Key Insights

• Most lenders will take your credit score — and other financial factors — into account when considering you for a loan.
• You have more than one credit score and different factors carry more or less weight.
• There are things you can do to improve your credit score.

If you are considering buying a home, it’s important to understand all the factors that go into the process. And if you’ll be taking out a home mortgage, knowing how your credit score can impact your options is an important first step.

Why do credit scores exist?

The credit score was first introduced in 1989 by the Fair Isaac Corp, also known as FICO, to make it easier for lenders and borrowers to agree to loan terms. The credit score sought to:

• Ease the manual and time-consuming process of reviewing consumer data
• Remove the occurrence of racial, gender and class bias
• Create a standard that was more transparent to lenders and borrowers alike

The credit score model established a standard that assessed consumers’ credit histories and assigned a three-digit number between 300 and 850 for evaluating a person’s “creditworthiness.”

What factors determine my credit score?

Your credit score is informed by your credit reports, which include things like your personal information, bill payment history, credit cards, loans, bankruptcies and current debt. The three major credit bureaus that collect this information are:

• Equifax
• Experian
• TransUnion

The three bureaus share your history with credit scoring companies like FICO and VantageScore who then use it to calculate your credit score. Because there are multiple scoring models and credit bureaus, there are also multiple credit scores, but the scores are typically pretty similar. Keep in mind that you have the right to dispute inaccuracies in your credit reports and to get explanations of score calculations under the Fair Credit Reporting Act.

What matters most to lenders?

Both FICO and VantageScore have specific scoring models for specific lending purposes, and certain factors may carry more weight when you’re being considered. For example, with both models, your payment history matters more than the different types of credit you have or how long your credit history spans.

Your payment history comprises 35-40% of your total credit score, so it’s important you pay your bills on time and in full. Keep in mind that your credit score will decrease any time you open new lines of credit, so avoid opening new credit cards when you are searching for or buying a home. It’s also smart to avoid big purchases as you are home searching, whether paying for them in full or purchasing them on credit.

How will a lender use my credit score to determine my interest rate?

Your credit score helps lenders assess the risk of lending you money and helps inform whether you’re likely to make good on your payments. Your finances, including your debt-to-income ratio and your credit score, can impact your loan approval, down payment requirements and monthly payments, including your interest rate.

While there are other considerations, generally a credit score in the high 700s (and up) is considered good and will give you more attractive options. The difference between top qualifying scores and lower scores can amount to over a 1% lower/higher interest rate, which can make a big difference in your monthly payment amount.

Of course, there are considerations like the loan type (conventional or FHA), down payment amount, and individual financial situations that vary significantly.

What if I have a lower credit score?

If you have a lower credit score, according to Experian, there are some things you can do to improve your score:

• Make all of your payments on time
• Pay down revolving credit accounts like credit cards
• Explore debt consolidation
• Keep your oldest account open
• Limit new credit applications
• Dispute inaccurate information on your credit report

If you’re hoping to buy in the next year or so, start planning now and avoid unnecessary expenses during the loan application process.

Get in touch

Whether you’ve been saving for a down payment for years, you’re wondering whether you can buy with student loan debt or you’re ready to get pre-approved for a mortgage, reach out today to keep moving forward.

_{Prosperity Home Mortgage, LLC is not a credit counselor. Information displayed is not credit advice and should not be relied upon or interpreted as such.
Prosperity Home Mortgage, LLC does not offer financial advice.
This information is provided for informational purposes only and does not constitute legal, tax, or financial advice.}

Key Insights

• Understand what homebuyers want and capitalize on easy upgrades.
• Design a laundry space that someone would actually want to spend time in, through wall colors and storage (and yes, you can even do this in the basement).
• The exterior of your home is just as critical as the interior features. Don’t ignore the impact that curb appeal could have on your home sale.

You can only sell your property once, which is why we aim to set sellers up for success the first time around. By following these three projects — and avoiding three common seller pitfalls — you’ll set yourself up for a profitable property listing that’s attractive to homebuyers.

Three can’t-miss projects for sellers

The National Association of Home Builders (NAHB) recently conducted a report titled What Home Buyers Want. This study aims to understand how we can best list our homes for sale with the interests of homebuyers in mind.

While the book covers many buyer insights, these are the three easy additions that 80% or more of survey respondents deemed as “essential” or “desirable” that you can make to your home to enhance your space before listing your house on the market.

1. Install a ceiling fan

As homeowners in the Midwest, our houses must be prepared for chilly winter temperatures along with hot (and sometimes muggy) summers. One way to find comfort in these extreme climates is through ceiling fans — and homebuyers know it, too!

In fact, the U.S. Department of Energy states that using a ceiling fan “will allow you to raise the thermostat setting about 4°F with no reduction in comfort.” Ultimately, this can decrease your air conditioning bill and save you money in the summer months. Plus, in winter months, fans can help distribute heat throughout a room, once again making your home cozier.

