The Surprising Trend in the Number of Homes Coming onto the Market

If you’re thinking about moving, it’s important to know what’s happening in the housing market. Here’s an update on the supply of homes currently for sale. Whether you’re buying or selling, the number of homes in your area is something you should pay attention to.

In the housing market, there are regular patterns that happen every year, called seasonality. Spring is the peak homebuying season and also when the most homes are typically listed for sale (homes coming onto the market are known in the industry as new listings). In the second half of each year, the number of new listings typically decreases as the pace of sales slows down.

The graph below uses data from Realtor.com to provide a visual of this seasonality. It shows how this year (the black line) is breaking from the norm (see graph below):

Looking at this graph, three things become clear:

• 2017-2019 (the blue and gray lines) follow the same general pattern. These years were very typical in the housing market and their lines on the graph show normal, seasonal trends.

• Starting in 2020, the data broke from the normal trend. The big drop down in 2020 (the orange line) signals when the pandemic hit and many sellers paused their plans to move. 2021 (the green line) and 2022 (the red line) follow the normal trend a bit more, but still are abnormal in their own ways.

• This year (the black line) is truly unique. The steep drop off in new listings that usually occurs this time of year hasn’t happened. If 2023 followed the norm, the line representing this year would look more like the dotted black line. Instead, what’s happening is the number of new listings is stabilizing. And, there are even more new listings coming to the market this year compared to the same time last year.

What Does This Mean for You?

• For buyers, new listings stabilizing is a positive sign. It means you have a more steady stream of options coming onto the market and more choices for your next home than you would have at the same time last year. This opens up possibilities and allows you to explore a variety of homes that suit your needs.

• For sellers, while new listings are breaking seasonal norms, inventory is still well below where it was before the pandemic. If you look again at the graph, you’ll see the black line for this year is still lower than normal, meaning inventory isn’t going up dramatically and prices aren’t heading for a crash. And with less competition from other sellers than you’d see in a more typical year, your house has a better chance to be in the spotlight and attract eager buyers.

Bottom Line

Whether you're on the hunt for your next home or thinking of selling, now might just be the perfect time to make your move. If you have questions or concerns about the availability of homes in your local area, connect with a real estate agent.

To read the original article, visit Keeping Current Matters

RENTING VS. OWNING — WHAT ARE THE ADVANTAGES?

Many Americans doubt their ability to cover the costs of buying a home. But that only means exchanging monthly mortgage payments for monthly rent payments.

Renting vs. owning — what are the advantages of each? Here are some things to consider before signing your next lease.

Advantages of Renting

Renting a house or an apartment has several distinct advantages, including:

• Fixed rent

• No property taxes or HOA fees

• Lower insurance costs (no homeowners insurance)

• Your landlord is responsible for all repairs and maintenance

• Various amenities (e.g., pools, gyms, common areas, etc.)

Furthermore, you’re usually only locked into a year-to-year contract when you rent. Unlike buying a house, you won’t be tied to your rental property any longer than you want, which can be ideal for young professionals, college students, or those who need to relocate frequently.

Advantages of Owning a Home

Young adults especially find themselves torn between renting vs. owning — what are the advantages of buying a home? There are a few, such as:

• Homeowners build equity with each mortgage payment

• Mortgage payments are often cheaper than renting

• Freedom to modify the property as you see fit

• More room for you and your family

• No need to share living spaces or walls with neighbors

• Available tax deductions

For many Americans, owning vs. renting can be a better option for building equity meaning the value you invest in a property. Otherwise, your rental monthly payments merely go to support your landlord, which isn’t the best long-term outlook.

Financial Considerations for Renting vs. Owning a Home

Chances are that your decision about whether to rent or buy has to do with finances and the current housing market. Here’s how to think through the different costs associated with owning vs. renting.

Upfront Costs

Buying a home comes with greater initial costs. Even if you don’t make a traditional 20% down payment, you’ll still be responsible for closing costs and administrative fees that can make the process costly.

