Key Insights

• Buyers need to have their homeowner’s insurance policy in place before a lender will sign off on the mortgage amount.
• With insurance premiums rising and robust policies becoming harder to qualify for, buyers may be more interested in the home factors that contribute to their eligibility.
• As a seller, you should be prepared to answer questions about the home that insurance providers consider.

Congratulations — you have a buyer interested in your house! There’s still a way to go before you arrive at the closing table, but you’ve reached a huge milestone in your home-selling journey. For the most part, the ball is in your buyer’s court. They are working on finalizing the finer details with their lender, which means they are searching for insurance providers to cover their new property.

Lenders require that the buyer have sufficient homeowners insurance before they will sign off on the mortgage amount. But with insurance premiums rising, buyers are asking more questions about the home to help determine if purchasing that property could raise their insurance rates or even prevent eligibility. As the seller, you should be prepared to help answer questions about the home that an insurance company may have as they determine the buyer’s policy and coverage.

Home questions that could impact insurance rates

Here are a few questions about your home that you should be prepared to answer:

• How old is the roof? (The #1 eligibility factor!)
• How old is the furnace?
• Does the electrical system use knob-and-tube wiring?
• What number of amps do the fuses use?
• What is the siding like? What material is used, when was it replaced and what condition is it in?
• How is the plumbing?
• What is the AC system?
• Any major repairs or renovations?

Some of these answers may be included in your disclosures, while others may be uncovered during an inspection or from an appraiser. It’ll also be helpful to the buyer if you provide full documentation of your appliances, systems and any work you’ve had done to them.

Questions about your current insurance coverage

Some buyers may also ask you questions about your current coverage:

• What insurance company do you currently have? How long have you worked with this company? Did you get any additional quotes?
• Have you used any other insurance companies?
• What is the coverage amount for the property and what is the deductible?
• Are there any specific endorsements or riders?
• Have you had any history of claims or denied claims?
• Any history of water damage or flooding?

Get the help of a home expert

Remember that you don’t have to compile, communicate and manage this on your own.If you have any questions or are ready to start a home search of your own, reach out.

Key Insights

• Knowing the average lifespans of your systems can help you plan for repair and replacement.
• When it comes time to replace a system, there are signs to look out for.
• New options in HVAC are on the market and worth exploring.

Does it take forever for your shower to heat up in the morning? Does your air conditioner seem to be lagging in the heat of summer? It can be difficult to know when your home’s systems are in need of repair or replacement.

Here are general guidelines for how long your water heater and HVAC systems will last — and how you can tell it’s time to replace your furnace, central air and water heater.

How long does a water heater last?

Even with regular maintenance and servicing, your water heater will need to be replaced over time. And while there are some newer alternatives on the market (heat pump and solar), tankless and tank water heaters are most common. Typically, tankless water heaters last around 10 years, while tank water heaters (which are powered by electricity or gas) last six to 12 years.

Keep in mind, these numbers provide an estimated lifespan for your water heater. However, with due diligence (and possibly a little luck), your water heater could last much longer than this average life expectancy.

Signs that a water heater needs to be replaced

As with any appliance, your water heater will require replacement after years of working. Keep an eye out for the most common signs your water heater is on its last legs, even before your showers run cold.

Possible signs that your water heater needs to be replaced include:

• The age of your appliance
• Signs of rust or oxidation
• Improper draining
• A leaking tank
• Water that never gets hot, even when it runs for an extended period of time

What to know if you’re replacing your water heater

Is your water heater nearing the age of replacement? Whether it’s completely out of order or you think it’s about to quit, there are some things you should know when replacing your water heater:

Consider whether a tank or tankless water heater is right for you.

• Keep in mind that tankless water heaters may be more efficient than tank water heaters — they may take up less space, last longer and save energy.
• If you’re building a new construction home or adding on to your existing property, a tankless water heater could also be less expensive.

Ensure your new water heater requires the same type of fuel as your previous model.

• Generally, you’ll want to replace an electric water heater with a new electric model; the same applies for replacing a gas water heater with a new gas model.
• Sticking with the same fuel and type will minimize your expenses and avoid the need to retrofit your plumbing and electrical systems.

Search for an appliance with a longer warranty period.

• Water heater warranty coverage typically spans 3 to 12 years.
• Choose an appliance with a longer warranty period for extended protection.
• You might spend more upfront for a longer-warranty model; determine whether the warranty benefits are worth the cost for your home.

How long does a furnace last?

Changing your furnace filters and keeping the unit clean will help to increase the longevity of your central heating system. However, the average furnace needs to be replaced after about 15 to 20 years — depending on the model, maintenance and usage.

Remember, this data is an overview of a typical furnace lifespan and your unit may exceed these numbers or need to be replaced sooner. Every furnace is unique, but during the first 15 years of a furnace’s life, it’s usually more cost-effective to repair than replace the appliance. Over time, furnaces tend to wear down. So, around the 15 to 20-year mark, most furnaces are due for a complete replacement.

Signs that a furnace needs to be replaced

Aside from just noting the age of your furnace, pay attention to these key indicators that your furnace needs to be replaced:

• Rising utility bills
• Difficulty finding replacement parts
• Uncomfortable temperature or uneven air distribution
• Strange noises
• Presence of carbon monoxide
• Dry or dusty home

What to know if you’re replacing your furnace

Are you ready to replace your furnace today, or are you just planning for the future? Take these recommendations into consideration before your heating system dies out — and as you shop around for a furnace replacement.

