Reducing Buyer’s Remorse Among Home Buyers

Agents face a tough reality right now. Your clients have to pay much more for a house. Low inventory can make finding a home in their budget difficult. And even when they manage to win a house, many Buyers have regrets about it. Let’s look at the regrets they have, how you could reduce buyer’s remorse in this market, and why it matters to you.

What Do Buyers Regret About Home Buying?

To determine what first-time home buyers have regretted about their purchase, it helps to look at what first-time home sellers said about their experience in their home. According to a 2025 survey by Opendoor, a huge percentage of first-time home sellers had regrets about buying their home, especially younger sellers.

Just look at the breakdowns of home sellers who thought they made a mistake buying during the pandemic:

• 94% of Gen Z
• 86% of millennials
• 48% of baby boomers

Further, for 37% of millennials, which are one of the biggest groups of home buyers (behind baby boomers), the biggest source of regret was that they underestimated maintenance costs.

How Can Agents Reduce Buyer’s Remorse?

Here are a few ways you can work to reduce buyer’s remorse among your clients...

1. Educate them on a Home Service Plan

In 2025, a Home Service Plan (aka Home Warranty) is a recommended incentive to help sell a house, according to HomeLight. Even with a softening seller’s market, the costs of homes along with high interest rates can make buyers skeptical about the homes they buy.

A big regret younger Buyers have about home buying is maintenance costs were too high. Many younger Buyers don’t have the experience, time, or money to fix things when they break. They also may not know the right person to call about it (and will probably call you first).

If you can show them that a Home Service Plan can help protect their budget against breakdowns to covered parts of things like their A/C, furnace, water heater, and refrigerator, you can directly address the pain they have over the post-closing costs of homeownership. Many Buyers are totally unaware of what a Home Service Plan does. In fact, many of your Buyers will learn what it does from you, which could be a value-added service you provide.

2. Set expectations early and on their terms

You’re always working hard to set expectations for your clients. The key is to set those expectations on their terms. Younger Buyers communicate differently than past generations, and it’s essential that you know how to communicate with them on their terms.

Perhaps the most important aspect of setting expectations is be realistic. You don’t need to doom-and-gloom your younger clients. But since many of them have regrets about home buying (more so than past generations), it’s important to set the tone early: This might be harder than we thought, but I’m going to do everything I can to find a home you love.

Why Do Breakdowns Matter to Agents?

Younger Buyers comprise one of the largest groups of Buyers currently on the market. Coincidentally, many are entering the market at a challenging time. Knowing what it is that they currently regret or fear can help you prepare and adjust for the future.

Additionally, many agents rely on referrals for their success. Happy, fulfilled clients tend to lead to more and better referrals. On the other hand, clients who have regrets may project those regrets onto you, whether it’s fair or not.

Finally, understanding the different kinds of regrets your Buyers have in home buying can help you strategize for the future. Low inventory, high interest rates, and affordability challenges are macro problems that no single agent, company, or entity can solve alone. However, you CAN work to reduce buyer’s remorse among your younger clients, especially in terms of their biggest regret: maintenance costs. Source

NMLS ID 394275 | DRE ID 01769353

Embrace the Season: Benefits of Selling Your Home in Fall and Winter

As the seasons change and a crisp breeze fills the air, the idea of selling your home might seem counterintuitive during the fall and winter months. However, this could be a strategic move that aligns perfectly with your goals. Let's explore the unique benefits of listing your home in the colder seasons, addressing your motivations and potentially making this a lucrative decision...

• Less Competition, More Attention

With many sellers waiting for the traditional spring market, the fall and winter present an opportunity to stand out in a less crowded field. Buyers who are actively searching during these months are often motivated, and your home can catch their undivided attention, potentially leading to quicker sales.

• Serious Buyers on the Hunt

Buyers prowling the market during fall and winter are typically more committed. They often have urgent needs, like job relocation or changes in family circumstances. This translates into higher chances of closing deals faster with genuinely interested parties.

• Showcase Cozy Appeal

The fall and winter allow you to play up your home's cozy and inviting attributes. A crackling fireplace, warm lighting, and seasonal decorations create an ambiance that resonates with potential buyers on an emotional level, helping them envision life in your home.

• Highlight Energy Efficiency

Cooler weather gives you the chance to showcase your home's energy-efficient features. From effective insulation to a well-functioning heating system, these elements appeal to buyers looking to cut down on utility costs.