By comparison, renters usually only have to put down a security deposit equal to one month’s rent, and this payment is fully refundable as long as you don’t damage the property.

Ongoing Costs

Some ongoing costs will be lower when you rent. For instance, many landlords perform maintenance and landscaping on the rental property. Likewise, renters don’t have to worry about real estate taxes, homeowners insurance, or other costs associated with owning a home.

On the other hand, rental payments can often be steep and unpredictable. In some cases, mortgage payments can actually be lower than what you would pay for monthly rent. And with fixed-rate mortgages, you won’t experience any surprise price hikes over the course of your loan.

If you’re thinking about buying a house, an online mortgage calculator can help you figure out how much you can expect to pay every month compared to renting.

Potential Savings

When you’re young, renting may give you time to build your credit and savings account. In that respect, it can provide a path toward financial stability — assuming you can secure a rent payment that’s lower than a mortgage.

On the flip side, homeowners can generally deduct property taxes and home offices in some states, and these tax benefits don’t always apply the same way to renters.

Lifestyle Factors for Renting vs. Owning

Your finances may be your primary consideration, but it’s also important to think about your current living situation.

Generally speaking, it isn’t a good idea to purchase a house if you’re planning on moving within the next five years. If your job is unstable or you’re finishing your education, renting can give you more flexibility than buying.

Others, however, may crave the stability that comes with homeownership. If you start a family, you may need more living space, a yard, or access to local amenities such as schools and playgrounds.

Impact on Long-Term Financial Goals

Your long-term financial decisions and goals should also influence your choice to rent vs. own. Homeownership allows you to build equity in your home. Once you’ve paid off your mortgage, you’ll own your property outright, and the value of your home will stay with you.

The same cannot be said for those who are renters. Renting may be a short-term necessity, but it won’t help you reach your long-term goals.

Loan Products for First-Time Homebuyers

Some renters stay put because they’re wary of high home prices, while others assume you can only buy a home after saving a full 20% for a down payment. The reality, however, is that there are many loan products that can make owning vs. renting an easy decision.

FHA Loans

FHA loans backed by the Federal Housing Administration are designed for homeowners with substandard credit. As long as your credit is 500 or above, you can obtain a home loan with only 10% down. And if your credit score is 580 or above, you only need 3.5% down, putting homeownership within easier reach.

VA Loans

If you or your spouse are a current or former member of the U.S. Military, you can get a loan backed by the U.S. Department of Veterans Affairs. These loans don’t require any money down and are available even to those with below-average credit.

Understand the benefits and qualifications for a VA loan.

USDA Loans

Loans backed by the U.S. Department of Agriculture are another zero-down payment option aimed at buyers who purchase a home in a qualifying rural or suburban area.

If you think a USDA loan may apply to you, learn more.

Conventional Loans

Conventional loans offer the lowest interest rates for buyers with solid credit. And even these loan programs only require a 3% down payment, making it even easier to become a proud homeowner.

Understand the pros and cons of conventional loans here.

Find the Home of Your Dreams

Don’t let fear of home prices keep you locked into your decisions to rent forever. Act now by talking to a local loan officer. We can help you secure loan options that fit your lifestyle and budget.

For this and similar articles, please visit CrossCountry Mortgage

AM I READY TO BUY A HOUSE?

“When am I ready to buy a house?”

It’s an important question to ask yourself, since the homebuying process is often as challenging as it is rewarding. While there’s no one right answer, there are ways you can determine when you’re ready to buy a house.

Here are some factors to consider, as well as some resources that can help you make a decision regarding the right time to buy.

Homebuying Checklist

Buying a home is a major life decision. Before you start looking, use the following checklist to assess your readiness.

Low Debt

When you apply for a mortgage, your lender will conduct a thorough analysis of your finances, including your debt-to-income ratio, which measures the ratio between your monthly income and outstanding debt.

Lenders prefer borrowers to have a debt-to-income ratio of no more than 43%, which means your total debts don’t exceed 43% of your gross monthly income.

