Today, Fannie Mae tweaked their HomePath program a bit more by offering three percent in closing cost assistance if eventual home buyers complete an online homeownership course.
The credit can be used to pay for standard home buyer closing costs, points, and prepaids.
In order to qualify for the offer, you must be a first-time home buyer, defined as someone who hasn’t owned a home in the past three years.
Additionally, you must purchase a HomePath property, which you can find on their website by conducting a property search, and reside in it within 60 days of purchase.
I’ve mentioned in the past that it’s slim pickings over at HomePath, and many of the properties are either in questionable shape and/or in fringy areas.
However, if you can find a nice home you like via HomePath this offer can be pretty worthwhile.
HomePath Ready Buyer™ Program
The new initiative is referred to as the “HomePath Ready Buyer™ Program,” and is offered in conjunction with a nonprofit by the name of Framework Education.
In a nutshell, prospective buyers must complete a 9-module homeowner education course that includes a quiz at the end. Kind of reminds me of online traffic school.
It includes the following course material:
– Pitfalls to avoid – How much you can afford – How to decide what home to buy – How to choose the best loan – How to lower your down payment – What to include in your offer – What happens at closing
Each module takes roughly thirty minutes to complete and can be taken entirely online, and even from your smartphone. Fancy.
Fannie also boasts that the testing exceeds the standards of both HUD and National Industry Standards for Homeownership Education and Counseling.
So you’re probably going to learn a lot about being a homeowner, which is always a plus, and certainly a good way to reduce defaults on the associated mortgages.
Once the course is completed, you receive a Certificate of Completion that can be downloaded and then included with an initial offer for the purchase of a HomePath property.
The online course does cost $75 upfront, but Fannie says it will be reimbursed if you successfully close on a contract. I believe it’s covered via the 3% closing cost credit.
In order to be eligible, the request for closing cost assistance must be made at the time of the initial offer via the HomePath Online Offers system and can only be submitted on or after April 14, 2015. So make sure your real estate agent remembers to include it!
If the lender restricts the amount of seller contributions, the credit will be reduced to the allowable amount.
Additionally, it should be noted that home buyers with total closing costs under three percent will not receive the difference as a credit.
Located just southeast of Tacoma, Puyallup is a charming city known for its flower fields, farming history, and the iconic Washington State Fair. If you’re considering moving to Puyallup, then you may be wondering whether to rent versus buy a home in the area.
If you’re looking to buy a home in Puyallup, the current median sale price for a home is $523,500 as of July. On the other hand, if you’re considering renting an apartment in Puyallup, the average monthly rent for a two-bedroom apartment is $1,808. Depending on your budget and current mortgage rates, it may be that renting is less expensive than buying a home. However, it still may be the right decision for you to buy a home this year.
At the end of the day, making the decision between buying a house or renting an apartment in Puyallup depends on a variety of factors. In this Redfin guide, we will delve into the advantages and disadvantages of both renting and buying in Puyallup, so you’ll have the knowledge to make an informed choice. Let’s get started.
Advantages of buying a home in Puyallup
Investment opportunities
The first advantage of buying in this market is to consider it as an investment. If you do, you’ll likely make money. Appreciation is real, and even if the market slows down, appreciation grows. Equity can be used as a step towards a bigger house in the future, it can be used as cash when refinancing for medical costs, college costs, or just as a long-term retirement to subsidize your 401k.
Tax benefits
Homeownership has benefits, including potential tax benefits. In many instances, it can be a tax write-off, and may reduce your taxable income. Make sure to speak with a tax professional to understand the benefits you may qualify for.
Growth in the area
Puyallup is growing and expanding. What may feel like living in a smaller community now, may not be in a few years.
Disadvantages of buying a home in Puyallup
Low inventory and rising prices
A key disadvantage of currently buying a home in Puyallup, Washington, is the combination of few homes for sale and rising prices.Sellers aren’t selling, creating very low inventory in the market, and as a result, home prices are not decreasing. Many people are waiting for home prices to drop, but what we’re seeing is that prices are still rising.
Not finding your “dream home”
With a high demand for housing and a limited supply of available properties, buyers often find themselves having to settle for a home that may not meet all of their preferences or requirements. The intense competition in the market can lead to bidding wars, driving up prices and putting added pressure on buyers to make quick decisions.
Additionally, low inventory can make it challenging to find a home within a certain budget range or desired location. As a result, buyers may have to compromise on certain aspects, such as the size of the property, home features, or proximity to schools or other amenities, which can be a significant disadvantage when looking for a long-term investment in a home.
Determining if you are ready to buy a house in Puyallup
Depending on your current goals, there are a few additional factors that you may want to consider before deciding if now is the right time to buy a home.
1. Housing market conditions: One of the main factors to consider when buying a home in Puyallup is the housing market. Currently, the housing market in Puyallup is very competitive meaning that you’re likely to see bidding wars and multiple offers. As a result, it’s important to know how much you can afford in today’s market. To gain a better understanding, utilize a home affordability calculator.
2. Financial stability: Before you begin your homebuying journey, it’s important to have a good credit score and a stable income. Make sure you set aside funds to cover your down payment, closing costs, and other costs related to buying a home. It’s also a good plan to have an emergency fund set aside should you have any unforeseen expenses.
3.Long-term commitment: Buying a home is a significant investment compared to renting an apartment – especially when it comes to making a long-term commitment and financially. Therefore, if you’re not planning on living in Puyallup for more than a few years, it may make more sense to continue renting.
4. Personal goals: Finally, you’ll want to evaluate your priorities and figure out your personal goals before beginning the homebuying process. Do you want a home that’s close to amenities or in a more secluded location? Are you looking for a large kitchen or simply more space?
If you’re unsure whether you’re ready to buy, consider consulting with your real estate agent or financial advisor to fully understand your options.
Is it competitive to buy a home in Puyallup?