• Advantageous Negotiations

With fewer homes on the market, you may have more negotiating power. Buyers are more likely to compromise on terms, allowing you to secure a deal that aligns with your goals.

• Staging Potential

Fall and winter décor can enhance your home's appeal, making it feel warm and welcoming. Leveraging these seasonal elements in your staging can create a strong emotional connection for buyers.

• Capitalize on Year-End Transactions

Some buyers aim to close before the year ends for tax purposes, which aligns well with your motivation to sell efficiently. Capitalize on this urgency to potentially close deals faster and keep more money in your pocket versus giving it to Uncle Sam.

Conclusion

Selling your home during the fall and winter months isn't just a possibility; it's a strategic decision that aligns with your motivations. The benefits of less competition, serious buyers, cozy staging, and advantageous negotiations make this a favorable time for both you and potential buyers.

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NMLS ID 394275 | DRE ID 01769353

7 Beautiful Ways to Decorate for Fall Without Spending a Dime

The allure of purchasing new fall décor is real; you can easily drop hundreds of dollars on cozy, seasonal design elements. However, it doesn't have to be this way—in fact, there are many beautiful decorations that cost no money at all.

This season, we challenge you to think outside of the retail aisles—enticing though they may be—and use what you already have on hand. To help you get started, we spoke to design experts about their favorite ways to decorate for fall—all without spending a single penny.

1.) Forage Front Door Décor

Step outside and gather what nature offers for free: tall sticks, branches, dried grasses, wildflowers, pine cones, seed pods, or even palm fronds if you’re near the coast. “Tie them together into a rustic, oversized bundle and lean it right against your front door for instant charm,” says DIY expert Mackenzie Biehl. Alternatively, weave them into a rustic wreath. You can also simply store them in an empty pot, basket, or planter. Biehl suggests mixing and matching textures and heights—or even try making two bundles to frame the door. You can tie them with rope, twine, or an old scarf. 

2.) Create Autumn Leaf Strands

You know those popcorn strands that you drape around the Christmas tree or across the fireplace mantle? This is the same idea, only with autumn leaves. Maggie McGaugh, a lifestyle content creator, says to collect leaves of every size and color—bright red, burnt orange, or even brown—and connect them with embroidery thread, fishline, or whatever you have on hand. Drape across the entryway, fireplace mantel, or windowsill. 

3.) Showcase Evergreen Sprigs

Clip evergreen sprigs or homegrown rosemary or lavender, and then place them in bud vases around the house. These fragrant, free accents add some texture and earthiness to your space. Cluster a few together on a mantel or scatter them in unexpected places, like a bathroom vanity or a bedside table.

4.) Fill Vases With Branches

Another idea that pulls from nature’s bounty is to collect fallen branches and place them in a vase for a rustic centerpiece, according to expert DIY-er Siobhan Alvarez-Borland. If you have string or fairy lines on hand, you can intertwine them. 

5.) Repurpose Cozy Textiles

Look around your home for scarves, throws, or even old flannel shirts—these pieces can double as décor. “Drape a plaid scarf over a side table, layer a chunky knit blanket at the foot of the bed, or even use a shawl as a runner down your dining table,” says hosting expert Rachel Leonard Kennedy. Want to give your sofa an instant refresh? “Button a flannel shirt over a throw pillow, tuck the shirt tails in, then wrap the arms around the front and tie with a knot," she says. She recommends sticking to one color story and then layering in textures for a more intentional look.

6.) Incorporate Existing Decorative Details

Similarly, consider what small design details you already have, and get creative about layering them into your fall décor. “An old basket can easily become a fall centerpiece when filled with apples or squash,” says Alvarez-Borland. “Empty jars or mismatched mugs can double as mini vases for foraged greenery.”  Stick to a color palette of warm oranges, deep reds, and cozy neutrals so that even mismatched items look intentional. 

7.) DIY Citrus Candle Accents

You can even repurpose hollowed-out citrus and use them as makeshift candleholders. “Simply carve a shallow hole to fit a tea light and group several together on a tray for a warm, cozy glow,” says Kennedy. “Cluster them in odd numbers and varying sizes—three or five works best—for a natural but styled look. Place them on a reflective tray or mirror to amplify the flicker of the candlelight.”

