Key Insights

• Homeowners have record-high equity right now.
• A REALTORⓇ can help you determine your home’s market value.
• Buyer demand and home sale prices offer great opportunities for sellers.

If you’ve been putting off a home sale, it might be time to revisit your goals and get serious about capitalizing on record-high home equity.

What is home equity?

In a nutshell, home equity is the difference between what you owe on your mortgage and what your home is worth today. Your home equity grows when:

• You pay off more of your mortgage (and your home’s value stays steady)
• The market goes up and your home’s value increases (thanks to supply, demand and home price appreciation)

According to Bankrate, the average mortgage-holding homeowner had approximately $311,000 in equity near the end of 2024. That means the average seller can reinvest a large portion of that equity into a down payment on a new home and continue building their wealth.

How do I know what my home is worth?

How much a home is worth is always market-driven, which means its value is directly tied to what a buyer is willing to pay for it. And that price is influenced by a variety of factors, including the supply of homes for sale, the buyer demand on that supply, the location and condition of the property and other factors. There are a number of ways to determine how much your home is worth in today’s market:

• Property’s estimated tax-assessed value: This is determined by a county assessor using historical sales data and mass appraisal techniques in order to determine your property taxes. It can be up to two years old and will not take into consideration the unique attributes of your property.
• Automated online estimates: A computer-generated analysis compares your home to similar properties nearby that have recently sold. These comparisons are based on factors like a home’s size, location, condition and amenities and are determined by an algorithm. They do not take updates you’ve made or your home’s special features into consideration.
• Professional comparative market analysis: A licensed REALTORⓇ visits your property to do a detailed analysis of your home’s exterior, interior, updates you’ve made and its condition. They will review current market dynamics, comparable properties that have recently sold in your area, neighborhood amenities and more.

When it comes to determining your home’s market value, the more details you provide, the more accurate your valuation will be – and pricing a home right from the start is the best way to attract top dollar.

When is the best time to sell?

The old investment axiom also holds true when it comes to real estate, and that is, time in the market is much more important than timing the market. Simply put, owning a home and watching it appreciate over time is the best and most reliable investment in your future. In fact, in the last five years, the typical homeowner has built up $147,000 in housing wealth, according to the National Association of REALTORS.

Picking the right time to sell your home is personal. It should take into account your goals, finances and lifestyle. And for many homeowners with record-high equity, now might just be the perfect time to make your move.

Need a helpful resource?

Sometimes, having the help of an expert can make all the difference when it comes to understanding where the opportunities are for you. If you’re ready to take advantage of the current seller’s market in many areas – and capitalize on your home equity – reach out today.

Key Insights

• Mortgage interest rates determine your monthly payment, as well as what you’ll pay for your home in its entirety.
• Your mortgage interest rate is mainly determined by the 10-Year Treasury Note and the mortgage bond market.
• Having a good credit score and borrowing history will allow you to get the best rate possible.

Buying a house is one of the largest financial investments many people will ever make. Therefore, it makes sense that when people buy a house, they want to get a good deal. And one of the factors in determining how much you will pay for your home is the mortgage rate.

The selling price of the home is easy to understand, but it’s also important to understand mortgage interest rates and how they can affect your finances in the short and long term. By factoring in the interest rate, you will determine your monthly payment, as well as how much you will pay for a home over the lifetime of the loan.

What are mortgage interest rates?

Mortgage interest rates (often simply referred to as mortgage rates) change depending on how the economy is faring at any given time. However, the mortgage rate you’re offered by your lender will be impacted by factors like your credit score, income and other financial circumstances.

You can get a rough idea of what your monthly payments would be, as well as the total cost of your mortgage, by using a mortgage calculator.

Different types of mortgage rates

There are different kinds of mortgage rates available to buyers, including an adjustable rate mortgage and a fixed mortgage rate.

• Adjustable Rate Mortgage (ARM): The interest rate will change at set periodic times according to the original benchmark index.
• Fixed mortgage rate: The interest rate will stay the same for the entire life of the mortgage.

A fixed mortgage rate gives you security in knowing what your costs will be, while an adjustable rate mortgage allows you the opportunity to potentially receive a better rate in the future or could lead to higher monthly payments over time. Talk to your mortgage advisor about what your options are and what makes the most sense for your finances.

What impacts mortgage rates?

Rates have varied incredibly over the years, with 30-year fixed-rate mortgages reaching a high of 18.3% in the 1980s. Conversely, rates went as low as 2.6% in 2020 during the pandemic. With such a large swing, how can buyers predict mortgage rates?

While some look to the Federal Reserve to indicate if mortgage rates increase, decrease or remain the same, it’s more accurate to look at the 10-Year Treasury Note. The federal funds rate looks at short-term lending, but the 10-Year Treasury Note looks at long-term loans. Because of this, “the 10-Year Treasury has a significantly larger and more direct impact on mortgage rates than the federal funds rate,” according to Fannie Mae.

