73% of Homebuyers Now Consider Climate Risks—Here’s What You Need to Know
Are climate risks part of your home search checklist? If not, you might be missing critical information that impacts your long-term investment. The Zillow Consumer Housing Trends Report 2024 shows that a growing number of buyers are considering factors like flooding, wildfires, and extreme temperatures when choosing where to buy. In fact, nearly three-quarters (73%) of buyers said climate risks affected their home search. Let’s dive into how climate change is influencing homebuyers in 2024 and what you should consider when looking for a home. 1. Flood Zones Flooding has become a leading concern for homebuyers, especially with increased rainfall and more frequent storms. According to the report, 43% of buyers said they avoided homes in flood-prone areas. This makes sense given the long-term financial risk of flood damage, high insurance premiums, and potential evacuation concerns. Before putting an offer on a home, check if it’s in a flood zone (or ask your agent about this!). The Federal Emergency Management Agency (FEMA) offers online flood maps that you can use to assess risk. Even if the property isn’t required to have flood insurance, it may still be a wise investment. 2. Wildfire-Prone Areas Wildfires, particularly in the West, are another key factor influencing buyer behavior. The report found that 28% of homebuyers are avoiding homes in areas with high wildfire risk. With wildfires devastating communities and pushing insurance rates higher, it’s no wonder that buyers are steering clear of these regions. If you’re considering buying in an area that has experienced wildfires, make sure the property has fire-resistant materials like flame-retardant roofing and siding. Consider investing in a defensible space around the home, such as wildfire-resistant landscaping. 3. Extreme Temperatures: A Consideration for 1 in 4 Buyers As heatwaves and cold snaps become more common, 26% of homebuyers reported avoiding climates with extreme temperatures. Whether it’s excessive heat in the South or severe winters in the North, buyers are now prioritizing comfort and sustainability in their home search. When evaluating homes, pay close attention to the property’s energy efficiency. Homes with modern insulation, energy-efficient windows, and climate control systems can help you withstand extreme temperatures while keeping utility costs down. 4. Hurricanes and Coastal Concerns Homes in hurricane-prone areas are also seeing a decline in buyer interest. About 25% of homebuyers said they avoided areas where hurricanes are common. With coastal flooding, storm surges, and property damage on the rise, these risks have caused some buyers to rethink their dream of living near the beach. If coastal living is still your goal, make sure to invest in a property with hurricane-resistant features, such as impact windows and reinforced doors. Additionally, check the availability of homeowners insurance and factor that into your total cost of homeownership. How to Factor Climate Risk into Your Home Search If the risk of natural disasters is on your mind as you look for a new home, you’re not alone. Here are some practical ways to consider risks and find a place you love. 1. Research Local Risks Start by understanding the specific climate risks in your chosen area—whether it’s flooding, wildfires, or extreme heat. Tools like FEMA’s flood maps or resources from your local government can give you a good snapshot of potential risks. Knowing this information early can help you feel more confident about your choice. 2. Invest in Climate-Resilient Features Homes that are equipped with features like impact-resistant windows, efficient drainage, and energy-saving designs handle climate-related challenges much better. These upgrades aren’t just “nice-to-haves”—they can make a huge difference in protecting your home, both now and in the future. Plus, these features can significantly reduce the cost of homeowners insurance. 3. Consider Insurance Costs Climate risks like flooding or wildfire exposure can mean higher insurance premiums. It’s a good idea to check quotes early in the process so you have a full picture of the costs involved. This way, you’re financially prepared and won’t face surprises after you’ve moved in. 4. Think Long-Term With climate risks expected to grow, it’s wise to pick a location and property that will be a safe and solid investment for years to come. Your home should be a place of comfort and security, so choosing one that stands the test of time—environmentally and financially—is key. Remember, finding a climate-resilient home doesn’t have to be overwhelming. Take it one step at a time, focus on the factors that matter most to you, and you’ll soon be on track to a safe, comfortable place that you’ll be proud to call home.
