Buying a home is a team sport, and that’s especially true when buyers are facing the kinds of affordability challenges they are now. Volatile interest rates and tough competition for a limited supply of homes are posing unique issues for home shoppers. If you’ve been writing offer after offer — even competitive offers over asking price — and still not getting anywhere, then it could be time to change tactics.

Strategies tied to mortgage products and seller incentives can help buyers, even in situations involving cash buyers or shoppers offering above list price. These tactics won’t apply to every situation, but they offer buyers an idea about the kinds of adjustments to their offers or financing that can make the difference between getting the keys or attending yet another open house. It is important to note that every real estate market and buyer/seller transaction is unique and results may vary.

1. Offer a partial appraisal waiver
An appraisal establishes the current value of a home, and is used by lenders to determine how much they’re willing to lend buyers for a given home. Buyers who make an offer on a house usually include an appraisal contingency that lets them cancel the deal without a penalty if the house doesn’t appraise for the agreed-upon price.

Buyers in competitive markets can be tempted to waive appraisals, but doing so could require them to bring more money to the table at closing if there’s a gap between the price they offered on a home and what an expert appraiser thinks it’s worth. This is because a mortgage is tied to what the appraiser determines the home is worth. Anything over that amount is the buyer’s upfront responsibility.

Instead of waiving an appraisal altogether, some clients agree to pay a specified amount over the negotiated sales price if there’s a gap between the asking price and the appraised value. That way, the buyer can still write a competitive offer, but not to the point of putting themselves at risk of having to come to the table with a big check — or losing their earnest money.

2. Show sellers you’re serious with a “time off market” fee
In a market where it’s common for buyers to lose a home to a competitor who is offering over asking price, there’s an option that could, in some cases, be just as attractive to sellers and potentially less expensive. It’s called a time off market fee.

When buyers make an offer on a home, they typically put up earnest money — a relatively small amount that can be refunded if certain conditions aren’t met.

With a “time off market” fee or TOM, however, the seller keeps the money regardless of whether the deal closes. It’s paid to them for accepting the buyers’ offer. It’s a bold strategy and it works really well. If the buyer doesn’t close, they still have to pay that money.

A TOM fee in place of earnest money, can be more attractive to a seller than an offer over the asking price, especially if the offer would result in an appraisal gap, where the sales price is more than what an appraiser determines a house is worth in the current market.

For instance, a real estate agent negotiated a deal where a competing offer was about $10,000 over the listing price. Rather than match that offer, they successfully made a case that the house was accurately priced based on the sale of comparable homes; an offer above that price would inevitably result in an appraisal gap that could jeopardize the deal.

This competitive offer strategy can be more attractive to the seller, and ultimately cheaper for the buyer, than making an offer $10,000 over asking.

The size of the TOM fee depends on the price of the house, but usually it has ranged from $500 to $5,000 plus. The buyer has to understand what a TOM fee is and be 100% comfortable with it and be committed to that house or willing to lose that TOM fee in the event they don’t close on it.

3. Pay a lender for a lower interest rate over the life of the loan
Buying “mortgage points,” also known as discount points or simply points, from a lender can help reduce the monthly payment on a home. Mortgage points are essentially prepaid interest that is paid at closing in exchange for a lower interest rate over the life of the loan. Each point typically costs 1% of the total loan amount. The more points you buy, the lower the interest rate.

One point generally reduces the interest rate by a specific percentage, often 0.25%. For example, if a buyer applies for a $300,000 mortgage and decides to buy one point, they would pay $3,000 (1% of $300,000) and receive a reduction of 0.25% on their interest rate.

Buyers considering this strategy should consider how long they plan to stay in the home, how much they’ll save by reducing the interest rate and how much money they’ll have to spend upfront. A loan officer or financial advisor can help determine whether buying points makes sense for you.

