Key Insights

• Moving to a smaller home - or downsizing - is a process best accomplished over time
• There are steps and resources available to help you navigate the emotional and practical sides of downsizing
• Even if you don’t plan to move, downsizing your belongings can give your home new life

There are many reasons why people decide to move, and downsizing is one of the most common. Whether you’re an empty nester in a new season of life or you just want less stuff, these tips will help you navigate the emotional and practical aspects of downsizing your home. And when it comes time to sell, having a home that showcases your (neat and tidy) storage areas can be a major selling point!

Top reasons to downsize

If you’re considering a move in 2025 or beyond, you might be looking at reducing expenses and space. Here are popular reasons for downsizing:

1. Cost savings. Electing to take advantage of existing equity and trade in a large monthly payment for a less expensive home can be an attractive option for those looking to reduce or eliminate monthly mortgage payments and unnecessary utilities.
2. Reducing maintenance and space. Larger properties take more time to clean and maintain, so wanting to maximize your leisure time is an admirable reason to move. Furthermore, having a lot of unused space is impractical.
3. Moving near family and friends. Whether you’re hoping to be closer to the grandkids or the golf course, proximity to loved ones is a major motivator. And some are choosing to settle in communities organized around lifestyle and age.

Tips for downsizing

Chances are, you’ve been in your home for a while and will have to confront the emotional and practical aspects of making the move. Here are some tips for navigating the process of downsizing:

• Give yourself plenty of time. It’s not fair to think you can go through decades’ worth of keepsakes, furniture and decor in a couple of weeks. Give yourself a few months to tackle this, and ask for help from family and friends. You may also consider holding an estate or garage sale.
• Make a plan for trash and donations. You’ll likely want to check with your trash hauler about expanding your services. Some downsizers prefer to rent a dumpster or make arrangements with a local junk hauling company to take unwanted items away. To stay organized, create zones in your home for what you’ll keep, toss and donate.
• Pass on the good memories. Invite your kids, nieces, nephews or grandchildren over on a Saturday to sift through family relics and memory boxes. Tell your family in advance that they are welcome to keep anything they'd like, but items left behind will be recycled or trashed. Pro tip: Consider buying large plastic storage containers for each family member to fill up. This will reassure them that you don't want to trash their memories, you just want them to find a new home.
• Shred or recycle papers. You likely have a file cabinet full of pay stubs, tax reports, immunization records, newspaper clippings and more. Take a day (or two) to go through all your paperwork, and try to discard the majority of it. The IRS says that even the most complicated tax filings must only be kept for seven years, so clear out anything older than that. Protect against identity theft by shredding all the documents with personal information, but keep in mind that shredded paper cannot typically be recycled.
• Pare down items. Save your bathrooms and kitchen for a day when you don't have the heart to throw away sentimental items. If you have specific kitchen-related traditions, like baking spritz cookies during the holidays, consider whether a relative might like to continue the tradition, and pass your items along to them.
• Discard clothing you haven’t worn in two years. With very few exceptions, you should get rid of any clothing items you haven't worn in the last two years. If you recently retired, consider donating the majority of your suits and work outfits to an organization such as Dress for Success.
• Try to stick to the “OHIO” rule. For efficiency, it’s often recommended that you “only handle it once” when deciding which items to keep, toss or donate. While this is a nice idea, it may not always be practical. Perhaps a revised goal can be to make a pile of things you need to revisit so that you can move the process along and come back to the outliers later.
• Save the furniture for last. Unless you know you need to get rid of multiple bedroom sets, wait until you find a new home to narrow your furniture selection down. Then, you can decide if you want to fill your new living space with your formal living room setup or your casual den couch and loveseat. Remember, too, that you don't have to bring any of it with you. Downsizing is a great time to start fresh with modern couches, chairs and tables that suit your new home and your changing tastes.

Taking the next step

Whether you're upsizing or downsizing, we can work together every step of the way to keep you moving forward. Reach out to get started.

Key Insights

• Finding the right home can be complex. Don’t rush into your home purchase.
• Your REALTOR® will be your advocate from the start of your search to the closing table and beyond, so make sure you’re compatible!
• Determine your must-have home features while maintaining an open mind when viewing new properties.

The process of buying a home can seem daunting, especially when you’re competing with other buyers who are also trying to stand out in a seller’s market. Knowing what to expect and having the right Realtor by your side will make all the difference when it comes time to make an offer. To prepare, first-time buyers should take special care to prep their finances so they can move quickly when they find a home that suits their needs.