5 Hidden Closing Costs Homebuyers Often Overlook
If you're about to buy a home, you might think you've budgeted everything. But are you prepared for all the fees that come with closing? Nearly 91% of buyers in the Zillow Consumer Housing Trends Report 2024 said they encountered at least one unexpected cost during the closing process. Let’s break down these fees and help you avoid the same pitfalls so your closing day goes as smoothly as possible. 1. The Loan Origination Fee For 66% of homebuyers, the loan origination fee was the most unexpected cost. This fee covers the lender’s administrative costs for processing your loan, and it can range from 0.5% to 1% of the loan amount. While it’s a standard charge, many buyers don’t fully anticipate it, and it can add thousands to your closing costs. Ask your lender upfront about the loan origination fee and negotiate if possible. In some cases, lenders may waive part of this fee, especially if you shop around. 2. Appraisal Costs Appraisals are a necessary part of the home-buying process to ensure the property's value doesn’t exceed the loan amount. But did you know that 54% of buyers didn’t expect to pay for this out-of-pocket? Appraisal fees typically range from $300 to $500 but can vary based on your location and the size of the home. 3. Title Transfer Taxes State and local governments often charge taxes to transfer the title of the home from seller to buyer. More than half of buyers (54%) were caught off guard by these fees, which can vary significantly depending on your location. Here in Arizona the state does not impose a state transfer tax on real estate transactions, which alleviates some of the financial burden! 4. Title Insurance & Search Fees Title insurance and title searches ensure there are no legal issues with the property’s ownership. But for 51% of buyers, these were unexpected costs during the closing process. Title insurance is essential because it protects you from any disputes over property ownership, but it’s not always top of mind when calculating closing costs. 5. Closing Costs: Higher Than Expected for Many Closing costs can include everything from attorney fees to recording fees. According to the survey, 42% of buyers had closing costs that were higher than they anticipated. First-time buyers, in particular, were more likely to be surprised, with nearly half (49%) saying their final costs were above their expectations. Expect your closing costs to be anywhere from 2% to 5% of the purchase price. To avoid surprises, ask your lender for a Loan Estimate early in the process. This document breaks down your expected closing costs. You’ll receive a final Closing Disclosure three days before closing that details the exact amount—be sure to review this in full once received. How to Avoid Surprise Fees Now that you know the costs that surprised buyers the most in 2024, here’s how to avoid sticker shock at closing: Ask Questions Early: Don’t be afraid to ask your lender and real estate agent about any potential fees upfront. The more information you have, the better prepared you’ll be. Get Multiple Quotes: Whether you’re buying title insurance or closing services, shop around to ensure you’re getting the best rate. Plan for Flexibility: Budget for more than you think you’ll need. Having a cushion in place for unexpected costs will make the closing process less stressful. Buying a home is one of the most significant financial commitments you'll ever make, and no one likes surprises—especially expensive ones. By understanding the common hidden costs of closing and planning ahead, you can go into your closing day confident and prepared. Whether you're a first-time buyer or have purchased multiple homes, these fees can sneak up on you. The key is to ask questions, plan ahead, and make sure you have a buffer in your budget to cover those last-minute expenses.
Renovate Smarter in 2024: Key Trends and Tips for Homeowners
Thinking about updating your home? You're not alone. Over the past five years, 94% of homeowners completed a major renovation project. Whether it’s a fresh coat of paint or a full bathroom remodel, staying on top of the latest trends can help you make smart decisions that add value and enjoyment to your home. But here’s the catch—78% of those renovations came with budget overruns, and many also encountered unexpected delays and even regret. Today, we'll dive into the top renovation trends for 2024 and share tips to help you navigate your next project with confidence. Renovating vs. Relocation With rising home prices and mortgage rates, many homeowners are choosing to stay put and invest in their current property rather than move. According to Clever Real Estate, 63% of homeowners prefer to remodel their homes instead of moving into one that’s already updated. Whether it’s to improve comfort, repair damage, or boost resale value, renovations can help tailor your living space to fit your evolving needs. But practical reasons are not the only ones driving these decisions—renovating offers an exciting opportunity to create a more personalized space. In fact, 45% of homeowners say they renovate simply because they want to, not because they need to. From bold new color schemes to modern kitchen layouts, home improvements let you unleash your creativity. Top Renovation Projects for 2024 #1—Bathroom Remodels One of the most popular renovations, bathroom remodels top the list, with 37% of homeowners tackling this space. Modern bathrooms emphasize spa-like elements, with features like rainfall showers, freestanding tubs, and sleek vanities making frequent appearances. Updating your bathroom can not only improve comfort but also offer a solid return on investment when it comes time to sell. #2—Interior Painting A simple way to refresh your home, interior painting continues to be a top DIY project, with 33% of homeowners giving their walls a fresh look in 2024. Neutrals like white and gray remain popular, though many are experimenting with bold accent walls and statement colors to add a personalized touch. #3—Energy-Efficient Upgrades HVAC upgrades are a practical renovation that’s seen a rise in demand, with 30% of homeowners choosing to invest in more energy-efficient heating and cooling systems. In a time where energy savings are more important than ever, these updates can make your home more eco-friendly and reduce monthly utility