If you’re looking at real estate for sale, you’re not just shopping for a house-you’re making one of the biggest financial decisions of your life. And in 2025, the market isn’t what it was five years ago. Interest rates are steadier, inventory is slowly improving, and buyers who wait for the perfect moment often miss out. This isn’t about chasing trends. It’s about knowing what to look for, when to act, and how to avoid costly mistakes.
What’s Actually Available Right Now?
In Austin, where I live, homes under $500,000 are getting snapped up within days. But that doesn’t mean there’s nothing out there. The market has split into two clear buckets: move-in-ready homes in popular neighborhoods and fixer-uppers in up-and-coming areas. If you’re flexible on location, you’ll find better deals. If you need a specific school district or commute time, you’ll pay more.
According to the National Association of Realtors, the median home price in the U.S. hit $412,000 in October 2025-up 3.1% from last year. But that number hides the real story. In cities like Phoenix and Tampa, prices are flat or even dropping slightly. Meanwhile, in Austin, Nashville, and parts of Colorado, demand still outpaces supply. The key? Don’t assume the national average applies to your city.
How Much Do You Really Need to Save?
Most people think they need 20% down. That’s not true anymore. FHA loans let you buy with as little as 3.5% down. VA loans for veterans require zero down. USDA loans in rural areas do too. But here’s the catch: lower down payments mean higher monthly payments and private mortgage insurance (PMI).
Let’s say you’re buying a $400,000 home. With 20% down ($80,000), your monthly mortgage (principal, interest, taxes, insurance) might be around $2,800. With 5% down ($20,000), it jumps to $3,400-because of PMI and higher loan balances. That’s a $600 difference every month. Can you afford that? If not, save longer or look for lower-priced homes.
Also, don’t forget closing costs. They’re usually 2-5% of the purchase price. That’s $8,000 to $20,000 on a $400K home. Some sellers will pay part of it, but don’t count on it. Budget for it like you would for a car down payment.
What Makes a Good Neighborhood?
It’s not just about safety or nice yards. The best neighborhoods for long-term value have three things: good schools, walkable amenities, and infrastructure plans.
Check the school ratings on GreatSchools.org. Even if you don’t have kids, strong schools mean higher resale value. Look for neighborhoods with grocery stores, parks, and coffee shops within a 10-minute walk. Those areas hold value better during downturns.
Also, Google the city’s long-term development plan. Is there a new transit line planned? A tech hub being built? A park renovation? These things move markets. I’ve seen homes in a quiet corner of South Austin jump 40% in three years because the city announced a new light rail stop two blocks away.
Red Flags You Can’t Ignore
Not every listing is what it seems. Here are the top three red flags I see buyers overlook:
- Water stains on ceilings or walls-These aren’t just cosmetic. They often mean roof leaks or plumbing issues that cost $5,000-$15,000 to fix.
- Old electrical panels-If the panel is Federal Pacific, Zinsco, or Challenger, it’s a fire hazard. Replacing it costs $2,000-$4,000, and many insurers won’t cover homes with these.
- Too many recent price drops-If a house dropped from $450K to $410K to $380K in six months, something’s wrong. It might be a bad layout, a noisy neighbor, or hidden mold.
Always get a home inspection-even if it’s a new build. The inspector will find things the seller never knew about. And if they refuse to let you inspect? Walk away.
How to Negotiate Without Losing the House
Buyers think they need to lowball to win. That’s outdated. In competitive markets, offering 1-2% under asking often gets you ignored. In slower markets, you can go lower.
Here’s what works: make your offer clean. No contingencies unless necessary. Offer a quick closing. Show proof of funds. Sellers care more about certainty than the highest bid.
Instead of asking for repairs, ask for a credit at closing. Say: “I’d like a $5,000 credit toward closing costs to cover the HVAC estimate.” That’s easier for the seller to accept than a long list of repair requests. And if the inspection finds major issues, use that to negotiate the price down-not to demand every small fix.