4. Pay a lender to temporarily lower your interest rate
Another way to lower a monthly mortgage payment is to cut the interest rate for the first one to three years of the loan. The most common mortgage product to do that is a 2/1 buydown. It allows a borrower to ‘buy’ a lower interest rate for the first two years of their mortgage by prepaying a portion of the interest on the loan. For example, a borrower who applies for a 30-year, fixed rate mortgage at 7% can lower the mortgage to 5% the first year and 6% the second year by pre-paying the interest they would have paid at the 7% rate for those two years. The mortgage then reverts to 7% in the third year.

It’s important to note that the buydown cost is separate from other closing costs, and can be paid for by the seller, builder or buyer. Buyers who adopt this strategy either plan on interest rates dropping so they can refinance or on their incomes increasing over the two years that the lower rate is in effect.

Loan officers can provide accurate and up-to-date information on the cost of a 2/1 buydown, and provide specific details based on different loan amounts, interest rates and loan terms.

5. Bump up the offer price in exchange for a lower, seller-subsidized mortgage rate
This tactic is most effective when negotiating with a seller whose house is not selling as quickly as expected or when the market favors buyers.

Example: Offering about $8,000 over list price and asking the seller to credit that money back so the buyer can purchase a lower mortgage interest rate from their lender at closing.

In effect, the buyer increased the loan amount so they didn’t have to pay out-of-pocket to get a lower rate. The result: a lower monthly payment and the ability to spread the cost of the buydown over the life of the loan.

There’s a risk if it doesn’t appraise at the higher amount, but if you can use that money for a 2/1 buydown, or just buy the rate down by a certain percentage point, you can lower the monthly payment.

The 2/1 buydown temporarily lowers the mortgage payment for two years while buying points lowers payments over the life of the loan.

In the mentioned example the client was able to buy down the mortgage rate by 1.5 percentage points, putting them in a better position on their mortgage payments than if they’d paid the listing price without the lower interest rate.

6. Ask for a lender credit to buy down the mortgage rate
This is where professional relationships are especially important. Agents who work closely with lender partners can help buyers make a better, more competitive offer in neck-in-neck situations, he says.

While some of these scenarios may seem complicated, an experienced agent and loan officer can talk through options. Buyers who want to explore different scenarios can do so with the many resources available.

7. Consider new construction
While buying new construction isn’t a competitive offer strategy, it provides one avenue for more affordable mortgage rates. The added bonus: in certain markets there is less competition, no bidding wars and clients get a brand new home. A lot of builders offer great incentives with in-house financing, such as a 4.99% interest on financing. The rate was about 2% lower than the rates on a 30-year mortgage.

While builders might hold firm on the asking price so as not to affect prices on homes in the rest of the development, they may be more willing to negotiate around concessions and financing.

Whether you’re in the hunt for a home or you’re still in the dreaming phase, it can help to familiarize yourself with strategies on making competitive offers in a sellers market, so that when the time is right, you know your options — be sure to talk to your agent to know for sure. Every tactic comes with some degree of risk, and it’s critical that buyers understand tradeoffs and consequences and how the tactics fit into the bigger picture.

Investing in rental properties can be a lucrative and rewarding venture. Here are some key benefits to highlight in a blog about the advantages of investing in rental properties:

