Tri-City Area and Real Estate Blog

Apply new-construction tips from a homeowner who has experienced the process three times — and knows the ropes.

Image: photovs/getty

Building a new home can be stressful. But my three-peat experience taught me some new-construction tips to ease my way to the finish line. Over 15 years, I’ve experienced the new-home process three times in three states — and I’d be tempted to do it again when I move next time.

Why Build New?

Why do I always build new? After all, building a house comes with tight deadlines, constant decisions, imagining blueprints in real-life, walk-through meetings, inspections, more decisions (Why is it so tough to pick the type of kitchen cabinet pull?), and blown budgets. If you prefer fewer surprises with more budgeting and timeline assurances, an existing home is a better bet.

Building a new home appealed to me because in a housing market in dire need of more homes for sale, new-home construction offers options. Along the way, I discovered other pros from building new — modern floor plans, usually less home maintenance upfront, and the chance to design your home to your style. Plus, there’s nothing like moving into a brand-new home you helped create.

Still, new-home buyers are quick to vent on the cons. They say they felt stressed, anxious, and frustrated during the construction process. They often cite conflicts over making decisions and overstretched budgets, according to Clever Real Estate’s 2022 survey of 1,000 new-home buyers.

If you’re considering building a new home, here are a few new-home construction tips for you to consider:

Use a Real Estate Agent

Make a real estate agent your first call. (Trust me, it’ll lessen your stress!) The first time I built, I walked into a model home and found the builder’s agent quick to answer my questions. But I realized the builder’s agent represented the builder — not me, the buyer — in the transaction. I wanted someone in my corner.

Find a buyer’s agent who specializes in new-home construction. They’ll coach you through the process, from blueprints and permits to the construction phase, help you find home builders to work with, and negotiate on your behalf. “Buying a home is supposed to be an exciting time,” says Jeffrey Gould, broker-owner of Jeffrey Gould Real Estate in Brandon, Fla. “I try my best to make it as fun and exciting as possible. There are a lot of different hands involved in building a home. At times, I find I need to act as a counselor or advocate for the buyer. Setting expectations early on in the process certainly helps in making the transaction smoother.”

Image: Dan Reynolds Photography/getty

Don’t Make Assumptions

You walk into a builder’s beautiful model home outfitted with top-notch finishes, from steam showers and heated floors to slabs of marble cascading kitchen walls. Don’t get duped. Learn what’s “standard” and what’s an “upgrade.” (My own mind-blowing lesson: My builder did not include as standard a door to the owner’s suite bathroom. I paid $500 extra just for a bathroom door!)

“All builders are different, and all builders have their own baseline to what comes standard with the home and what is an upgrade,” Gould says. “As I’m viewing homes with clients, I will keep asking the builder’s sales agent to explain what are upgrades in the home and what is standard.” It helps his buyers avoid surprises.

Secure Home Financing Up Front

Building a home is a lengthy process, often stretching seven to nine months. During that time, mortgage rates can change dramatically, possibly changing what you can afford. Sometimes it’s a good change: In my case, mortgage rates dropped from nearly 4% to the 2% range by the time I closed in 2020. Other times, it can be bad: From the fall of 2022 to 2023, the 30-year fixed rate mortgage climbed from averages of 5% to 7%, adding hundreds of dollars to monthly mortgage payments.

Look for a lender who specializes in new-home financing, such as with extended locks to protect you from mortgage rate variability (possibly 180 days or more, longer than traditional 30-day locks). Many builders tout their own financing or lender. They may even offer sales incentives for using preferred lenders, like buying down the mortgage rate or offering extended rate locks or discounted closing costs. Shop around and compare. Depending on your situation, you may also need to ask about construction financing or bridge loans if you’re buying a new house before selling your current house.

First-Time Buyer is presented by The National Association of REALTORS®

Know Your Complete Budget

The base price listed for the new-home isn’t likely what you’ll end up paying once you factor in selections and upgrades. For me, the final price surged about $100,000 above the base price listed. Yikes! Luckily, this wasn’t my first time building, so I knew to budget for the extra costs based on what others were paying. Gould asks builders to print out an estimate of the home with some of the structural items his buyers are considering. Most of the construction options and pricing for design selections aren’t fully configured until after you sign a purchase contract and are at a remote design center. So it’s important to budget ahead of time.

When selecting design options, ask what tier you’re choosing from. Whenever you deviate from the standard, your price will increase. Decide on what your priorities are, where to splurge, and where to save. I splurged on kitchen materials but saved with an unfinished basement. Also, don’t forget to budget for other items that aren’t included in the new-home construction: window treatments, landscaping, and most appliances. These add up, too!

Consider Home Resale Value

A big perk to new construction is that you can design a home to your style. But don’t go overboard. Home ownership can build long-term wealth when you make wise investments. Your agent can help you understand the home’s resale potential compared with similar homes in your area. Top-notch countertops, flooring, and lighting can add to new-home construction costs without adding to your home’s resale value.