So, whether you give interested homebuyers the logistical pitch of why a ceiling fan is a smart decision for them, or they simply enjoy the aesthetic of having a built-in fan over a standing plug-in version, a ceiling fan is a simple step you can take to upgrade your home prior to selling.

2. Create a dedicated laundry space

Homebuyers crave functional spaces, and we aren’t just talking about stacking a washer and dryer in the basement. It’s important to thoughtfully design an area of the home that’s dedicated to washing, drying, hanging and organizing clothes.

Consider painting your laundry room (or laundry area) a calm, refreshing color like a pale blue or soft grey. You can also add shelving to the laundry area to make the space more practical, even if it is in the basement. Want to take it up a notch? Add art to the walls, rugs to the floors and attractive canisters to collect lost buttons, spare change and more.

3. Stock up on garage storage

The garage is an area of the home that can be overlooked. However, by amping up this room, you’ll drum up a lot of homebuyer interest. Buyers want garage storage space, not just a large, empty carport.

To give your garage a boost, add these storage elements:

• Permanent wall shelves
• Storage racks in the rafters
• Rake hooks
• Organizational cubbies or cabinets
• Built-in tool storage

Avoid these three home resale killers

On the other hand, there are some things that could decrease your ability to sell your home — or prevent you from getting top dollar for your property. If you’re hoping to have a favorable sale, avoid these three home resale killers at all costs.

1. Don’t defer maintenance

When selling your home, you’ll want to make sure that everything is in tip-top shape come sale time. So, you don’t want to defer any maintenance. Glance over every room with inspection eyes and begin to focus on the most obvious issues in your home. If you see peeling paint, old windows or broken outlet covers, it’s time to make some changes.

By ensuring that even the smallest details are ready to go, you’ll create a more attractive listing for interested buyers. Not sure what to look for? An agent with fresh eyes can help you identify the must-fix elements within your space.

2. Stop ignoring curb appeal

Getting your home to stand out online and in person is essential for a prosperous home sale. One thing that you can’t do is ignore curb appeal. To increase your chances of having your home shine through a list of competitors, don’t ignore landscaping. Not only will landscaping brighten your home’s exterior, but it will also create a great first impression for interested homebuyers.

3. Reconsider staging your home

Sometimes, home sellers leave up their family photos and unique decor pieces when listing their properties on the market. Although you may want to showcase pictures of your loved ones, you have an affinity for retro furniture or you use a room for something other than its traditional use (hint: the second bedroom you’re using as your spare closet could send the wrong message), it’s important to keep things neutral when putting your home up for sale.

Rather than sticking with your individual design style, opt to stage your home for sale. By working with a professional to go back to the basics, your house will be optimized with a home sale strategy that works.

Ready to sell?

By following these tips, you’ll be well on your way to a successful home sale. Be sure to consider these simple projects when selling, or make a plan to invest in home renovation projects with high ROI. Reach out for extra advice and home-selling suggestions.

Key Insights

• When it comes to hosting, preparation is key to a stress-free event.
• Use what you have to accommodate guests around your table and borrow what you need.
• Carefully consider where to put your money to get the most bang for your buck.
• Remember to keep everything in perspective and outsource when needed.

The holidays are some of the best times to get together with family and friends. And, if you have a lot of either, hosting can quickly become overwhelming and costly. Here are some tips for hosting a large group in a smaller space, and how to do it without breaking the bank.

Prep your space

Make the most of the space you have by rearranging furniture and decor to make space in the places you need it.

Empty out an entry closet or coat rack for guests’ outer layers (don’t forget to lay out a rug or tray for wet boots!).

• Declutter the areas that will see high traffic or added items. Now’s a great time to go through your canned goods, toss expired items and make sure you have everything you need for dinner!
• Skip the grocery store before your event and eat what you have on hand to empty your pantries, fridges and freezers. This will allow room for your holiday feast prep list and leftovers.
• Deep clean where your guests will be so you’ll only need to touch up areas in the days and moments before the doorbell rings.
• Make sure your bathrooms are stocked with toilet paper, fresh soap and towels to make your guests comfortable.
• Plan where you’re going to lay out food if you’re doing a buffet or appetizers. If you’re short on counter space, consider stacked serving dishes and go vertical!