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How to Style a Coffee Table So It Never Looks Cluttered, According to Interior Designers

A well-styled coffee table completes the look of any living room, but finding the perfect arrangement is easier said than done. Since the living room is an area where many families spend a significant amount of time, you want to curate a design that is both beautiful and functional. Too many decorative items leave little room for placing drinking glasses, remotes, and other practical items, making your coffee table feel more cluttered than intentionally styled. To help you strike the perfect balance, we spoke to interior designers who shared their tips for styling a coffee table that doesn't look too busy...

Start With a Foundation

Choose a foundation for your coffee table arrangement that you can base the rest of your design around. For interior designers, this typically consists of a well-curated stack of books. "I do two to three books per stack, arranged in a messy, Tetris-like formation. The books are often facing different directions, and a little haphazard," says interior stylist Julia Stevens. She recommends linen-wrapped books, adding that many books look better once the sleeve is removed.

Incorporate Other Details

Once you've selected the base of your design, you can layer in other objects to fill the empty spaces, such as low bowls, greenery, and candlesticks. "Books ground the arrangement and provide layering; a vase with flowers or greenery introduces height and softness; a sculptural object adds artistry and personality; and a tray brings order, corralling candles, coasters, or smaller items so they feel intentional," says Kerrie Kelly, creative director of Kerrie Kelly Design Lab.

When choosing details for your coffee table, consider items that have a personal connection. "I love introducing 'soulful items' that tell the story of your personality," says interior stylist Steve Cordony. "A brass bowl you picked up in Mexico City, a bust sculpture gifted from your Greek friend, or a vase handed down from your mom."

Consider Scale

Play with height and scale when arranging your coffee table so it doesn't feel one dimensional. "I use the 'high-medium-low' or 'triangle' approach—one taller item (like a vase), a medium element (such as stacked books), and a low piece (like a bowl or candle)," says Kelly. "This creates a balanced, pleasing composition that draws the eye around."

Create Groupings

Cordony likes to create groupings of items on one table for a visual. "Your eye should travel around the vignette and allow you to discover," he says. "You want the items to tell their own individual story but also work together." One grouping could be a stack of books, while another could be a candle or vase with flowers. Cordony aims for three to four groupings per table, depending on its size.

Mix Materials

Mixing materials, such as pairing stone with glass or wood with ceramic, gives your coffee table depth. "I'm not the biggest fan of repeated materials. For example, a wood bowl on a wood coffee table is a no-no in my mind," says Stevens. "A mix of materials is key. Veiny marbles and porous travertines complement a slick metal quite nicely. Contrast is usually a good thing because it keeps things visually interesting. Beauty usually happens in the spaces where things don’t actually match."

Consider the Space

How you style a coffee table largely depends on the space it is in. "A coffee table is a low piece of furniture, and the items on top of it should be low, too. Occasionally, in a room with high ceilings, a taller branch arrangement works wonderfully. But you need to look at the space as a whole and assess what it is asking for," says Stevens. "While leggy dogwood might work in a brownstone parlor, it might overwhelm a studio apartment."

Avoid Overcrowding

One of the biggest mistakes people make when styling a coffee table is adding too many items. "If you're working with an extra-large coffee table, you have a lot of square footage to fill and run the risk of it looking cluttered," says Stevens. "In that case, go for fewer large items, such as the classic John Derian book with the big eye on it or Rose Uniacke's At Work book. You might also consider bringing in a large tray to consolidate items. If the tray is striking enough, sometimes that's all you need."

Make It Functional

Functionality is a key element of a well-styled coffee table, but how much empty space you leave depends on your lifestyle. For example, if you eat dinner at your coffee table every night, you will need to more negative space than someone who never uses their living room.

Also consider the functionality of the items you display on your table. "I don't love when there are too many objects layered on top of books, as they might prevent someone from actually opening the book to read it," says Stevens. Our experts also note that trays or lidded vessels can be worked into your design as a practical, but aesthetically pleasing way to hold remotes and keys. Source

NMLS ID 394275 | DRE ID 01769353

Home Staging Tips – Finding a Room’s Focal Point

When showing a home, having more than one focal point in each can room can cause potential buyers to turn away. When you’re home staging, why is it important to only have one focal point in each room and how can you identify what that is?

What Is the “Focal Point?”

The focal point of a room is the main area of interest, depending on the room’s functional application, and where the eye is drawn. It is not always located in the middle of a given room and may not be obvious to the casual viewer. A room provides a better mood if you arrange the furniture or accessories around this focal point. Sometime a focal point may be an architectural element such as a fireplace, bay window, or a built-in bookshelf. A focal point can also be a unique object such as a picture, mirror, table, or a unique element such as a sculpture or a piano.