In my case, I learned to focus on the floor plan more than the materials inside, which can easily be swapped later. For example, I found adding an extra bathroom offered better resale value than, say, heated bathroom floors or a fireplace in the primary suite. Builders usually offer the flexibility to modify floor plans, no matter if you’re building custom or using a builder’s existing floor plan. So, if you want an attic conversion to add a spare bedroom or a garage conversion to accommodate extra space for your workshop, you may find it more cost-effective to do it in the construction phrase. Plus, the change will add resale value.

Image: georgeclerk/getty

Get a Home Inspection

No home is perfect — not even a new one. Don’t skip out on a home inspection. (Ask your agent for a referral.) Home inspectors will examine the plumbing and electrical components, heating and cooling system, roof, and more. Their report can be used as a punch-list for the builder to complete prior to closing. Usually, a builder completes everything, without any negotiation, a perk over buying a resale house where everything is up for renegotiation.

Consider going further with your inspections: I wish I had known about “phase inspections.” Adam Long, president of HomeTeam Inspection Service, which has 200-plus offices nationwide, says home inspectors can be brought in to check on the home during stages of construction, such as before the foundation is poured or drywall installed. They’ll see if items like pipes, electrical work, framing fasteners, and bolts are properly installed. “Once all the walls are in place, you cannot see what’s behind,” Long says. These extra prechecks can help spot any potential issues before the walls get sealed.

Know Your Home Warranty

A perk of building new is the warranties that come with the construction. Builders will differ in their offerings, but you’ll likely have builder and manufacturer’s warranties. Get a binder. These warranties cover potential defects in workmanship; different aspects of the home — like the electrical system, plumbing, or foundation — for a specified time. Manufacturer warranties will cover items including faucets, windows, and HVAC.

After the one-year mark, when the home has settled, many builders will return to make repairs (so all those nail pops in the walls and ceiling, which are common, will get fixed!). My two regrets: Not keeping a repair list throughout the year for that one-year mark and not bringing a home inspector back to do another check while the builder was still willing to make repairs at their cost.

There’s so much to consider with a new home build. As the to-do’s multiply, don’t overlook the excitement that builds in the process, from a home’s blueprint morphing into wooden frames going up, wall-by-wall, and your design selections coming together. Instead of poring over listings for the 100th time online and not finding anything, maybe it’s time to say, “I’ll just build it!” The third time was the charm for me.

“Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OR REALTORS®.”

Interest rates are only one factor when it comes to buying a house now.

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Interest rates sure do get a lot of attention. But they shouldn’t be the only part of your home buying decision-making process. After all, the answer to the question “is right now a good time to buy a house” boils down to whether the time is right for you: To start your new chapter. To invest in what makes you happy. Interest rates don’t negate the benefits of buying a home. Unlike that other big-ticket purchase — a car — home value doesn’t take a nose dive once you get the keys. Quite the opposite.

Is Owning a Home a Good Investment?

Let’s dig into the advantages of buying a house.

Benefit #1: Long-term Financial Growth

When it comes to long-term, stable financial growth, real estate is your ace in the hole. If you bought a home 30 years ago for the median price at the time — about $105,900 — that same home would have appreciated by almost $280,000 in 2022 to about $384,900, according to the National Association of REALTORS®. Even factoring in the lowest point for the market in recent memory — the Great Recession — home values have risen over time, and have kept pace with inflation.

Benefit #2: Building Equity

The down payment and the principle in your monthly mortgage payment goes straight to your equity. Rent money just goes. That equity, an interest percentage in the home, gives you a lot of flexibility. You can:

• Trade up to your next home when the time is right;
• Tap equity to borrow money to pay for home repairs and renovations (making your home even more valuable!); or
• Use it to consolidate credit card debt or even help pay for college. (Just keep in mind when you use equity, your home becomes your collateral.)

Thanks to equity, the typical net worth of homeowners is $300,000 compared with $8,000 for renters, according to 2022 NAR data. That’s a lot of financial leverage.

What are the Tax Advantages of Owning a Home?

Benefit #3: Tax Savings

Believe it or not, savings and taxes can play together nicely. Equity is savings, and when you sell a primary residence, you don’t typically pay taxes on the gain. You can take up to $250,000 ($500,000 for a married couple) without owing taxes. So all that appreciation goes with you on your next adventure.

Benefit #4: Deduction of Property Costs

If you itemize, you also can deduct some of your property costs from your federal taxes. Those include the annual interest you pay on your mortgage, your state and local property taxes up to $10,000, and in the year you buy, some of the fees you paid to close on the home. Only itemize if it means you can claim more than the standard deduction, which for tax year 2022 is $12,950 for single filers and $25,900 for married couples.