Choose the right size furnace for optimal efficiency.

• The right size furnace will produce and distribute heat more evenly throughout your home.
• A furnace that’s too small won’t be able to heat your home during the colder months, whereas a furnace that’s too large for your space will likely cost more and waste energy.
• Choose a furnace with size specifications that meet your space. A reputable contractor can help calculate this number.
• Check the annual fuel-utilization-efficiency (AFUE) rating to determine how efficient a gas furnace is — a larger number (measured in a percentage) reflects a more efficient furnace.

Consider green appliances and watch your utility bills go down.

• Modern furnaces generally pollute less than older models.
• A new furnace can help offset previously high energy bills, as they are now manufactured to be more energy-efficient.

How long does an air conditioning system last?

Typically, the most reliable air conditioning systems last an average of 15 years, assuming the air conditioner is used for about five months out of the year. With this in mind, it remains important for homeowners to properly maintain their air conditioning systems in order to optimize the lifespan of the device.

To keep your home comfortable and cool throughout the warmer months, it’s necessary to invest in a quality air conditioning system. And you’ll want to know the common signs that your air conditioner needs to be replaced before your current system goes out.

Signs that an air conditioning system needs to be replaced

If you have an aging air conditioning system, look out for key signs that your air conditioner needs to be replaced. In addition to reaching the 15-year mark, your air conditioning system could be hinting at replacement with these signals:

• Growing energy bills
• Repair or spare parts cost nearly half the amount of a new air conditioner
• Uncomfortable temperature or uneven air distribution
• Strange noises like grinding or squealing
• Unusual smells from dust or mold buildup
• Poor indoor air quality

What to know if you’re replacing your air conditioning system

Modern air conditioners are built to last, which could result in a longer lifespan than their older counterparts. If you’re ready to switch over to a newer air conditioner, be sure to consider these central air conditioning insights.

Find an air conditioner that meets your home’s requirements.

• As with a new furnace, you’ll want to select an air conditioning system that is the right size for your house. (Keep in mind that because of technology advancements, it may not be the same-sized system that you already have.)
• You might purchase a smaller air conditioner if your home is more efficient than it used to be, or you may need to invest in a larger air conditioning system if you’ve made home additions.

Negotiate an air conditioning maintenance plan.

• All air conditioners require regular inspections and occasional services.
• Settle on a repair discount or warranty agreement when getting a quote for your new air conditioning system.

Don’t just replace your air conditioner, upgrade it!

• Search for a more efficient air conditioning system to cool your home and relieve your wallet.
• Consider installing an air-source heat pump.
• A higher SEER (seasonal energy-efficiency rating) typically indicates lower energy costs; aim for an air conditioner with a SEER of 15 or more.
• To further minimize your energy bills, program a smart thermostat to work in conjunction with your air conditioning unit. Adjust your temperature to a warmer setting during work or school hours, when your home is unoccupied.

Thinking of making a move?

Your home systems provide the necessary comforts to allow you to enjoy your living space year-round. If your living space isn’t measuring up to your expectations in other ways, it might be time to consider reaching out to see what your selling and buying options are in today’s market.

Key insights:

• Many of today’s buyers are paying close attention to fluctuating interest rates.
• Serious buyers who are ready to make offers on homes can consider “locking in” their interest rate as a way to protect against an unexpected (and unwelcome) increase in rates.
• Programs are available to help homeowners make the most of their home buying budget.

With ultra-low interest rates firmly in the rearview mirror, many buyers are paying close attention to fluctuating rates, understanding that even a fraction of a percentage point can add up when it comes to a home purchase. To maximize their buying power, today’s buyers might consider the option to “lock in” an interest rate. By locking in interest rates as they search and bid on properties, buyers can gain peace of mind and hedge against rising rates.

Here’s a quick primer on how that works.

What does it mean to lock in your interest rate?

While every mortgage lender may have a different process for locking in interest rates, borrowers can often lock in a rate at the same time that they are pre-approved for a home mortgage loan. Pre-approval essentially means that a lender has reviewed your financial documents and credit and deemed you worthy of a loan for a certain amount and on certain terms. Because a hike in interest rates could impact the buying power of a borrower, some lenders (like Prosperity Home Mortgage) offer the rate lock alongside the pre-approval letter, so that eligible buyers can set their budget and not be impacted by rising rates during their search.

Are all buyers eligible for a locked interest rate?

If a mortgage company offers borrowers the option to lock in their interest rate, the borrower must typically meet certain criteria. There will usually be a set period of 60-90 days for the lock¹, and it would be available to borrowers pursuing a certain type of loan program². Borrowers pursuing a jumbo, conventional or government fixed-rate loan would be eligible (provided they meet all other criteria as well).

At Prosperity Home Mortgage, the Lock, Shop & Home program offers eligible buyers the option to lock in their interest rate:

• If they are pre-approved through the HomeSURE Advantage® program³.
• If they request a jumbo, conventional or government fixed-rate loan program.
• For 90 days, as they search for a home. (Longer lock periods may be available².)

What if rates go down after I lock in my interest rate?