The rate on the 10-Year Treasury Note is determined by what shorter-term interest rates are predicted to be, plus a premium to compensate lenders for the risk associated with the bond. Meanwhile, the short-term interest rates are based on the expectations of monetary and fiscal policy, economic growth and inflation.

Should you wait for favorable rates?

When rates are low, home affordability increases. Conversely, when rates go up, the amount that buyers can afford decreases. It’s natural that home buyers would want to get as much home as they can for their money or pay the least amount for their dream home as possible. However, waiting for favorable rates is not necessarily a good real estate strategy.

Not only is it possible that you’d lose out on a property you love, but you’re also losing out on any equity that your home would make while you’re waiting. There’s an old REALTORⓇ adage, “Focus on time in the market, not timing the market.” And it’s true!

According to Keeping Current Matters, if you purchased a $400k home in January 2025, you could build more than $83,000 in household wealth over the next five years.

Get in touch with an expert

If you’ve been putting off entering the market due to rates, now is the time to connect to see what’s available and how you could benefit from acting now.

If you have any questions about mortgage rates or how they could impact your homeownership journey, reach out to be put in touch with a local home mortgage consultant.

Key Insights

• Keep track of your manuals, aesthetic choices and home improvement efforts.
• Know your local codes, rules and responsibilities when it comes to your home and your neighbors.
• Ensure that you keep up on home maintenance to prevent costly issues from occurring later.

Owning a home is a big responsibility. Whether you are born to be an ideal homeowner or need to adopt new traits in preparation for purchasing, the following traits showcase what it means to be a responsible homeowner.

1. They keep track of all home changes and documents

Life is so much easier when you know what color paint you used in the mud room, especially when the kids cause scuffs and it needs a touch-up. Keep a running list of paint colors, carpet, flooring and everything in between.

In addition to all your aesthetic choices, you should record any updates you make to the home, like installing a new furnace or updating a bathroom. While it might not be on your mind right now, you may want to sell in the future, and having all that information together will save you a lot of time when it comes to listing.

A spreadsheet on your computer or a list in your phone is a simple way to keep track of all your updates and aesthetic choices you’ve made so you don’t have to dig through your records later.

Speaking of digging through records, you’ll probably need those manuals at some point in time, as well as all your HOA and tax documents. While a filing cabinet always works, you can also digitize all your documents (most are listed online) to free up some space and prevent clutter from building up.

2. They know their local codes and policies

Are there any street parking limits? Is there a noise ordinance? Do you need a permit to hold a party or burn something in your backyard? Your local ordinances and city policies are specific and often not communicated as thoroughly as you might like. It’s your responsibility to do some detective work and see if there are any limits, rules or guidelines that you need to follow.

Likewise, your HOA may have parameters for your neighborhood. Some may implement rules like what kind of shed you can have in the backyard or what color you can paint your home. It’s better to find out what those rules are before you start a project so you don’t run into issues later on.

Knowing what you can and can’t do, as well as what you need to get approved ahead of time, will prevent you from wasting time, money and creating potential conflict with your HOA, city or neighbors later on. Remember, being a good homeowner often coincides with being a good neighbor.

3. They know what their responsibilities are

When it comes to your neighbors, you want to have a good relationship and be able to rely on each other. Start off by knowing what your responsibilities are when it comes to your shared spaces with your neighbors.

Take the time to learn things like what areas are yours to shovel and find out what you need to clean up after a storm when trees have fallen. Exchanging phone numbers and setting expectations with your neighbors can also be helpful in establishing boundaries and creating helpful relationships. It’s always nice to have someone to call if raccoons are getting into your trash or a sprinkler head is on the fritz and leaking water onto the road, and being a good neighbor can help you keep up with your home.

4. They keep up on maintenance

Just as shared spaces impact both you and your neighbor, so does your home. An overgrown lawn or sagging roof can cause neighborhood values to drop. Some neighbors may even be bothered enough to get the HOA involved. The best way to avoid any conflict is to stay on top of your curb appeal and how your home looks from the street. Having a beautiful landscape doesn’t have to be labor-intensive (though there is the exercise bonus you get from all that hard work), but it is important to have harmony with your neighbors and keep your home presentable.

Just like your exterior, being a good homeowner means keeping up with all home maintenance. Cleaning, keeping clutter manageable and staying on top of leaky faucets, warped flooring or other structural issues is key to stopping issues from becoming full-blown problems and costing you extra time and money down the road. Create a list of seasonal projects (like cleaning your gutters in the fall) to stay on top of necessary upkeep and manage your home efficiently.

