Important points
Beware of red flags. According to Redfin agents, cracks in the walls or foundation, strong odors, and problems with the roof are the red flags most often overlooked by buyers. Let’s do our best to create the home we love. Waiving contingencies and withdrawing an all-cash offer can make your offer more competitive, but it also carries additional risks and may not be appropriate for all buyers. Budget wisely and maintain it well. Most new homeowners spend $1,000 to $5,000 on maintenance equipment alone in the first year, and much more on preventable problems.
Spring is here, which means the housing market is gearing up for its busiest season. Each year, as buyers and sellers emerge from the winter freeze, more homes come on the market, more buyers take tours, and more deals close. According to a previous Redfin report, homes tend to sell fastest and for the highest amount from late March to early May (Wednesday or Thursday).
But in recent years, the undoubtedly busy spring home buying season has become noticeably quieter. Since the peak of the pandemic-era housing market in 2022, soaring prices, rising mortgage rates, and widespread economic uncertainty have created a very slow buyer’s market, with more buyers and sellers holding back and waiting for conditions to improve. As a result, home sales have fallen to historic lows over the past two years, even during the spring, when activity typically peaks.
So what can homebuyers do to win today? Redfin and Thumbtack surveyed and provided answers to hundreds of real estate agents, home experts, and professionals across the country. Their insights reveal what buyers need to know about touring homes, beating other buyers, surviving inspections, and buying with confidence.
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1. Understand what are red flags and what aren’t when touring a home.
Touring a home is likely one of the first steps a prospective home buyer will take. An important part of the touring process is being aware of potential red flags. These can range from small problems such as peeling paint or old carpet to larger problems such as cracked walls or moldy ceilings.
Buyers are less likely to discover potential major problems during a home tour. According to Thumbtack experts, cracked walls and floors are the most overlooked red flag, with 45% of pros saying buyers miss them during tours. This was followed by strong odors (43%) and roof issues (37%).
Redfin in Denver, Colorado “When touring a home, buyers should look out for signs of lack of maintenance that may not be obvious at first glance, such as water stains, uneven floors, strong odors, or cracks,” says real estate agent and interior designer Tamara Mattox Kabat. These don’t necessarily indicate major problems, but they should raise questions. Buyers are encouraged to look inside closets, cabinets, and utility spaces to get an idea of the overall condition of the home.
However, not all issues are major red flags, even if they appear to preclude an agreement on the surface. Thumbtack experts say the most common “scary but manageable” problems they see are plumbing leaks (48%), minor electrical repairs (42%), and drywall scuffs (34%).
2. Outperform your competitors
In a hot housing market, some homebuyers may have to show sellers a willingness to go the extra mile. According to Redfin agents, the most common strategy buyers use to get under contract on a competitive home is to offer a low contingency, with 71% of agents reporting this is the most effective approach. All-cash offers (53%) and strong financing (40%) were in the top three. Note: Waiving contingencies may not be the best strategy for everyone.
In a competitive market where there are more home buyers than sellers (known as a seller’s market), buyers may have to work harder to get a deal. That’s unusual in today’s slow and expensive climate, but some cities in the Northeast and West Coast, particularly Rochester, New York, and San Jose, California, remain deep red.
But even if you’re a buyer in one of the weakest housing markets, like Austin, Texas, some homes sell within days, so buyers should be ready. “Newly built, clean, move-in-ready homes are most likely to sell the fastest,” says Kristin Sanchez, Redfin Premier agent and interior designer in Nashville, Tennessee. “For buyers, that usually means homes in the best condition get the most attention, so it helps to be ready to act quickly when you find a home you like.”
3. Take testing seriously
Failing a home inspection can quickly delay or derail a sale. According to 67% of Redfin agents, roof damage is the most common issue discovered during inspections that leads to delays and cancellations. This is followed by foundation or structural issues (64%) and water damage (30%).
Overlooking red flags can lead to buyer’s remorse and the need for major renovations in the future. This is why home inspections are important for both buyers and sellers. This allows both parties to support a smoother closing and faster sale, reducing the chance of a deal falling through.
“Homebuyers should feel confident in seeking additional inspections and professional opinions during the option period,” explains Brooke Beierman, communications manager at Thumbtack (and recent homebuyer). “They are making big financial decisions and deserve to know the full story.”
4. Budget for maintenance and repairs
Determining how much home you can afford should be one of the first steps in a buyer’s home buying journey. But it’s important to remember that expenses extend beyond the home price and monthly payments, especially on maintenance issues.
According to Redfin agents, most new home buyers spend $1,000 to $5,000 on basic home maintenance equipment in the first year, with a significant proportion spending $5,000 to $10,000 or more.
“Understand your financial situation deeply,” adds Nicole Stewart, a Redfin Premier agent and interior designer in Boise, Idaho. “Understand exactly what you can afford, including down payment, closing costs, monthly mortgage payments, property taxes, insurance, and any maintenance issues that may arise. For example, closing costs alone are typically 2 to 5 percent of the purchase price.”
One way to avoid costly repairs is to stay proactive with your home maintenance. About one-third of Thumbtack experts say water damage from untreated leaks is the most serious preventable problem. This is followed by HVAC replacement due to lack of maintenance (19%) and roof damage due to delayed maintenance (15%).
Final thoughts: Learn the market, find an agent, and trust your instincts
The past few years have been difficult for just about everyone in the housing market, with record high costs, limited supply, and economic uncertainty.
But heading into spring, homebuyers can get a head start by heeding red flags during tours, competing with other buyers, prioritizing inspections and planning ahead for maintenance costs, Redfin and ThumbTack experts say. For more expert guidance, check out Thumbtack’s Spring Home Playbook.
When you’re ready to buy, the first step is to contact an agent to get pre-approved for a mortgage. Then, learn about the local housing market, take tours, meet homeowners, and make an offer when you find a home you like.