If rates happen to go down after you lock in your rate, you may worry that you made the wrong decision to lock in early. Some mortgage companies, including Prosperity Home Mortgage, offer participants the opportunity to “float down” to the current rate one time during their search. This means that borrowers have the peace of mind of knowing that their rate will not go up, but it may go down, which would only increase their buying power.

I plan to build a house, and a 90-day lock won’t work for me. Do I have any options?

Yes, many mortgage companies recognize that those on a building schedule will not benefit from a short-term rate lock. Some mortgage companies, including Prosperity Home Mortgage, offer a longer rate lock for those who are pursuing new construction financing.

Borrowers using Prosperity Home Mortgage’s Builder’s Assurance program, for example, are able to lock in their rate for 365 days⁴ if they are:

• Building a new construction home⁵.
• Pursuing a conventional, 30-year fixed-rate loan for $705,000 or lower.
• Planning to reside in the home as their primary residence.

As with Prosperity Home Mortgage’s Shop, Lock & Home program, the Builder’s Assurance loan program allows borrowers a one-time float-down⁶ to the current rate during their 365-day program.

How can I figure out which program is right for me?

Because most rate-locking programs only last 60 or 90 days, it’s important that you don’t lock in your rate before you’re truly ready to search for and purchase a home. Before you decide on rate locking or a certain loan program, it’s in your best interest to speak with a professional. You don’t have to figure any of this out all alone.

For no-obligation and no-pressure insights on the next best steps you should take, reach out. We can walk you through the steps you’ll need to take to keep moving forward.

<sub>1. Lock, Shop & Home program is NOT available for bond, jumbo, or renovation loan programs.
2. Interest rate lock available up to 90 days. Longer lock periods may be available. Additional fees may apply for longer lock periods.
3. HomeSURE Advantage® is not a final loan approval. A Commitment Letter is based on information and documentation provided by you and a review of your credit report. The interest rate and type of mortgage used to approve you for a specified loan amount is subject to change, which may also change the terms of approval. If the interest rate used for credit approval has changed, you may need to re-qualify. Information provided by you is subject to review and all other loan conditions must be met. After you have chosen a home and your offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment. Additional documentation may be required.
4. Upfront fee will be due at the time of rate lock and is eligible to be fully refunded at closing.
5. Eligible for permanent financing only. Temporary financing for new construction is not available.
6. Interest rate is eligible for a one-time float-down to a current market rate within 60 days of closing. Interest rate may not float-down within 14 days of the closing date.
Prosperity Home Mortgage is an affiliate of Edina Realty. See Affiliated Business Arrangement Disclosure Statement</sub>

Key insights:

• Historically, home sellers invested in improvement projects before listing to generate more interest in their property.
• Today’s sellers hold a keen advantage in the market, so they should be sure to update only what is necessary before listing their home for sale.
• Data shows that some of the least expensive projects — such as a new garage door or a new front door — can have the greatest impact on a sale.

You’ve likely seen the headlines: It’s a seller's market, which means that they hold a big advantage in today’s market. With this news, you may not plan to update anything on your property before you list it for sale. If your home is in the right neighborhood and in good condition, this may be just fine! But if your home is outdated, you may get an even higher bid if you give it a little polish before selling.

But which projects can have the biggest impact for sellers? Shouldn’t some updates be reserved for homeowners who plan to stay in their homes and enjoy them for a few years?

These are the questions we asked as we dove into the 2024 Cost vs. Value Report (www.costvsvalue.com). This comprehensive report details the cost and value of home improvement projects across the country, and it even breaks the data out by region and city.

Based on that report, here are the projects Twin Cities homeowners should take on if they want to recoup the most on their initial investment.

1. Garage door replacement

Cost: $4,803
Resale value: $6,730
Cost recouped: 104.1%

When it comes to home updates, practicality can’t be beat! A new garage door is a solid investment, as it’s not something that’s necessarily an exciting update for potential new buyers. A new garage door can help with home security, energy savings and maintenance costs. Plus, it’s a great opportunity for homeowners to boost curb appeal and improve aesthetics!

Keep your current motor and replace the door with a four-section, galvanized steel version with pinch-resistant, thermal sealing and new tracks. A double coat of industrial paint and a lifetime warranty will help prevent any issues down the road. One note: if you’re adding a garage with top panel windows (and you should!), make sure they are ½ inch insulated frosted glass for weather proofing and security.

2. Steel entry door replacement

Cost: $2,409
Resale value: $2,866
Cost recouped: 119.0%

Just like a new garage door, a new entry door made of steel is a sound investment as it’s a low-cost renovation that adds security, helps save energy and ups the curb appeal.

Replace your current door with a steel version that’s factory finished with the same color on both sides and has a dual-pane half-glass panel. New door jambs and lockset complete the project.

3. Manufactured stone veneer

Cost: $11,748
Resale value: $11,617
Cost recouped: 98.9%

If you’ve seen new construction homes over the last few years, you know that partial stone veneers are all the rage. Current homeowners can also freshen up an aging exterior by adding a stone veneer accent to the bottom third of their home.

To complete this project, you’ll first remove the bottom third of siding from the street-facing side of your home exterior, then replace this area with a stone veneer, including sills, 40 corners, an address block and a detailed faux-stone archway around the front door. The installation also includes protection against water damage and corrosion.