How to Find the Focal Point of a Room

Take a good look at the room and try to notice the biggest or most attention-grabbing feature that draws your interest. Anything from a stupendous architectural feature to a dazzling view can be the focal point.

If there isn’t any significant architectural feature in the room, large-sized furniture pieces like a sofa, dining room, or a king-sized bed are likely to be your room’s focal point. It’s better for home staging if the focal point is visually appealing, so once you’ve identified the appropriate focal point, ask yourself if there’s any actions you can take to enhance it. Accents, artwork, and other flourishes can draw the eye and make the focal point more attractive for potential buyers.

Rooms to Consider in Staging Around a Focal Point

Every room in your house should have a focal point that either clearly states or supports the fundamental application of the room. Here are some of the areas you may consider focusing on when creating a plan for staging a home.

• Curb Appeal: Stage around the front door to change how buyers perceive the house as they enter.
• Formal Living Room: Stage for visiting and conversation.
• Formal Dining Room: Often undefined for buyers, but works with a formal dining room positioned under a chandelier.
• Family Room: Furniture and accessories are the organic focal point here.
• Kitchen: If there is an island, this is the natural focal point because it is where people gather.
• Study: This room should be staged to demonstrate functionality as well as organization.
• Master Bedroom: The bed is the focal point of this room and is critical to buyer decisions.
• Secondary Bedrooms: These are often neglected even by professional home stagers, but they’re critical to potential buyers with small children and shouldn’t be ignored.
• Backyard: This area is focused on outdoor entertaining with a friendly family dining space in which to gather with friends.

Staging a home based on focal points can feel overwhelming at first but if you break down each room and work through one space at a time, you’ll quickly be on your way toward an investment that can pay off in higher home sales on a quicker timeline. Source

4 Appliances to Check Before Buying a House

Here are the top 4 appliances you should have checked before buying your next home. At the end of the day, you’ll be glad that you did your due diligence.

1. Refrigerator

The fridge is an expensive appliance to replace, and it’s one of the first appliances you should check. Look for the following:

• Are the fridge and freezer cooling properly?
• Is there any rusting on the inside, indicating a moisture problem?
• Are the seals and gaskets in good condition and do they seal properly?

2. Range

It doesn’t matter if the range is gas or electric, it still needs a review. The main question you want to answer is: Do the burners, the oven and the broiler all heat? A gas range might include more complications and safety concerns, but every detail counts, down to sure the oven timer works. And while you’re at it, don’t neglect the seals of the oven. Similar to the fridge, it’s important to make sure that the oven seals properly.

3. Dishwasher

The dishwasher is another pricey appliance that should be checked. It also takes the longest to check, so you should start a test run as soon as you enter the home. When you open the door see how the door operates – it shouldn’t drop quickly, or else there could be a problem with the door’s spring. Similar to the fridge, you should also keep an eye out for any rust or corrosion.

When doing a test cycle to make sure that the dishwasher works, you mainly want to look out for water leaks under the floor and underneath the sink. You should also test the heating element, so choose a wash cycle that includes heating. Once the cycle is over, a stream of steam should come out of the dishwater. Once the door is open, check that the unit is free of extra water. If there’s water left, the pump is likely malfunctioning.

4. Washer and Dryer

The next major home appliance to inspect are the washer and dryer, if the home is being sold with these units. Do a test run of these appliances to ensure that they function.

• With the dryer, you’re most concerned about potential fire hazards. Is there an excess of lint in the machine? When it’s running, poke your head outside to check that the exhaust fan works properly.

• Are appliances checked in a home inspection?

While home inspections will cover major systems like the air conditioner and furnace, the same can’t be said of appliances like the refrigerator and dishwasher. Some inspectors may do a quick review, but it’s certainly not a standard practice. If your inspector does inspect the home’s appliances they will likely focus on the major kitchen appliances. However, all inspectors should check a laundry room’s electrical and plumbing connections. While you do your own inspection of appliances keep in mind that it’s essentially impossible to determine how much life an appliance has left. Source

7 Reasons to Own A Home

1.) Appreciation. Historically, real estate has had long-term, stable growth in value and served as a good hedge against inflation. Census data shows the median price of a home jumped from $172,900 in Q4 2000 to $417,700 in Q4 2023. That's greater than 6% appreciation per year on average.

2.) Equity. Money paid for rent is money that you’ll never see again, but paying your mortgage month over month and year over year lets you build equity ownership interest in your home.