Yes, the housing market in Puyallup is very competitive. Multiple offers and bidding wars are common, and buyers are quick to write offers as they’ve spent time navigating the current market. Be ready and start working with an agent as soon as you can.
Advantages of renting a home in Puyallup
No maintenance costs
There’s no hassle if the stove stops working – your landlord has to pay for it. The roof is leaking and needs repairs, your landlord has to fix it, and that’s a large out-of-pocket expense you don’t have to consider.
Flexibility
Renting an apartment or house in Puyallup offers the advantage of flexibility. If you’re uncertain about your long-term plans or prefer the freedom to explore different neighborhoods, renting provides the flexibility to move more easily. Whether it’s for career opportunities, personal preferences, or simply a desire for change, renting allows you to adapt your living situation without the long-term commitment of homeownership.
Potential for lower monthly payments
Renting a home in Puyallup may allow you to have lower monthly payments. With the average rent for apartments in the area being around $1,800, it may be more affordable to rent compared to buying a home. To gain a better understanding of your circumstances and make an informed decision, you can utilize a mortgage calculator. You can get an idea of what your monthly mortgage payment may be, allowing you to better compare between renting vs buying a home.
Disadvantages of renting a home in Puyallup
Risk of rent increases
Besides losing out on appreciation and tax benefits, the main disadvantage to renting is that the rent price is out of your control and doesn’t last forever. Your landlord can raise the rent each year. Ask yourself, do you want to move every year because the landlord is raising rent or would you rather live in a home for 30 years with the same mortgage payment with no fear of it raising? As a homeowner, this stable income may help you save money for future events like trips, retirement, and more.
Lack of updates
Another disadvantage to renting is that your landlord may not keep the home updated with new and modern features. Homeownership gives you control to buy and install new features like a smart refrigerator, gas fireplace, new carpet, and eco-friendly flooring.
Renting vs buying in Puyallup: A real estate agent’s final thoughts
I believe that now is a great time to consider buying a home in Puyallup. With available homes that offer negotiation possibilities, you may not have to compete with multiple offers, making the process less competitive. At the end of the day, whether you rent or buy in Puyallup, the area is a wonderful place to call home. If you’re just starting to think about buying a home, make sure you’ve looked through your finances to understand what you can afford now and in the years to come.
Just outside of Chicago is the picturesque town of Naperville, where you’ll find beautiful natural scenery like the DuPage River. If you’re considering moving to Naperville, then you may be wondering whether to rent versus buy a home in the area. Even in today’s real estate market, there are pros and cons to consider if you’re renting or buying a home in Naperville, making it that much harder to decide what fits your goals.
If you’re looking to buy a home in Naperville, the current median sale price for a home is $587,201 as of July. Or if you’re checking out apartments for rent in Naperville, the average monthly rent for a two-bedroom apartment is $2,263. Depending on what you can afford and today’s mortgage rates, it may be that renting is cheaper than buying. But, there are many reasons why buying a home now may be more beneficial for your needs than renting. In this Redfin article, we will delve into the pros and cons of renting and buying in Naperville, helping you make an informed decision based on your unique circumstances. Let’s get started.
Advantages of buying a home in Naperville
Increase in investment opportunities
The home prices in Naperville, and the surrounding areas, have been steadily increasing year over year. This trend shows market growth and a greater possibility in investment return. Becoming a homeowner is more likely to offer a good financial gain in the future.
Money in your own pocket
The question, “Why rent when you can own?” applies much to our market. Owning a property allows you to stop paying another to live and start building equity into your own asset. In addition, the rental market in Naperville is typically lucrative, leaving a great opening to become an investor if you wanted to rent your home to another in the future.
Disadvantages of buying a home in Naperville
Interest rates
The increase in interest rates has made home buying more expensive. Home prices have still stayed strong and lenders are finding new creative ways to help with the rate increase, but buyers are still up against finding the right affordability. This increase in interest rates has made buyers have to adjust their monthly budget to fit their home buying wants or make exceptions in their home search to better fit their budgetary needs.
Low inventory
If you consider yourself more of a picky buyer, you may have a difficult time finding the perfect home as we have low inventory in the Naperville area. With low inventory, you’re more likely to run into multiple offers and bidding wars. In addition, buyers are having to make exceptions for some of their home wants or compete in those multiple offers, especially when homes are updated or renovated.
Determining if you are ready to buy a house in Naperville
There are several factors to consider if you’re deciding whether to rent vs buy in Naperville this year. Here are five points to look at:
1. Time of year: Naperville is a highly seasonal market. Time of year is a huge factor to consider when both selling and buying. You’ll typically see more inventory available in the spring and summer. During this time, homes usually sell faster, at a higher price, and you’ll have more competition. Less inventory is typically available in the fall and winter. However, there is typically less competition during that time and more likely to get a home at a lower price.
2. Financial stability: Before starting your homebuying journey, it’s important to understand your finances – including having a good credit score and a stable income. Be sure to set aside some additional funds for down payment, closing costs, home inspection fees, and additional expenses that are part of the homebuying process. It’s also good to build an emergency fund in case you incur any unforeseen costs.
3. Personal goals: You’ll also want to evaluate your personal goals and priorities before deciding to buy a home in Naperville. Are you looking for a move-in ready home or a renovation project? Do you want a home with modern upgrades or historic charm? Determining what’s important to you in a home can help you figure out if buying a home in Naperville aligns with those goals.
4. Long term commitment: Compared to renting an apartment, buying a home is a significant financial investment and time commitment. So, if you’re not sure you’ll be living in the area for more than a few years, it may be better to continue renting vs buying in Naperville.
5. Housing market conditions: When considering buying a home in Naperville, it’s essential to evaluate the current housing market conditions and how they impact how much house you can afford. Understanding whether it’s buyer’s or seller’s market can help you gauge competition – and help adjust your expectations. Currently, Naperville is in a seller’s market, meaning there are more buyers looking to purchase a home than there are homes on the market.
