NEW YORK – People considering buying or selling a home are facing a unique market. The real estate market has been in flux for several years, and high interest rates have made it more expensive to borrow.
The Mortgage Bankers Association (MBA) is projecting that 30-year mortgage rates will level out to 6.5% for the foreseeable future. That means that people who have been waiting for changes in the real estate market could be disappointed, and hesitant buyers may finally just bite the bullet and buy even if mortgage rates are not where they hoped they’d be in 2025.
Homeowners who are considering listing their properties for sale would be wise to make certain changes that will help garner the best prices from buyers:
Make kitchen and bath improvements
The kitchen is the heart of many homes. Real estate agents may recommend that homeowners make minor to moderate kitchen upgrades like resurfacing cabinets, upgrading countertops and changing fixtures or hardware to give the room an overhaul.
Homeowners also should look to bathroom updates as smart investments that can improve home value. Katie Severance, author of The Brilliant Home Buyer, characterizes kitchens and baths as “money rooms” that add the most value to a home.
Declutter the home
Homeowners should clean out items they no longer need. Decluttering can make a space feel bigger, which is beneficial in a market where open concept floor plans remain popular among home buyers.
When buyers walk through a prospective home, they want to envision themselves living there, something that is more easily done if the home isn’t overrun with the current homeowner’s belongings.
Get to painting
Painting a home is a cost-effective renovation with a lot of oomph. Freshly painted rooms appear clean and updated, says HGTV, and that can appeal to buyers. Homeowners should choose neutral colors to accommodate the widest array of potential buyers.
Improve the landscaping
The exterior of a home is the first thing potential buyers will see as they roll up to view a property or look at a listing online. Homeowners should start by evaluating and enhancing the landscaping. Ensure the lawn is well-maintained and add plants that provide color without a lot of maintenance.
Expand usable space
Homeowners can think about adding to the usable space in a home. This translates into finishing basements or attics or even converting garages to rooms. Or it may involve adding a three-season room.
No one can predict if or when the real estate market might be less challenging, but the following are some ways those looking for a house can navigate the process:
Ready your finances
It goes without saying that prospective buyers must get their financial affairs in order before they begin shopping for a house. But finding a home in the current market takes time, and some buyers might have let their mortgage preapproval letter expire without realizing it. Others might have experienced a dip in their credit rating as they turned to credit cards to confront inflation. That means buyers who began looking for a home months or even years ago might not be positioned to buy now should they find a home to their liking. Revisit your finances if it has been a while. Pay off any consumer debt that has accumulated in recent months and reapply for mortgage preapproval if necessary.
Mind the clock
Data from the National Association of Realtors® found that the average home spent 32 days on the market before being sold in November 2024, which was a full week longer than a year earlier. That’s good news for buyers, but it still means buyers must be ready to pounce if they find a home and home price to their liking.
Hire an agent
The hectic pace of the modern real estate market can be difficult for anyone to keep up with. But real estate agents keep up with the market for a living, and they can be invaluable resources for buyers whose commitments to work and family are making it difficult to keep pace.
Emphasize growth & value
According to Zillow, the median list price of homes in the United States was just under $387,000 by the end of January 2025. But buyers must also recognize that 22.4 percent homes sold above list price in that month, according to a Redfin analysis of MLS data and/or public records. Buying a home is more than an investment in a property. It’s also in some way an investment in the town where the home is located and in a homeowner’s future. So, while it can be tempting to buy a home with the lowest asking price, home buyers should also seek homes that figure to experience the best long-term growth in value. Homes situated in safe and welcoming towns with good schools are arguably a better investment than homes with lower sticker prices but no such amenities.
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