holes, replace broken fixtures, and ensure doors and windows operate smoothly.
    • Showcase upgrades: Provide documentation for renovations or improvements, including permits and receipts, so the appraiser can account for added value.
    • Improve curb appeal: Mow the lawn, trim shrubs, clean gutters, and freshen up exterior paint to create a strong first impression.
    • Highlight neighborhood benefits: Share information about local schools, parks, transportation options, and nearby amenities that add value to your property.
    • Be available: Ensure the appraiser has full access to all areas, including attics, basements, garages, and storage spaces.
    • Stage key rooms: Arrange furniture to maximize space and highlight the home’s layout. A well-staged living room, kitchen, and master bedroom can positively influence perception.
    • Provide a list of recent improvements: Include updates like a new HVAC system, roof, or appliances to make it easy for the appraiser to see added value.
    • Keep pets and personal items out of the way: Minimizing distractions can help the appraiser focus on the home’s features.
    • Maintain documentation of comparable homes: If you know of recent sales of similar properties nearby, keep a brief list handy — it can help if the appraiser needs reference points.

    >> Read: How to Prepare for a Home Appraisal

    Preparing for your home appraisal as a seller

    The home appraisal process is a critical step in the real estate transaction, influencing how much a lender will approve for financing. By learning key home appraisal tips for sellers and  understanding the process ahead of time, you can prepare accordingly to achieve a higher valuation and support a smoother sale or refinance.

    FAQs: Home appraisal tips for sellers

    1. Who pays for the home appraisal?

    Typically, the buyer pays as part of closing costs, though this can be negotiated.

    2. Can I challenge a low appraisal?

    Yes. You can request a reconsideration by providing additional comparable sales or evidence of overlooked upgrades. If you include an appraisal contingency in your purchase agreement, you’ll also have the option to renegotiate with the seller or walk away from the deal without losing your earnest money.

    >> Read: What is an Appraisal Gap?

    3. Do appraisers look inside closets and storage areas?

    Yes, they assess all parts of the home to evaluate condition and functionality.

    4. How is an appraisal different from a home inspection?

    An appraisal estimates market value, while an inspection focuses on the property’s condition and potential repairs.

    >> Read: Appraisal vs. Inspection for Home Buyers

    5. Should I price my home above the appraised value?

    You can price your home above the appraised value, but it may make your property less attractive to buyers, especially if they need financing. Lenders typically won’t approve a loan for more than the appraised amount, which means a higher price could limit your buyer pool or cause the deal to fall through.

    6. Can I use an online calculator to get an idea of what my home is worth?

    Yes, online home value estimators can give you an estimate of what your home is worth, but they shouldn’t replace a professional appraisal or a comparative market analysis from a real estate agent.

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    Emily Pascale

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  • Vacant Home Staging 101: What Every Seller Should Know

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    If you’re selling an empty house, vacant home staging is key to attract buyers and close quickly. 

    A well-staged vacant home helps buyers connect emotionally, visualize the space, and ultimately make stronger offers. Without it, even the most beautiful listing can feel cold, confusing, or forgettable.

    Whether you’re selling your home in South Fulton, GA or staging a property in Wilson, NC, vacant home staging can make a major impact on your final sale price. In this Redfin article, we’ll break down why staging matters, how to do it effectively, and how to get the most return on your investment.

    In this article:
    Why staging a vacant home is so important
    Common challenges with vacant homes
    Key elements of effective vacant home staging
    DIY vs. professional staging
    The ROI of vacant home staging
    Final touches before showings 
    Vacant home staging FAQs

    Why staging a vacant home is so important

    An empty house can be a hard sell. Without furniture or decor, even incredible spaces can feel cold, awkward, or smaller than they really are. Staging gives a vacant home context and character, helping buyers connect emotionally and see its full potential.

    Ultimately, staging helps buyers move from “Can I live here?” to “I want to live here.” And in a competitive market, that shift can lead to faster, higher offers.