If you’re unsure whether you’re ready to buy, consider consulting with your real estate or financial advisor to fully understand your options.
Is it competitive to buy a home in Naperville?
We’re seeing less inventory in the Naperville market, making home buying competitive. It’s common to see multiple offers on properties, and a home’s time on the market to be short before it goes under contract. This is especially true when it comes to homes that are under 20 years old or were recently renovated to trending styles. Offers typically include over list price, appraisal waivers, and as-is or waived inspections. With high interest rates, we have also seen an increase in cash or large down payment buyers.
Advantages of renting a home in Naperville
Maintenance costs and availability
Just as home prices have risen, so have the costs of contractors and materials. If you have home maintenance that you want to complete, it can be more costly and take a while to find a contractor. Renting helps you avoid these additional costs, as many of these costs will be covered by your landlord.
Easier to move on from a property
Leases typically have an end date and tenants can choose to leave when following the cancellation terms of the contract. This allows tenants a little more flexibility to “get up and go” without the uncertainty of selling their investment as they don’t own the property.
Disadvantages of renting a home in Naperville
Renewal changes and rent increases
Typical leases have a set time of expiration, whether it’s 6-months, 12-months, or month-to-month. When your lease ends, your landlord has the ability to end the lease, make modifications to the lease, or change the charges of the lease. This can leave you having to find new living options or increase in your monthly expenses to continue to live in the property. In addition, some leases allow cancellations prior to the lease ending, which may have a renter trying to find a new option of living quicker than they anticipated.
Limitations to design
When renting, you’re paying to live in the landlord’s property. Therefore, there are typically more restrictions to using their property. This usually includes many limitations on personalizing the space such as type of flooring, painting, light fixtures, etc. This makes it more difficult if you want to add your own touches to make the home feel more like your own.
Renting vs buying in Naperville: A real estate agent’s final thoughts
I personally believe there is never a “bad” time to buy a home. The biggest focus should be to review your main goals for buying to identify if it’s a good time for you specifically. Ask yourself – How long do I see myself in this home? Do I have an interest in renting it in the future?; and if so, is the property rentable? Does this home fit all of my needs? Can I take on the disadvantages of buying a home? If you’re finding answers to be more yes than no, it’s a great time for you to buy.
Elliot Hoyte hosts our first 30 Under 30 Honoree interview of 2023 with Kelly Carlson. Kelly has seen massive success in Chicago’s competitive real estate markets since starting her career. On today’s podcast, she discusses her strategy for focusing on first-time home buyers and shares how she gets deals to the finish line. Kelly and Elliot also offer tips for new real estate agents and talk about the value of mentorship early in an agent’s career.
Listen to today’s show and learn:
Chicago’s 30 Under 30 honorees [2:17]
NAR’s 30 Under 30 [3:25]
Kelly Carlson’s application to NAR’s 30 Under 30 [4:01]
Giving back to the community [5:46]
From engineering to a career in real estate [7:47]
Chicago real estate markets [11:56]
Where Kelly got her first few deals [16:22]
Adding value to potential clients [20:10]
Working with first-time home buyers [22:52]
Setting expectations with buyer clients [26:10]
The Danish concept of hygge and how it applies to real estate [27:14]
The differences between neighborhoods in Chicago [29:30]
Covering different neighborhoods in a diverse market [31:45]
Kelly’s sales as a new real estate agent [32:33]
The value of a quality brokerage and mentorship [35:50]
Kelly’s advice for new real estate agents [42:00]
Where to find and follow Kelly Carlson [44:04]
Kelly Carlson
Creating a home is such an important aspect of life. Kelly thinks back to some of her favorite memories, and they all tie back to where she was living at the time – her childhood home on Prospect Avenue, her studio apartment in the Gold Coast, or moving in with her husband to their condo. Kelly’s passion for helping others to find their perfect home is what drives her to advocate for them during every step of the home buying and selling process.
Kelly brings a unique background to her residential clients. After graduating from the University of Illinois with an engineering degree, Kelly worked for a Big Four firm as an associate in a real estate and construction tax consulting group. She loved client services but realized she wanted to work more directly on the development side. In 2018, Kelly left to join a boutique consulting firm where she was a project manager responsible for design and construction projects for healthcare and large not-for-profit institutions. There, Kelly developed a strong understanding of the design and construction process. Her experience has taught her the importance of working hard, putting clients first, and always remembering the bigger picture.
Kelly is passionate about cultivating meaningful relationships and helping others, and it is something she strives for in her everyday encounters. Kelly joined Engel & Völkers Chicago because it is a community of professional advisors who share a similar mindset. The company culture is genuine and collaborative, not competitive or “salesy.” Moreover, she was offered an opportunity to be mentored by a top broker, an experience that has helped her jumpstart her career in residential sales.
Kelly loves that Engel & Völkers is a global brand. She studied abroad in Stockholm, Sweden, and Copenhagen, Denmark. It was there that she became enamored with the Scandinavian concept of Hygge, which embodies a feeling of contentment that comes from being around good company in a cozy setting, such as home! Kelly’s favorite place in the world (besides home) is South Africa – specifically, Babylonstoren. She even had the opportunity to visit their Engel & Völkers Shop in Cape Town during that trip!
From a young age, Kelly was drawn to the hustle and bustle of downtown, as well as the city’s beautiful architecture. She grew up in Clarendon Hills, a short train ride from the city. The time Kelly spent downtown as a child sparked her love for the built world, and real estate in particular. Since graduating from college, Kelly has lived in Lincoln Park, the Gold Coast, and now River North, a perfect location to take advantage of all that city living has to offer – art, music, dining, and world-class architecture. One of her favorite things to do is to turn on a podcast and explore the city on foot, marveling at the historic buildings.