Be strategic about where you spend

• Seating: Seating doesn’t have to be chairs! Consider moving armchairs, ottomans, and seating from other rooms to pull up around your table. You can also ask neighbors if you can borrow their chairs or invest in nice-looking folding chairs that are much more aesthetically pleasing than the vinyl ones used at picnics.
• Tables: If you’re short on table space, try disguising folding tables with a nice tablecloth.
• Dishes: Not many people have enough place settings for a large group of people. If you find yourself short on serving ware, consider borrowing some items from others (wash them and return as soon as possible, of course). For plates, glasses and utensils, you might be able to combine settings, or, if you’re utilizing multiple tables, use different settings at each table. You can also purchase sturdy, disposable products that have a high-end look to save you cleanup and stress.
• Decor: While decorating for the season is nice, there’s no reason to invest in themed decor throughout your home. Instead, focus on the primary areas where you’ll be gathering and eating.
• Table settings: Simplify your centerpieces so the table has plenty of room for food and place settings, and keep centerpieces low so everyone can see and talk to each other during the meal. You can also nix the centerpieces altogether and make each table setting shine with an elegant layout, folded napkins or place cards. Your guests will be wowed and feel special by the personalized attention.

Think about the aftermath

As much fun as it is to host, it’s important to consider what you’ll do after the party’s over.

• If you’re preparing a lot of food, ask guests to bring Tupperware to take home some leftovers.
• Put out plenty of trash cans and have a plan on what to do if you go over your trash limit.
• Make sure specialty cleaning items are on hand for spills and stains.
• Have a plan of attack ready for cleaning—think about what dishes need to soak overnight, what trash needs to go out immediately and what items need to be returned ASAP.
• Set a timer for any candles and fires you may have lit to ensure they’re safely extinguished.
• Have a Plan B ready in case of unexpected overnight guests. A spare toothbrush and clean sheets or blankets are all you need.

Remember what’s important

Hosting is a huge job, so it’s important to keep the event in perspective to keep from getting overwhelmed. Remember: even if the table space is crowded, the most important thing is that you’re spending time together.

Plus, just because you’re hosting doesn’t mean you have to do it on your own!

Your family and friends are probably extremely appreciative that you’re willing to open your home to them and may want to help take some of the pressure off. Accept any offers of cleaning and bringing items. It’s also okay to ask for help and assign roles like bringing a certain dish or app (especially when your kitchen space is limited), picking up a flower arrangement you ordered or buying festive napkins.

You also have the option to outsource your party. Restaurants and community centers often have private rooms available for rent that can provide the space, tables and chairs needed to accommodate your group. Event centers are a great option for extra seating and place settings—some will even do the dishes for you! You can also hire out a caterer to do your prep and cooking, and a cleaning service to get your home ready (or put it back together).

Looking for something bigger?

With some preparations and planning, you can find the space in your home to throw a shindig for all your family and friends. But if you’re still feeling the squeeze and want to look for a home that better accommodates your growing circle, consider reaching out to see what’s available in your area.

Key Insights

• You can get a rough idea of what your property is worth by looking at tax-assessed home values and using automated online estimates.
• Consulting with a REALTOR® is a great way to determine the value of your home and price it appropriately.
• Your REALTOR can share pricing insights that will help your house sell quickly and for top dollar.

Homeowners looking to sell may find that after years of building memories in a house or investing in home renovations, it can be difficult to put a price tag on a property. Here are some insights you can use to determine the best steps toward discovering your home’s true market value.

Estimated market value

Also known as a property’s tax-assessed home value, this figure indicates how much a home is worth through county tax records. Since this home value is based on historical sales data and mass appraisal techniques, the records can be up to two years old.

When listing your home on the market, you’ll want to get a more current and individualized assessment of your property before selling it for its estimated market value — especially if you’ve made updates like expanding the master bedroom or investing in a new pool.

Automated online estimates

Another way to assess the market value of a house is through an online market analysis. A computer-generated analysis compares your home to similar nearby properties that were recently sold, in order to estimate your home’s value.

The comparison is based on factors like home location, size, condition and amenities. Remember, these comparisons are generated by an algorithm, so they can only take into account the variables shown in the data, which may not give you a complete picture of your home’s true value.

When it comes down to determining your home’s value before selling, it’s wise to hire an agent who can provide a more detailed analysis.

In-home comparative market analysis by a professional

Although it may seem convenient to get a home value check via tax records or a quick online estimate, you’ll want to have an expert step foot in your home to provide a detailed and specific market analysis of your house.

After all, a computer-generated analysis can miss a lot of details — perhaps your house has special features, including:

• Original hardwood floors
• Remodeled kitchen
• A his-and-hers closet setup that’s straight out of HGTV
• Backyard on a preserve that can never be developed
• Location in an exceptional school district

Because every home varies — and even a small difference in location can make for a big variance in the market value of a house — it’s important to have a local expert evaluate the home in person so they can present you with their qualified evaluation.

Reach out to a licensed REALTOR® who knows your area to get an in-person home value estimate today.

Wait, what happens if an expert is saying my home is worth way less than the automated estimate?

