Given current conditions, home buyers will have more bargaining power for the upcoming prime buying and selling season. Inventory is increasing, and some markets are on the cusp of the 5 to 6 months of inventory that mark balanced conditions. Sellers are also increasingly realizing that the best mortgage rate range they can hope for will be in the 6 to 6.5% range.  

The average of 16 top forecasters is for home prices to rise 3.5% in 2025. Again, given local conditions, the local market will probably outperform that.  

Currently, the 11-month year-to-date median price is a little over 4%. Of course, that’s if the economic conditions continue tracking at the current level. Meanwhile, there are some important things buyers can and should now be doing. 

DO YOUR HOMEWORK 

Many are surprised at just how much local market information they can find. The Northeast Tennessee Association of Realtors® (NETAR) offers an array of market updates and insights that can be found on its website at www.netar.us.

Getting a firm footing on local conditions as opposed to what you see in mass media is important because real estate is hyper-local, and most mass media coverage is focused on major metro areas. For instance, according to the media, the current median U.S. single-family existing home sales price is $420,400. Locally, the number is $265,000. 

LOAN AND MORTGAGE OPTIONS 

After you get pre-qualified by a lender, check out mortgage loan programs for one that fits your pocketbook and needs. Some lenders have special programs for first-time buyers. FHA, USDA, and VA loans are also viable options. Each has different requirements and advantages.  

PARTNER WITH A LOCAL REALTOR® 

Finding and partnering with the right professional Realtor® can make or break the home-buying process. Realtors® are pros at helping their clients navigate the local market, looking at homes, and steer them through the negotiations and closing. It’s a good idea to interview several agents to find one you’re comfortable with. And there’s nothing wrong with asking for and checking references. Some agents specialize in first-time buyers, others have a specialty that accommodates elders. The list of specialties is long, and it’s good to do the research and find the best agent for your needs. 

TEMPER YOUR EXPECTATIONS 

While mortgage rates are expected to be in the 6 to 6.5% range, they can vary. There are many good mortgage calculators online that will help you keep your monthly mortgage commitment in your affordability range. And don’t forget about closing costs, the price of a home inspection, and moving expenses. Be prepared for the surprise costs that always seem to pop up. 

Most experts urge buyers to keep their total monthly housing cost to 25% or 30% of their income. Everyone likes to tour their dream home, but wishful shopping above your financial ability is both time-consuming and frustrating for everyone concerned.  

BE PERSISTENT AND PATIENT 

Remember Murphy’s Law: Anything that can go wrong will go wrong.  

There are typically bumps in the road of homes buying journeys. They come as unexpected costs, delays, or disappointments. The secret to getting past them is patience and persistence that if it can be fixed, it will. If not, there are other options. 

Buying – or selling a home – is not a typical business transaction. That’s why having the right professional Realtor® who