More Advantages of Buying a Home

Benefit #5: Fixed-rate Mortgage Payment

Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your relative housing costs may actually go down the longer you own the home. That is, if your earnings go up, a static mortgage payment means your home debt load becomes a smaller percentage of your monthly nut.

Here’s an example: Say your mortgage payment is $2,329 this year and your monthly gross salary is $6,667 (roughly $80,000 per year). That means you’re putting 35% of your salary toward the mortgage. Now, fast forward a few years. Say you saw 5% salary growth annually, and you’re at $7,700 gross per month. Your mortgage payment is still $2,320, but now you’re only spending 30% of your salary on your mortgage.

Of course, keep in mind property taxes and insurance costs will likely go up.

Benefit #6: Improved Credit Score

Speaking of those mortgage payments: Each one, paid on time, is helping to further build your credit score.

Benefit #7: Remodeling Your Dream Home

One of the biggest pros of owning a home is that you can turn the house you can afford into your dream home – bit by bit. Those holes in the wall and paint colors your landlord freaked out about? No worries. You can upgrade amenities, décor, and style to your vision — whether that’s cottagecore, Barbiecore, or anything in between.

Bonus Benefit: Work with a REALTOR®

You don’t have to go through the buying, or selling, process alone. A REALTOR®, an agent who’s a member of the National Association of REALTORS® and subscribes to its code of ethics, has the expertise to help you assess the market; expand and reframe your home search into areas you might not have thought of; refer you to reliable lenders; and guide you through the offer, negotiations and closing.

When the time is right to go forth, we’ve got you covered on every step of the buying process.

“Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OR REALTORS®.”

The most critical things to do to increase your home’s value before putting it on the market.

As a smart seller, you’ll want your home in tip-top shape — but you don’t want to eat into your profits by overspending on home improvements. You won’t be around to enjoy them anyway. The key is to focus on the most important repairs to make before selling a house to ensure every dollar you spend supports a higher asking price.

“Smaller and less expensive updates in combination with good staging will have a great return,” says Colorado Springs agent Susanna Haynie. But how do you know what things to do before putting your house on the market? Prioritize these updates — and consider letting the rest go.

#1 The Most Important Repair to Make Before Selling: Fix Damaged Flooring

Scratched-up wood flooring; ratty, outdated carpeting; and tired linoleum make your home feel sad. Buyers might take one step inside and scratch the property from their list. Want to know how to increase the value of your home? Install new flooring.

“Replace what’s worn out,” says Haynie. “Buyers don’t want to deal with replacing carpet, and giving an allowance is generally not attractive enough. Spring for new, neutral carpeting or flooring.”

If your home already has hardwood floors,

refinishing does the job. Expect to spend about $3,400 on the project — and recoup 147% of the cost, according to the “National Association of REALTORS® Remodeling Impact Report.”

Consider swapping any old flooring for new hardwood. This project costs about $5,500, but you could recoup 118% of that at resale. If that’s not in the budget, any flooring update makes an enormous difference.

#2 Fix Water Stains

You’ve learned to live with the results of a long-fixed plumbing snafu, but for buyers, a water stain suggests there could be a dozen pesky problems hidden beneath the surface. That’s why this is one of the things to do before putting your house on the market.

“No buyer wants to buy a money pit,” says Haynie.

First, make sure the problem is fixed: Bring in a plumber to look for leaky piping or poor yard drainage if your basement is damp. Diverting rainwater from your foundation may cost as little as $800, and repairing a leaking pipe costs approximately $300.

As for the repair work, replacing a water-stained ceiling runs about $670, and drywall costs around $1.50 per square foot.

All are cheaper than a lost sale.

#3 Repair Torn Window Screens

So super inexpensive — and even DIY-able. You can purchase a window screen frame repair kit from a home improvement store for $10 to $15.

Considering the simplicity of this repair, making the fix is always worth it — and so are other small but highly visible issues. When you’re debating how to increase the value of your home, nix any small problems, snags, or ugly spots that might make buyers scrunch up their brows.

#4 Update Grout

Is your grout yellowing or cracked? Buyers will notice. New grout, on the other hand, can make old floors look like they came straight from the showroom.

“The best return-on-investment projects before selling a home involve making a home look like new,” says Malibu, Calif.-based agent Shelton Wilder. She recently sold a home above asking price after a complete re-grout.

This is another small fix with a big impact: Simple bathroom re-grouting may cost just $1 to $2 per square foot, increasing to $10 per square foot for more complicated jobs. And if you’re handy, you can save even more DIY-ing it.

#5 Resuscitate a Dying Lawn

Nothing says, “This one’s gonna take some work” like a brown, patchy, weedy lawn.