5. They love their home

The best thing you can do as a homeowner is to love your home. The more you love it, the more you’ll want to take care of it, so do what you need to in order to make it your own!

Make updates like installing smart, efficient home devices that make caring for your home easy and effortless. Paint the walls, make renovations and style it accordingly to make your four walls a haven and oasis.

Ready to become a homeowner?

Being a good homeowner comes down to being responsible and caring for your property. If you’re ready to take on the responsibility and joy of being a homeowner, reach out and start your search today!

Key insights

• When debating between a condo and a house, it’s important to consider the pros and cons of both.
• Consider how important it is to have control over upkeep and renovations, especially as they relate to timing and money.
• Think about your current lifestyle and how a home or condo can meet your needs.
• Determine how much you have to spend and if your living situation may change in a few years. Be sure to take all costs into consideration!

You’re thinking of buying, but is it time for a condo or a house? Owning a condo can mean a little less autonomy than owning a single-family home — but for some, less control (and less upkeep) can be a good thing.

Here are the pros and cons associated with property control, lifestyle preferences and your personal timelines as you search for a condo or house. Use these insights to help you determine what style of property will be best for you and your family.

Control of the property

House Pro: When you own a house and the land it sits on, you get to make decisions on upkeep and renovations. You can budget what’s best for you and maintain control over what is fixed, how it’s fixed and when it’s fixed. (One notable exception to this rule: If you live in a housing development of single-family homes with a homeowner’s association (HOA), you may have to abide by some general guidelines related to exterior updates and condition, lawn maintenance and holiday decor).

House Con: If something unexpected happens, no one is going to help you. It’s your sole responsibility, and in some cases, the repairs or renovations may be costly. In order to plan for this, you may have to create and manage a savings account that is meant to be used for emergency repairs (like your furnace going out in January) or long-term maintenance you can anticipate (like new siding).

Condo Pro: When you own a condo, the homeowners’ association, or HOA, manages the repairs and renovations for the complex’s exterior and shared areas. They’re tasked with budgeting the cost of necessary updates in advance, and they use your condo HOA fees to pay for them. This means that if the hallway carpet needs to be replaced or the elevator breaks, it isn’t your sole responsibility to fix it — the HOA will manage the repairs using the fees you and the other unit owners have already paid.

Note: In some cases, the HOA may have to charge a special assessment to pay for large repairs they didn’t plan for or emergencies that can’t be covered by their reserve fund. This means that you may have to pay more than your HOA fees on occasion.

Condo Con: Unless you’re an influential member of the HOA, you won’t get to choose which projects are deemed necessary by the HOA. This means that if there’s an expensive exterior issue that only affects your unit, you may have a harder time convincing the HOA to fix it. And even if a project you want is taken up, you most likely won’t have any say in design, color, material or other aesthetic choices.

Plus, at some point, your fees will likely be used to pay for updates that don’t directly affect you. You may watch from your first-floor unit as the HOA drains the reserve fund for a new roof, or they may decide to add a swanky new fitness room that you’ll never use. This can be frustrating, and the best way to deal with that frustration is to remind yourself that if nothing else, these repairs will help you upon resale of your unit.

Last, it’s important to remember that what happens within the air space of your individual condo unit is your responsibility. For example, if you own a washer and dryer set within your unit and the machines break, you will (typically) still be on the hook to repair or replace them. Some HOAs may cover certain appliances or services within your unit, but condo owners are still homeowners, which means you should anticipate paying for repair and upkeep costs within individually owned units.

Questions to ask yourself:

• Would you like to take on occasional home projects and call the shots about renovations, budgets and upgrades? Is the promise of control worth the time and money you’ll spend maintaining your property?
• Alternatively, would you rather spend minimal time on property updates and facilitating emergency repairs while also relinquishing some of the control over your property?

Lifestyle insights

House Pro: If you’re a renter who is ready to take the plunge into homeownership, you may be excited to have private space that is entirely under your control. Paint a mural, knock down some walls, add a chicken coop in your backyard. Provided you have the money and the motivation (okay, and the permits), the sky’s the limit.

House Con: You’ll quickly find that your new house comes without any built-in amenities and services — and that these bills can add up when you pay for them on your own. Whether it’s paying for a pool or gym membership, or setting up waste and water utilities, owning a home can have some seemingly hidden expenses that can add up if you don’t plan ahead.

Condo Pro: As a condo owner, you can take advantage of many shared amenities without putting any time into them. Enjoy a hot tub soak or pool day without fretting about chlorine testing and draining. Host a summer party on the rooftop garden deck, even though you’ve never tended to the plants or swept the patio. One caveat: The size of your condo development can impact just what the HOA pays for, and what you decide to divide up among condo unit owners. For example, a condo building with only four units may expect the homeowners to take an active role in cleaning shared spaces or completing yard maintenance in order to save money.