    “Without furniture to guide the experience, rooms can feel cold and impersonal, leaving buyers struggling to imagine how the space could fit into their lives. This lack of visual cues makes it harder for buyers to grasp the scale, purpose, and emotional potential of a space, often leaving them disconnected,” shares Darrell Gardner, Director of Product Development at CORT, a furniture rental service that provides move-in-ready packages and temporary furnishing options.

    “By curating furniture that highlights a home’s best features, whether it’s a sun-drenched corner that becomes a reading nook or a dining area designed to encourage connection, staging helps buyers picture the lifestyle the home can offer, not just its square footage.”

    Here’s why staging a vacant home makes such a big difference:

    • It gives each room purpose: Without staging, buyers may struggle to understand how to use the space, especially with open-concept layouts or oddly shaped rooms.
    • It helps buyers visualize scale: Empty rooms often look smaller than they are. Properly staged furniture shows how much can fit comfortably.
    • It softens flaws: Small imperfections stand out more in an empty space. Staging can help shift the focus to the home’s strengths.
    • It creates emotional connection: Most buyers purchase based on how a home feels. Staging creates warmth, lifestyle appeal, and an inviting atmosphere.
    • It makes your listing stand out online: High-quality photos of a staged home draw more attention and clicks which are critical when most buyers start their search on the internet.

    >> Check out: How to Stage Your Home to Sell: 5 Tips to Attract Buyers

    Common challenges with vacant homes

    While a vacant home might seem like a blank canvas, it often presents unique challenges that can work against you when trying to sell your home. Without furniture or decor, buyers are left to guess how the space functions, and that guesswork rarely works in your favor.

    Some of the most common issues include:

    • Lack of scale and spatial context: Empty rooms can feel smaller than they are, making it hard for buyers to gauge if their furniture will fit.
    • No emotional connection: A vacant home can feel sterile or lifeless, making it harder for buyers to envision themselves living there.
    • Every flaw is more visible: Scuffs, uneven flooring, outdated light fixtures, things that might go unnoticed in a furnished room become glaring in an empty one.
    • Awkward layouts are amplified: Without staging to show how to use tricky spaces or odd corners, buyers may see them as wasted or unusable.
    • Online photos fall flat: Empty rooms rarely pop in listing photos, which can lead to fewer clicks and showings from the start.

    Key elements of effective vacant home staging

    Great staging tells a story. By thoughtfully styling each room, you help buyers understand the home’s layout, functionality, and lifestyle potential. Here’s how to do it right. 

    Define each space

    In a vacant home, rooms can feel ambiguous, especially in open floor plans. Staging gives each area a clear purpose, which helps buyers visualize how they’d actually live in the home.

    • Add a dining table to define the eating area.
    • Create a reading nook in a flex space or awkward corner.
    • Use rugs and furniture placement to visually break up large or open areas.

    Use neutral, cohesive furniture and decor

    The goal of staging is to appeal to as many buyers as possible. That means choosing furnishings that are stylish but not distracting.

    • Stick to a neutral color palette (think light grays, soft beiges, and whites).
    • Avoid bold patterns or overly personal artwork.
    • Keep decor minimal and cohesive throughout the home.

    Focus on key rooms

    You don’t need to stage the entire house to make an impression. Prioritize the rooms that influence buyers the most.

    • Living room: It’s often the first space buyers see. Keep it open, bright, and welcoming.
    • Primary bedroom: Create a calm, neutral space where buyers can imagine relaxing.
    • Kitchen and dining area: Keep it clutter-free and show off how functional and inviting the space can be for everyday use and entertaining.

    “In my experience, the living room, primary bedroom, and outdoor space are the most impactful areas to stage in an empty property, as they are where buyers form the strongest emotional connections and envision their future lifestyle,” Darrell Gardner recommends. “Thoughtful staging in these spaces transforms them from blank canvases into environments that feel purposeful, inviting, and aspirational.“

    Layer in warmth

    Vacant homes often feel cold, even when they’re clean and well-lit. Adding texture and softness helps make the space more inviting.