bills. The Costs of Home Renovations—78% Exceeded Their Budget While home renovations can boost the value and comfort of your home, they often come with unexpected expenses. Nearly 78% of homeowners went over budget on their last renovation, with 44% exceeding their budget by $5,000 or more. To avoid this, it's essential to factor in a buffer for unforeseen costs, whether you're working with a contractor or handling the project yourself. One of the biggest decisions you’ll face is whether to go the DIY route or hire a professional. While hiring a contractor may save you time and deliver higher-quality results, it can also be more expensive. According to a recent survey, 53% of homeowners who hired contractors went over budget, compared to 42% of DIYers. Whichever path you choose, make sure to research and plan thoroughly to avoid the most common pitfalls. On top of renovation costs, it’s important to always have some savings for home maintenance or unexpected repairs. In 2025, 85% of homeowners spent money on unplanned repairs, with nearly half saying these surprise expenses have exceeded their home maintenance expectations. Renovation Regrets—and How to Avoid Them While home improvements can transform your living space, not all projects go as smoothly as planned. Of those who have remodeled in the past five years, 74% have regrets. The most common regret? Overspending and renovations taking longer than expected. The key to avoiding these regrets? Setting a realistic budget, managing your time wisely, and ensuring clear communication with contractors. For younger homeowners like Gen Z and millennials, the focus is often on projects that boost resale value. Yet, this group is also more likely to experience regret, with 82% of millennials and 89% of Gen Z expressing some form of renovation remorse. If resale value is your priority, keep in mind that sometimes smaller, well-executed updates can offer a better return on investment than large-scale projects. Final Thoughts: Make Your Renovation Count Renovating your home is a big decision, but it can also be incredibly rewarding when done right. Whether you're fixing up your forever home or adding value before selling, staying informed on renovation trends and potential challenges is key to success.
Open Houses vs. Digital Tours: Why Both Matter in 2024
When it comes to selling your home, one of the biggest questions sellers have is: "Do open houses still work?" With so many digital tools available, from virtual tours to high-resolution photos, it might seem like open houses are a thing of the past. But in 2024, we’re seeing a comeback. If you’re thinking of selling your home, here’s why open houses might still be one of your best strategies—especially with buyer demand and seller activity on the rise. Open Houses Making a Comeback According to the latest Zillow Consumer Housing Trends Report, 65% of sellers in 2024 hosted between 1-3 open houses, up from 49% in 2018 and 44% in 2021. In fact, the median seller now hosts two open houses, up from just one in prior years. This trend signals that buyers are still craving the in-person experience of walking through a home before making a decision. But why the shift? In 2021-2022, properties were selling so quickly that open houses slowed. Now that the market has settled a bit, home sellers need a comprehensive strategy to attract buyers. Open houses allow potential buyers to tour the property without pressure. This is especially helpful for buyers who have not yet signed a buyer broker agreement, which is a new requirement in the industry. Plus, open houses can create a sense of urgency. When potential buyers see other interested parties walking through the property, it taps into their competitive nature. Buyer Demand on the Rise Adding fuel to the open house resurgence is the fact that buyer demand has started to pick up in recent weeks. September 2024 marked the first time in nine months that pending home sales didn’t decline, signaling a turning point in the market. Mortgage rates have dropped to their lowest levels in two years, which has made homeownership more accessible for buyers. For instance, the average 30-year mortgage rate recently fell to 6.08%, reducing monthly payments for the typical buyer by 5.9% compared to last year. More home tours are happening as well. Redfin’s Homebuyer Demand Index, which tracks home tours and related activities, rose by 9% month-over-month in September 2024, reaching its highest level since April. This increase in demand is making open houses more valuable, providing the in-person touch that buyers need to solidify their decisions. More Sellers Are Listing Homes Not only were buyers more active in September, but sellers are stepping up as well. Newly listed homes increased by 11.6% in September 2024 compared to the previous year, marking the highest level of seller activity since 2021. In addition, total inventory levels grew by 34% year-over-year, making it the 11th consecutive month of growth. This rise in listings is driven by falling mortgage rates, which have encouraged more homeowners to sell their homes . With more homes on the market, buyers have a wider range of options. However, this also means more competition for sellers. Hosting an open house can help your property stand out in a crowded market. It allows buyers to experience the home firsthand, which can be a deciding factor when they’re comparing multiple listings. The Power of First Impressions One key reason open houses are so effective is the power of first impressions. Of course, digital tools are still essential to catch the attention of those searching online. High-resolution photography, interactive floor plans, and virtual tours provide a comprehensive digital experience for buyers. Combining these tools with an open house gives buyers the best of both worlds. They can browse online, then come experience the home in person, creating a deeper connection that often leads to faster sales. If you’re planning to sell, hosting at least one open house is one part of an effective marketing strategy. With more buyers hitting the market in 2024, and sellers listing homes at the highest rate in three years, getting as many eyes on the property as possible is critical. Open houses allow you to showcase your home to engaged, motivated buyers who are ready to take the next step.
Categories
Recent Posts