Fixing the problem doesn’t cost a ton of money — and you’ll get it all back (and then some!) once you sell. Hiring a lawn care service to apply fertilizer and weed control will cost about $375. Once you sell the home, that comparatively cheap fix could recoup $1,000. That’s an unbeatable 267% return on investment.

#6 Erase Pet Damage

Did your (sort of) darling kitten scratch your bedroom door? Fix the damage before listing your home. Otherwise, buyers may consider the scuffs a canary in the coal mine.

”If you have pet damage, buyers will [then] look for pet stains on the floor,” says Haynie.

Refinishing a door costs between $100 and $215 (or less, if you’re willing to DIY). Replacing pet-damaged carpeting or hardwood may be a bigger job than buffing out some scuffs — but it’s worth the cash.

#7 Revive an Outdated Kitchen

A full kitchen renovation is rarely worth it when it comes time to sell — even though buyers love a fresh look. “Kitchens are still one of the most important features for buyers,” says Haynie.

The problem is, this $45,000 upgrade isn’t something that buyers will pay you back for. Sellers recoup about 75% of a full-on kitchen renovation. If you’re updating the space just for your sale, focus on low-cost, high-impact projects instead.

“Updating the kitchen doesn’t need to be expensive,” says Wilder. “Painting wood cabinets, updating hardware, or installing new countertops or appliances could be enough.”

Setting up your home for selling success doesn’t have to be expensive. Focus on the most important repairs to make before selling a house by picking projects that do more than look pretty. Choose updates that get your home in selling shape and justify a higher asking price.

“Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OR REALTORS®.”

Don’t keep them up too long!

Lights, inside and out, are a beautiful part of the holiday season. 

But before you deck the halls, run through this holiday lights safety checklist to keep your holidays merry and bright.

#1 Inspect Light Strings

Discard any that are damaged. Frayed or cracked electrical cords or broken sockets are leading fire hazards.

#2 Replace Burned-Out Bulbs Promptly

Empty sockets can cause the entire string to overheat.

#3 Make Sure Outdoor Lighting Is UL-Rated for Exterior Use

Exterior lights, unlike those used inside the house, need to be weather-resistant. The same goes for any extension cords used outdoors.

#4 Don’t Attach Light Strings with Nails or Staples

They can cut through the wire insulation and create a fire hazard. Only use UL-approved hangers.

#5 Take Exterior Lights Down Within 90 Days

The longer they stay up, the more likely they are to suffer damage from weather and critters chewing on them.

#6 Store Lights Safely

Tangled lights can lead to damaged cords and broken sockets. After the holidays, coil each string loosely around a stiff piece of cardboard, wrap it in paper or fabric to protect the bulbs, and store in a sturdy container until next year.

Updated on Nov. 7, 2024

Find practical ideas to better protect your home against whatever nature throws your way.

One of the latest buzzwords in home maintenance is weatherproofing — equipping your home to better withstand heavy rains, wind, snow, and extreme temperatures. Recent climate events — from wildfires and severe storms to floods and extreme heat or cold — are motivating more homeowners to take action or step up what they’ve done in the past. Meteorologists are predicting a La Niña weather system for the winter, which could bring a mix of weather conditions across the U.S.

Sixty-four percent of the 1,200 homeowners surveyed by HIPPO, a home insurance group, say they’re concerned about severe weather or climate threats damaging their homes. More than half (56%) say they’ve already experienced damage.

Protect Your Investment: Why You Should Weatherproof

“We can’t prevent the weather, but we may prevent things from going wrong in our homes,” says Mark Olson, home insights expert at HIPPO. For example, an improperly sealed basement window can lead to flooding after heavy rains (a repair not covered by most standard homeowner’s insurance policies). “Weatherproofing your home also might lower the cost when unexpected [problems] do occur,” Olson adds.

Weatherproofing also may save you money on your energy bills, with savings, on average, from $150 to $1,200 per year, according to the American Council for an Energy-Efficient Economy.

Expert Weatherproofing Tips: Weatherization Ideas for Every Budget

Experts offer storm and weatherproofing ideas that will make the most difference in your home based on three budget levels: low, medium, and high-end:

Effective Weatherproofing Tips: Budget-Friendly Ideas Under $350

Use Insulation Wraps

Water heaters, often located in areas like an unfinished basement or garage, may benefit from a water heater insulating blanket (best for electric water heaters). It could reduce a system’s heat loss by up to 45% and even cut water heating costs by up to 16% in cooler months, according to the U.S. Department of Energy.

Estimated cost: $35 to $43

Have an Annual Inspection

Have inspections conducted annually to check the roof, the fireplace, and your home’s key systems — like HVAC and water heaters (have them drained too!). Leaves, bird nests, and other flammable materials can accumulate in fireplaces, posing fire risks. (For about $300, a chimney cap to block can block cold drafts, debris, and pests.) Also, self-inspect the attic for moisture, discoloration on walls or ceilings, or signs of pests. “An attic is an early warning system for your house,” Olson says. “You can learn a lot about the overall health of your home and roof by keeping an eye on your attic.”