You’ll be amazed at how this easy stone addition gives your home’s exterior a modern facelift!

4. Minor, mid-range kitchen remodel

Cost: $28,132
Resale value: $22,764
Cost recouped: 80.9%

A modest kitchen upgrade can better maximize space, increase accessibility and provide enough of a cosmetic improvement to bring a dated kitchen back to life.

Replacing a number of key appliances, cabinet/drawer faces and hardware, along with cost-effective flooring and counters and a fresh coat of paint on walls, trim and ceiling can offer buyers a blank slate that showcases the functionality of a crucial space.

Voila! A not-too-expensive update that saves you the cost of all new cabinetry or high-end finishes.

5. Fiberglass grand entrance

Cost: $11,892
Resale value: $8,620
Cost recouped: 72.5%

Replacing a standard entry door with a grander entrance can add a lot of curb appeal to your property. Fiberglass’s unique material keeps it energy-efficient and durable while being highly customizable, even able to mimic wood grain.

Start by removing the standard entry door and then cut and reframe the door opening for a larger door with dual sidelights. Customize the entrance with upscale finishes like color, threshold, lockset and decorative half-glass with sidelights.

An upscale fiberglass entry adds a big “wow” and should only take a day to complete.

Want more info on the ROI of home projects?

We’ve detailed the five projects with the highest return on investment, but the 2024 Cost vs. Value Report also shared the five projects with the lowest ROI in the Twin Cities. If you plan to move soon, you may want to avoid adding an owner’s suite or a brand-new bathroom.

Here are the home improvement projects with the lowest ROI locally:

• Upscale owner’s suite addition (18.0% recouped from budget of $370,214)
• Upscale bathroom addition (26.0% of $113,165)
• Midrange bathroom addition (26.6% of $64,868)
• Midrange owner’s suite addition (27.9% of $174,980)
• Upscale major kitchen remodel (31.1% of $161,085)

Wondering what other remodeling projects were reviewed for the Minneapolis region? Check out the complete 2024 Cost vs. Value Report for our area.

Get expert guidance before you sell

Keep in mind that it may be smartest to take on higher-cost, lower-ROI projects only if you plan to be in the home for a few more years. After all, your own enjoyment of these projects can certainly count as a return on your investment!

However, if your updates are solely intended to sell your home faster or for more money, reach out for advice on the most cost-effective, impactful changes you can make to your property.

Complete data from the 2024 Cost vs. Value Report can be downloaded free at www.costvsvalue.com, Distributed by Remodeling by JLC, ©2025 Zonda Media, a Delaware corporation.

Key insights:

• Prepare for last-minute showings and the need for heavy cleaning by continually picking up your space before you leave.
• Consistent, quick cleaning throughout the day will help keep your home in show-ready condition.
• Make sure you only start projects if you have enough time to finish them. If you don’t have the time, hide laundry, mail and other projects.

As a seller, you want to show buyers the absolute best version of your home with super-clean surfaces and immaculate staging. But that can be a daunting task when you’re continuing to live in your home, especially when trying to preemptively plan for last-minute showings.

Follow this checklist to keep your home in show-ready condition so you can feel confident should a last-minute showing come your way.

“Every time” tasks

Keep up with your home by ensuring that you do these tasks every time you use an item.

Bedrooms

• Make the bed every morning — including fluffing pillows and strategically laying blankets.
• Put laundry in a covered hamper so it’s not visible to the naked eye.
• Ensure all night-time items like books, reading glasses and more are stored away.

Bathrooms

• Keep your toilet paper looking nice.
• Make sure the toilet is clean after every use and put the lid down.
• Wipe down the sink, counter and faucet after use.
• If needed, clean the mirror.
• Store all items away after use.
• Fold hand towels nicely.

Kitchen and dining

• Push in chairs after sitting.
• Wipe down counters, sinks and surfaces after use.
• Wash dishes or run the dishwasher if you have time.

Family and sitting rooms

• Fold blankets and fluff pillows once you get up.
• Put away any books, remotes, games, etc.

Mud and laundry room

• Hang jackets and bags — make it a rule that each family member gets only one of each and everything else finds a home elsewhere.
• Take off shoes right outside the door to prevent any dirt or debris from coming in, and line them up nicely or tuck them away. Again, only one pair per family member.

“Before you leave” checklist:

• Do a quick run-through of the house and put away any wayward toys or personal items, and spot clean any missed areas.
• Collect trash throughout the house (don’t forget the bathrooms) and take it out.
• Check the washer, dryer and dishwasher for items. If there are any, hide them away in a closed bin, quickly fold and put away laundry or wash a few dishes.
• Wipe down microwaves, fridges and high-traffic surfaces that show smudges.
• Run the garbage disposal for a few seconds.
• Turn on a diffuser or spray a deodorizer to neutralize any scents.
• Put away any office papers, mail and other personal items that could be lying around.
• Lock away any important documents, jewelry or other sensitive items.

A few extra tips:

• Do a load of laundry and run the dishwasher nightly, even if it’s only a few items.
• If it’s not feasible to hand wash dishes or complete a cycle before you leave for the day, switch to disposable items.
• Consider investing in bins, folders and opaque boxes to quickly store items, hide messes and keep things organized without much effort.
• Start a “closing time” list to stay on top of messes and cleaning tasks.
• If you can, consider hiring a weekly cleaning service and take the deep cleaning tasks off your plate.
• Create a “go basket” where you can quickly stash items and take them with you in your car; put them away when you return home.