3.) Tax benefits. If you itemize deductions on your federal tax return, the U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes (up to $10,000 according to current tax law), and some of the costs involved in buying a home. Be sure to talk to your accountant to see if it's advantageous for you to itemize.

4.) Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally exclude up to $250,000 ($500,000 for a married couple) of gain without owing any federal income tax. The IRS provide guidance on how to qualify for the exclusion.

5.) Predictability. Unlike rent, your fixed-rate mortgage payments don’t rise from year to year. So, as a percentage of your income, your housing costs may actually decline over time. However, keep in mind that property taxes and insurance costs may increase.

6.) Freedom. The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.

7.) Stability. Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.

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NMLS ID 394275 | DRE ID 01769353

The Complete Guide on How to Get a Mortgage

 

Follow these steps on how to get a mortgage, including checking your credit and finances, saving for a down payment, choosing a lender and getting pre-approved. 

NMLS ID 394275 | DRE ID 01769353

8 Foolproof Packing Tips for Moving

Whether you’re traveling across the country or down the block, moving can be quite nerve-wracking for everyone involved. Gathering boxes, packing those boxes to the brim and then transporting them to a new location without damaging or losing anything in the process is never an enjoyable experience, not to mention the arguing between family members that usually starts a couple of hours in. But the thing about moving is that the benefits (hopefully) come along later.

Regardless of whether you’re moving yourself or you’ve hired a moving company, these tips are easy to implement and will save you time, space and frustration. So gather those boxes and get moving!

1.) Create Throw Away and Giveaway Boxes

First things first, do not pack unnecessary items. That unsightly 50-year-old kitchen spatula that was passed down to you? Consider donating it or giving it to a loved one, then treat yourself to a new one after the move. Creating a throwaway and giveaway box before you start packing helps eliminate clutter and will pay off once you get to your new home. This is also your chance for a fresh start, so don’t be afraid to replace a few items that were on their way out anyway, especially if you'll use the new ones every day. Buying a few new pots and pans, instead of taking my partially broken hand-me-downs along with me, was one of the best things I did during my last move.

2.) Keep Clothes on Hangers

This is one of my of favorite tips, and it happens to be one of the easiest to implement. Simply keep clothes on their hangers throughout your move. Wrap a garbage bag around as many hangers as will fit and tie it around the top, leaving the hook free. This method allows you to keep your clothes protected and clean from any surfaces they may touch in transit, while eliminating the stress that comes with rehanging every item of clothing. Just rip off the garbage bags once your clothes are in their new home, and you're all set.

3.) Take Photos

The last thing you may want to do during the middle of packing is whip out your camera, but I promise it’ll be worth it. Whether on your television console, mantel or nightstand, we all have a few knick-knicks that bring us comfort. If you’ve spent time organizing them in a specific way and like the way they look, take a picture of their placement so you can reference it when redecorating after the move. Then, pack them all together in the same box so they’re easy to find.

4.) Use Bulky Clothing for Added Protection

Don’t waste time trying to fit winter coats, fluffy robes and oversized sweatshirts into a suitcase. While packing your clothes, make a pile of those larger, bulkier items. When you’re ready to pack picture frames, artwork and other fragile decor, come back to this pile for added support. You can even use the sleeves of sweatshirts or ties on your robe to secure larger pieces of art. However, if you have any oversized or extra delicate decorations, you may want some more added protection.

5.) Label Tools and Wires

You will thank yourself later when you’re replugging in your desktop, televisions and other electronics or rebuilding anything you may have had to take apart. When you’re ready to pack any wires or tools, grab some large Ziploc bags and a Sharpie. Unplug all your wires that belong to one space or electronic device and secure them in the bag. Then, label the bag with whatever device they belong to.

When it comes to any chairs or dressers that may have had to come apart during the moving process, follow the same steps. Keep the instruction manuals, screws and other tools all in one bag with the name of the furniture written on the outside so you have easy access when you’re ready to rebuild. Then, gather these different “tool-kits” and put them in one box or bag so they’re all in one place.

6.)  Pack Inside ALL of Your Bags

This includes suitcases, duffels, totes and hampers! Keep clothes neatly folded and pack all of your bags so you don’t have to refold them once you’re ready to unpack. You can also pack any other belongings that fit. Think towels, smaller decorative items and anything else you can safely squeeze in. This way, you’re saving space by not having to pack those bags elsewhere, while also gaining more space for clothes and other belongings. It’s a win-win.