Online estimates don't know the nitty-gritty details about your home's condition and its unique selling features, so they often offer inaccurate market values or broad ranges. In fact, these numbers can be off by anywhere from a few thousand dollars to tens of thousands of dollars.

While we understand the frustration of hearing that your home is worth less than you assumed, it’s important to remember that the true value of your home is what a buyer will pay for it in today’s market. There are also recommendations your agent can make to help you attract multiple offers and get top dollar.

By working with a local expert who understands pricing trends and buyer demand in your area — rather than relying on a computer that can’t factor in local nuances — you’ll get a more realistic idea of what your home could sell for.

I’m not in a hurry to sell. Is it okay to list it for higher than the assessed value, and see if anyone “bites?”

Many would-be sellers share the mentality that they can list their homes high and see if they can score a high-bidding offer. If they aren’t in a hurry to sell, these homeowners believe they can lower the price tag down the road if the offers don’t flood in initially.

However, this theory is a common home seller myth. Why? Well, most buyer demand comes within the first two weeks of being on the market. During this initial listing phase, you can expect:

• Your home’s listing will gain attention online and through email alerts to potential buyers.
• Interested local buyers to tour your home at a showing or open house.

As a seller, you’ll want to optimize the initial buzz of your home listing. But if buyers are turned off by the price tag, you may find your home lagging on the market. Buyers may assume that something is wrong with the house or conclude that it’s overpriced.

The result? Sellers may receive even lower offers than they would have if they’d priced their homes fairly from the start.

Any other pricing tips or tricks?

You and your agent could consider listing your home for sale at a “round number” price point. It may sound a little odd but our analysis has found, for example, that homes listed for $250,000 sell faster than homes listed for $249,000. When it comes down to it, this home pricing trick could make a difference in how quickly you’ll get offers and how much you can net from potential buyers.

Key points and next steps

Whether you want to learn the market value of your home or you’re interested in learning more seller insights, get in touch today.

Key Insights

• As home inventory increases, so do open houses.
• Sellers should take extra precautions to appeal to large groups entering their homes at once.
• Buyers should respect each home they visit, while still doing the reconnaissance needed to determine if the house is a top contender.

Whether you're buying or selling, here are five tips to keep in mind as you plan your weekend open houses.

Open house tips for sellers

1. Get it objectively clean

Buyers want homes that would be featured on HGTV or Pinterest – and that means every speck of dirt must go. In addition to dusting and vacuuming, be sure to wipe down your blinds and walls (including baseboards) and check corners for cobwebs. Wash your windows inside and out, using newspapers to minimize streaking.

If you live in an older home where decades of peeling paint layers make it difficult to get everything 100 percent clean, consider hiring professionals.

2. Empty your closets and cabinets

Overflowing closets, cabinets, pantries or garages will give buyers the idea that your house doesn't have enough storage space. Try to downsize your belongings or rent a short-term storage unit to hold your overflow as you sell.

3. Nothing is off limits

While buyers shouldn't dig through your closets or drawers, keeping a room or closet off-limits to them is unrealistic. If you usually cordon off areas from pets or children, be sure to remove the gates or barriers.

Don't forget about locked storage spaces in your garage. The more access you give buyers, the more appealing your home will be. To play it safe, plan on finding alternative solutions for securing valuable items when your home is on the market.

4. Clear the premises

Don't hang around your house or sit nearby in your car during the open house. Buyers need to see the property uninterrupted. They may not be honest with themselves (or you) if you remain on site.

Remember, pets should be removed from your home during an open house. It can be a hassle to find a doggy daycare or to keep Rover at the park for three hours, but it's simply not worth turning off buyers who aren't keen on animals. Plus, you don’t want to stress out your pet!

5. Show off the best features

Still love your home? Show it off! In warmer months, you can easily showcase your home's best outdoor features, like a pool or updated landscaping. In the winter, start a roaring fire prior to your open house guests arriving so your home feels like the coziest abode on the block. You can also display photos of seasonal outdoor spaces (like that swimming pool) so they can be appreciated by home visitors in the off-season—and picture themselves lying poolside.

If you live near parks or trails, consider printing off local maps to distribute to interested buyers, so they fully understand all the amenities they'll enjoy nearby if they purchase the home.

For buyers

1. Measure away

Bring a measuring tape and keep track of the sizes of the rooms that are most important to you. If you have a "must-keep" antique banquet cabinet, be sure it fits the back wall in the dining room. As you tour the bedrooms, note if your California king-sized bed will fit in the master suite.

These aren't necessarily deal breakers, but if you're trying to choose between two homes, room dimensions can be a deciding factor.

2. Pay attention to light

Most open houses happen during the brightest hours of the day, so pay close attention to how well-lit the house is and where the light is coming from. You may also want to note the weather when you tour each home. If the home seems dim, but it's stormy outside, try to return on a brighter day to see the best-case lighting scenario.