One final tip is to print off our checklist, put it in a transparent sleeve and tape it to your door, then check off items with a dry-erase marker before you leave. Once everything is complete, take the checklist with you and re-hang it when you get home.

Keep your home looking pristine

While these checklists may seem overwhelming, remember that everything is parsed out to ensure even the most minor task is given attention. All-in-all, the “every time” checklist will only add a minute or so to your routines and the “before you go” checklist should only add about 10 minutes worth of tasks.

For more decluttering, staging and selling tips, call for a consultation today.

Key insights:

• Before you sit down at the closing table, do a final walk-through to ensure that you are fully aware of the condition of your soon-to-be new home.
• Schedule your final walk-through as close to closing as your schedule allows, but try to keep it within 24 hours of closing.
• Check all appliances, plumbing, light switches and outlets to make sure everything is working properly.
• Don’t be afraid to ask the sellers for information about the home. Anything from garage codes to paint colors is fair game!

Congratulations! Your offer has been accepted and you’re on your way to the closing table. The walk-through is your final opportunity to examine the home before you own it. Take your time and look at everything. Below, we outline nine ultra-quick tips for completing a successful final walk-through of your new home in Minnesota or western Wisconsin.

1. Schedule the walk-through

Schedule your walk-through as close to closing as you can, but try to make it within 24 hours before closing.

2. Check appliances

Turn on the dishwasher and stove, run the microwave, check the ice machine and flip on the garbage disposal to make sure you don’t have any home improvement surprises on move-in day.

3. Run the water systems

Next, run the faucets in the kitchen and bathrooms and check for leaks. While you’re at it, flush every toilet so you can rest assured that your new home doesn’t have any plumbing issues.

4. Check the electricity

Test your electrical systems by turning on every light switch. Test each outlet using a small outlet tester (available at any hardware store) or plug your mobile device into each outlet to see if it charges. (Pro tip: This is an excellent way to keep kids occupied if they attend your closing with you.)

5. Assess heating and cooling

Here in the Midwest, not many days go by when we don’t need a heating or cooling system. Be sure to turn them on during the walk-through.

6. Test every entry point

Test each window, door and sliding glass door to make sure they open and shut all the way. If the windows are old, be sure their locking mechanisms still work without too much trouble.

7. Check fixtures

While most sellers won’t strip the home of its fixtures, owners occasionally take tokens with them when they go. Check that fixtures like light switches, built-in appliances and any personal property the sellers agreed to leave behind are still there.

8. Look for seller “gifts”

In addition to checking for missing fixtures, you should also check for surprise presents from the previous owner. Peek into all storage closets, eaves and the attic to ensure the previous owner has removed their belongings. Don’t forget to check the rafters of the garage.

9. Get home gadgets and ask for resources

Be sure the seller has left you with all the home’s gadgets – like garage door openers and ceiling fan remotes – and resources like the home security code, garage code, and appliance manuals. Ask for any records on paint colors, carpet selections and flooring just in case some touch-ups are needed. You may also want to ask for a list of contractors who have worked on the home, especially if it has undergone recent updates. When it comes to buying a home, you can never have too much information.

Get ready for closing

Once the walk-through is complete, you are officially ready for closing! And of course, if you have any questions or concerns, reach out anytime.

Key Insights

• Homeowners have record-high equity right now.
• A REALTORⓇ can help you determine your home’s market value.
• Buyer demand and home sale prices offer great opportunities for sellers.

If you’ve been putting off a home sale, it might be time to revisit your goals and get serious about capitalizing on record-high home equity.

What is home equity?

In a nutshell, home equity is the difference between what you owe on your mortgage and what your home is worth today. Your home equity grows when:

• You pay off more of your mortgage (and your home’s value stays steady)
• The market goes up and your home’s value increases (thanks to supply, demand and home price appreciation)

According to Bankrate, the average mortgage-holding homeowner had approximately $311,000 in equity near the end of 2024. That means the average seller can reinvest a large portion of that equity into a down payment on a new home and continue building their wealth.

How do I know what my home is worth?

How much a home is worth is always market-driven, which means its value is directly tied to what a buyer is willing to pay for it. And that price is influenced by a variety of factors, including the supply of homes for sale, the buyer demand on that supply, the location and condition of the property and other factors. There are a number of ways to determine how much your home is worth in today’s market:

• Property’s estimated tax-assessed value: This is determined by a county assessor using historical sales data and mass appraisal techniques in order to determine your property taxes. It can be up to two years old and will not take into consideration the unique attributes of your property.
• Automated online estimates: A computer-generated analysis compares your home to similar properties nearby that have recently sold. These comparisons are based on factors like a home’s size, location, condition and amenities and are determined by an algorithm. They do not take updates you’ve made or your home’s special features into consideration.
• Professional comparative market analysis: A licensed REALTORⓇ visits your property to do a detailed analysis of your home’s exterior, interior, updates you’ve made and its condition. They will review current market dynamics, comparable properties that have recently sold in your area, neighborhood amenities and more.

When it comes to determining your home’s market value, the more details you provide, the more accurate your valuation will be – and pricing a home right from the start is the best way to attract top dollar.