Here are seven tips to help prepare first-time homebuyers like you for today’s competitive market.

1. Take your time

Buying a home will likely be the biggest purchase of your lifetime, so it may take time to find the right home for your budget and lifestyle. And while you may get lucky and find your dream home (and also get an offer accepted) immediately, you should be prepared to spend several months searching for and closing on a home. The buying process includes these essential (and sometimes time-consuming) steps:

• Organizing your financials
• Working with a mortgage consultant to get pre-approved
• Hiring a Realtor
• Researching and touring homes
• Making offers on properties
• Negotiating your offer
• Getting an offer accepted
• Closing on a house

2. Gain financial footing

Financial experts recommend that you shouldn’t spend more than 28-33% of your total income on housing, but the numbers vary for each person and lifestyle.

When determining how much you can spend on your first home, begin by checking your debt-to-income ratio. This number estimates your ability to pay your mortgage (and other housing costs and recurring bills) when compared to your income.

Why is this necessary? Well, two potential homebuyers who draw the same annual salary (say, $60,000) may have significantly different recurring monthly payments and debts to pay down. One may be able to pay the mortgage on a $300,000 house, while another may wish to stay in the $240,000 range due to recurring payments on student loans, child support or other bills. While it’s smart to keep your housing payments below 28% of your income, knowing your debt-to-income ratio will help you make an even smarter budgeting decision.

3. Hire the right REALTOR®

Hiring a Realtor is an ultra-important step in the buying process. Agents help potential homebuyers in every market but are especially important when buyers need an advocate in a competitive market like today’s.

Since your Realtor will be with you through every step of the home purchase process — which may be slightly longer than usual given the current atmosphere — it’s important to work with someone you trust and are compatible with.

4. Enjoy the hunt

Whether you search on EdinaRealty.com or our MyAtlas at Edina Realty mobile app, you’ll have access to homes for sale across Minnesota, western Wisconsin and southwest Florida. You can search, save and share properties that best fit your criteria.

5. Determine your must-haves

Unless you’re an extremely decisive person, you’ll likely find yourself falling in love with many of the homes you tour. While it may seem challenging to narrow down which home styles, features and locations you like best, this is actually a good thing. In today’s competitive market, it may be necessary to keep your mind open to a variety of home options.

Work with your Edina Realty agent to sift through which home features are just “nice to have” and which are requirements for your first home so you don’t end up with buyer’s remorse. Keep in mind, too, that some qualities can change. While a neighborhood’s walkability or proximity to the highway is set, you can always tear up old shag carpet and put in wood floors.

6. Start touring and remain cautiously optimistic

Now that you’ve established your list of essential home needs, it’s time to attend in-person home showings. Today’s market is competitive, so it’s best to prepare for a few lost offers before you end up at the closing table. When you find a home that you’re interested in, be ready to:

• Make a fast offer (generally your best and highest).
• Compete in multiple offers.
• Potentially lose a home (or two, or three) before an offer is accepted.
• Have lots of patience, especially if you are buying at a lower price point.

7. Ask your agent about pre-list properties

When you work with an Edina Realty Realtor, you gain access to a large network of 2,000-plus agents and the properties they represent. That means you can find out about homes that might fit your criteria before they are even ready to come on the market.

When housing inventory is tight, having a large network of connections can increase your options and provide an expanded search. Take advantage of this network when searching for a home.

Find your first home!

It’s a great time to start looking for your home – and with this competitive market, the earlier you begin, the better. Reach out today and we’ll get started on your home journey.

Key Insights

• Browns and reds dominated this year’s choices for Colors of the Year.
• Colors of the Year often show up in designer trends, fashion, cosmetics and more
• Bold colors may be all the rage, but sellers should keep a potential buyer’s taste in mind when decorating

Many designers, retailers, builders and homeowners look forward to the Colors of the Year announcements each year to see how they might incorporate them into art, spaces and fashion. You’ll likely see these colors in home design magazines and blogs, social media lifestyle photos, fashion runways, and new construction homes in the coming months, and you may even be inspired to add the colors to your surroundings.

While many major paint companies selected colors with similar undertones this year, some are bolder than others. Read on to see the picks, and consider how you might incorporate them into your home—-and beyond.

The 2025 Colors of the Year

Blues were the hues of choice in 2024, but 2025’s undertones inspire more warmth with shades of brown, red and purple topping the picks. While most companies committed to choosing just one color, Sherwin Williams put forth a selection of shades and hues. So whether you prefer browns or blues, you’re sure to find something you love in this year’s Colors of the Year.