Estimated cost: $150 to $300

Add Weatherstripping and Caulking

Caulking and weatherstripping can prevent drafts and waterproof your house. Caulk tends to last five years, but that can vary greatly. “Look for gaps where cables enter your home, small holes in your flooring and walls, doors, and windows — anywhere a draft could be entering your home,” says Stuart Bensusan, director at Surewise, a home insurance company. “Sealing up small gaps and cracks in your home can help bring serious savings on your heating bill.” Also, weatherproof a door by attaching a door sweep to the bottom to block drafts.

Estimated cost: $350

The Department of Energy’s Weatherization Assistance Program provides weatherproofing services to about 35,000 eligible low-income households annually. On average, households save $372 or more per year. Learn more about your state’s offerings at Energy.gov.

Smart Weatherproofing Solutions to Weatherize for Under $1,500

Get an Energy Audit

A professional energy audit can flag problem spots. Diagnostic tests may include a blower door test or infrared imaging to detect air leaks, and inspections of windows, doors, and appliances. Based on the findings, tackle your home’s problem areas with caulk, weatherstripping, and other air-sealing methods. (Savings tip: Some utility companies offer a free or low-cost energy audit, says Docia Boylen, owner at Handyman Connection of Golden in Conifer, Colo.)

Estimated cost: $420

Use Low-E Windows or Coverings

Window weatherproofing could consist of swapping in a Low-E coated glass or film to minimize heat loss, says Kyle Barr, a vice president at Storm Guard Roofing and Construction in Lillian, Ala. In colder climates, look for window weatherproofing film with higher solar heat gain coefficient, or SHGC, ratings — like 0.30 to 0.60 — which filter out less natural light, and for warmer climates, lower SHGC ratings — less than 0.27.

Coverings like drapes can also help. “One of the best investments, especially if your windows are old, is thermal curtains,” says home renovation expert Drew Mansur, director at TileCloud in Australia. “They not only spruce up your interiors but also provide an additional layer of insulation to keep the cold out.”

Estimated cost of Low-E windows and coverings: $600

Fix Drafty Air Ducts

Ducts leaking even 20% of conditioned air passing through forces systems to work 50% harder and increases utility bills, finds a report from the University of Florida. A leaky duct can also cause higher indoor humidity, triggering mold and mildew. Most heating and air ducts are sealed with tape when first installed, but that tape can break down over time. Ductwork also may have holes or loose sections, rust, leaks, clogs, or condensation — all requiring repairs by HVAC professionals.

Estimated cost: $600

Plant Windbreaks

Landscaping can provide windbreaks to reduce wind around a home by up to 50%, as well as prevent snow drifts and reduce heating costs, according to the Department of Energy. “Dense evergreen trees and shrubs planted to the north and the northwest of the home are the most common type of windbreak,” the DOE notes. “Trees, bushes, and shrubs are often planted together to block or impede wind from ground level to the treetops.” A row of evergreen and deciduous trees, such as maple trees, can be effective, but two rows of staggered trees create a denser wind screen.

Estimated cost: $200 per evergreen tree

High-End Weatherproofing Tips: Invest $1,500 and More

Install Attic Insulation

“Large amounts of heat can quickly be lost in a poorly insulated attic,” Bensusan says. The North American Insulation Manufacturer Association estimates nearly 90% of existing homes in America are underinsulated. Extra attic insulation also can protect pipes — like water lines in the attic — from freezing and bursting.

Estimated cost: $1,700 to $2,000

Upgrade Windows and Doors

Weatherproofed exterior doors and windows are more energy-efficient. Windows consist of double panes of glass, and doors have extra insulation. “This is both a great way to save on your bills and increase the value of your home,” Boylen says. Depending on your climate, hurricane shutters — made of aluminum, steel, or polycarbonate — can add protection against wind-blown debris. Also, storm windows and doors that fit over the outside of existing ones add a protective layer.

Estimated cost: $7,500

Replace Your Roof

Roofs typically last 20 to 30 years. When your roof is due for a replacement, consider weatherproof roofing materials. Pricier metal or tile roofs are more apt to withstand heavy winds and rain than lower-cost asphalt shingles, which gusty winds can tear off. Depending on your climate, hail-resistant shingles could benefit you.

“Whether your roof is in good condition or not, you can always make it more weatherproof,” Mansur says. For example, rigid insulation boards or a new weatherproof layer can add insulation and protection, he says. Also, solar panels can protect a home against power outages caused by extreme weather. The costs for installation — anywhere between $10,000 to $30,000 — may be offset with a 30% federal tax credit. Solar panels could save homeowners nearly $42,000 over 25 years, according to EnergySage.