When Kelly is not working, she is a member of the Associate’s Board for Sarah’s Circle, a local nonprofit with a mission of serving women who are experiencing homelessness or in need of a safe space. She also enjoys a good sweat, whether that’s running, cycling, or yoga. In fact, most of her client events take place at boutique fitness studios. On most weekends, Kelly can be found walking the Riverwalk at Montgomery Ward Park with her husband, Brian, their dog Pax, and a good cup of coffee.
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Florida resident Jaclyn Lambert (who happens to be our PR consultant) never thought she’d ever sell a home during a global pandemic.
In fact, when the World Health Organization (WHO) announced the seriousness of COVID-19, she temporarily put selling a house on hold. But after a few weeks of self-quarantine, she received a call from her trusted realtor assuring her they could handle the listing and transaction in a safe manner.
Within a week, Lambert witnessed a bidding war on her home. It closed shortly after that. Aside from signing the closing paperwork curbside, it was a contactless procedure, one that she confidently described to me as, “safe and easy.”
“I couldn’t have imagined just how well the process would have gone during this crazy time, but I really do owe it all to my realtor who I’ve turned to a couple of times. In fact, I wouldn’t use anybody else,” said Lambert.
But Lambert’s experience as a repeat customer is actually rare. A recent study by Porch.com (my parent company) found that only 8% of repeat home buyers have used the same realtor more than once.
Why do 92% of recent home buyers search elsewhere? What causes this gap in return customers, and what can realtors know to navigate customer relationships better in 2020– even during a pandemic? Here are a few things to keep in mind when marketing your services under “the new normal”.
Confidence Is Key With Nervous Buyers & Sellers
Recent studies show that both buyers and sellers are heeding caution during this time, with 70% of home sellers willing to take a lower asking price just to sell their home quickly, and 58% of recent potential buyers/renters putting their moving plans on hold until further notice.
As a realtor, it’s your job and responsibility to ease the stresses of the home buying and selling process to your current and future customers. Deep-dive on CDC recommendations. Learn what a safe home buying, selling process looks like. For example, some things to consider might be:
When selling, make it a “no-contact” process for your sellers
Create a process for virtual tours, and use technology to your advantage
When showing to potential buyers, maintain six-foot distance and have proper PPE
Implement these procedures and communicate loudly and clearly that working with you will be a pleasant (and safe) experience.
And remember that this is a particularly sensitive time to conduct business, so the key here is to provide the latest and greatest safety measures and technologies with authority to put your current and future client’s minds at ease.
Update Your Reviews and Testimonials to be COVID-related
Successfully made a customer happy during this time? Great! Now, make sure you request an online review, especially with them addressing the safety precautions your team took to make sure things run as smoothly and safely as possible.
With 66% of prospective buyers polled by Porch finding their realtor from an online review, it is quite possible that hearing this type of pandemic-safety language might be exactly what your prospective customer needs to hear in order to make that call.
Hand Off Customers to People Who Also Practice Non-Contact
And reviews are not the only way technology can be your friend during this time. If you haven’t looked toward online collaboration tools for all things home searching, contract signing, and closing paperwork. Make sure to have your trusted lenders and insurance brokers ready to forward to your clients for an easy contactless closing/home searching process.
And always lead by example; be open to meetings via Zoom to replace the valuable face-to-face time you’d in the past use for coffee shop meetings.
Provide Extra Support Beyond The Norm
The Porch study also found that homebuyers aren’t reading the paperwork, with first-time homebuyers feeling especially unprepared. Coupled with pandemic nerves, this calls for some intervention.
Perhaps it’s a no-brainer that going above and beyond is good customer service, but knowing that paperwork is going unread, now would be an especially good time to prepare a conference or phone call to go over any questions or technical paperwork your client may need help deciphering.
After the sale, provide guidance on the safest way to move, provide a digital thank you gift (think: e-cards and Amazon gift cards), and simply just find any way you can to make an above-and-beyond connection with your customers, despite the lack of in-person attention you are able to give at this time.
Remain a Pandemic-Proof Realtor
Maintaining real estate customer relationships is hard, and while the pandemic certainly adds a new level of complexity to the mix, as a forward-thinking real estate agent, it’s important to look toward the signs of what a “new normal” might look like.
Lean on the proper technology to adopt now and potentially forever, and communicate to your past/future customers just how top of class your services really are. That will get you the rare repeat customer, no matter what outside variables you encounter.
When I bought a home three years ago, the economic climate was different from today. Back then, a house would could be listed on Friday and a contract signed by Monday. It was easy to get a loan (too easy, in fact) and you could make every mistake in the book and still find yourself a home.
Despite the market differences, sound financial planning and a handful of smart moves will ensure that you won’t regret grabbing your piece of the American dream. This post isn’t going to go over the merits of buying versus renting or how you should pick a real estate agent. Instead, I’ll focus on the things you should do to prepare yourself before applying for a loan and then buying a home.
Don’t borrow money Your home will likely be the single largest debt you will take on and represents the greatest risk in the eyes of potential lenders. With lending rules tightening, it’s becoming more and more important that you make yourself look as safe as possible. Safe means as little debt as possible and as little access to credit as possible.
Don’t apply for any new credit cards. They could be offering some hot credit card offers of a hundred bucks to make one purchase or 0% balance transfer, but you must avoid it at all costs. That hundred dollars will cost you thousands, if not tens of thousands, over the life of your loan. Don’t buy a car. Don’t take advantage of 12-month 0% financing “same as cash” offers at Best Buy to get that new flatscreen HDTV you’ve been thinking of.
Don’t make any drastic changes Don’t shuffle your funds around, don’t change your bank, and most of all don’t change your job. This won’t necessarily affect your credit score (some banks will do a hard credit check, which negatively affects your score) but it will give the lender headaches when they try to decipher all the moves you’ve made.
