If your goal is to sell your house in 2025, now’s the time to start prepping. Even though it might seem like there’s plenty of time between now and the new year, you should get a head start on any updates or repairs you want to make now. By starting your prep work early, you’ll give yourself plenty of time to get your house market-ready by the end of the year. As your listing agent, I can help you get started, so you'll have expert insight into what repairs are worth it based on the local market.

Why Starting Early Is Key

One of the best ways to get the best price and sell quickly is to make sure your home looks its best. And that may mean making necessary repairs, decluttering, and even consider updates that could add value as part of getting your house ready to list. I have three decades of experience in helping to prepare property for presentation and I also have an A-team of recommended vendors to work with in decluttering, repairs, painting, cleaning and staging.

By starting now, tasks can be tackled one at a time. Whether it’s fixing that leaky faucet, refreshing your landscaping, or painting a room, getting an early start gives you the flexibility to do the job right and with as little stress as possible. Because, if you wait to knock items off your list later on, they could quickly stack up and get overwhelming.

Don’t wait until the last minute to get it ready. By getting a head start now, you can ensure everything is in place by the time the new year rolls around. Need advice on what to tackle first? Let’s connect!

Joe

 

Mortgage rates have hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment.

Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at Freddie Mac, says:

“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”

But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.

The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):

Going from 7.5% just a few months ago to the low 6s has a big impact on your bottom line. In just a few months’ time, the anticipated monthly payment on a $400K loan has come down by over $370. That’s hundreds of dollars less per month. With the recent drop in mortgage rates, the purchasing power you have right now is better than it’s been in almost two years. Let's talk about your options and how you can make the most of this moment you’ve been waiting for.

Joe

There are a number of reasons you may be thinking about selling your house. And as you weigh your options, you may find you’re unsure how you’re going to deal with one thing about today’s housing market – and that’s affordability. If that’s your biggest concern, understanding how much equity you have in your house could help make your decision that much easier. Here are two key factors that have a big impact on your equity.

How Long You’ve Been in Your Home

First up is homeowner tenure. That’s how long homeowners live in a house, on average, before selling or choosing to move. From 1985 to 2009, the average length of time homeowners stayed put was roughly six years. 

But according to the National Association of Realtors (NAR), that number has been climbing. Now, the average tenure is 10 years (see graph below):

Here’s why that’s such a big deal. You gain equity as you pay down your home loan and as home prices climb. And when you combine all of your mortgage payments with how much prices have gone up over the span of 10 years, that adds up. So, if you’ve lived in your house for a while now, you may be sitting on a pile of equity.

How Home Prices Appreciate over Time

To help show how much the price appreciation piece adds up, take a look at this data from the Federal Housing Finance Agency (FHFA) (see graph below): 

Here’s what this means for you. While home prices vary by area, the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home for 30 years saw it more than triple in value in that time.

Whether you’re looking to downsize, relocate to a dream destination, or move so you can live closer to friends or loved ones, your equity can be a game changer. If you are curious about how much equity you’ve built up over the years and how you can use it to buy your next home, let’s connect.

Joe

 

 

Over the past couple of years, a lot of people have had a hard time buying a home. And while affordability is still tight, there are signs it's getting a little better and might keep improving throughout the rest of the year. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Housing affordability is improving ever so modestly, but it is moving in the right direction.”

Here’s a look at the latest data on the three biggest factors affecting home affordability: mortgage rates, home prices, and wages. 

1. Mortgage Rates

Mortgage rates have been volatile this year, bouncing around from the mid-6% to low 7% range. But there's some good news. Data from Freddie Mac shows rates have been trending down overall since May (see graph below):

Mortgage rates have improved lately in part because of recent economic, employment, and inflation data. Moving forward, some rate volatility is to be expected. But if future economic data continues to show signs of cooling, experts say mortgage rates could keep going down.

 Even a small drop can help you out. When rates decline, it's easier to afford the home you want because your monthly payment will be lower. Just don’t expect them to go back down to 3%.

2. Home Prices

The second big thing to think about is home prices Nationally, they’re still going up this year, but not as fast as they did a couple of years ago. The graph below uses home price data from Case-Shiller to illustrate that point:

If you're thinking about buying a home, slower price growth is good news. Home prices went up a lot during the pandemic, making it hard for many people to buy. Now, with prices rising more slowly, buying a home may feel less out of reach. As Odeta Kushi, Deputy Chief Economist at First American, says: 

“While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help – so the dream of homeownership isn’t boarded up just yet.”

3. Wages

Another factor helping with affordability is rising wages. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:

Look at the blue dotted line. It shows how wages usually go up in a typical year. On the right side of the graph, you'll see wages are rising even faster than normal right now – that's the green line.