1. Steady Cash Flow: Rental properties provide a consistent stream of income through monthly rental payments. This cash flow can help cover expenses, such as mortgage payments, property taxes, insurance, and maintenance costs. With proper management, rental properties can generate positive cash flow, creating a steady source of passive income.
2. Appreciation and Long-Term Wealth: Over time, real estate has historically appreciated in value. Investing in rental properties allows investors to benefit from this appreciation. As property values increase, so does the equity in the investment. Rental properties can serve as a long-term wealth-building strategy, providing potential financial security and future opportunities.
3. Tax Advantages: Rental property owners can take advantage of various tax benefits. These may include deductions for property-related expenses, such as mortgage interest, property taxes, insurance, repairs, and depreciation. Additionally, some investors can benefit from tax advantages like 1031 exchanges, which allow for the deferment of capital gains taxes when reinvesting in another property.
4. Diversification of Investment Portfolio: Rental properties offer diversification, which is essential for a well-balanced investment portfolio. Real estate investments have historically shown lower volatility compared to other asset classes like stocks. By diversifying their investments, individuals can reduce risk and potentially achieve better overall returns.
5. Control and Appreciation through Property Management: As a rental property owner, you have control over the management and maintenance of the property. This control allows you to make strategic decisions to increase its value, such as renovations or improvements. By actively managing and maintaining the property, you can enhance its appreciation potential.
6. Inflation Hedge: Rental properties can act as a hedge against inflation. As the cost of living increases, rental income and property values tend to rise as well. This can help protect your investment and maintain its value over time.
7. Potential for Passive Income and Financial Freedom: With careful planning and effective property management, investing in rental properties can provide passive income that requires minimal effort once the property is established. This passive income has the potential to offer financial freedom and the flexibility to pursue other interests or investments.

It’s important to note that investing in rental properties also comes with its challenges and considerations. However, for those who are willing to put in the effort and learn the ins and outs of real estate investing, the benefits can be substantial.

Some homeowners might think that being sustainable is an all-or-nothing proposition — that they must completely overhaul their lifestyle (and home). In reality, every small change can make a difference. Now that sustainability is top of mind for many of us year-round, here are my favorite tips to be eco-forward at home.

Eco-forward upgrades
First, making eco-forward decisions doesn’t necessarily require a big cash outlay. While some sustainable features may have a higher upfront cost, they can lead to long-term savings through reduced energy and water bills and can increase the value of a home. If you’re looking to make an update without breaking the bank, try these easy options:

• Switch to LED light bulbs. Replacing incandescent light bulbs with energy-efficient LED bulbs is a smart investment to reduce energy consumption in your home. LED bulbs use up to 80% less energy than traditional bulbs and last up to 25 times longer.
• Use eco-friendly cleaning products. Switching to cleaning products without toxic chemicals, such as vinegar, baking soda, and castile soap, can reduce toxins in your home and minimize your impact on the environment.
• Install a programmable thermostat. A smart thermostat helps you to set your heating and cooling system to turn off or reduce energy consumption in off-peak hours or when you are away.
• Get a bidet. Bidets are a sustainable alternative to traditional toilets. They use water instead of paper, reducing the amount of waste generated, and can be a more hygienic option.

Putting eco-forward behaviors into practice doesn’t even have to require any cash out of pocket. If you’re looking for a lifestyle change, here are a few things you can do immediately:

• Use public transportation, bike, or walk. If you live in a suburban area, start small by picking one or two days a week to forgo your car. Try your local bus, bike, or walk to your destination, helping to reduce greenhouse gas emissions and improve air quality.
• Reduce waste. Recycle, compost, and reduce single-use plastic by using reusable shopping bags, water bottles, and food containers.
• Shop second-hand. Shopping at second-hand marketplaces (thrift stores, consignment shops, neighborhood garage sales) reduces waste and avoids consuming new resources. When you buy used household goods or clothing, you’re lessening the volume of stuff that goes into landfills.
• Plant a garden. Planting a garden and growing your own fruits and vegetables helps to reduce carbon emissions and your reliance on store-bought produce that has been transported long distances.
• Wash clothes in cold water. Washing clothes in cold water uses less energy than hot water. Many detergents today are formulated to work just as effectively in cold water.
• Use a clothesline. Hanging your clothes outside instead of using a dryer saves energy and can extend the lifespan of fabrics. It’s also a great way to enjoy some fresh air while doing your laundry.
• Support eco-forward businesses. Supporting businesses that prioritize sustainability can have a big impact. Research and choose businesses that source products locally, use renewable energy and reduce waste.