Timing Matters More Than You Think
Most people think spring is the best time to buy. That’s true if you want choice. But if you want a deal, look in late fall or winter. Sellers are tired. They’ve been on the market for months. They’re more willing to negotiate.
Also, watch interest rates. They’ve been hovering around 6.5% since mid-2024. If they drop below 6%, inventory spikes. If they rise above 7%, sellers panic and drop prices. Don’t try to time the perfect moment. But do track them. Set up alerts on Zillow or Redfin. When you see a 0.25% drop, call your lender. Rates can change in hours.
What to Do After You Get Approved
Pre-approval isn’t a guarantee. It’s just a starting point. Once you’re pre-approved, get a copy of your credit report. Check for errors. Pay down any small debts. Even a $500 credit card balance can bump your rate up by 0.125%.
Then, get your documents in order: two years of tax returns, recent pay stubs, bank statements, and proof of assets. Lenders ask for these fast. If you’re self-employed, you’ll need profit/loss statements and 1099s. Start gathering now-even if you’re not ready to buy yet.
And don’t touch your credit. Don’t open a new card. Don’t buy a car. Don’t co-sign a loan. One new inquiry can cost you thousands over the life of your mortgage.
Is Now the Right Time?
There’s no perfect time to buy real estate. But there are good times and bad times based on your situation.
If you’re planning to stay in the home for at least five years, now is a reasonable time to buy. Prices aren’t skyrocketing, but they’re not crashing either. Interest rates are stable. Inventory is slowly improving. You’re not buying at a peak, and you’re not buying at a bottom.
If you’re unsure about your job, planning to move soon, or can’t afford the full cost of ownership (including maintenance, insurance, and property taxes), wait. Renting isn’t losing money-it’s buying time.
The best buyers aren’t the ones who got the cheapest house. They’re the ones who bought the right house at the right time-for them.
Can I buy a home with bad credit?
Yes, but it’s harder and more expensive. FHA loans accept credit scores as low as 580 for a 3.5% down payment. Below 580, you’ll need 10% down. Rates will be higher-sometimes over 7%. If your credit is under 600, focus on improving it first. Pay down debt, fix errors on your report, and wait six to twelve months. A 50-point score increase can save you $150 a month on your mortgage.
Should I buy a new construction home?
New homes come with warranties and modern features, but they’re often overpriced. Builders charge 10-20% more than comparable resale homes. You also have less room to negotiate. If you want customization, new construction makes sense. If you want value, look at homes built in the last 5-10 years that have been well-maintained. They often have the same upgrades without the premium.
What’s the difference between a real estate agent and a buyer’s agent?
Every agent works for someone. A listing agent represents the seller. A buyer’s agent represents you. You should always work with a buyer’s agent-they get paid by the seller’s side, so it doesn’t cost you extra. They’ll show you off-market listings, help you interpret inspection reports, and negotiate on your behalf. Never buy without one.
Are foreclosures a good deal?
Sometimes. Foreclosures can be 15-30% below market value. But they’re sold "as-is"-no inspections, no repairs. Banks don’t fix anything. You could be buying a home with mold, broken plumbing, or a damaged roof. You also need cash or a special foreclosure loan. Most buyers can’t handle the risk. Only consider this if you have a contractor lined up and can afford to live elsewhere while you fix it.
How long does it take to close on a house?
Typically 30 to 45 days. But it can take longer if your lender is slow, your appraisal comes in low, or there are title issues. To speed it up, get your documents ready before you even make an offer. Choose a local lender with a good reputation-big national banks often have longer processing times. And don’t wait until the last minute to schedule your inspection or appraisal.
If you’re serious about buying, start by talking to a local buyer’s agent. Don’t wait for the perfect house. Start looking. Get used to what’s out there. The right home won’t wait forever-but the right buyer will be ready when it shows up.