3. Put on your friendliest face

It’s okay to chat with the REALTOR® showing the property and try to make a connection, but keep in mind that most interactions will be between your agent and the listing agent, should you decide to make an offer on the property.

While your offer will be evaluated and accepted or declined by the seller according to its merits, there are certain issues that can arise as the home proceeds to the closing table. If a disagreement arises over an inspection, appraisal or home fixture, it's best to have a friendly relationship to help diffuse issues and agree on compromises.

One caveat: If you are working with an agent already, you should talk to your agent about whether you should go to open houses and how you might want to limit your interaction with the listing agent.

4. Ask questions

Ask about the neighborhood, including schools, parks and the property’s recent tax bills. You’ll also want to consider utility costs and insurance when buying the home, such as estimated heating and cooling expenses, which some sellers are willing to share.

5. Pay attention to demand

Try to listen to what other buyers are saying as they look over the home. If they think the home is underpriced or overpriced, that could change your bidding plan. On the other hand, try to keep your feedback to yourself until you've left the property, so you can effectively negotiate. If the listing agent asks you any questions about your budget or interest, remain neutral. Keep in mind that the agent likely represents the seller and may share everything you say with them.

Good luck!

You’ll likely notice more balloons and signs advertising open houses on street corners now that you’re in the market. By following these basic rules, you'll be destined for open house success.

Ready to get started? Our agents host hundreds of open houses each weekend. If you're in the market for a new home, check out this weekend's open houses or reach out for help.

Key Insights

• Halloween decorations can be a lot of fun, but make sure you compromise with your neighbors and know your local rules before going all out.
• Keep safety at the forefront of your decor plans.
• If you’re planning on selling, stay family-friendly and understated for optimal appeal.

Halloween can have a lot of fun interpretations. Some people enjoy cute cartoon ghosts and loveable jack-o-lanterns; others walk on the spookier side with sinister skeletons and monsters galore; and then there’s the group that prefers the gore and guts of the haunting season.

Regardless of your Halloween aesthetic, it can be easy to overdo it on the cute and creepy decor. And if you are a person who goes for the jump-scare, that overzealous attitude could land you in some hot water with neighbors, passersby and even the authorities. So, how scary is too scary? And if it’s on your property, does anyone have the right to tell you to dial it back?

Spooky, or scary?

Some people really enjoy setting up the perfect haunted house. Last year, it was estimated that $3.9 billion would be spent on Halloween decorations alone. Some enthusiasts spend months planning and prepping, so it’s no surprise that with so much time, money and pride in the projects, criticism and complaints don’t go over well.

But before you start a neighborhood brawl, take a step back and put things in perspective: if your decorations are upsetting kids as they walk by, causing neighbors to relive painful memories of loved ones passing, keeping people awake at night or forcing the authorities to swing by to make sure everything is on the up and up, is it worth it?

If the answer is yes, consider a compromise. Maybe keep the more life-like items in the back and out of street view for consenting visitors to experience at their own risk, or turn off the fake blood fountain when the school bus is making its rounds.

Your house, your rules—mostly

There are really only a few sectors that can force you to take down your outdoor decor or decor that can be seen from the street (think windows, doors, etc.): your landlord (if you have one), your homeowner’s association (HOA) and your municipality. All three should have guidelines and ordinances for you to review so you can ensure your efforts don’t go to waste. Some things to look for:

• When can you put up decorations, and when do you have to take them down?
• Are there any light and/or sound rules in place?
• Do you need to acquire any permits for special effects or work?

If your props cause concerned citizens to call emergency services, be prepared to pay a fine or get a citation.

Make your house scary safe

Your biggest concern should always be safety, regardless of your decor aesthetic. Remember: you could be liable for any accidents and injuries caused on your property or because of your decor. Consider the risks that could be involved with your decorations, including:

• Visibility issues: Flashing lights or poor lighting can set the mood, but could also set you up for trips and falls. Make sure that nothing obscures walkways and public access points like sidewalks and streets. Think about how your special lighting and effects like fog machines and moveable props like haybales and billowing capes could get blown off course by a gust of wind and end up causing an accident.
• Tripping hazards: Pumpkin guts might make for great gore, but they are also extremely slippery and could cause guests to fall and potentially injure themselves. All walkways should be free of obstacles, easily navigated and well-lit to provide safe access to your property.
• Dangerous materials: It should go without saying that using a real chainsaw for your Chainsaw Massacre-themed yard is a bad idea when you have kids coming to your door. You should also consider how your other materials might pose a danger. Check that your fake blood won’t cause your neighbor’s dog to get sick if they take a lick or cause sewer drains any issues.

If you’re selling, skip the skeletons

Just like your home’s interior, buyers are looking for blank slates that have just enough staging to spark their imagination. That doesn’t mean you can’t have any fun, but tone it down and keep it family-friendly.