    • Use throw blankets, pillows, and area rugs to add comfort.
    • Include greenery or fresh-looking plants to bring life into the room.
    • Hang a few pieces of art to break up blank walls.

    Light it right

    Lighting is one of the most overlooked elements of vacant home staging, but it has a huge impact on how a space feels.

    • Maximize natural light by keeping windows clean and curtains open.
    • Use floor and table lamps to warm up darker corners.
    • Replace dim or outdated bulbs with bright, neutral white light.

    “Start with lighting, which can dramatically transform a space. Swap harsh overhead lights for softer, layered options like table lamps or floor lamps to create a cozy and inviting atmosphere. Textiles are another powerful tool for elevating a room’s look,” Darrell Gardner suggests. “A textured area rug can instantly anchor a space and define its purpose. Artwork and mirrors are inexpensive ways to add personality and dimension to walls. Finally, greenery is an easy win for any space. A few strategically placed plants or fresh flowers bring life and energy to a room.”

    DIY vs. professional staging

    When it comes to staging a vacant home, you have two main options: do it yourself or hire a professional. Both approaches can be effective, it just depends on your timeline, budget, and comfort level.

    Ultimately, both options can work, as long as the home feels purposeful, welcoming, and easy to imagine living in. Whether you’re styling it yourself or bringing in the pros, the goal is the same: helping buyers fall in love with the space.

    Feature DIY Staging Professional Staging
    Cost Low to moderate (varies by materials used) Higher upfront cost ($600–$4,000+)
    Time commitment High – you’re doing all the setup Low – handled by professionals
    Design expertise Depends on your skill level Experienced stagers understand buyer psychology
    Furniture and decor access Rent, borrow, or use what you have Access to curated, high-quality inventory
    Best for Budget-conscious sellers with DIY skills Sellers wanting a hands-off, high-impact result
    ROI potential Good, especially if executed well High, especially in competitive markets
    Flexibility Total control over timeline and style Often structured by contract or package

    Not sure which is best? If you’re selling in a high-demand area or aiming for top dollar, professional staging might be worth the investment. But with a little creativity and effort, DIY staging can still go a long way. Talk through your options with your real estate agent to decide what’s best for you.

    DIY staging

    If you’re on a tight budget or have an eye for design, DIY staging can be a smart, cost-effective option.

    Pros:

    • Lower cost: DIY staging can save you hundreds or even thousands of dollars compared to hiring a professional, especially if you already own or can borrow key pieces.
    • Full creative control: You get to choose the furniture, colors, and layout that best reflect the home’s style and appeal on your terms.
    • Flexibility with timeline: No need to coordinate schedules or contracts; you can stage at your own pace and make updates as needed throughout the listing period.

    Tips for success:

    • Rent or borrow furniture to define key spaces
    • Stick to a neutral color palette for broad appeal
    • Add simple decor elements like rugs, pillows, greenery, and lighting
    • Focus your efforts on the living room, kitchen, primary bedroom, and dining area

    Keep in mind: DIY staging still requires time, effort, and some design sense. If you’re unsure, consulting with a stager for a quick walk-through or one-time consultation can help you get started.

    >> Dive in: How to Stage a House Inexpensively and Quickly: 17 Hacks for a Fast Sale for Less

    Professional staging

    Hiring a professional stager can take the pressure off and deliver a polished, buyer-ready result, especially in higher-end markets or competitive areas.

    Pros:

    • Expert eye for layout, scale, and buyer psychology: Professional stagers know how to highlight a home’s strengths, downplay awkward areas, and create layouts that help buyers imagine themselves living there.
    • Access to high-quality rental furniture and decor: Stagers have curated inventory that’s stylish, neutral, and photo-ready, elevating the overall look of your home beyond what most sellers can achieve on their own.
    • Efficient turnaround with minimal effort on your end: Once hired, a stager handles everything from delivery to setup, so you can focus on selling, not designing.