Your roof is your main line of defense against extreme weather, particularly wind and rain. “Relatively minor damage to a roof can result in some very expensive damage to the interior of the home,” says David Hinson, a professor at Auburn University’s School of Architecture who focuses on incorporating enhanced energy performance features into affordable homes. If your roof is worn out, see replacing it as a golden opportunity to make your house more climate-resistant. New materials and technologies have helped roofs better withstand high winds.

Estimated cost: $9,000

Invest in Resilient Design

The smartest weatherproofing ideas come from the principles of resilient design, which incorporates elements like stronger windows and roofs, higher insulation, fire-resistant materials, and passive energy sources to create a home built for maximum protection. These improvements are more expensive than some of the routine fixes you may be used to, but investing for the long term will build your home’s protection and save money over time.

“Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OR REALTORS®.”

First-time ($97,000), repeat ($114,300) and typical ($108,800) buyer incomes hit all-time highs

November 4, 2024Media Contact: Lauren Cozzi

Key Highlights

• A record high 26% of buyers paid cash for their homes.
• Seventeen percent of home buyers purchased a multigenerational home, the highest share ever recorded. 
• The median down payment was 18% among all home buyers and 9% for first-time buyers.

WASHINGTON (November 4, 2024) – The first-time homebuyer market share decreased to a historic low of 24% (down from 32% last year), while home buyers’ ages hit all-time highs of 56 years overall (49 last year), 38 years for first-time buyers (35 last year) and 61 years for repeat buyers (58 last year), according to the National Association of Realtors®’ 2024 Profile of Home Buyers and Sellers.¹ This annual survey of recent home buyers and sellers – this year tracking transactions between July 2023 and June 2024 – has been NAR’s flagship report since it first published in 1981, providing industry professionals insight into detailed homebuying and selling behavior.

“The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers. Meanwhile, current homeowners can more easily make housing trades using built-up housing equity for cash purchases or large down payments on dream homes.”

The typical home buyer’s median household income for 2023 rose to $108,800 from $107,000 in 2022. First-time buyers had a median household income of $97,000, up from $95,900 the prior year and an increase of $26,000 in the last two years. Repeat buyers had a median household income of $114,300, up from $111,700 the previous year. 

The share of married couples increased to 62% of all buyers, with single female buyers seeing a slight rise to 20%. Conversely, the share of single males decreased to 8% and unmarried couples dropped to 6%. In addition, the share of single female first-time buyers jumped by 5%. 

Eighty-three percent of recent home buyers identified their ethnicity as White or Caucasian. Seven percent of recent buyers identified as Black/African American, 6% identified as Hispanic/Latino, 4% identified as Asian/Pacific Islander and 3% as some other ethnicity.

Seventy-three percent of recent home buyers did not have a child under the age of 18 in their home – the highest share recorded. 

Seventeen percent of home buyers purchased a multigenerational home, the highest share in the data series. The top reasons cited were cost savings (36%), to take care of aging parents (25%), children over the age of 18 moving back home (21%), and children over the age of 18 who never left home (20%).

“As home buyers encounter an unaffordable housing market, many are choosing to double up as families,” explains Lautz. “Cost savings are a major factor, with young adults returning home – or never leaving – due to prohibitive rental and home prices. Meanwhile, elderly parents and relatives are moving in with family members as home buyers reprioritize what matters most to them.”

Real estate agents played a crucial role in the homebuying process, with 86% of all buyers utilizing their services – the highest of all information sources used. Agents were the most useful information source in the home search process.

Eighty-eight percent of home purchases were made through a real estate agent or broker, demonstrating the continued importance of agents in the homebuying process. Nearly 90% of buyers each expressed satisfaction with their agent’s responsiveness, knowledge of the purchase process, honesty and integrity, knowledge of the real estate market and people skills. Eighty-eight percent of home buyers would use their agent again or recommend to others. 

In 2024, the median down payments were 18% for all home buyers, 9% for first-time home buyers and 23% for repeat home buyers – the highest down payments for first-time home buyers since 1997 and repeat home buyers since 2003. First-time buyers continue to rely on savings (69%); however, 25% used loans or gifts from friends and family, 21% used financial assets and an all-time high of 7% used inheritances. A record 26% of home buyers paid cash for their homes.

The typical age of home sellers reached 63 years, the highest ever recorded. The share of married couples selling their homes was 69%, an increase from 65% last year, marking the first increase in four years. 
For sellers, the most cited reason for selling their home was the desire to move closer to friends and family (23%), followed by home was too small (12%), home was too large (11%) and neighborhood becoming less desirable (10%).

“Family support systems are influencing buying and selling decisions,” said Lautz. “Being close to friends and family is the top reason to sell, while buying a home convenient to friends and family continues to grow in importance. Today’s buyers are less likely to be concerned with their work locations when purchasing, perhaps because of a higher share of older repeat buyers and remote work flexibility remaining a factor.”