For example, if you earn $5,000 per month and your monthly bills total $1,800, you have a debt-to-income ratio of 36% ($1,800/$5,000). But if your bills total $2,500, your ratio jumps to 50%.

Before buying a home, it can be helpful to pay off your credit card debt or auto loan or refinance your student loans to minimize your monthly debts.

What is Your Debt-to-Income Ratio?

Calculate an estimate of your debt-to-income ratio.

GET STARTED

Down Payment

When it comes to homebuying, a good rule of thumb is to have 20% saved for a down payment.

This isn’t a hard and fast rule, as many home loan programs allow you to buy a home with as little as 3% to no money down, but without a 20% down payment, you might have to pay private mortgage insurance (PMI), which could increase your monthly mortgage payments.

Furthermore, the more money you put down, the less you’ll have to borrow. A smaller loan amount will translate into a lower monthly mortgage payment, saving you money each month.

Saving for a down payment before you start shopping for a home can increase the amount of home you can afford. Make sure you have enough savings to cover closing costs and your first mortgage payment.

Credit Score

How’s your credit score? In today’s environment, a borrower can acquire a loan even with a less than ideal credit score. For a conventional mortgage, most lenders will require you to have a credit score of at least 620 to qualify. For an FHA loan, a credit score could be between 500-580 depending on your available down payment.

That’s why it helps to boost your credit as much as possible before applying for a mortgage. Even an increase of 40 points or more can save you thousands of dollars over the course of your loan.

Monthly Payment and Home Maintenance

How will your mortgage fit into your broader budget?

When you buy a home, you’ll need enough to cover your monthly mortgage payments and property taxes, along with other costs. Homeowners insurance, for example, costs an average of $100 per month. And if you purchased your home with a down payment of less than 20%, you may be responsible for monthly PMI payments.

Added to these regular expenses are the costs of home maintenance. A broken air conditioning unit, for instance, could easily cost you over $5,000. It’s important to have an emergency fund that can cover roughly three to six months’ worth of your usual expenses to cover unforeseen costs.

Area of Ownership

Where do you see yourself in five years? It’s important to buy in an area that a borrower is comfortable in. Does the city have a good school district? Is there nightlife? How is the commute? Is it close to family and friends? All are important areas in deciding where to live.

Rent vs. Buy

Why buy when you can rent? Renting has its advantages, especially since your landlord will be responsible for covering property maintenance and repair. Renting may also be necessary until you’re officially ready to buy a home.

Despite the flexibility of renting, buying is often the better option, at least if you plan on staying in the area for five to seven years. A house is an investment — by buying a home, you’re keeping your financial future secure.

For example, if your rent and potential mortgage are the same amount of money, your mortgage payment would help reduce mortgage principal and build up equity in your home. With a rent payment, that payment just goes to the landlord and does not allow you to build value.

Is It Better to Rent or Buy?

Use CrossCountry Mortgage’s rent vs. buy calculator to explore your options and decide whether renting or buying is the better choice.

GET STARTED

How Much Can You Afford?

Preparing to buy a house also means setting a budget. How much house can you afford?

As a rule, you’ll want to look for a home price three to five times your household income. However, your exact budget will depend on your existing debts and how much money you can put toward a down payment.

Determine Your Budget

If you need help pinpointing your budget, our “how much can I borrow” mortgage calculator can help you determine your optimal purchasing budget.

GET STARTED

First-Time Homebuyer Programs

Does the answer to the question “am I ready to buy a house” change if you have poor credit or limited savings? Not necessarily.

Many programs exist to help first-time buyers  purchase the home of their dreams. Here are a few options you might consider.

Conventional Loans

Don’t discount traditional loan options just because you’re a first-time buyer.

A conventional loan is often preferable since it offers the lowest interest rates and other favorable loan terms. And while it’s customary to make a 20% down payment, some lenders allow first-time buyers to receive a loan with as little as 3% down.