This helps you because if your income increases, it's easier to afford a home. That’s because you won't have to spend as much of your paycheck on your monthly mortgage payment.

When you put all these factors together, you see mortgage rates are trending down, home prices are rising more slowly, and wages are going up faster than usual. Though affordability is still a challenge, these trends are early signs things might be starting to improve.

Joe

The Department of Justice, MLSs nationwide, and the NAR have "agreed" (via lawsuit) to changes in buyer-agent compensation. They are going into effect on Monday, August 12, 2024. 

If you are a buyer:

1. An agent working with you as a potential buyer can NO LONGER show you any properties without a signed buyer-agency contract. That contract will specify what the agent will do for you, how long that contract will remain in effect, and how much that agent will be paid. Very much like a listing contract. All of us are in the same boat here. Here is the buyer agent contract that Gibson Sotheby's International Realty will use.

2. How long will the contract last? We don't know what will become the norm, but I would say 90 days. If you are just starting out with an agent, it would be possible to "date" them (i.e. have a short contract term) for a chosen short timeframe to see if you like working with them. This is a committment to work with a particular buyer-agent exclusively for that period. If, after that period, you purchase any of the properties you have seen with them, you will be legally obligated to purchase it with them for 90 days. following that.

3. Will buyers always be paying buyer broker compensation? NO! Sellers will have the option to decide if they are willing to offer compensation as part of the price, and how much. However, as part of the DOJ settlement, they are not permitted to advertise how much that will be in MLS. Buyer-agent compensation from sellers will now be specified in offers to purchase. It will be up to the seller to choose the offer that nets them the most money and is most likely to get them to the closing table, meaning the cleanest offer. Just like it did prior to 8/12.

3. Will the buyer-agent be able to collect more than the fee stipulated in the contract if the seller is willing to include the buyer-fee?  No. If the buyer has signed a contract at 2.5% and the seller has agreed to pay 1% to a buyer agent in the offer, the buyer agent cannot collect more than the 2.5%, so the buyer would pay 1.5%.

3. Buyer-agent compensation can no longer be displayed in MLS under the terms of the DOJ settlement. One of the suits centered around sellers being "forced" to pay buyer-agent commissions. Whatever you think about that, it's not happening anymore. It's all negotiable between the buyer and seller. So basically, there is less information being offered to buyers. Some sellers may still attempt to publicly offer compensation, but they are exposing themselves to possible lawsuits or prosecution.

4. Who has been paying the buyer agent commission for all these years?  It's a misconception that the seller has been paying the fee. The buyer has all the money. They pay everything that is on the settlement sheet, and that money gets disbursed to the seller, the banks, the listing broker, the attorney, and everyone else. The listing broker disburses the commission to the buyer-broker. The commission has been included in the price, so the buyer was able to finance it. In most cases, depending upon the listing, I would have split the commission equally with the buyer-agent.

5. So who will pay as of 8-12? The difference essentially is that the buyer agent fee will not be baked into the price, unless the seller is willing to include some of it as part of the transaction. Otherwise, as of next week, buyers will not be able to finance the buyer-agent fee if paid separately, on top of the price. There are possible workarounds, such as seller-provided closing costs (may vary with lender) but if the seller is not including the fee, buyers more than likely need to write a check to their buyer-agent at closing. Which, If you buy an $800,000 property means that you will need to cut a check for $20k (if 2.5%) to the buyer brokerage. This would be on top of the down-payment. Sellers will need to decide what their best course of action is when reviewing an offer. Once again, it seems obvious that the negotiated terms will include the highest net (whether or not there is a fee involved) and the terms that are most likely to get the transaction to the closing table. I am hopeful that it becomes the norm that sellers will be willing to include the fee in the price as part of the transaction, or offer some closing credits to the buyer, but we don't know yet.

6. What if you only want to deal with listing agents and not have a buyer agent? If you are a buyer, more than ever, you definitely want to work with someone who has hundreds of transactions of experience, who is prepared for these changes, who is an expert negotiator, who has the obligation and ability to guide you through property identification, negotiations, referrals to attorneys, inspectors, contractors. Someone who has the hard-won experience of solving transactional problems to your advantage. Even the smoothest transactions have potential minefields. 

I've had decades of experience. Here's more about me. Here are my endorsements. Here is more info about buyer transactions.

If you are unrepresented, and you, for example, go to an open house and want to make an offer, you will be asked to sign two forms. One is the mandatory agency disclosure, which acknowledges that you understand that the seller is the client of the listing agent, not you. The other is the Unrepresented Buyer Disclosure. The listing agent has an obligation to divulge all information about you and owes all confidentiality as well as all the other fiduciary obligations to the seller. The listing agent has the obligation to get the best price and best terms for the seller. Period. The listing agent can fill in whatever you want on the offer but cannot advise you. They cannot recommend inspectors. They cannot help you solve inspection problems or any other kind of problem. If you do want client-level representation, the listing agent can refer you to someone in their office. That person will be required to have you sign a contract. 