• Focus on fall over Halloween. Not only will this help the longevity of your decorations, it will ensure no one’s sensibilities are offended.
• No gore, blood, guts, or cobwebs. Stay far away from anything that could stain, cause property damage or make your home look less than pristine.
• Quality over quantity. Consider putting out just a few high-end decorations rather than a plethora of items that have seen better days.
• Check your produce. Rotting gourds and moldy cornstalks don’t impress anyone. Toss them once they start looking past their prime (even if you think you could still get a few more days out of them).
• Talk to your neighbors. While they are not obligated to help you, they might consider stowing some of their bloody designs during showings or turning off their special effects for a few hours so potential buyers can focus on your property.

Still not sure how to handle your Halloween decor? Reach out and talk about your home.

Key Insights

• Fall is a historically good time for sellers and buyers to make mutually beneficial transactions.
• Sellers can expect fewer–but more serious–offers during the fall.
• Motivated buyers will face less competition and more options this season.

While you’ve undoubtedly heard about spring market frenzy, you may not know what to expect when buying or selling a home in the fall. Many find that buying and selling in autumn is less stressful and allows them to use the winter to build a feeling of home.

Here are insights you can use as you consider buying or selling a home in Minnesota or western Wisconsin this fall.

Something’s in the air

Whether you’ve lived in the Midwest your whole life or recently moved here, you’ll notice that as the air and leaves get crisper, everything seems a little more relaxed than it did in the summer. (Even attending three soccer games on the weekend feels refreshing when you have a flannel blanket and a warm cup of coffee on the sidelines.)

Similarly, fall just feels like a great time to start over in a new home. Many buyers love moving into a new home in the fall because it’s the right time for a fresh start. Then, you get to spend your winter ‘nesting’ and really making a home your own. If you buy in the spring, you’re more likely to be outside and less likely to paint, decorate or organize for the long term during those first few months of homeownership.

Digging into the numbers

Fall may feel like the right time to move, but what do the housing market numbers say?

Annual national market trends show that since 1999, the most popular months for home sales are May, June, July and August; comparatively, November, December, January and February tend to be the slowest months for real estate activity, according to information published by the National Association of REALTORS®. Generally speaking, real estate activity moderates in autumn months as renters stay put and families with children avoid changing school districts mid-year.

While spring and summer are known as the peak times in the market, the housing market doesn’t hibernate when the leaves start to turn colors. In these more moderate sales months, motivated buyers and sellers tend to work toward straightforward, mutually beneficial transactions.

What fall sellers should expect

Sellers should keep in mind that they probably won’t see the lightning-fast sales that were prevalent a few years ago. Currently, the average home in the Twin Cities is listed for 34 days before the right seller is found. However, sellers can also expect to get a good value for their property. This August, the average seller recouped at least 97% of their original list price, according to data provided by the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC. for the 16-county area in August 2024.

In the fall, open houses and showings are usually attended by serious buyers. This could mean that you see less in-person traffic than you would if you listed in April, but you’ll also host fewer “looky-loos” who are unlikely to make an offer. Selling in the fall could also mean a faster path to closing, as your buyers likely have a reason to be entering the market at this time and may be motivated to get settled before the holidays.

Remember, today’s buyers are discerning and have high standards. Sellers should work to build curb appeal and fix up the interior of their home to show pride of ownership before listing their homes for sale.

What fall buyers should expect

Housing inventory continues to grow, giving buyers more options and more confidence. Because fall isn’t typically a busy home-buying season, buyers who attend open houses will see that they are less crowded than in the spring and summer months.

This could mean that you have less competition, or it could mean the competition is fierce, with a small pool of equally motivated buyers. Your REALTOR^® will provide deep insights on what to expect given the inventory and desirability of your selected neighborhood and price point.

Thinking of getting started?

As you can see, the fall is about more than pumpkin-flavored treats and bagging up that ever-growing leaf pile. If you’re thinking of buying a home or are ready to put your property on the market, reach out to get started.

Key Insights

• There are many smart products available to perform different tasks around your home — and some have gotten better at integrating with each other.
• Consider what problems you’re trying to solve when shopping for smart home technology.
• Investing in smart home tech can lead to energy savings in the long run.

For years, buzz has been building about “smart homes,” which are outfitted with devices and systems that automate and optimize based on the homeowner’s preferences.

Plenty of smart home devices — like programmable thermostats — have taken off, and are becoming more integrated and affordable. But with so many products and options on the market, it can be difficult to determine which will benefit your home, and which are the “shiny objects” of the moment.

Here are insights you can use if you are hoping to purchase smart home devices for your house.

Note: Edina Realty is neither endorsing nor recommending these products. Please check with product retailers to verify current product prices.