How to find an eco-forward home
Whether you’re touring a home in person or virtually, there are things to look for to ensure it’s eco-forward:

• Energy efficiency. Look for homes that have features such as Energy Star-rated appliances, high-efficiency HVAC systems, and non-toxic, high-performance insulation. Ask about overall energy usage and look for energy-saving measures like LED lighting, programmable thermostats, and solar panels.
• Water efficiency. Look for homes that have low-flow toilets, showerheads, and faucets, as well as efficient irrigation systems for outdoor space. Ask about water usage and any water-saving measures like rainwater harvesting systems or greywater recycling.
• Building materials. Look for homes with eco-friendly building materials such as recycled or sustainably sourced wood, bamboo, or cork flooring, low-VOC paints, and natural insulation. Ask about green building certifications the home may have, such as LEED or Energy Star.
• Outdoor space. Look for homes with outdoor spaces that have been landscaped with native plants that don’t require excessive water use or chemical treatments. Look for evidence of composting, rain gardens, or other sustainable landscaping features.
• Walkability and bike-ability. Look for neighborhoods with well-designed sidewalks, bike lanes, trails, and easy access to public transportation as well as access to nearby parks, green spaces, and community gardens.
• Sustainable food options. Neighborhoods with farmers’ markets, community-supported agriculture programs, and urban gardens offer access to fresh, locally grown food that’s sustainably produced.
• City commitment to RRR. Look for a city that has a commitment to reduce, reuse, and recycle (RRR), and offers curbside recycling and composting options.

Like all things in life, setting up your new home is more manageable if you break it down into steps and prioritize what needs to get done right away, and what can (or even should) wait.

Do: Start with a deep clean.
Before unpacking, before painting, before anything really, the first thing you should do is clean your home. After all, putting clean clothes in a dirty closet doesn’t make any sense.

Do: Unpack everything (but not everywhere or all at once).
To tame the chaos as you unpack, put boxes in the room where they belong, then go through five to 10 boxes a day. Once you open a box, empty it completely.

Do: Declutter (again).
Even if you thought you were ruthless with your decluttering at your old place, you may find you still have too much stuff. Honor the boundaries of the space you have, not the space you want. For example: How many pairs of shoes will actually fit in the entry closet? That’s the number that should be there. Everything else should be donated or put in the trash.

Do: Reimagine the “junk drawer.”
Be intentional about the space that holds all those essential things one inevitably needs in life: scissors, tape, highlighters, Sharpies. Designate a “general store” spot in your home—this might be a drawer, a closet shelf, or something else—so that you (and everyone else you live with) knows where to find them when needed.

Do: Draft a design budget and a timeline.
Now that you’ve got your space neat and tidy, you’re ready to think about decorating your new space. Even if your home is a 10, chances are you’ll want to invest some time and money into making it even more perfect. Maybe there’s a room you want to paint or a sofa that is made for your new den. Whatever the case, establish some financial guardrails and a timeline.

Don’t: Install window treatments.
You may think of window treatments as one of the first decorating tasks to tick off your to-do list, but it is actually recommended to avoid rushing for a number of reasons. A big one is the cost. It’s an expensive investment, so it’s a good idea to make sure it’s a valuable investment.

You’ll also get a better sense of what you need from your window treatments after living in your home for a while. Living  in the house and seeing how the light is coming in during the day; see if there is an issue with privacy. Is there a nice view that you want to be able to see? You might find out that you have a heat problem or there’s a bedroom you want a little darker.

For a temporary solution while you’re figuring out what you need, we recommend using paper blinds.

Don’t: Buy new appliances.
This is especially true if you think there might be a kitchen renovation of any kind in your future. If you want to remodel and hire a designer and you’ve already pre-designed the space, they’re stuck designing around your new appliance.

Don’t: Make cosmetic exterior improvements.
Wait on exterior projects such as landscaping or painting until after you’ve settled in. It’s more important to make the inside feel like home than out.