Pantone: Mocha Mousse

This year, Pantone selected Mocha Mousse, “a warming, brown hue imbued with richness” as its color of the year. To choose the hue, Pantone engaged the design community and color enthusiasts to capture an expression of the “global zeitgeist,” and they arrived at the color of chocolate and coffee to represent a desire for “connection, comfort and harmony.”

Sherwin Williams: Color Capsule

For their fifteenth year, Sherwin Williams decided they couldn’t choose just one color, and instead, they created a color capsule. The capsule is meant to include an assortment of shades to help address a variety of styles and uses. Most of the shades incorporate muted hues with brown undertones.

Benjamin Moore: Cinnamon Slate

Benjamin Moore selected Cinnamon Slate, described as “a delicate mix of heathered plum and velvety brown.” They also included a palette of colors to accompany the hue, and they offer ideas for using the palette in your home plus an explanation for how an undertone affects paint color so you can be an inspired and informed painter.

Glidden: Purple Basil

Glidden’s 2025 Color of the Year, Purple Basil, “represents the appreciation for self-discovery and self-expression that has led to the rise of maximalism across industries, including design, fashion and consumer goods.” Purple Basil promises rich warmth and energy in the rooms it graces.

Behr: Rumors

Looking for something more bold? The Behr 2025 Color of the Year, Rumors, is described as a deep ruby red that plays well with both warm tones and cooler shades. Behr recommends painting your walls and baseboards in different sheens (satin and flat) to create minor contrast. Use their online tool to create your own color vision by applying various colors to different walls in the same room.

Want more colors?

Better Homes and Gardens has a guide to every color of the year announced so far, and it includes everything from brick red spray paint to a hammered black or warm caramel and even includes hues of blue from Dutch Boy Paints and Valspar.

Using the 2025 Colors of the Year in your home staging and decor when selling

If you’ve got your sights set on selling your home in 2025, you might be in the process of decluttering, staging and revitalizing your home for sale. While we don’t mean to throw shade at current trends, there are things you should keep in mind when planning your updates.

Everyone knows a fresh coat of paint can go a long way when staging your home for sale, but while it might be tempting to douse the walls with the most current trends, providing a neutral canvas for buyers is often the better approach. That doesn’t mean you can’t incorporate the Colors of the Year in other ways (think textiles), but you’ll want to provide a backdrop where buyers can picture themselves in the space, and a bold shade of red may be more distracting than enticing.

Set the right tone for your homeownership goals

Finding the right partner to help you buy or sell can set the tone for your entire experience—and your future in your home. Reach out for insights about your local neighborhood to advice about home renovations, decor and staging today!

Key insights

• The year ahead will likely include more sales but will look much like 2024, with seasonal peaks in activity.
• The supply-constrained market will ease as more sellers enter the market, but demand will still outpace supply.
• The lock-in effect will persist; however, more sellers will have reasons to move that outweigh rates.
• Interest rates will be lower, but affordability will continue to be an issue, especially for first-time homebuyers.
• Home prices will follow demand and will likely increase, although those increases will be moderate.

Sharry Schmid, president, Edina Realty

As president of Edina Realty, Sharry Schmid provides guidance and direction to over 2,000 REALTORS® throughout Minnesota, western Wisconsin and southwestern Florida.

There is one question I get asked a lot: “How’s the real estate market?”

And often, the underlying questions are actually: “Is it a good time to sell? Is it the right time to buy?”

My answer is typically some form of, “It is potentially both.”

That’s because the real estate market is highly dependent on your goals as well as your personal and financial circumstances. If you’re a seller who bought five years ago at a low rate, your market experience will be different than a first-time homebuyer who is currently saving for a downpayment. And if you’re expecting a baby and don’t have space for a crib, waiting another 8-10 months to buy may not be an option.

Every single day, our REALTORS work to help people discover the opportunities available to them. And if you’re thinking of making your move in 2025, here’s what I think you can expect when it comes to market dynamics overall.

First, the 2024 highlights

Sellers continued to cash in on record equity, often getting their asking price (or higher) in 2024, but they didn’t keep pace with buyer demand. While we saw an increase in overall inventory, sellers still had the momentum as days on market swung in their favor. This, in part, is due to the lock-in effect, which we’ll explore in greater detail below. These factors and others led to ongoing challenges with affordability and a lack of options for buyers, who also faced higher interest rates. Still, as we moved through the year, the supply of homes for sale grew, offering more options for buyers and setting the stage for more market balance between buyers and sellers moving forward. Interest rates were a bit unpredictable, moving up and down in the 6-8% range for a 30-year conventional loan.