When is the best time to sell?

The old investment axiom also holds true when it comes to real estate, and that is, time in the market is much more important than timing the market. Simply put, owning a home and watching it appreciate over time is the best and most reliable investment in your future. In fact, in the last five years, the typical homeowner has built up $147,000 in housing wealth, according to the National Association of REALTORS.

Picking the right time to sell your home is personal. It should take into account your goals, finances and lifestyle. And for many homeowners with record-high equity, now might just be the perfect time to make your move.

Need a helpful resource?

Sometimes, having the help of an expert can make all the difference when it comes to understanding where the opportunities are for you. If you’re ready to take advantage of the current seller’s market in many areas – and capitalize on your home equity – reach out today.

Key Insights

• Mortgage interest rates determine your monthly payment, as well as what you’ll pay for your home in its entirety.
• Your mortgage interest rate is mainly determined by the 10-Year Treasury Note and the mortgage bond market.
• Having a good credit score and borrowing history will allow you to get the best rate possible.

Buying a house is one of the largest financial investments many people will ever make. Therefore, it makes sense that when people buy a house, they want to get a good deal. And one of the factors in determining how much you will pay for your home is the mortgage rate.

The selling price of the home is easy to understand, but it’s also important to understand mortgage interest rates and how they can affect your finances in the short and long term. By factoring in the interest rate, you will determine your monthly payment, as well as how much you will pay for a home over the lifetime of the loan.

What are mortgage interest rates?

Mortgage interest rates (often simply referred to as mortgage rates) change depending on how the economy is faring at any given time. However, the mortgage rate you’re offered by your lender will be impacted by factors like your credit score, income and other financial circumstances.

You can get a rough idea of what your monthly payments would be, as well as the total cost of your mortgage, by using a mortgage calculator.

Different types of mortgage rates

There are different kinds of mortgage rates available to buyers, including an adjustable rate mortgage and a fixed mortgage rate.

• Adjustable Rate Mortgage (ARM): The interest rate will change at set periodic times according to the original benchmark index.
• Fixed mortgage rate: The interest rate will stay the same for the entire life of the mortgage.

A fixed mortgage rate gives you security in knowing what your costs will be, while an adjustable rate mortgage allows you the opportunity to potentially receive a better rate in the future or could lead to higher monthly payments over time. Talk to your mortgage advisor about what your options are and what makes the most sense for your finances.

What impacts mortgage rates?

Rates have varied incredibly over the years, with 30-year fixed-rate mortgages reaching a high of 18.3% in the 1980s. Conversely, rates went as low as 2.6% in 2020 during the pandemic. With such a large swing, how can buyers predict mortgage rates?

While some look to the Federal Reserve to indicate if mortgage rates increase, decrease or remain the same, it’s more accurate to look at the 10-Year Treasury Note. The federal funds rate looks at short-term lending, but the 10-Year Treasury Note looks at long-term loans. Because of this, “the 10-Year Treasury has a significantly larger and more direct impact on mortgage rates than the federal funds rate,” according to Fannie Mae.

The rate on the 10-Year Treasury Note is determined by what shorter-term interest rates are predicted to be, plus a premium to compensate lenders for the risk associated with the bond. Meanwhile, the short-term interest rates are based on the expectations of monetary and fiscal policy, economic growth and inflation.

Should you wait for favorable rates?

When rates are low, home affordability increases. Conversely, when rates go up, the amount that buyers can afford decreases. It’s natural that home buyers would want to get as much home as they can for their money or pay the least amount for their dream home as possible. However, waiting for favorable rates is not necessarily a good real estate strategy.

Not only is it possible that you’d lose out on a property you love, but you’re also losing out on any equity that your home would make while you’re waiting. There’s an old REALTORⓇ adage, “Focus on time in the market, not timing the market.” And it’s true!

According to Keeping Current Matters, if you purchased a $400k home in January 2025, you could build more than $83,000 in household wealth over the next five years.

Get in touch with an expert

If you’ve been putting off entering the market due to rates, now is the time to connect to see what’s available and how you could benefit from acting now.

If you have any questions about mortgage rates or how they could impact your homeownership journey, reach out to be put in touch with a local home mortgage consultant.

Key Insights

• Keep track of your manuals, aesthetic choices and home improvement efforts.
• Know your local codes, rules and responsibilities when it comes to your home and your neighbors.
• Ensure that you keep up on home maintenance to prevent costly issues from occurring later.

Owning a home is a big responsibility. Whether you are born to be an ideal homeowner or need to adopt new traits in preparation for purchasing, the following traits showcase what it means to be a responsible homeowner.

1. They keep track of all home changes and documents

Life is so much easier when you know what color paint you used in the mud room, especially when the kids cause scuffs and it needs a touch-up. Keep a running list of paint colors, carpet, flooring and everything in between.

In addition to all your aesthetic choices, you should record any updates you make to the home, like installing a new furnace or updating a bathroom. While it might not be on your mind right now, you may want to sell in the future, and having all that information together will save you a lot of time when it comes to listing.

A spreadsheet on your computer or a list in your phone is a simple way to keep track of all your updates and aesthetic choices you’ve made so you don’t have to dig through your records later.