    Things to consider:

    • Costs typically range from $600–$4,000 depending on your market and how many rooms are staged
    • Many stagers offer flexible packages, including partial staging or monthly furniture rental
    • If you’re looking to maximize your home’s visual appeal and ROI, professional staging is often well worth the investment.

    The ROI of vacant home staging

    When done right, staging isn’t just about aesthetics, it’s a smart investment. Vacant homes often feel cold or impersonal, which can make it harder for buyers to connect. By adding warmth, purpose, and style, staging helps buyers envision themselves living in the space, and that emotional connection often translates to stronger offers.

    Here’s how vacant home staging can deliver real returns:

    • Faster sales: According to the National Association of Realtors (NAR), staged homes typically spend less time on the market compared to their unstaged counterparts.
    • Higher offers: Buyers often perceive staged homes as more “move-in ready,” which can justify higher bids, especially in competitive markets.
    • Reduced price drops: Homes that linger on the market often see price reductions. Effective staging can help you avoid that scenario altogether.
    • Low upfront cost, high perceived value: You don’t need to stage the entire home. Focusing on key rooms, like the living room, kitchen, and primary bedroom, can give you the most impact for your budget.

    Final touches before showings 

    These last-minute details may seem small, but they can make a lasting impression. A clean, fresh, and thoughtfully staged space signals to buyers that the home has been well cared for, helping them picture themselves living there from the moment they walk in. 

    When everything feels move-in ready, buyers are more likely to act fast and offer strong.

    Vacant home staging FAQs

    Do I really need to stage a vacant home?

    Yes, staging helps buyers visualize how a space can function and feel. Empty rooms can seem smaller or less inviting, while staged homes typically sell faster and for more money.

    >> Read: 9 Undeniable Benefits of Home Staging When Selling Your House

    How much does vacant home staging cost?

    Costs vary depending on the size of the home, the number of rooms staged, and your market. On average, you can expect to pay between $600 and $4,000, but even partial staging can offer a solid return on investment.

    Can I stage just a few rooms instead of the whole house?

    Absolutely. Many sellers choose to stage high-impact spaces like the living room, primary bedroom, kitchen, and dining area. These rooms tend to influence buyers the most.

    Does vacant home staging help with online listings?

    Yes, professional-looking staging photographs beautifully. Since most buyers begin their home search online, staging can help your listing stand out and generate more showings.

    How long does it take to stage a vacant home?

    Professional stagers can typically complete setup within a day or two, depending on the size and scope. Planning ahead with your real estate agent can help streamline the process.

    Are there alternatives to vacant home staging?

    Yes, virtual staging is a popular, cost-effective option that digitally adds furniture to listing photos. While it works well online, keep in mind buyers will still walk through an empty space. Partial or DIY staging are also great alternatives if you’re on a budget.

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    Allie Drinkward

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  • Mortgage Rates Just Hit a 14-Month Low: Is Now a Good Time to Buy a House?

    Mortgage Rates Just Hit a 14-Month Low: Is Now a Good Time to Buy a House?

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    Key takeaways:

    • If you want to beat the competition, now is a great time to buy a house.
    • Daily average mortgage rates hit a 14-month low of 6.34% on Monday, giving buyers thousands of dollars in buying power.
    • Don’t wait to buy; buyers who were scared off by high rates are poised to enter the market, which may boost prices.
    • Total listings are also up 20% over last year, so there’s plenty of inventory to choose from.

    On Monday, August 5th, daily average 30-year fixed mortgage rates plunged to 6.34%, their lowest level since April 2023. Other loan products fell to the high-5% to mid-6% range. This came as a result of a surprisingly weak jobs report that bred fears of a looming recession and triggered a global market cooldown. 