Minnesota

• The inventory (supply) of homes for sale did not keep pace with buyer demand, but it did increase 8.2% over 2023
• Prices rose, with median sales prices up 5.3% to $347,500
• Closed sales activity was up 2.9% over Oct. 2023
• Average days on market increased 10.5% to 42 days

Based on data from the multiple listing services for the state of Minnesota; current as of Nov. 7, 2024; published by the Minnesota Association of Realtors. All percentages are year over year.

Wisconsin

• The inventory (supply) of homes for sale did not keep pace with buyer demand, but it did increase 6.1% over 2023
• Prices rose, with median sales prices up 6% to $310,000
• YTD home sales were up 3.8% over 2023
• Average days on market increased 4.7% to 67 days

Based on the September 2024 Wisconsin Real Estate Report published by the Wisconsin Association of REALTORS. All percentages are year over year unless otherwise noted.

What will happen in real estate in 2025?

Markets aren’t as predictable as we’d like them to be, but economists and housing experts look at historical trends and the current economy to inform where markets are likely to go in the future. Based on that information, many experts agree that the housing market in 2025 will look a lot like 2024, but with more buyer opportunities and more moderate price appreciation. Lawrence Yun, chief economist for the National Association of REALTORS (NAR), forecasts a 9% increase in home sales in 2025, while others predict increases closer to 5%.

Housing is highly dependent on jobs and interest rates.

• Minnesota’s economy is strong and boasts one of the lower unemployment rates, ranking seventh in the U.S. at just 3%.
• Wisconsin also has a low unemployment rate, ranking second in the U.S. at just 2.8% (Sept. 2024).
• Many predict that interest rates will hover around 6-6.5% for a 30-year fixed-rate conventional loan.
• A new incoming presidential administration makes economic forecasts less certain in many areas, including housing and rates.

A seller’s market continues

A seller’s, buyer’s or balanced market refers to who has the advantage when it comes to a home sale or purchase. One key way this is determined is by tracking the months supply of homes for sale. Generally speaking, anything under a five- or six-month supply favors a seller, and anything over six months favors a buyer. This metric is calculated by projecting how long it would take the current supply of homes to sell at the current pace of sales if no new homes came on the market. Minnesota had about 2.9 months supply in Oct. 2024, according to data published by the Minnesota Association of REALTORS; Wisconsin had about 3.8 months supply, according to data published by the Wisconsin REALTORS Association for Sept. 2024.

The housing market will likely continue to favor sellers until more homes come on the market. As we know, when there is not enough of something, the price goes up, which is why we’ve seen housing prices rise, giving sellers the advantage.

The good news for buyers is that inventory levels have risen every month for the past year, and we will continue to see a steady and healthy increase in this area in both new construction and existing residential real estate.

Waiting on interest rates

It’s not uncommon for me to hear from people that they are waiting for interest rates to come down before they buy a home. While I understand this inclination, it can result in significant lost opportunities in wealth building through equity when you factor in home price appreciation. Here are some figures to consider:

• According to NAR, a typical homeowner has accumulated $147,000 in housing wealth over the last five years alone.
• According to information shared by Keeping Current Matters and based on data from the Federal Housing Finance Agency, the average increase in the national home price was:
• 58.4% increase in 5 years
• 319.1% increase in 30 years
• According to information shared by Keeping Current Matters and based on data from CoreLogic, the average homeowner gained about $25,000 in equity over the past year.

When you also consider that homeownership provides shelter and the ability to make home improvements without a landlord’s permission, the benefits go well beyond just financial ones.

It’s important to understand that the low rates of recent years (3-4%) were the exception if you look at historical trends, so waiting for rates to come down may not be realistic and will lead you to miss out on home appreciation in the meantime. And when you consider market dynamics, demand generally increases when rates decrease, which means home prices will likely increase if rates come down. With every year you wait, you give up significant equity opportunities.

Remember, even when you buy at a higher rate, there are financing opportunities, including the option to buy down interest rate points or to refinance in the future. Talking to a mortgage consultant can help determine what might be right for you.

Supply, demand and the lock-in effect

What’s the lock-in effect?