And, of course, remember that if your HOA (or the property management company they hire) pays for plowing or offers underground parking, it may be possible for you to make it through an entire Minnesota winter without breaking out your shovel. Can you put a price on that?

Condo Con: Is that upstairs neighbor running laps? Dropping bowling balls on the floor? Grinding forks in their disposal? Sharing space and walls means that you’ll sometimes be inconvenienced by the noise and curious habits of other condo owners, although HOAs often have rules prohibiting excessive noise.

You’ll also be under the watchful eye of your HOA. While your private unit is typically yours to customize, HOAs can have restrictions on everything from the welcome mats you place in the hallway to the grill you hope to keep on your patio. (So yeah, we can almost guarantee your condo-based chicken coop won’t be approved.)

Questions to ask yourself:

• Do you mind living in a communal setting where you can take advantage of shared amenities and services in exchange for making small talk in the elevators and sharing walls?
• Would you prefer to have a fully private space and manage everything from bills and utilities to gym memberships on your own?

Long-term financial considerations

House Pro: A single-family house has the capacity for major repairs or renovations — including the addition of new bedrooms or a wrap-around deck — that can greatly build its appeal and value over time.

House Con: Big renovations like that deck will cost you thousands of dollars, and you may not recoup the entire cost of the project upon resale.

Condo Pro: Whether you’re entering the real estate market for the first time or are a repeat buyer, you’ll likely find that condos are an affordable home option.

Condo Con: While the price of your condo could be less than a single-family home, the condo HOA fees you’ll pay will greatly increase your total spending as a homeowner. Be sure you understand the full cost of owning a condo before buying, which includes:

• Your mortgage principal and interest
• Property taxes
• Homeowner’s insurance
• Condo HOA fees
• Individual unit repairs and upkeep
• Parking fees, if applicable

House Pro: You have the option to rent out your single-family home if you aren't ready to sell — provided that it is permitted by the local government. (Some cities require that homeowners obtain a license before renting their home.)

House Con: Finding renters for larger homes can be difficult, as the price of the rent can be more than a mortgage of a smaller property. And by renting out the home, you likely won't make big property repairs that would increase the value of the home upon resale.

Condo Pro: If you aren’t in a good position to sell your condo, but want to move out, you may be able to rent it out until the property has built up equity. Whether you find a young professional tenant or lease the condo to your child or another family member or friend, renting a condo can be a great alternative to selling.

Condo Con: Some HOAs don’t allow rentals or they have a quota on the number of rentals allowed within the complex at a given time. If you think you may want to rent your condo unit out eventually, check upfront to see if the complex and HOA allow it. And remember that the rules can change during your ownership.

Questions to ask yourself:

• How much do you have to spend, and what are your long-term goals for owning? Are you hoping for a quick payout or a long-term investment?
• If your lifestyle changes or you need a bigger place to go, do you hope to rent the property out?

Key points and next steps

When making the decision to buy a condo or a house, consider the pros and cons of:

• How much property control you want to have, and whether you’re comfortable outsourcing decisions and repairs to an HOA.
• The lifestyle you are hoping for as a homeowner, which includes the special projects you wish to take on and the interactions you’ll have with neighbors in a shared space.
• Your own personal timeline, including how long you plan to stay in the property and if you’ll need the option to rent it out in the future.

If you’re ready to speak with a REALTORⓇ about touring condos or single-family homes in your desired area, reach out. Together, we’ll explore the advantages of each.

Key insights

• 98% of REALTORSⓇ believe curb appeal is key in attracting buyers, and many outdoor home projects have a high return on investment.
• Start with standard lawn care by cleaning up the yard, weeding and removing clutter.
• Keep your yard looking top-notch with consistent landscaping.
• Consider adding or replacing some features to improve the look of your yard and home exterior.
• If you have the time and money, take on a bigger project like adding a patio or outdoor kitchen.

You’re probably familiar with the importance of first impressions, and that goes for your home, too. According to the Remodeling Impact Report: Outdoor Features by the National Association of REALTORSⓇ (NAR), 92% of real estate agents suggest sellers improve their curb appeal before listing their houses and 98% of agents believe curb appeal is important to buyers.

Getting the exterior of your property ready for sale doesn’t necessarily have to cost you lots of money. In fact, with just a few household supplies, time and some elbow grease, you can accomplish many of your landscaping tasks yourself.

Start with a cleanup and lawn care

It may sound obvious, but the first step to getting your landscape open-house ready is to give the space a good declutter and cleanup. This can include:

• Removing toys and tools from the yard.
• Cleaning up any debris, animal excrement and spiderwebs that have accumulated in your outdoor spaces.
• Power washing sidewalks, decks and siding, and giving more delicate areas and furniture a good washing.
• Mowing the lawn and laying fertilizer.
• Pruning trees, shrubs and plants.