7.) Assemble an Essentials Box

Save yourself the frustration and fill a box or bag with anything you may need during or immediately after the move. Having an “essentials” box will provide easy access to your laptop, chargers, favorite clothes and more. The last thing you’ll want to do after a long day of moving is sort through a ton of boxes to find your AirPods. Try doing this for essential toiletries as well. In a separate box, gather toothbrushes, toothpaste, soap, toilet paper, paper towels and any other essentials you’ll need soon after the move.

8.) Schedule a Grocery Delivery

A day or two before moving, make a list of all the groceries you’ll need. Scheduling a grocery delivery to your new home or apartment will eliminate the stress of having to go to the store on the big day. Plus, nobody wants to be hangry on move-in day.

Source

NMLS ID 394275 | DRE ID 01769353

How Much House Can I Afford?

How to Calculate How Much House You Can Afford

If you want to dig a little deeper on how much house you can afford and get into more nitty-gritty details, I’ve got you covered. We’re going to go over all the numbers step by step. 

1. Figure out 25% of your take-home pay.

To calculate how much house you can afford, use the 25% guideline we talked about earlier: Never spend more than 25% of your monthly take-home pay (after taxes) on monthly mortgage payments. That includes your mortgage principal, interest, property taxes, home insurance, private mortgage insurance (PMI) and homeowners association (HOA) fees.

Just add up how much you (and your spouse, if you’re married) bring home each month and multiply that by 0.25. For example, here’s what that would look like with a household take-home pay of $7,000 a month: $7,000 × 0.25 = $1,750

Easy, right? Stick to that number and you’ll have plenty of room in your budget to tackle other financial goals, like investing for retirement or saving for your kid’s college.

2. Use our Mortgage Calculator to determine your home budget.

Now that you’ve calculated 25% of your take-home pay to figure out your maximum monthly payment, we need to translate that into the amount you can afford to spend on a house—and how much you should budget for a down payment. 

By the way, you should aim for a down payment of at least 20%. Not only does a bigger down payment mean smaller monthly payments and less debt, but putting 20% down means you won’t have to pay for PMI—potentially saving you hundreds every month. A 5–10% down payment is fine if you’re a first-time home buyer, but get ready for bigger monthly payments and PMI.

3. Calculate your closing costs.

A down payment isn’t the only cash you’ll need to save up to buy a home. There are also closing costs to consider. Things like . . .

• Appraisal fees
• Home inspections
• Loan origination fees
• Credit reports
• Attorney fees
• Home insurance
• Property taxes

On average, closing costs for buyers are about 3–4% of the purchase price of the home—and you need to be able to pay for them with cash. On top of those costs, it’s also possible that you’ll have to pay for your real estate agent’s services (for example, 3% of the home’s purchase price). To sweeten the deal, the seller might offer to cover part or even all of what it costs you to work with your agent. But don’t count on it. Before you commit to working with an agent, be sure to discuss what they charge so you know your maximum potential costs.

A good number to shoot for when saving for a house is 25% of the home’s sale price to cover your down payment, closing costs and moving expenses. But whatever you do, don’t let the closing costs keep you from making the biggest down payment possible. The bigger the down payment, the less you’ll owe on your mortgage!

4. Factor in homeownership costs.

Here’s the truth: Owning a home is expensive. Between repairs, upgrades and maintenance, those bills can add up. Bills such as . . .

• Increased utilities: On average, if you’re used to paying $100–150 on utilities as a renter in an apartment, you might need to bump up that budget closer to $600 a month as a homeowner.
• Maintenance and repairs: Most homeowners spend about $1,750 a year on home maintenance projects. This could include things like landscaping or routine services like pest control and HVAC tune-ups.
• Furnishings and upgrades: These can cost major bucks, so plan for them in your budget ahead of time if you’re going to want them when you move in. For example, the average cost to furnish a house is around $16,000. Meanwhile, a minor kitchen remodel can cost over $27,000.

That’s why you should save up an emergency fund worth 3–6 months of your typical expenses before you buy a house (in addition to paying off all your consumer debt). When you don’t have an emergency fund, any unexpected expense that pops up can become a crisis. But with an emergency fund, an unexpected expense becomes nothing more than an inconvenience. 

So, when you’re figuring out how much house you can afford, don’t forget to factor saving for emergencies into the equation. Source

NMLS ID 394275 | DRE ID 01769353