Ninety percent of sellers sold with the assistance of a real estate agent, up from 89% last year, and only 6% were for-sale-by-owner sales, an all-time low. Most sellers (87%) said that they would definitely (72%) or probably (15%) recommend their agent for future services.

“Most home buyers and sellers find it valuable to use an agent who is a Realtor® to help them maneuver through the complicated homebuying and selling processes, especially in a challenging housing market,” said NAR President Kevin Sears, broker-associate of Sears Real Estate/Lamacchia Realty in Springfield, Massachusetts. “Realtors® provide critical knowledge and expertise that ensure a successful transaction.”

Methodology

Data gathered in the report is based on primary residence home buyers. In July 2024, NAR mailed out a 127-question survey using a random sample weighted to be representative of sales on a geographic basis to 167,750 recent home buyers. The buyers must have purchased a primary residence home between July 2023 and June 2024. NAR received 5,390 responses from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 3.2%. Per the REALTORS® Confidence Index, 83% of home buyers were primary residence buyers in 2023, which accounts for 4,756,000 homes sold in 2023 (among new and existing homes). Using that calculation, the sample at the 95% confidence level has a confidence interval of plus-or-minus 1%.

About the National Association of Realtors®

The National Association of Realtors® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor.

“Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission”

When zombies, Beetlejuices, and Taylor Swifts storm your front door , don’t fear! Your homeowners insurance can protect you from Halloween mishaps.

Halloween is all fun and games — until your overloaded power strip heats up and causes a fire or a trick-or-treater trips over a fake headstone and sprains an ankle. 

Fortunately, most homeowners insurance and premises liability policies cover these common Halloween home mishaps.

Halloween Home Horrors

• Tricksters damage your home. Standard homeowners policies cover vandalism, such as eggs thrown at your home that cause dents in your siding, when repair costs exceed your deductible. Experts say vandalism and theft-related insurance claims can climb this time of year, according to WTOP News.
• Candles, lights, or decorations cause a fire. Most homeowners know the risk of burning candles and avoid using them in jack-o’-lanterns. But your policy will cover a fire started by a Halloween candle or a string of holiday lights. If you can’t live in your home because of fire damage, your homeowners policy policy will pay your living expenses while you wait for repairs.
• Something on your property injures a trick-or-treater. The homeowner liability portion of your policy usually covers injuries to trick-or-treaters or party guests. The injured person files a claim with your insurer.
• You crash your car into a telephone pole to avoid hitting a trick-or-treater in your driveway. The collision portion of your auto insurance would cover that accident. If you hurt anyone, the liability portion of your auto insurance would cover the cost of their treatment.

If everything on this list of Halloween home horrors occurred and you have umbrella insurance, that would cover the costs.

To make your property safe for Halloween, the Insurance Information Institute and other sources recommend:

• Clearing out leaves and brush from your walkways to avoid slippery surfaces and falls.
• Lighting your home and yard well so trick-or-treaters (and their parents) can see where they’re going.
• Tying down electrical wires. Certain costumes may lead to tripping, especially if children are wearing masks and aren’t familiar with your property.
• Keeping handrails and railings secure. Kids and and adults can easily fall while climbing stairs if railings are loose.
• Separating pets from trick-or-treaters. Your pets may not welcome costumed, unknown visitors.
• Keeping decorations away from open flames or heat sources. Decorations are extremely flammable. Use battery-operated bulbs, not candles, to illuminate items like jack-o’-lanterns.
• Parking your vehicle in a safe place like a garage. Auto theft and vandalism increase on Halloween because of personal items left in cars, says Policygenuis.
• Setting your security systems and motion detectors. Especially if you’re away from home on Halloween, this may discourage vandals and burglars.

Taking some extra precautions will help you keep the Halloween fun going strong.

“Visit Houselogic.com for more articles like this. Reprinted from houselogic.com with permission of the National Association of Realtors®”

As a home seller, you have a wide range of choices when deciding how to market your property. This includes whether you’d like to offer—or authorize your agent to offer—compensation to a buyer’s agent as a way to attract potential buyers. Here’s what you need to know as you consider your options related to offering compensation:

What is an offer of compensation and why make one?

An offer of compensation is when you—the seller—or your agent compensate another agent for bringing a buyer to successfully close the transaction. Offers of compensation help reduce out-of-pocket costs for prospective buyers, which in turn may bring more potential buyers for the transaction. These costs can be especially significant for first-time buyers, lower- to middle-income buyers, or those from underserved communities.

Are offers of compensation mandatory?

No. It is up to you to determine if making an offer of compensation is the best approach for selling your property. Agents who are REALTORS® are here to help answer your questions and guide you to make a decision that works for you.

As a seller, does my agent need my permission to offer compensation to a buyer’s agent?