Speaking of digging through records, you’ll probably need those manuals at some point in time, as well as all your HOA and tax documents. While a filing cabinet always works, you can also digitize all your documents (most are listed online) to free up some space and prevent clutter from building up.

2. They know their local codes and policies

Are there any street parking limits? Is there a noise ordinance? Do you need a permit to hold a party or burn something in your backyard? Your local ordinances and city policies are specific and often not communicated as thoroughly as you might like. It’s your responsibility to do some detective work and see if there are any limits, rules or guidelines that you need to follow.

Likewise, your HOA may have parameters for your neighborhood. Some may implement rules like what kind of shed you can have in the backyard or what color you can paint your home. It’s better to find out what those rules are before you start a project so you don’t run into issues later on.

Knowing what you can and can’t do, as well as what you need to get approved ahead of time, will prevent you from wasting time, money and creating potential conflict with your HOA, city or neighbors later on. Remember, being a good homeowner often coincides with being a good neighbor.

3. They know what their responsibilities are

When it comes to your neighbors, you want to have a good relationship and be able to rely on each other. Start off by knowing what your responsibilities are when it comes to your shared spaces with your neighbors.

Take the time to learn things like what areas are yours to shovel and find out what you need to clean up after a storm when trees have fallen. Exchanging phone numbers and setting expectations with your neighbors can also be helpful in establishing boundaries and creating helpful relationships. It’s always nice to have someone to call if raccoons are getting into your trash or a sprinkler head is on the fritz and leaking water onto the road, and being a good neighbor can help you keep up with your home.

4. They keep up on maintenance

Just as shared spaces impact both you and your neighbor, so does your home. An overgrown lawn or sagging roof can cause neighborhood values to drop. Some neighbors may even be bothered enough to get the HOA involved. The best way to avoid any conflict is to stay on top of your curb appeal and how your home looks from the street. Having a beautiful landscape doesn’t have to be labor-intensive (though there is the exercise bonus you get from all that hard work), but it is important to have harmony with your neighbors and keep your home presentable.

Just like your exterior, being a good homeowner means keeping up with all home maintenance. Cleaning, keeping clutter manageable and staying on top of leaky faucets, warped flooring or other structural issues is key to stopping issues from becoming full-blown problems and costing you extra time and money down the road. Create a list of seasonal projects (like cleaning your gutters in the fall) to stay on top of necessary upkeep and manage your home efficiently.

5. They love their home

The best thing you can do as a homeowner is to love your home. The more you love it, the more you’ll want to take care of it, so do what you need to in order to make it your own!

Make updates like installing smart, efficient home devices that make caring for your home easy and effortless. Paint the walls, make renovations and style it accordingly to make your four walls a haven and oasis.

Ready to become a homeowner?

Being a good homeowner comes down to being responsible and caring for your property. If you’re ready to take on the responsibility and joy of being a homeowner, reach out and start your search today!

Key insights

• When debating between a condo and a house, it’s important to consider the pros and cons of both.
• Consider how important it is to have control over upkeep and renovations, especially as they relate to timing and money.
• Think about your current lifestyle and how a home or condo can meet your needs.
• Determine how much you have to spend and if your living situation may change in a few years. Be sure to take all costs into consideration!

You’re thinking of buying, but is it time for a condo or a house? Owning a condo can mean a little less autonomy than owning a single-family home — but for some, less control (and less upkeep) can be a good thing.

Here are the pros and cons associated with property control, lifestyle preferences and your personal timelines as you search for a condo or house. Use these insights to help you determine what style of property will be best for you and your family.

Control of the property

House Pro: When you own a house and the land it sits on, you get to make decisions on upkeep and renovations. You can budget what’s best for you and maintain control over what is fixed, how it’s fixed and when it’s fixed. (One notable exception to this rule: If you live in a housing development of single-family homes with a homeowner’s association (HOA), you may have to abide by some general guidelines related to exterior updates and condition, lawn maintenance and holiday decor).

House Con: If something unexpected happens, no one is going to help you. It’s your sole responsibility, and in some cases, the repairs or renovations may be costly. In order to plan for this, you may have to create and manage a savings account that is meant to be used for emergency repairs (like your furnace going out in January) or long-term maintenance you can anticipate (like new siding).

Condo Pro: When you own a condo, the homeowners’ association, or HOA, manages the repairs and renovations for the complex’s exterior and shared areas. They’re tasked with budgeting the cost of necessary updates in advance, and they use your condo HOA fees to pay for them. This means that if the hallway carpet needs to be replaced or the elevator breaks, it isn’t your sole responsibility to fix it — the HOA will manage the repairs using the fees you and the other unit owners have already paid.

Note: In some cases, the HOA may have to charge a special assessment to pay for large repairs they didn’t plan for or emergencies that can’t be covered by their reserve fund. This means that you may have to pay more than your HOA fees on occasion.

Condo Con: Unless you’re an influential member of the HOA, you won’t get to choose which projects are deemed necessary by the HOA. This means that if there’s an expensive exterior issue that only affects your unit, you may have a harder time convincing the HOA to fix it. And even if a project you want is taken up, you most likely won’t have any say in design, color, material or other aesthetic choices.

Plus, at some point, your fees will likely be used to pay for updates that don’t directly affect you. You may watch from your first-floor unit as the HOA drains the reserve fund for a new roof, or they may decide to add a swanky new fitness room that you’ll never use. This can be frustrating, and the best way to deal with that frustration is to remind yourself that if nothing else, these repairs will help you upon resale of your unit.