Hubs: Amazon Echo, Apple iHome and Google Home

These three speech-activated smart home devices can respond to hundreds of requests and help you automate basic tasks throughout the day. Their healthy competition to control the marketplace means you get to take advantage of a growing list of integrations, and their time on the market has allowed older versions to be sold at reduced prices.

The benefit of these hubs is that they act as the epicenter of your smart devices where you can control anything from your refrigerator temperature to your home’s security system, entertainment streaming and more. Many other smart home products can pair with these hubs so you can access that tech through your AI assistant, as well as the product’s app.

Top products for safety

If you’re on a budget, be sure to limit your purchases to products that solve a real problem in your household. Here are some top-rated products that help with issues of safety.

Smart locks

If dozens of people have your garage code — from the nanny to your kids’ friends — how safe is your home, really? Rather than giving keys or an entry code to your house cleaner, the math tutor or even your houseguests, you can fully control entry using smart locks for every party that enters and exits your home.

There are a number of options out there to fit your preference like fingerprint ID, keyless codes and the power to unlock your door through an app. Some even integrate video technology like security cameras or a video doorbell to show you who’s at your door and give you the option to unlock a door or open a garage. Many also have the option to work with your security system to auto-lock at certain times of night, alert you if a door was left open and more.

Smoke detectors and carbon monoxide alarms

Two-in-one smoke alarm and carbon monoxide detectors are easy to install and have an in-person alarm as well as text alerts if the alarm goes off. The peace-of-mind of getting alerts when you’re not home is worth the price, and some will even send an alert to your phone if the battery is running low.

Security cameras

Recent advances in security camera integration have made smart home technology even easier. From video doorbells to outdoor entry point surveillance and even indoor monitors for infants’ rooms, cameras have become paired with other tools to take the guesswork out of home security.

For instance, products paired with a hub could allow you to get a message on your phone about a fire in your kitchen, a camera view to show you what’s going on, a security system to call the fire department, a smart lock function that would allow you to open the door when they arrive, all while you’re miles away.

Top products for efficiency

Part of what makes a device “smart” is that it can help you minimize energy use in your home. Below are a few top products that will pay for themselves over time.

Smart light bulbs and switches

Worried you’ve left a light on, or too lazy to get out of bed to turn off the bathroom light you errantly left on? There are two products that can help you solve this issue.

Smart light switches can require installation but are then controlled by a smart home hub or your smartphone. Because it’s controlled by Wi-Fi, you can turn the switch on and off even when you’re not home.

Updating every light switch can get pricey, so you can also purchase smart light bulbs, which can be controlled via Wi-Fi or Bluetooth. Wi-Fi-controlled bulbs are more expensive and generally require you to purchase a larger system. There are also Bluetooth options, but you’ll need to be at home to turn them on and off.

Smart plugs

We all have that one outlet — the one connected to the clothes iron, the curling iron or the coffee pot — that we fret over when we’re at work. Or what about the outlet connected to the Sony Playstation, which is likely using up “vampire energy” while you’re away?

While replacing every outlet in your home would be a significant investment, upgrading your main problem outlets can be an inexpensive, effective way to bring down your energy use (and anxiety). Being able to use voice commands through your hub or going on an app make them incredibly convenient and easy to use. They’re also handy during the holiday season for turning holiday lights off and on without having to don a coat or kneel behind a pine branch.

Programmable thermostat

Smart thermostats were one of the first players in the smart home market. They can be controlled from near and far, and they learn your preferences over time to help you save money and keep your home comfortable. They also have alerts for when filters need to be changed and maintenance done to keep your system working at its best.

Smart appliances

New home appliances now have Wi-Fi capabilities built in, allowing you to start the oven, run the dishwasher, or give the laundry an extra 10-minute drying cycle. These features are accessible through voice commands using your hub and an app on your phone. For busy professionals trying to manage a home, these features can be great time savers.

Smart homes keep getting smarter

With new tech products emerging every day, it’s safe to assume that smart home technology is here to stay. So if you’re trying to decide which smart home options are best for you, remember to consider your lifestyle, your challenges and your goals before stocking up on the latest gadgets.

If you’re feeling like a smarter move might be to buy or sell your home, reach out today to plan your next steps.

Key Insights

• Attracting multiple offers on a home is one way sellers can set themselves up for the best closing price.
• Multiple offers don’t come uninvited. Sellers should optimize their listing and prepare their negotiating skills to score big on their home sale.
• Timing and original listing price are two of the most important factors sellers should take into account when trying to draw in multiple offers.

As a seller, you’ll want to score the best offer on your property. By attracting multiple offers, you’ll be able to accept a final offer that nets you the best terms and the highest closing price.

Use these tips to draw in multiple offers and work toward the net-pay closing day you’ve been dreaming of.