Yes. Your agent can only offer compensation or make a payment to a buyer’s agent if they have your written approval and signoff on the amount.

What types of compensation can I offer?

There are many options available to you as a seller to discuss with your agent. These could include a flat fee paid directly to the buyer’s agent or allowing your agent to share a part of their compensation with the buyer’s agent. Beyond compensation, you could also consider offering a buyer certain concessions, such as covering closing costs, to make the total home purchase more affordable for them.

How will a buyer’s agent know if there is an offer of compensation?

Offers of compensation can be advertised in many ways. If you approve an offer of compensation, it can be shared through common marketing methods such as flyers, signs, brokerage websites, social media posts, or simply through a phone call or email. Offers of compensation cannot be listed on Multiple Listing Services (MLSs), online platforms that compile home listings from many different sources.

Do I have to advertise an offer of compensation if I decide to make one?

No, it’s up to you to decide. Advertising can help get the word out to bring more buyers to the table, but you can also choose not to advertise and instead negotiate the offer in a purchase agreement.

You mention concessions—what does that mean?

A seller concession is different than an offer of compensation. It is when a seller covers certain costs associated with purchasing a home for the buyer. Concessions can make home ownership more accessible for buyers by reducing upfront expenses. These can cover things like some transaction costs or property repairs.

How do I know what option is best for me?

When you work with an agent who is a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to weigh your options, answer questions, and develop a strategy you are confident in. You can read more about REALTORS’® duty to put client interests above their own here.

Practices may vary based on state and local law. Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources.

“Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission”

Updated on Sept. 20, 2024

Why now’s the perfect time to replace appliances.

The temps are starting to drop, and the smell of wood smoke is in the air. That’s when veteran homeowners know it’s time to do these six things if they want to avoid trouble or overspending.

#1 Buy Appliances

Whisper to them. Do a rain dance. Whatever it takes to get your old appliances to wait until fall to go on the fritz. Manufacturers bring out their latest models during the fall, and store owners offer big sales on appliances they want to move out — like last year’s most popular dishwasher. So September, October, and November are great months to buy.

But October is right in the middle, when there’s still plenty of selection and retailers might be more willing to haggle.

Refrigerators are the exception because new models don’t come out until spring.

Related: What Specific Days Will Get You the Best Deals on Appliances

#2 Switch the Direction of Ceiling Fans

Most have a switch to allow the ceiling fan blades to rotate either clockwise or counterclockwise. One way pushes air down to create a nice breeze, and the other sucks air up, helping to distribute the heat. Think counterclockwise when it’s warm and clockwise when it’s cool.

#3 Clean Windows

Daylight is about to dwindle so why not get as much of it as you can? Clean off all the bugs, dust, and grime from your windows while the weather is still warm enough to comfortably do the job. For streak-free windows, combine one-quarter cup of white vinegar with one-quarter to one-half teaspoon of eco-friendly dish detergent and two cups of water.

If window cleaning isn’t a DIY job at your home, schedule a professional window cleaner (who, unlike most of us, is able to do it even when temperatures plummet) before the end of the month. The closer it gets to the holidays, the busier they get. Bright sunshine on winter’s arkest days makes the effort totally worthwhile.

#4 Schedule a Heating Unit Checkup

To help your family feel their toes all winter, schedule early in the month for your heating unit to be serviced. As temperatures drop, service companies get busier.

Whether you hire your heating company’s technician or a contractor to do it, they’ll clean soot and corrosion from the combustion chamber, replace filters, and check the whole system for leaks, clogs, and damage. Nothing pairs with a pending blizzard better than the assurance that you’ll be weathering the storm with warm air piping through the vents and cocoa in hand.

#5 Disconnect, Drain, and Store Outside Hoses

In October, you can get so focused on leaf cleanup and shrub trimming that you forget about your outdoor spigot and hoses. When the temperature drops below freezing, the water inside an outdoor hose can quickly freeze, and the outside spigot can even burst, according to Bieg Plumbing & Mechanical in St. Louis.

To remove the nozzle and hose, start by closing your shutoff valves to outside faucets. Squeeze the spray nozzle to release the water pressure; then remove the nozzle. Finally, disconnect the hose, let the water drain, and store the hose, keeping its natural shape, in your garage or basement. You can even find hose hangers starting at about $10 at Amazon or a big box store.”

#6 Insulate Exposed Pipes

If you’ve ever dealt with a burst pipe, you know it’s a sad, wet disaster that’s worth preventing. To avoid the stressful (not to mention, expensive) ordeal, prep your home’s exposed pipes with foam or heat tape, choosing the one that will work best in your climate. Remember, the most at-risk pipes are often those in unheated areas such as an attics, crawl spaces, and garages, so secure those first.

“Visit Houselogic.com for more articles like this. Reprinted from houselogic.com with permission of the National Association of Realtors®”