    Following the flurry of events, rates ticked up to 6.52% on August 6th – above Monday’s lows but well below the 7.5% peak in April. In fact, homebuyers today have gained nearly $30,000 (around $200 per month) in purchasing power since just the beginning of July. Many experts now predict the Fed to start cutting interest rates more than anticipated in September, which may push down mortgage rates more. 

    Total listings are also up 20% compared to last year, as more sellers enter the field. The market seems poised to give buyers a break. So, if you’re considering buying, you might be wondering “should I buy a house now or wait?” 

    Is now a good time to buy a house? 

    The short answer: Yes, if you have the means, it’s a good time to buy a house before the market catches up. Waiting for rates to fall further leaves you at risk for increased competition among buyers and subsequent price hikes from sellers. 

    Buying a house now means you’re also maximizing your investment potential. Lower rates save you money over your loan term and mean more of your mortgage payments can go towards building equity. 

    It’s worth noting that the market has been topsy-turvy recently, though. For example, higher mortgage rates typically push house prices down, but they have had the opposite effect over the past two years. Also, declining inventory typically leads to more competition, but prices have been too high for many buyers to afford, causing some homes to sit unsold and others to sell in a few days.

    Additionally, economists aren’t entirely sure what will happen with mortgage rates in the coming months, and housing prices are still near a record high. This week started with good news, but it’s important to be prepared for any surprises that may come. 

    Will mortgage rates fall further in 2024?

    Today’s mortgage rates reflect what investors think the Fed will do. Investors believe the Fed is done limiting inflation and expect a gradual decline in mortgage rates through the end of the year. 

    In other words, economists don’t expect mortgage rates to drop significantly more than they already have, because today’s rates already price in expected interest rate cuts in September.

    How did we get here? 

    In the past decade, there has been a severe shortage of homes. This is part of what caused the housing boom in 2021-2022; too many buyers were fighting for a tight supply of homes, leading to skyrocketing prices. Record-low mortgage rates also fueled the frenzy. (Low supply was partly due to a chronic underbuilding of homes since the 1980s.) 

    However, in 2023 and 2024, as construction rebounded and inventory began slowly recovering, prices kept rising even as mortgage rates remained high. Higher rates typically cause a drop in demand and prices. However, this didn’t happen, because many homeowners had pandemic-era rates and were unwilling to give them up, creating a further shortage of homes for sale. 

    This was a unique trend that continues today – the national median sale price hit a record high in June and many people are still avoiding the market altogether. Those who are buying are often doing so in affordable places like Texas and Upstate New York. Even though inventory is rising and sales are low nationwide, house prices are at record highs and show little signs of falling. 

    However, the recent dip in mortgage rates has given homebuyers a burst of hope.

    Home sellers should get ready for competition 

    Recent drops in mortgage rates sets the stage for more buyers entering the market, meaning more competition for listings. 

    This is because house hunters scared off by high mortgage rates have been waiting on the sidelines for years, especially as inventory flagged due to sellers wanting to hold on to their pandemic-era rates (the lock-in effect). Now that rates are dropping, more buyers will decide that they have the budget to buy a house. 

    Should you lock in your mortgage rate today? 

    If you have the means, now is a great time to lock in a low mortgage rate. Rates haven’t been this low in more than a year. 

    Lower rates mean you can qualify for a larger loan amount or enjoy lower payments within your current budget. If rates still feel too high, you can buy down your mortgage rate, too. 

    All-cash buyers hoping to avoid mortgages altogether should also act now to avoid probable price hikes as rates continue to drop. 

    Final thoughts

    If you’re in the market for a house and have been scared off by high rates, now is a great time to connect with an agent and start your home search. Rates are expected to continue trending slowly downwards, and the market is gaining momentum. The longer you wait, the more competition you’ll see.

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    Jamie Forbes

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