How to attract multiple offers on your home

1. Hire a REALTOR®

If you’re looking to draw in multiple offers, it’s important to hire a REALTOR who knows the local market and who understands how to drum up buyer interest. When searching for the perfect agent, try interviewing multiple REALTORS so you can pick the one that feels like the best fit.

Remember, REALTORS are the experts helping you sell your home, so ask them about the entire process, and why they’re the best person to help you close quickly and for top dollar.

Specifically, you can ask:

• How often their clients’ homes sell for listing price or above.
• How they handle negotiations and counter offers.
• If they can make strategic recommendations for how to improve your home to sell for a higher price.
• What they recommend to get the most attention for your home, such as offering broker compensation to attract more potential buyers
• What they do to ensure the property gets online and in-person traffic in the first few weeks after it’s listed on the market.

2. Success in staging

One important recommendation your agent might make is to stage your home, which is a process where you optimize (and neutralize) the space to make it more appealing to a wide variety of buyers.

You may be wondering — is it normal that sellers put money INTO their house in order to sell it? And the answer is a resounding “yes.” You can boost your resale value by making small, but impactful changes like new carpet, fresh paint, modern landscaping, staging and more.

3. Timing is important

After you’ve staged your home, it’s time to list! The first two weeks after posting a home on the market are the most critical for sellers, because buyer interest is at an all-time high during this period.

Talk with your agent to optimize your success when listing. You can plan ahead to accommodate for:

• More showings
• An open house or open house weekend
• A broker open, which is where an agent holds an exclusive house open for other agents, who look around on behalf of their clients
• The best time to sell – according to your circumstances

4. Determine a “sweet spot” price

Although you’ll want to set yourself up to attract a great price, make sure you don’t price your house too high. Even in today’s market, where sellers hold an advantage, pricing too high can mean more time on market and fewer offers coming in -- which ultimately could result in a lower sale price.

Be sure to work with your agent to compare your property to similar homes that have sold recently in your area. It will work to your advantage to come up with a “sweet spot” listing price — one that is not so high that it turns buyers off, and not so low that you receive a series of low-end bids that you do not wish to consider.

5. Consider offering buyer incentives

You might consider offering to pay the buyer’s broker compensation as a way to open up your property to the most potential buyers. Many buyers don’t have the cash available to pay both a down payment and their real estate agent, and the offer of the buyer’s broker payout makes buying your home an option for them.

You may also be competing with other sellers who are offering a buyer’s broker payout, making their home available to more buyers, and when more buyers compete for a property, they make offers with terms and prices that are often more attractive to sellers.

How to negotiate multiple offers like a pro

You’ve put in the effort to set your home up for a successful listing. Now it’s time to handle the multiple offers. Here’s how it all works:

• Your REALTOR will receive offers through buyers’ agents.
• You and your REALTOR will consider the advantages and disadvantages of each offer.
• Your agent will support you as you assess each bid.

At first, you might be drawn to simply accept the highest price — and when all other variables are the same, that’s an easy decision. But! It’s unlikely that everything else will be identical within competing offers. And in some cases, non-monetary advantages could mean more to you than a few hundred dollars.

For example, you may want to accept an offer with:

• A flexible closing date — depending on where you are moving or if you have a "Plan B" housing option.
• Fewer (or no) contingencies.
• More down at closing, pre-approved buyers or other factors that indicate the mortgage will be approved.
• Closing costs that will be paid in full by the buyer.

It’s possible that after receiving multiple offers, you will be able to select one of the original offers based on their bid or other factors. In this case, you will work with your agent to sign the purchase agreement and proceed to the closing table.

However, if you would like to see if you can win an even higher price or more favorable closing terms than you received in round one, you can work with your agent to propose different terms, which is called making a counteroffer.

How to navigate counteroffers

There are various approaches to see if you can receive a higher closing price or better terms than those offered by the buyers in the first round of bids. For example, you can sign a counteroffer with specific terms and send it to a select buyer you’d like to work with. If the buyer agrees to your terms and signs the counteroffer, you’ve got a deal. The buyer could also respond by submitting their own counteroffer.

Alternatively, you can work with multiple buyers by asking some or all to come back with their best and final offer. That means that they may increase their initial bid, and/or make the sale easier on the seller — including by removing contingencies, offering to pay full closing costs or offering a closing date that is best for the seller.

When navigating counteroffers, you’ll want to work closely with your REALTOR to develop a strategy that will maximize your sale. Your REALTOR will also help you select a buyer who is not only coming in with the best bid and terms, but who is also likely to be approved for the final loan. Your REALTOR can help you weigh the pros and cons until you determine the buyer whose bid you’d like to accept.

Get in touch

New listings are a hot commodity right now and sellers with desirable properties can sell quickly and with multiple offers on the table. If you’re ready to make a move on your selling journey, reach out and we’ll make a plan for attracting multiple offers.