What More Homes with Price Cuts Means for You

If you've been wondering what's going on with the real estate market lately, you're not alone. After several years of intense competition and bidding wars, the tide is shifting and today's buyers are seeing more negotiating power than they've had in a while.

According to data from the real estate analytics firm Cotality, around 56% of homes nationwide sold below their asking price as of late 2025. This trend marks a notable change from the red-hot market we've become accustomed to. What's driving the shift? Several factors are at play:

• Inventory is rising. More homes are staying on the market longer, giving buyers more choices. At the same time, some sellers are choosing to pull their listings, up 48% compared to last year, often because their pricing expectations aren't being met.
• Buyers have more leverage. With less competition, buyers are successfully negotiating on price and requesting concessions like help with closing costs or mortgage rate buydowns.
• Affordability is still a challenge. Even with more flexibility in negotiations, high interest rates and increased insurance costs are still hurdles for many would-be buyers.
• The market isn't the same everywhere. Some areas, particularly parts of Texas and Florida, are seeing much higher inventory levels than others, making it even more important to understand local trends.

While it might feel like the market is cooling, that doesn't mean it's stopped. In fact, almost half of homes are still selling at or above list price but here's the key: they're priced right from the start.

If you're thinking of selling, the first two weeks on the market are critical. Homes that are accurately priced in line with current conditions tend to attract more attention and stronger offers, often right out of the gate. Pricing it right helps you make the best possible impression and potentially avoid price cuts down the line.

There are specific market areas that are not experiencing these conditions but it requires a local market expert to identify them.

If you're curious about your local market or considering a move, I'd be happy to share insights and walk you through your options. Whether buying or selling, timing and strategy make all the difference. Download our Sellers Guide.

Answers to First-time Buyer Questions

Buying your first home is an exciting milestone�but it can also come with a lot of questions. From financing and credit scores to mortgage options and closing steps, understanding the process can help you make informed decisions with confidence.

That's why we've compiled straightforward answers to some of the most common questions first-time homebuyers ask. Whether you're just starting to explore the idea of homeownership or getting ready to make an offer, this guide will give you a solid foundation.

How much money will I need to buy a house?
You'll need enough to cover your down payment plus closing costs (typically 2...6% of the loan amount), as well as additional funds for moving and initial home expenses.

How much house can I afford?
Your affordability should consider what you can comfortably pay monthly, not just what your lender approves, using your debt-to-income ratio as a guide.

Do I need a good credit score?
Yes and higher scores help you secure better loan terms; conventional mortgages typically require at least a 620 score, while FHA loans may accept scores as low as 500 with a down payment.

Should I get a 15-year or 30-year mortgage?
It depends on your financial goals. 15-year loans generally cost less in interest over time, while 30-year loans offer lower monthly payments and greater flexibility.

Fixed-rate vs. adjustable-rate mortgage?
Fixed-rate loans offer stable payments, while adjustable-rate mortgages often start with lower rates but can change later.  Choose based on your budget and how long you plan to stay.

Which first-time homebuyer mortgage is best for me?
The best mortgage depends on factors like your down payment, credit, and how long you plan to stay.  Ask lenders to help you compare options, including FHA, conventional, VA, and more.

What documents do I need to qualify for a loan?
Expect to provide ID, pay stubs, tax returns, bank statements, and employment history; lenders need these to verify your financial profile.

Should I get preapproved or prequalified?
Get a preapproval. It's a stronger, verified estimate of how much you can borrow and shows sellers you're serious; prequalification is less formal and less reliable.

How do I get the best mortgage rates?
Shop around. Compare offers from multiple lenders to find the most competitive rates and terms. A small difference in rate can mean significant savings over time.

What should I expect during the first-time homebuying process?
Expect steps like financial preparation, home searching, getting preapproved, making offers, inspections, and closing. Having a knowledgeable agent and lender can guide you smoothly.

While resources like this are a great starting point, one of the smartest moves you can make is to work with a trusted real estate professional. An experienced agent doesn't just help you find the right home; they guide you through every step of the process and can connect you with reputable lenders, inspectors, insurance agents, and other professionals you'll need along the way.

If you're thinking about buying a home, reach out today. I'd be honored to help you navigate your journey with confidence.  For more information, download our Buyers Guide.

Tips to Simplify Capital Gains Calculation When You Sell Your Home

When it comes time to sell your home, one of the most important financial details you'll need to know is your "basis" in the property, that is, the total amount you've invested in the home over time. Your basis determines how much profit you'll report on the sale, which in turn impacts whether you owe capital gains taxes.

Many homeowners are surprised to learn that their original purchase price is just the starting point. Costs for major improvements, certain closing costs, and other qualified expenses can all be added to your basis, helping to reduce�or in some cases eliminate any taxable gain.

Keeping thorough and accurate records of these expenses is essential. Without documentation, the IRS may not allow you to include them in your basis, which could result in a larger tax bill than necessary.

Homeowners who maintain organized records from day one, including receipts, contractor invoices, and settlement statements, are better positioned to take full advantage of the capital gains exclusion and protect more of their home's appreciated value. Good recordkeeping is not just smart planning; it's a powerful tax-saving strategy.

1. Keep Your Closing Statements - Save the HUD-1 or Closing Disclosure from both your purchase and sale�these document your original price, fees, and selling costs.
2. Track All Capital Improvements - Keep receipts and records for upgrades that add value or extend the life of your home (e.g., room additions, roof replacement, new HVAC, kitchen remodel).
3. Separate Repairs from Improvements - Basic repairs (like fixing a leak) aren't included in your cost basis, but capital improvements (like replacing the roof) are. Keep them categorized clearly.
4. Store Records Digitally and Physically - Scan and store receipts in the cloud and keep a paper folder for easy access just in case the IRS ever questions your numbers.
5. Include Purchase-Related Costs in Basis - Fees such as title insurance, recording fees, and certain legal costs can be added to your original basis.
6. Include Selling Costs to Offset Gain - Real estate commissions, legal fees, title charges, and other seller-paid closing costs reduce your capital gain.
7. Remember the $250K / $500K Exclusion - If you've owned and lived in the home for 2 of the last 5 years, you may exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gain.
8. Document Your Time in the Home - Keep utility bills, driver's licenses, or tax records showing you lived there, in case you need to prove it to qualify for the exclusion.
9. Account for Partial Use or Rental - If you rented out part of your home or used it for business (e.g., home office), that portion might not be excluded; keep good records.
10. Keep a Running Cost Basis Worksheet - Create a simple spreadsheet to track your purchase price + improvements ... depreciation (if any) = adjusted basis.
11. Don't Forget Depreciation Recapture - If you claimed depreciation (e.g., for a home office), you may have to recapture that at sale�note those deductions separately.
12. Save Tax Prep Records Year to Year - Keep copies of past returns showing home-related deductions or improvements that impact your cost basis.
13. Check for Disaster Relief or Grants - If you received disaster aid or energy tax credits for improvements, check if they affect your adjusted basis.
14. Review Local and State Rules - Some states have different gain rules or forms; make sure you're familiar with both federal and local requirements.
15. Consult a Tax Pro Before You List - A CPA can help project your estimated capital gain and verify what documents and records you'll need to support your claim.

The better your records, the less tax you may owe. Keeping clear, organized documentation of your home's financial history ensures you maximize your gain exclusion and avoid unnecessary surprises.  Download our Homeowners Tax Guide, as well as IRS Publication 530.