Making large transfers will bring up questions of fund origins. Is this really your money or did you receive it as a gift? Why are you opening up new accounts and shifting your money when you expect to spend it soon? Such moves will result in more questions for you to answer, which takes energy and will prolong the review process. It’s not necessarily bad — just a pain.
The only exception to the “not necessarily bad” is the part about changing jobs. Lenders like stability; stability equals low risk. If you’ve been working with a company for thirty years (or even five), chances are you’re going to work there for a while. If you’ve been working with a company for three months, there’s no saying how long you will work there. Maybe you have a falling out and are fired, maybe you can’t hold a job, maybe you’re perfectly fine and will have a successful career there. All those maybes make lenders nervous. Avoid changes if you can.
Play house There are two crucial steps to “playing house” (financially). First, you need to correctly estimate your monthly payment. Remember that your monthly payment will include the mortgage, taxes, and homeowners insurance. You will also probably want to add a buffer for maintenance and repairs, as you likely will have both. In three years, my wife and I have spent at least $10,000 in repairs and improvements (windows, roof, carpeting).
Another bit of information to research is how the recent federal housing rescue bill or how local first time home-buyer assistance programs may apply to you. The federal housing rescue bill offers a 15-year zero interest $7500 loan in the form of a tax credit to new home buyers. In Maryland, first time home buyers get one half of the transfer tax waived, which can be up to 0.75% the sale price of the home. Both of those will play crucial roles in how you calculate your monthly payment.
The second step is actually playing by budgeting for the mortgage. If you are currently renting, deduct rent from your monthly mortgage payment, and transfer those funds to an account that offers high interest savings. A great place to put those funds is in a fund you designate for your downpayment. As the months pass, you will get a feel for how much you can comfortably afford rather than simply guessing.
This also serves another purpose: it will keep you within your house budget. The Realtor will likely want to show you homes that are outside of your price range. It’s always good to see what is a little above and a little below your range just to see what the difference in value is. By playing house, you have a more accurate feeling of how differences in the monthly payment will affect your lifestyle because you’ve lived it.
Sell or donate your junk Two things will happen when you buy your house:
You will be short on cash.
You will have to move.
By selling some of your junk now, you get a little extra cash, which will likely go towards all the little things involved with a home, and you have less stuff to move. Your wallet will thank you for the former and your friends — whom you will have bribed with pizza and beer to help you move — will thank you for the latter.
Sell or donate anything and everything you honestly can’t see yourself ever using on your new home. Good stuff to purge includes:
Old furniture
Books (do you really need to keep your college textbooks?)
Old clothes
Electronics equipment
Decorations and wall coverings
This will require a bit of intestinal fortitude and an honest assessment of your belongings. It’s difficult to sell or give away things with emotional value. That couch you’ve had since college or that poster you hauled all the way from home — they have emotional value. If you can think of a great place in your new home for it, keep it; if you really can’t (where will a ratty old couch go?), give it a new home.
Donation is a great solution if you’re on a time crunch because organizations like Goodwill or the Salvation Army will happily come and haul away your gently used items absolutely free (and you get a bigger tax deduction).
I hope this list of ideas has been helpful, these were some of the tricks I used when my wife and I bought our first home three years ago. Since then, it’s been a wonderful ride. Home ownership truly has been all it’s cracked up to be. You might be buying a house, but it truly becomes your home.
In these languid—and, for much of the country, excruciatingly, unbelievably hot—days of summer, the timeless allure of a large, cool body of water beckons. And while heading to the lake is, for some, an occasional destination, for others it’s a way of life.
Sure, some of America’s more famous lake towns are pricey. But there are others that are surprisingly affordable, offering lakeside living for bargain-basement prices. The data team at Realtor.com® dug into the data to find some of the cheapest lake town real estate in the nation.
It helps that there are a lot of lakes in America. According to the U.S. Geological Survey, there are just shy of 7 million bodies of water in the U.S. and in adjacent areas along the borders. Of those, 5.76 million are classified as a lake or pond, and 134,000 have official names.
Each of the lake towns we found has a unique charm, blending natural beauty and local culture. All of them are nestled in the most affordable regions of the country, especially the Upper Midwest to the Deep South—areas known for their low cost of living. As it turns out, they’re also ideal places for lake house shoppers not looking to stretch their budget.
As famously avid lake admirer Henry David Thoreau once wrote, “A lake is a landscape’s most beautiful and expressive feature. It is Earth’s eye; looking into which the beholder measures the depth of his own nature.”
To find the most affordable lake towns, we looked at all the home listings for the past year within a half-mile (roughly a 10-minute walk) of a named lake or pond. (Named bodies of water exclude reservoirs and lakes that folks can’t swim or boat on.) Then we calculated the median prices from July 2022 through June 2023 for homes in those areas to pinpoint the most affordable lake towns in 2023. Only towns with at least 50 home listings over that period were included.
We excluded big cities, because we’re looking for places where the lake plays a large part in the local culture. And we didn’t include extremely small towns, because you’ve got to have at least a few shops and restaurants to keep you busy when you’re not on the water. And we included only the single most affordable lake town in any state, to ensure geographic diversity.
So let’s set sail to the most affordable lakeside real estate in 2023.
Median list price: $154,900 Median list price per square foot: $76 Population: 29,534
Danville, a relatively small town in east central Illinois along the Indiana border, is home to Lake Vermilion. The human-made reservoir provides drinking water for the city, but it has also become a popular fishing and boating location. Cabins and docks line its forested edge.
The town was an industrial hot spot for the region from the mid-19th century to the mid-20th century, as a major coal mining town and a rail hub. Abraham Lincoln was known to visit the town and once delivered a speech from the balcony of the home of a prominent Danville resident.