Keep in mind that this isn’t a one-time task. Just like your home, you’ll need to keep up and maintain your landscape. Water your grass and flowers, reapply compost or other fertilizer and designate a hidden space like a shed or garage for tools and toys.

If you’re too busy for lawn care, you can always hire out a lawn service company to fertilize and weed your space—according to the NAR report and input from the National Association of Landscape Professionals (NALP), you’ll see a 217% return on investment (ROI) for the costs of standard lawn care.

Act on any landscape maintenance

Now that the space is cleaned up, you’ll have a better sense of what issues stand out and what areas need some extra TLC. Check this list to see what tasks apply to your space:

• Replace any missing sod or fill empty areas with a garden, flowers or decorative grass.
• Reapply mulch or add pebbles.
• Fix or replace any items that have seen better days, like a broken fence segment or burnt-out light bulbs in your sconces.
• Throw out damaged decorative items like planters, welcome mats, bird baths, etc.

While you’re at it, try to think about staging your outside as much as your inside using our curb-appeal checklist. While you might enjoy garden gnomes and wishing wells, your potential buyers may not. Keep your space clean and uncluttered for ultimate exposure. (This includes holiday decor—you’ll be able to set up your inflatable Santa another year.)

Most of these tasks can be done on your own, even if you’re a beginner gardener. But you can also hire a professional to plant your flowers or lay your mulch and enjoy a 104% ROI.

Consider implementing updates and upgrades

If you find areas of your landscaping lacking, smaller improvement projects may be just the thing to give your home’s exterior new life. A few common projects you could undertake:

• Replace uneven walkways or upgrade pebble paths to flagstone ones.
• Repaint or stain any fencing, archways or other structures.
• Switch out plastic planters for more aesthetically pleasing ceramic, stone or terracotta versions.
• Add decorative features such as a bench, swing or patio table, or include small touches like a bird feeder, hanging planters or decorative lighting.
• Plant additional trees, shrubs, decorative grass or flowers.

Pro tip: Go on neighborhood boards and webpages to see if anyone has been splitting plants and is willing to give some to you—it’s a super-cheap (or even free!) way to build out your botanicals. This extends to other landscaping items, too. Look for planters, patio furniture, extra materials like stone, wood and staining, light fixtures and more at estate and garage sales, thrift stores and online forums.

Landscaping professionals can lend you a hand with the more labor-intensive projects and give you valuable insight into what will best highlight your home. The average ROI for services like these is 100%.

Think about adding new features or taking on larger projects

For those who plan to stay in their home for a while, larger landscape initiatives can increase the enjoyment of your home while you get ready for a move.

• Add an outdoor kitchen.
• Install a new patio or deck.
• Get tech-smart with automatic lighting, security and irrigation.
• Create a space for a fire feature.
• Go big with a new in-ground pool.

The ROI for these projects can be lower and most REALTORS would not recommend making these updates before selling, but an overwhelming majority of homeowners who completed these projects reported high amounts of enjoyment.

Seek expert advice before starting any outdoor projects

Real estate demands differ greatly from region to region, so it’s imperative you speak with a licensed real estate agent to learn what landscaping will get you the most bang for your buck in your area. Reach out today for personalized recommendations on increasing your curb appeal.

Key insights

• Water rights are based on various factors, including the state in which the property is located, the type of lake it is on and the legal description of the property itself.
• As a general rule, the adjacent property owners own all the way up to the water. While the public may boat or fish on any lake, they can only do so if there is a public access point to the lake.
• In Minnesota, the lakebed usually depends on the type of lake. In Wisconsin, most lakeshore owners only own up to the water line and the State owns the rest.

Homeownership can be complicated, but we also think it’s one of the most rewarding ventures out there. In our series, Ask an Edina Realty Lawyer, we are hoping to demystify some of the trickier aspects of buying, selling and owning a home.

In this edition, one of our lawyers discusses the water rights of lakefront property owners.

Dear Edina Realty Legal,

I am looking at buying a lakefront property. If I did, would I own the lake, or part of it?

Lawyers hate giving the answer, “It depends.” But water rights are based on various factors, including the state in which the property is located, the type of lake it is on and the legal description of the property itself. So, it depends.

Still, there are some rules of thumb that apply to waterfront properties in Minnesota and Wisconsin. First, the water that makes up the lake is not owned by any individual. Instead, it’s held by the state in trust for the public. If you can legally get to a lake, you can boat on it, for example.

A lot of people think that the states own the shoreline around every lake and the public is allowed to access the lake via this shoreland. This is not true. As a general rule, the adjacent property owners own all the way up to the water. While the public may boat or fish on any lake, they can only do so if there is a public access point to the lake.