The lock-in effect is primarily driven by homeowners with low mortgage interest rates deferring a home sale and subsequent purchase at higher interest rates. As we know, when there is less supply, demand for that limited supply increases. This means buyers compete and prices go up.

But that’s not the only thing at play. When money was cheap and rates were very low, more people chose to hang on to their existing homes and purchase second homes or investment properties because low mortgage rates offered a better return on real estate investments.

Circumstances change

Many things drive real estate decisions beyond interest rates, and they are often referred to as the “Ds”: degrees, diamonds, diapers, divorces, downsizing and deaths. These are key reasons people decide to buy and sell, and while interest rates may cause some people to delay a change in the shorter term, the longer term often necessitates making changes (the Ds) regardless of rates.

Higher rates, a new normal

Now that we’ve seen three-plus years of higher interest rates, we will see new listings accelerating because:

• Life goes on and people need to move.
• Some homeowners who bought two or three years ago are not locked in and are more likely to relist and sell.

According to Housingwire, if you consider that 5 million homes are sold each year in the U.S., and we’re two years out from ultra-low rates, that’s 10 million homes that are not locked into low rates — a number that will only grow as we move forward. This bodes well for continued growth if interest rates remain relatively stable (or higher) over time.

Moving forward: Your 2025 outlook

Going back to my original point, where you are personally has more to do with whether 2025 will be the right time to buy or sell your home. Real estate continues to be a local business, and having the right professionals in your corner can make a big difference in understanding your options and capitalizing on opportunities.

Edina Realty agents have the largest professional network in Minnesota, western Wisconsin and southwest Florida. They can provide local neighborhood insights, home valuations and the largest selection of homes not yet available on the MLS. Reach out for help with any of your real estate needs in 2025 and beyond.

Key Insights

• Home inventory continues to be low, making it a tricky market for home shoppers who have a specific location in mind.
• By preparing financially and making the right adjustments, buyers can compete and win in multiple offers.
• While it does help to have the highest offer, there are other ways to stand out from competing buyers to win your dream home.

If you’ve studied Economics 101, then you know that as the supply of a good falls, the demand for that good rises. And while we’re seeing a rise in housing inventory, it still far outpaces buyer demand, making it a sellers' market. As a result, prices have been rising and those shopping for homes may find themselves competing against other eager buyers.

Common wisdom says that the highest offer will win every time, but the reality of multiple offers is a bit more complex. Here are insights you can use if you enter multiple offers when buying a home this year.

Assess the market

Our market research shows that some regions have tighter inventory than others, but no matter where you are buying, it’s important to talk with your REALTOR^® about the market and inventory so you know what to expect. They will be able to pull information on what comparable homes are selling for in that area and if there are any other terms that are sought after. Real estate is all about location and local quality of life, so hiring a specialist who serves your desired area will be critical to making the right bid.

Go big to get home

While the highest bid isn’t the only consideration sellers make, you’re unlikely to get the sale if your offer is at the bottom of the heap. When making an initial offer on a home in high demand, your REALTOR can help you submit an offer that is slightly above the average home value for the neighborhood.

Together, you can strategize on the benefits of offering your best offer out of the gate — meaning you would walk away if the home still gets multiple offers — or offering below your “ceiling” so you have the ability to increase your offer against competing bids.

Keep the offer as clean as you can

There are a variety of contingencies and additional terms you could include in an offer. But a seller looking at multiple offers will naturally look more favorably on offers that are not complicated and don’t ask for much. If the offer prices are the same, do you think a seller would prefer an all-cash offer with no contingencies or one where the buyer is asking for intrusive moisture testing (even though the house has no history of moisture) and wants the seller to throw in their big screen TV to sweeten the deal? The cleaner the offer, the better the chance of beating out others.

With that said, you may need some contingencies and terms. For example, you may need to sell your home to be able to buy a new one. If so, you’ll need contingency language for that.

Inspections are another point of contention. Having a purchase agreement contingent on an inspection is extremely common in our marketplace. But in order to compete with other buyers, some may write offers not contingent on an inspection.

Edina Realty recommends getting an inspection on every home purchase because inspectors can see issues that you and agents cannot. And they often identify issues that the seller wasn’t even aware of. Sometimes it may make sense to write an offer not contingent on inspection to get that dream house. Just understand that you are not getting that expert view on the condition of the home and, if there are issues, they likely will be your issues to address once you’re the owner.

Put cash down and get pre-approved

Another way to impress sellers is to show that you have a substantial down payment and that a lender has pre-approved you for a loan. Both of these steps display that you are a lower-risk buyer, and the seller and their agent may feel more comfortable with you than someone who hasn’t done their lending homework.