The median home listing within a half-mile of Lake Vermilion over the past year had a price tag 65% below the national median list price of $445,000 in June. A three-bedroom home within walking distance of Lake Vermilion, with hardwood floors, a garage, and a big yard, goes for $120,000. And for just over $100,000, home shoppers can find a two-bedroom condo about as close to the lake.
Median list price: $140,000 Median list price per square foot: $79 Population: 2,838
Rogers City is the smallest of any of the spots on our list of affordable lake towns, just shy of 3,000 residents.
Situated on the banks of Lake Huron, about 45 minutes from Cheboygan, Rogers City residents have quick access to multiple parks along the lakeshore. They include Harbor View Park on the southern corner, Seagull Point Park on the northern tip of the town, and several in between, including the Rogers City Yacht Harbor and Lakeside Park.
Rogers City has been host to multiple salmon fishing tournaments in the summer, including the vividly named Fat Hogs Fishing Frenzy and the more straightforward Rogers City Salmon Tournament.
It’s also home to the Great Lakes Lore Maritime Museum and the Presque Isle County Historical.
A large three-bedroom home with a garage and a brick fire pit in the backyard can be found for $165,000, a short walk from Rogers City’s North Shore Park and beach.
Median list price: $122,750 Median list price per square foot: $83 Population: 12,651
The western tip of northern New York state, in the Chautauqua-Allegheny region, is known for its lakeside getaway culture. And although some of the area’s real estate is quite pricey, the lowest home prices within a half-mile of a lake can be found in Dunkirk at the edge of Lake Erie.
The area was first occupied by the Indigenous Erie and Seneca tribes, then colonized by the French, who erected the Dunkirk Lighthouse at Point Gratiot in 1826. This helped the town become a significant regional port for coal and lumber shipping. It’s now listed on the National Register of Historic Places.
Dunkirk has multiple beach parks, and it hosts several summertime events, including an annual strawberry festival, arts and music festivals, and a “Fly-In Breakfast,” which welcomes pilots from all over to the small lakeside town.
Duke McLachlan, a real estate agent with Howard Hanna Hold Real Estate in neighboring Jamestown, says that from June through August, life in this area is all about the lake, for residents and visitors alike.
“It’s the whole Chautauqua area,” McLachlan says. “The local economy really picks up.”
Buyers will find the most listings just before and after prime lake season. Sellers know they can find buyers looking forward to the summer in April and May. Meanwhile, other sellers will list in September and October after they used their homes for the summer.
Median list price: $129,900 Median list price per square foot: $86 Population: 10,465
Minnesota is called the “Land of 10,000 Lakes” for a reason: The state has 11,842 of them.
So don’t drop your oar in the water when you hear that Fairmont, a small town in southern Minnesota near the Iowa border, sits on a string of five small lakes. These include George Lake, in the northern part of Fairmont, and Budd Lake, near the center of town.
All five offer boating and fishing—and there is very affordable real estate near two of these bodies of water.
The median home that was listed over the past year near both Lake George and Budd Lake is less than half the national list price. The real estate near Budd Lake is a little pricier, due to its proximity to the center of Fairmont, and a couple of developed parks along its edge.
For those who want to live and work near the water year-round in the “City of Lakes,” Fairmont’s local economy is driven by the local Mayo Health System hospital, two small colleges, and a couple of modern industrial companies.
Median list price: $126,900 Median list price per square foot: $91 Population: 4,977
Cherokee Village, a small town in central northern Arkansas about 20 miles south of the Missouri border, boasts seven lakes in total.
Lake Cherokee, the smaller of the two lakes where we found low-priced homes, has a park and private docks. Meanwhile, Lake Thunderbird, the town’s largest lake, has a public marina and the town’s public recreation center, which has two swimming pools and a minigolf course.
For just under $290,000, a homebuyer can get a 1,200 square-foot, two-bedroom house with a backyard dock on Lake Thunderbird. For those looking for homes costing less, just across the street from Lake Cherokee, a two-bedroom townhome can be found for as little as $120,000.
Median list price: $169,900 Median list price per square foot: $95 Population: 9,305
Pickwick Lake, a popular boating and fishing destination, was created by the Pickwick Landing Dam on the Tennessee River near where Alabama, Tennessee, and Mississippi meet.
The lake is known for record-size smallmouth bass and catfish. Local fishing guides say 2- or 3-pound smallmouth bass are the norm—and catches of 5 to 6 pounds are not uncommon.
History lovers will also appreciate the small town of Sheffield. It became a major wartime aluminum smelting location in the 1940s, boosting the nation’s aircraft production. It’s also the hometown of Senate Majority Leader Mitch McConnell.
And it’s where you’ll find the famous Muscle Shoals Sound Studio, where a litany of modern musical icons came to record, including The Rolling Stones, Aretha Franklin, Cher, and Wham! The studio faded and was repurposed for several years, before a documentary reignited interest and a restoration brought it back to life. It’s now a museum during the day and a working studio at night.
Median list price: $135,000 Median list price per square foot: $96 Population: 65,440
Lorain is a small city on Lake Erie, in the far western corner of the Cleveland metro area. Like the other Great Lakes locations on our list, Lorain was once an industrial production mecca, dominated by steel.
Now, says Bill Swanzer, a real estate broker at The Swanzer Agency Realtors in neighboring Amherst, Lorain mixes a classic lake culture with good access to the city.
“You’re only 20 or 30 minutes from the Cleveland Browns‘ stadium,” Swanzer says. “So you can get to all the big-city things—live sports, live music, shows.”
But for Lorain residents, Lake Erie’s offerings are right in the backyard.
“The lake’s always been a big draw for us,” Swanzer says. “You’ve got kayaking, boating, fishing, swimming—you’ll see Jet-Skis on the water and parasailing.”
Median list price: $139,900 Median list price per square foot: $97 Population: 11,276
Two Rivers is uniquely situated on Lake Michigan, such that it remains cooler than nearby areas on hot summer days—earning the town its nickname “Cool City.” It became a summertime destination for folks looking for a reprieve from the heat.