Keep in mind, however, that conventional loans usually require a credit score of 620 or better. Some lenders can work with you if your score is slightly lower, though this can mean higher interest rates. If your credit is low, you might consider one of the other options on this list.

USDA Loans

If you don’t have money for a down payment, you might consider a loan backed by the U.S. Department of Agriculture. USDA loans allow you to purchase a qualifying home with no money down, nor will you be responsible for PMI payments.

To qualify, the homes you look at must be located in designated rural or suburban areas, and you’ll typically need a credit score of 640 or higher.

VA Loans

Active-Duty Military Members, Veterans, and spouses of both groups are all eligible for VA loans.

Backed by the Department of Veterans Affairs, VA loans allow you to purchase a home with no money down and no PMI requirement. Individual lenders may have specific credit score requirements, but you can often get a VA loan with a score as low as 580.

FHA Loans

Can you buy a home with poor credit? You can if you receive a loan backed by the Federal Housing Administration. FHA loans are available to anyone with a credit score of 500 or above, though you’ll need to put 10% down. But if your score is 580 or above, you’ll only need to put 3.5% down.

Bottom Line: Am I Ready to Buy a House?

Buying a house is a momentous decision, both personally and financially. Our CCM loan officers are trained to run through all of the home buying scenarios to make sure that you are comfortable with your first home.

For this and similar articles, please visit CrossCountry Mortgage

HOME EQUITY LOAN VS. HELOC: WHAT IS THE DIFFERENCE AND WHICH ONE TO APPLY FOR?

Home equity borrowing is exploding across the country, thanks to the current housing market. But with multiple options to choose from, you might find yourself wondering what the difference is and which one to apply for — HELOC (Home Equity Line of Credit) or home equity loan.

These two programs are similar, and both offer a way to convert the equity in your home into cash that can be used for home improvements, consolidating debt, and more.

But to choose, you’ll need to understand the difference between a home equity loan and home equity lines of credit (HELOCs). This guide will cover these differences and help you choose the loan program that’s right for your financial situation.

How to Calculate Home Equity

For starters, you need to understand how to calculate your home equity. The simplest way is to subtract the amount you owe toward your home from its most recent appraised value:

Home Equity = (Appraised Value) – (Amount Owed)

Remember, the amount you owe includes your primary mortgage as well as any other home equity loans or unpaid balances of other types of financing.

For example, if your home is currently valued at $300,000, and you have $120,000 remaining on your mortgage, then you have $180,000 worth of home equity.

Remember that you calculate your home equity based on how much you still owe, not how much of your mortgage you’ve paid — your monthly payments have included interest.

How to Qualify for a HELOC or Home Equity Loan

Home equity lines of credit and home equity loans both have similar eligibility requirements. Typically, you’ll need the following to qualify for this type of financing:

• At least 20% equity in your home but this does vary by lender

• Good credit, with a credit score on average over 620

• Reliable income for over two years

Some lenders may approve high-risk borrowers, but the best loan terms will go to borrowers who meet the above criteria.

What Is a Home Equity Line of Credit (HELOC)?

A home equity line of credit (HELOC) is a type of credit that lets you borrow money up to a predetermined credit limit. This credit limit is based on how much equity you currently have in your home.

HELOCs have two phases: a draw period, during which you can borrow money, and a repayment period, during which you’ll pay back both the principal and interest. The draw period can last 5 to 10 years, while the repayment period can last 10 to 20 years.

Since a HELOC is a credit line, borrowers have no real limit on how much money they can borrow. You can take out money (again, up to your limit), then make monthly payments, then take out money again.

Home equity lines of credit function just like the credit cards in your wallet — you can keep using them during your draw period so long as you pay your balance.

Some lenders even let you make interest-only payments during the draw periods, which means you won’t have to worry about the principal until the repayment period arrives. This setup can lead to a larger monthly payment in the long run but can be great for tapping into money quickly.