Offer better timing

One last way to stand out in multiple offers is to offer the seller a beneficial path to closing. If the homeowner is hoping to sell the home immediately, it would benefit you to offer a closing that could take place within a month or even a few weeks. If the seller is waiting on a new construction home that won’t be ready for 60 – 90 days, offer a delayed closing. When multiple bids are close, these tactics can make all the difference.

Starting out

Ready to enter the market? Begin your home-buying process by reaching out today.

Key Insights

• Save money by powering down appliances and turning down your thermostat.
• Prepare services like snow removal, garbage and mail for when you are gone.
• Deter thieves with home security measures like lighting and alerting neighbors of your trip.
• Prepare your home for your arrival to save on stress when you get back from your travels.

There’s no place like home for the holidays, and if you’re traveling to your hometown to be closer to family or making a trip to see distant relatives or friends, you’ll want to prepare your home for holiday travel. Use this checklist to ensure your home stays safe, undamaged and ready to welcome you back.

Protect your property

Your biggest home concern when traveling is bound to be protection. Check off these tasks to keep your home safe and secure.

• Alert your neighbors: Inform a trusted neighbor or two about your travel plans, and give them a key or access code in case of emergencies.
• Turn on your alarm system: If you have a security system in place, be sure to arm it for your holiday travels. You may also want to call your security system and local police to let them know you’ll be out of town.
• Plan for pets and plants: Often overlooked in the flurry of travel planning, be sure you have care for your furry friends that you’re leaving behind. Likewise, set up a watering system or ask a friend to stop by and take care of any plants you may have.
• Think about your tree if you have one: Depending on when you travel, you may want to take down your Christmas tree before you hit the road. Trees can be a huge fire hazard—especially if you have a fresh one. If you can’t take it down, make sure the lighting is safe, it’s away from heat sources and real trees are watered daily.
• Prepare for interior conditions: Depending on where you live, you might want to run a dehumidifier in damp places like basements and closets.
• Lock all doors and windows: Remember to remove any hide-a-keys that might be lying around.
• Store all valuables: Prepare for the unexpected by storing all jewelry, money and important documents in a safe.

Save money

Don’t pay for services you don’t need while you’re gone. These few steps can keep your bills down while you’re out of town.

• Adjust your thermostat: Since you won’t be home to enjoy the warmth, change your thermostat. Just make sure your thermostat is set to at least 50 degrees to prevent frozen pipes.
• Unplug electronics: Even when not in use, electronics draw energy, called “vampire electronics.” Unplug computers, small kitchen appliances like toasters and coffee makers to keep your bills down (and prevent electrical fires).
• Set up timers: Interior lighting is a great way to make it seem like someone is home, but if you want to cut costs, setting up lamp timers can create the illusion of people turning lights on and off while saving you on electric costs.
• Close your blinds: Blinds can help insulate your home, meaning less work for your furnace. It also stops people from peeping in to see who’s home.

Plan ahead

The last thing you want to do after traveling is get your home back in order. By planning ahead, you can return to a home ready to receive you.

• Pause packages and mail: Avoid a mailbox pile-up and deter any front porch thieves by pausing your mail delivery through the USPS or asking a neighbor to bring in your mail.
• Empty out your fridge: Remove foods about to expire and anything that will go bad while you’re away. Be sure to toss anything perishable in your pantry or on the kitchen counter, like bread or fruit. If you really want to plan ahead, arrange for grocery delivery when you return or stock some items for your first meals after a long, exhausting trip.
• Take out the trash: Remove all garbage from the home to avoid a stinky situation when you return. If you’re gone over trash pickup day, ask a neighbor to take out your bins and put them away.
• Do your laundry: Wash, fold and put away all laundry, including towels and bedsheets.
• Arrange for snow removal: A buildup of snow can cause ice to form and can make getting in the front door an issue. Pay for a service to shovel your sidewalks, plow your driveway and lay down salt if needed. Ask neighbors to let you know if they see any signs of ice dams so you can address the issue right away.
• Clean your home: If you’re short on time and can’t do a full clean, make sure to hit hotspots like bathrooms and the kitchen, including emptying the dishwasher.

According to data from PwC, 46% of Americans plan to travel during the holiday season. If you’re among those numbers, these home prep travel tips can save you from home damage and extra work when you return. Tired of traveling for the holidays? Reach out to find a house that’s closer to home.

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.