The moniker is memorialized just about everywhere, from the annual Cool City Car Show & Cruise, the Cool City Brewing Co., and Cool City Coffee Shop to the Cool City Charters and Cool City Cleaners.
Summer activities include swimming and sunbathing at Neshotah Park & Beach, and hiking and camping in Point Beach State Forest, just north of town. There’s also boating and fishing on Lake Michigan and the town’s—you guessed it—two rivers. It’s also only about 30 miles southeast of Green Bay, offering relatively quick access to a big city nearby.
But what’s especially cool about Two Rivers for us is the low price of homes near Lake Michigan. Take this recently listed two-bedroom home with an updated bathroom and floors about a block from Lake Michigan, priced at just $134,000.
Median list price: $185,000 Median list price per square foot: $106 Population: 9,299
About 30 miles east of Wichita is Augusta and its 190-acre human-made lake on the north end. Augusta Lake, lined with parks, grassy embankments, and walking trails, is a community center of sorts. There are Little League tournaments, concerts, disc golf, and the town’s Fourth of July celebration, in addition to the standard lake activities like fishing, boating, and kayaking.
The town is known for its historic buildings, many of which have been added to the National or State Register of Historic Places.
Of course, we’re interested in the home prices, which are inexpensive, even for a relatively affordable state like Kansas. A three-bedroom, ranch-style home six doors away from Augusta Lake can be found for just $150,000.
Median list price: $285,000 Median list price per square foot: $125 Population: 7,565
Homes within a half-mile of Prestwood Lake are the most expensive of any place on our list of affordable lake towns—but they’re still about 35% less expensive than the national median list price.
Lauri McLeland, a Realtor with Better Homes and Gardens Real Estate Segars Realty in Hartsville, says it’s not uncommon to see small speed boats and jon boats on Prestwood Lake, and even some kayakers on Black Creek, which leads into the lake.
But although there’s a decent amount of housing within that half-mile of the lake, it can be a tight market for buyers looking for something right on the water.
The small South Carolina town, about an hour northeast of the state capital of Columbia, is a tight-knit community, says McLeland. Word of someone selling their home can lead quickly to an offer from another local looking to get closer to the water.
“Prestwood is a really pretty lake,” McLeland says. “There’s not a lot of housing right on the lake, and some of those sell before they even hit the market.”
Consider this common scenario. You really like a house and decide to make an offer. After winning a bidding war and perhaps paying a little more than you wanted, that dream house is yours.
Once it comes time to move in, you start to observe things you didn’t initially notice. Yep, it turns out you have an annoyingly loud neighbor that fires up his Harley every morning at 6am and idles it outside your window because he goes to great lengths to follow proper motorcycle care.
At night another nearby neighbor is blasting bad music and throwing little midweek parties that seem to go on until the wee hours of the night.
It also turns out that your commute to work, despite only being two miles, takes more than 30 minutes. It seemed alright when you visited the house in the middle of the day and on weekends. But it’s not so great anymore.
Helping You Discover the Unknown Factors Upfront
A new partnership between Realtor.com and Airbnb aims to help prospective home buyers avoid these types of scenarios.
They refer to them as “unknown factors” that are typically associated with moving to a new hood.
You might recall the age-old advice to visit the property you’re interested in buying during the day and late at night to see what the vibe is all about.
Is it calm during the day but loud at night? Are there questionable characters having around after hours? Is the street used as a thoroughfare for commuters? It’s hard to determine all of this when you’re being asked to make an offer right away.
And this can be especially difficult when buying a home in a new city or state that you’re less than familiar with. After all, a mere difference of a few city blocks can completely change the picture, nuances only a true local would be able to point out.
Don’t bank on your friendly real estate agent talking you out of a certain home because of these potential issues.
Now to that new solution. If you visit the Realtor website you will now be able to book accommodations nationwide on Airbnb in the neighborhood you’re considering.
The idea is to “live like a local” before actually moving in and getting stuck in a situation that is less than ideal.
When browsing available properties to buy you’ll see an option to “Airbnb before buying.”
This button will appear on the homepage and on listing detail pages (assuming Airbnb isn’t banned there).
You’ll be able to book a short stay in any type of property ranging from a single-family home to condo or loft in the neighborhood of your choice
There is also a Realtor.com “Try Before You Buy” sweepstakes going on at the moment whereby nine lucky winners will get a $500 one-time use gift code redeemable on airbnb.com.
If you don’t feel like spending money on Airbnb, simply follow that advice of checking out the neighborhood and surrounding areas at all times of day and night before buying a house.
Well it’s mid-2015, and even though the housing market appears to be on fire, 63% of properties actually sold for below list price, this according to the May 2015 Realtors Confidence Index Survey.
This may seem rather surprising, given how hot real estate has been over the past few years.
Ask anyone who has purchased a home (or attempted to) and they’ll probably tell you they got into a bidding war, or were forced to include a cover letter with their offer.
Despite that common tale, most properties don’t actually sell above list. In fact, nearly two-thirds do not.
However, this number has trended down lately. A year ago, around 70% of properties sold at a discount. So clearly properties are selling more easily at higher prices.
The Realtors said properties that remain on the market for a longer period of time are more likely to sell at a discount.
Some 84% of properties that sold between 2012 and May 2015 after 12 months were sold at a discount, per the Realtors’ monthly survey.
Meanwhile, less than half of the properties that sold within a month went for below list price. And nearly a quarter (24%) sold for a premium.
Properties that sold after 12 months only sold at a premium a measly six percent of the time.
In other words, price your home right the first time to avoid a price cut and losing money on the sale. Price it really right and you might sell for a premium.