Last, it’s important to remember that what happens within the air space of your individual condo unit is your responsibility. For example, if you own a washer and dryer set within your unit and the machines break, you will (typically) still be on the hook to repair or replace them. Some HOAs may cover certain appliances or services within your unit, but condo owners are still homeowners, which means you should anticipate paying for repair and upkeep costs within individually owned units.

Questions to ask yourself:

• Would you like to take on occasional home projects and call the shots about renovations, budgets and upgrades? Is the promise of control worth the time and money you’ll spend maintaining your property?
• Alternatively, would you rather spend minimal time on property updates and facilitating emergency repairs while also relinquishing some of the control over your property?

Lifestyle insights

House Pro: If you’re a renter who is ready to take the plunge into homeownership, you may be excited to have private space that is entirely under your control. Paint a mural, knock down some walls, add a chicken coop in your backyard. Provided you have the money and the motivation (okay, and the permits), the sky’s the limit.

House Con: You’ll quickly find that your new house comes without any built-in amenities and services — and that these bills can add up when you pay for them on your own. Whether it’s paying for a pool or gym membership, or setting up waste and water utilities, owning a home can have some seemingly hidden expenses that can add up if you don’t plan ahead.

Condo Pro: As a condo owner, you can take advantage of many shared amenities without putting any time into them. Enjoy a hot tub soak or pool day without fretting about chlorine testing and draining. Host a summer party on the rooftop garden deck, even though you’ve never tended to the plants or swept the patio. One caveat: The size of your condo development can impact just what the HOA pays for, and what you decide to divide up among condo unit owners. For example, a condo building with only four units may expect the homeowners to take an active role in cleaning shared spaces or completing yard maintenance in order to save money.

And, of course, remember that if your HOA (or the property management company they hire) pays for plowing or offers underground parking, it may be possible for you to make it through an entire Minnesota winter without breaking out your shovel. Can you put a price on that?

Condo Con: Is that upstairs neighbor running laps? Dropping bowling balls on the floor? Grinding forks in their disposal? Sharing space and walls means that you’ll sometimes be inconvenienced by the noise and curious habits of other condo owners, although HOAs often have rules prohibiting excessive noise.

You’ll also be under the watchful eye of your HOA. While your private unit is typically yours to customize, HOAs can have restrictions on everything from the welcome mats you place in the hallway to the grill you hope to keep on your patio. (So yeah, we can almost guarantee your condo-based chicken coop won’t be approved.)

Questions to ask yourself:

• Do you mind living in a communal setting where you can take advantage of shared amenities and services in exchange for making small talk in the elevators and sharing walls?
• Would you prefer to have a fully private space and manage everything from bills and utilities to gym memberships on your own?

Long-term financial considerations

House Pro: A single-family house has the capacity for major repairs or renovations — including the addition of new bedrooms or a wrap-around deck — that can greatly build its appeal and value over time.

House Con: Big renovations like that deck will cost you thousands of dollars, and you may not recoup the entire cost of the project upon resale.

Condo Pro: Whether you’re entering the real estate market for the first time or are a repeat buyer, you’ll likely find that condos are an affordable home option.

Condo Con: While the price of your condo could be less than a single-family home, the condo HOA fees you’ll pay will greatly increase your total spending as a homeowner. Be sure you understand the full cost of owning a condo before buying, which includes:

• Your mortgage principal and interest
• Property taxes
• Homeowner’s insurance
• Condo HOA fees
• Individual unit repairs and upkeep
• Parking fees, if applicable

House Pro: You have the option to rent out your single-family home if you aren't ready to sell — provided that it is permitted by the local government. (Some cities require that homeowners obtain a license before renting their home.)

House Con: Finding renters for larger homes can be difficult, as the price of the rent can be more than a mortgage of a smaller property. And by renting out the home, you likely won't make big property repairs that would increase the value of the home upon resale.

Condo Pro: If you aren’t in a good position to sell your condo, but want to move out, you may be able to rent it out until the property has built up equity. Whether you find a young professional tenant or lease the condo to your child or another family member or friend, renting a condo can be a great alternative to selling.

Condo Con: Some HOAs don’t allow rentals or they have a quota on the number of rentals allowed within the complex at a given time. If you think you may want to rent your condo unit out eventually, check upfront to see if the complex and HOA allow it. And remember that the rules can change during your ownership.

Questions to ask yourself:

• How much do you have to spend, and what are your long-term goals for owning? Are you hoping for a quick payout or a long-term investment?
• If your lifestyle changes or you need a bigger place to go, do you hope to rent the property out?

Key points and next steps

When making the decision to buy a condo or a house, consider the pros and cons of:

• How much property control you want to have, and whether you’re comfortable outsourcing decisions and repairs to an HOA.
• The lifestyle you are hoping for as a homeowner, which includes the special projects you wish to take on and the interactions you’ll have with neighbors in a shared space.
• Your own personal timeline, including how long you plan to stay in the property and if you’ll need the option to rent it out in the future.

If you’re ready to speak with a REALTORⓇ about touring condos or single-family homes in your desired area, reach out. Together, we’ll explore the advantages of each.