It’s important to keep in mind the difference between a lakefront home and one with lake access. A lakefront home is situated directly on the waterfront, while a lake access property offers access to the lake or body of water, but someone else owns the property between it and the water.

What about the lake bed?

In Minnesota, who owns the lake bed, or floor of the lake, usually depends on the type of lake, and falls into one of three categories: navigable, meandered and not navigable/meandered.

Navigable: A “navigable” lake is generally one that was useable for commercial trade purposes back when Minnesota became a state in the 1800s. Not a lot of Minnesota’s many lakes fall into this navigable water category. But for those lakes, the State owns the bed past the low water level. Examples of navigable lakes include Lake Superior and Lake Minnetonka.

Meandered: If a lake is not identified as navigable, but has been “meandered,” that’s different. A “meandered” lake is one that was surveyed and plotted back in the 1800s. Around half of Minnesota’s lakes have been meandered. For those lakes, as long as they are not identified as navigable, the lake bed is owned jointly by all of the property owners around the lake.

Not navigable/meandered: Finally, if a lake is not navigable and not meandered, each adjacent owner generally owns from their shoreline to the middle of the lake. But because lakes don’t come in uniform geometrical shapes, the exact boundaries can be unclear. If a lake dries up, it often takes a court proceeding to allot the newly dried land.

In Wisconsin, it’s a different story. Most lakeshore owners only own up to the water line. The State owns the rest.

Other rights

While the lake-adjacent property owner may or may not own property past the water line, in both Minnesota and Wisconsin, owners have a lot of rights with respect to the usage of the lake, called riparian rights. Riparian rights generally include the right to fish, swim and otherwise use the water, the right to access the property from the water and the right to build a dock, among other things. These riparian rights provide a lot of value to waterfront owners.

Want to buy a lakefront property?

Looking to buy waterfront property? Reach out for assistance.

The Edina Realty Legal Department serves as in-house counsel for Edina Realty and does not represent private clients. This Insight is not intended to provide legal advice.

Key insights

• Losing out on a home to another bid is frustrating, but there are strategies you can deploy to be taken more seriously.
• By re-assessing everything from budget to timeline to location, you may find ways to make a stronger offer.
• Buyers can also re-assess their “must-have” and “nice-to-have” criteria to open up more options in their budget.

Buyers today are feeling the squeeze. Home prices are rising, interest rates have been elevated and, while inventory isn’t as low as it has been in recent years, it’s also not keeping up with buyer demand. Multiple offers on highly sought-after properties remain common, which can make for a frustrating buying process.

Here are the best insights for navigating today’s market as a buyer. Whether you’re just dipping your toes in or have lost in multiple offers a few times, these tips should help you determine the right path forward.

Re-assess your offers

First, go to the sold records of houses you bid on to learn their final price. Along with these concrete numbers, try to remember how many offers were placed on each home and how much you bid (and what you offered in a counteroffer as well).

If you are handy with a spreadsheet, put these numbers into an organized grid and try to determine the average percentage you’ve been off when bidding on houses. Do you tend to bid on properties that have just a few offers or dozens?

Use this conversation to make a future plan. If you’re in the running for the houses you like best, then it may just be a matter of being patient. If you tend to be in the bottom half of offers every time, you may want to adjust your expectations or look to other neighborhoods or cities for houses that better fit your budget.

Offer a flexible timeline

Today’s sellers have a keen advantage in the market… until they sell and have to re-enter the market as a buyer! If you have flexibility in your timeline, you may want to use that to your advantage.

Whether you end up closing in 90 days to allow the seller more time to find their new home, or renting it back to them before you move in, offering more time to the seller can help your offer stand out — even if your monetary bid comes up a bit short.

Rethink your “must-haves”

“It’s pretty common for buyers to have a long list of non-negotiables… until they find a house that just feels right,” said Edina Realty President Sharry Schmid. “Then, suddenly, having laundry in the basement isn’t such a big deal.”

Of course, it’s fine to have standards. But if you have been ultra-picky about the homes you’ll consider, and you’re losing bid after bid, you may want to take stock in the amenities or features you really need.

As an experiment, try touring a few homes that wouldn’t meet your original requirements. Discuss the pros and cons of buying a home with only two garage stalls instead of three, a split-level design, or one that doesn’t have an owner’s suite with an attached bathroom. If you decide to hold strong to your original must-haves, that’s just fine. On the other hand, if you find that you’re willing to make a concession or two, you may just open up a whole new market of possibilities.

Reconsider your down payment, if possible

This will be difficult for many buyers, especially those who have spent years saving up for a down payment. It’s unlikely that you have an extra bank account you haven’t tapped. However, if you’re lucky enough to have family or friends who are willing to provide mortgage gift funds, it may be time to ask for a financial favor. Talk to your mortgage lender for insights on how to legally ask for and access mortgage gift funds.