The Longer They Sit, the Harder They Fall
When considering selling a home
Know that time is of the essence, even if you’re in no rush
As homes fester on the market
They’re more likely to experience price cuts and eventually sell for less
As you can see from the chart above, the longer a listing stagnates, the lower the chance of it selling for list price or at a premium.
Surprisingly, 48% of properties listed for less than a month still went for below their asking price. So there’s always room to negotiate, even if the property was just listed.
And don’t worry about offending anyone – if you don’t offend them with your offer you offered too much, that according to a wise man…
Most Properties Sold for 4-11% Below List Price
It was most common to see a property sell 4-11% below list
With properties selling 0-3% below list the next most likely outcome
In other words, expect your home to sell for less than you listed it for
And don’t forget the closing costs and real estate agent commissions that are deducted from the sales price
In May 2015, it was most common for a property to sell for between 4-11% off list price.
A discount between 0-3% was the second most common outcome, followed by no discount or premium.
Very few properties sold at 20% or more off, and even fewer sold for 11% or more than list.
So it’s important to have realistic expectations when it comes time to sell your home.
In short, you should expect a price cut, and thus list it accordingly. Don’t list it at your absolute bottom dollar price if you know you’ll have trouble accepting a lower offer.
And don’t forget the many closing costs associated with a home sale, along with the hefty commissions that must be paid out to real estate agents involved with the transaction.
If you’re looking to sell for more, consider the fact that staging a property could help it sell for one to five percent more, this according to the Realtors.
Zestimates Can Help with Pricing
While it might sound somewhat counterintuitive
Pricing your property below market value
Could help it sell a lot faster and at a higher price
Whereas an overpriced home might sit on the market longer and eventually require a price cut
In a related article, the Zillow Research team threw out some pointers to help home sellers list their properties at the right price.
They said despite an improving housing market, it’s wise not to “overheat your listing price.”
Zillow found that properties priced more than 12% above their Zestimate are nearly half as likely to sell within 60 days.
And apparently the “sweet spot,” where homes sell the fastest, is between the Zestimate and six percent above it.
The company also discovered that smaller homes sell the fastest (those under 1,100 square feet) and that the optimal number of photos per listing is 16 to 21.
Your home may take longer to sell if you don’t provide enough photos. And as we know, that could result in a price cut. So take good photos and plenty of them.
Read more: Should I continue renting or buy a home instead?
You found a house that fits your budget and wish list, and now it’s time to make an offer.
But questions remain. Is the property really worth the asking price? Are there hidden structural problems? Will your home loan application win final approval? Steps during the mortgage process — including an appraisal, a home inspection and underwriting — will provide answers, but in the meantime, you can include contingencies in your offer.
Making a contingent offer on a home
A purchase contract is legally binding, and breaking one can be costly. Making a contingent offer protects your interests in case unexpected issues mean you no longer can or want to buy the home. A contingent offer includes “walk-away” clauses, or “contingencies,” that let you get out of the deal and retrieve your earnest money deposit if certain conditions aren’t met.
Think of a contingency as an “if-then” proposition. For example: If the appraised value of the property is lower than the purchase price, then I can ask for a lower price or get out of the contract.
When working with your agent to write the offer, you’ll have to decide which contingencies to include. Your real estate agent can explain your options and make recommendations.
Although real estate contingencies protect your interests, be aware that too many stipulations in the contract can reduce the likelihood of the seller accepting your offer, especially in a tight market.
Types of real estate contingencies
Here are some examples of contingencies that can be included in home purchase agreements.
Inspection contingency
A home inspection contingency lets you negotiate the sales price, ask for repairs or walk away from the sale based on the inspection results.
Your contract may stipulate that repairs must be made if problems are uncovered, but that can lead to closing delays while the fixes are scheduled and approved. You may prefer to renegotiate the sale price if significant improvements are needed.
🤓Nerdy Tip
Sales contracts may also be written with “a right to void.” This means the buyer won’t require repairs suggested by the home inspection report but can cancel the sale without penalty.
In hot markets, buyers may feel pressure to forgo home inspections to win bidding wars. But this is risky, and there are other ways to strengthen an offer, such as being flexible on the closing date. A seller, for instance, may want additional time to move out.
Mortgage contingency
Unless you’re buying a home with cash, this contingency is necessary even if you’re preapproved for a mortgage. Preapproval is important, but it’s not an absolute guarantee. After a home is under contract, your loan still must go through a final stage of underwriting. If your financing falls through, a mortgage contingency gives you a legal out from the purchase contract.
Appraisal contingency
When a home appraises for less than the offer amount, your financing may fall through, or you may have to put more money down to buy the property. A property appraisal contingency lets you back out if the appraisal comes in lower than a certain amount.
Home sale contingency
Under a home sale contingency, your offer is subject to the successful sale of your current house. The contingency is most often based on a specific time period — such as 30 or 60 days — after which the contract is forfeited. You’re off the hook for buying the home, and the seller can entertain other offers.
Including a home sale contingency in a seller’s market puts your offer at a serious disadvantage. With lots of buyers competing for a limited number of homes, sellers are likely to get and choose offers without this condition.
Other contingencies
Other standard contingencies can include such things as a termite certification, a report showing clear title to the home and the definition of a reasonable time period to close the sale. But there may be additional conditions you want to include in an agreement.
Real estate contingency deadlines
Each contingency has an associated deadline. For example, a home inspection contingency would state a time frame for the inspection to take place and give the buyer a certain number of days to ask the seller to make repairs or lower the sales price.
Keep track of contingency deadlines so nothing sneaks up on you — and so you won’t miss an important date to enforce a condition the seller must meet. Having a calendar with all deadlines listed, perhaps even with pre-deadline notices a few days ahead, will help you stay on top of critical contingencies.
Throughout this process, you’ll want your agent to guide you; in more complicated cases, you may even want the advice of a real estate attorney. It’s easy to get tripped up by legal jargon, and sometimes what’s not in writing does the most damage.