Has this settlement made the homebuying process easier, more transparent, or less expensive for the average buyer?

No. I believe it has tipped the scales more in favor of the cash buyer, and notably investment buyers and institutional buyers. Even if you disregard buyer broker compensation, it is difficult to believe that in our local market it will make any difference whatsoever in selling prices. I believe that there is actually less transparency and more expense for the average buyer. 

 

Retirement is a time for relaxation, adventure, and enjoying the things you love. As you imagine this exciting new chapter in your life, it's important to think about whether your current home still fits your needs.

If it's too big, too costly, or just not convenient anymore, downsizing might help you make the most of your retirement years. To find out if a smaller, more manageable home might be the perfect fit for your new lifestyle, ask yourself these questions:

• Do the original reasons I bought my current house still stand, or have my needs changed since then?
• Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
• What are my housing expenses right now, and how much do I want to try to save by downsizing?

If you answered yes to any of these, consider the benefits that come with downsizing.

The Benefits of Moving into a Smaller Home

There are many reasons why you should downsize. Here are just a few from Bankrate:

 

Your Equity Can Help Make Downsizing Possible

If those perks sound like something you’d want, you may already have what you need to make it happen. A recent article from Seniors Guide shares:

“And at a time when homeowners age 62 and older have more than $12 trillion in home equity, downsizing makes sense . . .”

If you’ve been in your house for a while, odds are you’re one of those homeowners who’s built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Downsizing can mean taking that equity when the home is sold and using it to pay cash or make a large down payment on a lower-priced home, reducing your monthly living expenses.”

When you’re ready to use all that equity to fuel your next move, I will be your guide through every step of the process. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs.

If you're starting your retirement journey and thinking about downsizing, let's talk. 

Joe

 

If you own a home, your net worth has probably gone up a lot over the past year. Home prices have been rising, which means you're building equity much faster than you might think. 

Equity is the current value of your home minus what you owe on the loan.

Over the past year, there have still been more people wanting to buy than there are homes available for sale, and that’s pushed prices up. That rise in prices has translated directly into increasing equity for homeowners.

How Much Equity Have You Earned over the Past 12 Months?

According to the latest Homeowner Equity Insights from CoreLogic, the national average of homeowner's equity has grown by $28,000 in the last year alone.

That's the national average, so if you want to see what's happening in Massachusetts, check out the map below. It uses data from CoreLogic to show how much equity has grown in each state over the past year. You’ll notice every single state with sufficient data saw annual equity gains:

 

What If You Bought Your House Before the Pandemic?

If you bought your house before the pandemic, the equity news is even better. According to data from Realtor.com, home prices shot up by 37.5% from May 2019 to May 2024, meaning your home's value has likely increased significantly. Ralph McLaughlin, Senior Economist at Realtor.com, says:

“Homeowners have seen extraordinary gains in home equity over the past five years.”

To give context to how much equity can stack up over time, Selma Hepp, Chief Economist at CoreLogic, explains the total equity the typical homeowner has today:

“With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, close to a total of $305,000 per owner.”

How Your Rising Home Equity Can Help You

With how prices skyrocketed a few years ago, and the ongoing price growth today, homeowners clearly have substantial equity built up – and that has some serious benefits.

You could use it to start a business, fund an education, or even to help you afford your next home. When you sell, the equity you’ve built up comes back to you, and may be enough to cover a big part – or even all – of your next home’s down payment. If you're planning to move, the equity you've gained can really help. Curious about how much you have and how you can use it to help pay for your next home? Let's connect.

Joe

 

 

When you decide to buy your first home, you may come across a number of terms and conditions you’re not familiar with. While you may have a general idea of what an inspection is, maybe you’re not sure why you need one or how it’s different from an appraisal. To keep it simple, here’s an explanation of each one and what they mean for you as a homebuyer.

Home Inspection

Once you’re under contract on a home you’d like to buy, getting an inspection is a key part of the process. An inspection gives you a clear idea of the safety and overall condition of the home – which is important for such a big transaction. As a recent Realtor.com article explains:

“A home inspection is something that protects your financial interest in what will likely be the largest purchase you make in your life—one in which you need as much information as possible.”

If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. And don’t worry – you don’t have to go through that process alone. Your real estate agent will be your advocate and negotiate with the seller for you.

Home Appraisal

While the inspection tells you about the current state of the house, an appraisal gives you its value. Bankrate explains:

“When buying or selling a home, an appraisal verifies that the sale price of the home is in line with fair market value. This ensures the homebuyer doesn’t pay more than the home is worth, and the mortgage lender doesn’t lend more than it is worth.”

Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal protects you from overpaying and the bank from lending you more than the home is worth.

And if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, your trusted real estate professional will help you navigate any additional negotiations to try to close the gap.

Bottom Line

The inspection and the appraisal are different but equally important steps when buying a home. You don’t need to manage them by yourself. Let’s connect today so you have expert guidance from start to finish.

Joe

 

If homeownership is on your goal sheet for your future, you’re probably working on your savings. And a big priority is making sure you’ve got a plan in place for things like your closing costs, down payment, and more.

Here are a few strategies that can help speed up that process.

Budget and Track Your Expenses: To start, create a detailed budget that tracks the money you’ve got coming in and the money going out. This’ll give you a better look at your finances as a whole.

Cut Down on Unnecessary Spending: Now that you have your budget sheet done and you know how you’re spending your money, look for any line items that aren’t absolutely essential. If you cut down on those, you can re-allocate that cash toward buying your home. Even the little things can add up. As the National Association of Realtors (NAR) says:

“The majority of first-time buyers did make financial sacrifices to purchase a home. For those who did, the most common sacrifices buyers reported were cutting spending on luxury goods, entertainment, and clothes.”

Automate Your Savings: Once you know how much you want to set aside for your homebuying budget, look for ways to make it easy. If you have to transfer money manually, you may forget to do it. But getting some automatic transfers set up helps drive consistency and removes the temptation to spend it elsewhere. Realtor.com explains:

“If you’re struggling to put enough money away because of the constant temptations to blow your paycheck, consider automating the process. Ask your employer if you can have your paycheck deposited into multiple accounts—if so, instruct it to send a certain percentage of your salary directly into your savings account. Or go through your bank . . .”

Lean into Any Side Hustles You Have: Do you have a gig you do (or have done before) to net some extra cash? Taking on part-time work, freelance jobs, or picking up a side hustle can help give your savings a boost.

Put any Unexpected Cash To Good Use: If you get any sudden windfalls, like a tax refund, bonus, inheritance, or cash gift from family, put it toward your house fund.

By using these strategies and focusing on your savings over time, you can make sure you’re well on the path to having what you need to buy your first home. As Ramsey Solutions says:

“Budgeting shows your money who’s in charge (that’s you). It gives you the power to tell your money where to go instead of having to wonder where it went. It’s how you make any money goals happen—like saving for a down payment.”

If you have questions about what's involved in buying a new home or condo, please reach out to me. 

Joe

 

There’s no denying mortgage rates are having a big impact on today’s housing market. And that may leave you with some questions about whether it still makes sense to sell your home and make a move.

Here are three of the top questions you may be asking – and the data that helps answer them.

1. Should I Wait To Sell?

If you’re thinking about waiting to sell until after mortgage rates come down, here’s what you need to know. So are a ton of other people.

And while mortgage rates are still forecasted to come down later this year, if you wait for that to happen, you may be dealing with a lot more competition as other buyers and sellers jump back in too. As Bright MLS says:

“Even a modest drop in rates will bring both more buyers and more sellers into the market.”

That means if you wait it out you’ll have to deal with things like prices rising faster and more multiple-offer scenarios when you buy your next home.

2. Are Buyers Still Out There?

But that doesn’t mean no one is moving right now. While some people are holding off, there are still plenty of buyers active today. And here’s the data to prove it.

The ShowingTime Showing Index is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity for March (the latest data available) over the past seven years:

 

You can see demand has dipped some since the 'unicorn years.' That’s in response to a lot of market factors, like higher mortgage rates, rising prices, and limited inventory. But, to really understand today’s demand, you have to compare where we are now with the last normal years in the market (2018-2019) – not the abnormal ‘unicorn’ years. 

When you focus on just the blue bars, you can get an idea of how 2024 stacks up. And that gives you a whole new perspective.

Nationally, demand is still high compared to the last normal years in the housing market (2018-2019). And that means there’s still a market for your house to sell.

3. Can I Afford To Buy My Next Home?

And if you’re worried about how you’ll afford your next move with today’s rates and prices, consider this: you probably have more equity in your current home than you realize.

Homeowners have gained record amounts of equity over the past few years. And that equity can make a big difference when you buy your next home. You may even have enough to be an all-cash buyer and avoid taking out a mortgage altogether. As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“ . . . those who have earned housing equity through home price appreciation are the current winners in today's housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”

If you’ve had these three questions on your mind and they’ve been holding you back from selling, hopefully, it helps to have this information now. A recent survey from Realtor.com shows more than 85% of potential sellers have been considering selling for over a year. That means there are a number of sellers like you who are on the fence.

But that same survey also talked to sellers who recently decided to take the plunge and list. And 79% of those recent sellers wish they’d sold sooner.

Let's connect if you want to talk more about any of these questions or need more information.

Joe