Alternatively, you can seek down payment assistance. In Minnesota, funding assistance up to $18,000 may be available; in Wisconsin, the maximum assistance amount is 6% of the home’s purchase price.

Consider other home types

While many buyers are looking for single-family homes with a yard and garage, other housing options are available and can offer just as many advantages. Condos and townhomes tend to have lower price points while requiring less maintenance.

Plus, multi-family housing is a lot different than it used to be. Condos are no longer available in only the swankiest parts of downtown Minneapolis and St. Paul; they can also be found in most suburbs and neighborhoods. Townhomes are not only being built in large developments but also in smaller communities near parks, walkable retail and more.

Need help entering the market as a buyer?

It’s a tricky time to buy, but having the right professional on your side can make all the difference. Reach out today to get started with a respected local home specialist.

• The market is great for sellers, but sellers-turned-buyers may have a hard time finding a house in a limited time frame.
• By setting up a plan A, which includes smart budgeting and strategic negotiation, sellers may be able to properly time their home purchase.
• If timing doesn’t align, having a plan B with temporary housing can help sellers minimize stress as they continue their long-term search for the perfect home.

You’ve likely seen the headlines over the last few years — with rising prices and low inventory, it is a great time to sell a home. But this leaves many sellers wondering what happens when they sell their home… and then re-enter the market as buyers?

It’s a good question and one we can work together to answer. First, note that the best way to face today’s imbalanced market is to have a plan A (timing your home sale and home purchase together) and a plan B (selling and then biding your time as you find a house to buy).

Here are some insights on how to do just that.

Aim for plan A: Budget and proceed with confidence

Set a budget for your next home

First, we’ll work to get you pre-approved with a home mortgage consultant. A pre-approval is a lender’s estimate of how much you can afford to buy. Next, we’ll compare your home against recently sold homes in the area to determine its likely sales price. Together, these numbers will allow you to set budget parameters for your future home search.

Take control of the timeline

As a seller today, you hold the advantage. That means you have a few options when it comes to your timeline for closing and moving. Once you’ve listed your home and gotten a solid offer, you can:

• Request a slower closing timeline from your buyer, allowing you more time to find a new property.
• Ask the buyer if you can lease back your home for 1-2 months as you search for a new property. Some buyers may resist this, while others may agree to a quicker closing and later moving date.
• Include a reverse contingency in the purchase agreement, which states that your home sale is contingent upon your purchase of another property in a set timeframe.

However, keep in mind that buyers nationwide searched for an average of 10 weeks before they found the home they purchased in 2024. Even the most understanding buyer may not be willing to wait that long. If you end up in a position where you have a pending home sale, but not a pending home purchase, it’s time to move on to plan B.

Plan B: Have temporary housing available

When you’ve sold your house but haven’t found the right one to move into, consider your transitional housing options. Homebuyers often report that finding an alternative place to stay helps them reduce their stress and focus on their long-term housing needs.

Together, we can come up with a best-case temporary housing plan. This may be:

• Renting a single-family home or townhome on a short-term basis.
• Renting an apartment month-to-month.
• Staying at an “extended stay” hotel or inn, which typically has a kitchen area.
• Staying with friends or family who have extra space.

Remember, you aren’t alone when it comes to determining a plan B. We’ll work together to find your dream home — and a soft (and temporary) place to land even if plan A goes awry.

Need help developing your plan A and plan B?

At Edina Realty, we help hundreds of sellers make important decisions about timing, budgeting and negotiations each and every day. Get in touch today for the help you need with the selling and buying processes.

Key insights

• Whether you plan to sell or stay in your home for years to come, our spring homeowner checklist will help you prepare for the upcoming sunny months.
• After the snow melts, consider hiring someone to check your air conditioning unit, gutters, eaves and roof for any winter damage.
• Spruce up the exterior of your home by power-washing your siding, fixing up your driveway cracks and updating your landscaping.

As the sun begins to shine and the cold is replaced by milder weather, you know it’s time to start your spring cleaning and home maintenance routine. To ensure your home is ready for the warmer months ahead, follow this spring homeowner checklist that covers everything from maximizing your energy savings to updating your landscaping with the latest trends.

Check your systems and energy usage

Before that first 90-degree day hits, you’ll want to check in on your air conditioning unit. Hire a professional to make sure everything is in working order. Alternatively, you can DIY your air conditioning maintenance with these four steps, courtesy of Bob Vila:

• Check the hose connections for leaks.
• Ensure drain pans are draining freely.
• Vacuum dust and debris from the unit and its base.
• Be sure to change your HVAC filter every 1-3 months.

Clean up your gutters, eaves and roof

While it’s ideal to clean your gutters before winter arrives, it’s common for debris to reaccumulate over the winter. Grab your gloves, a bucket, a ladder and a friend (to stabilize that ladder and keep you safe!) if you want to do the dirty work yourself. Of course, you can also hire a professional to do the job.

Spring is also a great time to have your roof inspected and repaired. If you suspect winter snowstorms may have damaged shingles or seals on your roof, now’s the time to set up an appointment with an expert.

Freshen up your landscaping

Is yellowed grass bringing you down? In just a few short weeks, you can bring it back to life again! Follow these simple lawn care tips to save your lawn from the effects of our harsh midwestern winters:

• Rake the lawn to aerate the soil after the ground fully dries out.
• Spread lawn seed in patchy areas.
• Sprinkle water on the seeds weekly until they sprout.
• Aerate the soil three times once new grass appears.

Pressure wash your home’s exterior

Spring cleaning may have you decluttering your home on the inside, but it’s also time to get rid of grime on the exterior of your home. Pressure washing the siding of your home will help it shine after a winter of accumulating dirt, grime and other stains. Hire professionals to do the job, or save money by renting a pressure washer from your local hardware store and trying it out yourself. Remember to:

• Start in a less-noticeable area until you can get the hang of it.
• Try a wide-spray pattern to ensure a consistent outcome.
• Steer clear of windows and hand-wash them another day. (You can also use a low setting, but it may not be worth the risk.)

Pay attention to your garage

Once the outside of your home is ready to go, spend some time organizing your garage. This may be especially necessary if you have extra tools lying around from your spring yard work. Here are some quick tips to approaching garage organization:

• Sort items by category, such as sports, gardening, cleaning, etc.
• Pick all belongings up off of the ground and rehome them in labeled bins.
• Invest in shelving or extra storage containers to create more space. Facebook Marketplace and Craigslist often have great deals on secondhand shelving!

Considering selling?

If you hope to sell in the spring, following this spring homeowner checklist will help you build curb appeal that will draw in local, motivated buyers once you put that sign in the ground. For customized advice on how to renovate your home or price it to sell this spring, get in touch today.

Key insights:

• A lender will issue a pre-approval letter after a thorough analysis of a potential buyer's credit and financial history.
• This pre-approval letter explicitly tells real estate agents and home sellers how much a buyer can responsibly borrow in a home mortgage loan.
• Pre-approvals can help buyers in negotiations, because they show that the buyer is prepared and qualified to purchase a home in a certain budget.

Did you know that you can gain a distinct advantage over other homebuyers by arranging for financing even before you put an offer on a home? Read on for more insights on how a pre-approval can help you compete in a tight market.

What is a pre-approval?

As a homebuyer, you may have heard of getting pre-qualified or pre-approved for a mortgage. In a pre-qualification, a would-be buyer submits their financial and credit information to a home mortgage company (also called a lender). The lender quickly analyzes what was provided and estimates the total loan amount for which that buyer would likely qualify. Importantly, the lender does not verify that the submitted information is accurate.

A pre-approval is a more official and involved process where the lender does verify credit information and financial documents provided by the potential buyer. These documents include, but are not limited to:

• Income verification (pay stubs)
• Employment W2s
• Previous year's tax returns
• Bank statements
• A full credit report

After reviewing and verifying this information, the lender can issue a pre-approval letter. This pre-approval letter explicitly tells the buyer, real estate agents and home sellers how much that buyer is eligible to borrow — and states that they have acceptable credit to be approved for a home mortgage loan in that amount.

As you may expect, a mortgage pre-approval is considered more trustworthy than a mortgage pre-qualification.

Is a pre-approval a guarantee?

Your pre-approval letter is based on the information you provided the lender at a certain point in time. If you were to lose a significant amount of money or damage your credit shortly after your pre-approval was issued, you may no longer be approved for that amount when it comes time to buy.

For this reason, a pre-approval letter cannot be considered a guarantee that you will be approved for a loan.

How can a pre-approval boost my negotiating power?

The goal of everyone involved in a real estate transaction – from the buyers and sellers to the real estate agents working with them – is to close the deal effectively and with minimal mishaps.

A pre-approval shows that you are not only prepared to apply for a loan, you are also considered to be a responsible loan applicant by your preferred lender. This can give you an edge over buyers who have not been pre-approved and could help sway the sale in your favor if a seller is reviewing multiple offers with similar terms. A pre-approved buyer presents less risk of being declined for a loan than a buyer who has not undergone that extensive process.

Ready to get pre-approved?

Together, we can ensure you are fully prepared for buying a home by working to get your pre-approval letter. From there, we can have an honest conversation about your buying power and potential path forward.

Reach out today to get started on the buying process.

Prosperity Home Mortgage is an affiliate of Edina Realty. See Affiliated Business Arrangement Disclosure Statement