Pros of a Home Equity Line of Credit

A HELOC offers advantages that include:

• High flexibility in terms of the amount you borrow

• Variable interest rates could cause your rates to drop if your credit improves

• You pay interest only on the amount you draw, not the total loan amount

These loan types are ideal for those who don’t know how much money they need, such as when you’re making improvements to your home and don’t have a clear final budget.

Cons of a Home Equity Line of Credit

However, there are some disadvantages to a HELOC, including:

• Variable interest rates could raise your rates unexpectedly

• You can overspend during the draw period, leaving you with considerable debt

• Your home is collateral, meaning you could lose it if you don’t pay your loan

HELOCs can be dangerous for the undisciplined. Since the draw period can be as high as ten years, that can be plenty of time to dig yourself into a financial hole if you’re not careful. Still, HELOCs can be helpful for homeowners who manage their finances responsibly.

What Is a Home Equity Loan?

A home equity loan is a loan you receive based on the equity that you have in your home. Many lenders use the terms “home equity loan” and “second mortgage” interchangeably.

These loans offer fixed interest rates as well as a fixed monthly payment schedule, making them more predictable than home equity lines of credit (HELOCs). Similar to personal loans, home equity loans are given in an upfront lump sum, which means that borrowers will need to know how much they need before applying for the loan.

The loan amount depends on how much equity you’ve built into the home, as well as your credit score and financial history. Qualified borrowers can often get a loan as high as 80% to 90% of the home’s appraised value. The loan terms can vary by loan amount and the lender, ranging anywhere from five to 30 years.

Depending on your lender, you may have to pay some origination fees of roughly 5%, but these costs tend to be relatively minor compared to the value of the loan itself.

Pros of a Home Equity Loan

The advantages of a home equity loan include:

• Fixed loan amount

• Fixed monthly payment schedule

• Lower interest rate compared to other refinancing options

Borrowers can appreciate the predictability offered by a home equity loan, which prevents you from overspending like you might when using a HELOC.

Cons of a Home Equity Loan

There are some disadvantages of a home equity loan, including:

• Lower flexibility if your financing needs change

• Need to refinance your home to receive a lower interest rate

• Your home is collateral, meaning you could lose it if you don’t pay your loan

With greater predictability comes less flexibility, which can lock you in if you discover your financial needs are greater than you initially thought.

Differences Between HELOC and Home Equity Loan

What is the real difference between HELOC and home equity loans? While both can be used for a variety of financing needs, the real difference comes in how the funds of each loan type are received.

Additionally, the interest you pay for each loan type can be deducted from your income taxes if you use your loan to make significant improvements to your home.

A HELOC offers flexible funding just like any line of credit, while a home equity loan offers the stability and predictability of a one-lump sum. The second major difference is that a home equity loan offers fixed interest payments, while a HELOC can offer variable interest.

When comparing a HELOC vs. home equity loan, the main difference is found in the level of predictability. A home equity loan offers far more predictability and stability compared to a HELOC, though a HELOC is ideal for those who need flexible financing options.

Which Option Should I Apply for?

So should you choose a HELOC or home equity loan? Both are solid options, though there may be specific times when one of these options surpasses the other.

When to Consider a Home Equity Line of Credit (HELOC)

You might consider a HELOC when:

• You don’t have a final idea of how much financing you’ll need

• You want flexible loan amounts

• You need to withdraw money over an extended period of time

For all of these reasons, a home equity line of credit might be the better choice when undergoing a home remodeling project that you intend to complete over time. Since the cost of materials tends to vary, having access to a revolving line of credit can give you the flexibility you need.

Just be careful about how much you draw during your draw period — otherwise, you could find yourself amassing debt. Similarly, keep an eye on your variable interest rates, which can benefit you when they drop but become costly when they rise.

When to Consider a Home Equity Loan

You might consider a home equity loan when:

• You have a specific budget for how much you intend to spend

• You need a lump sum of quick cash

• You want a clear, fixed repayment schedule

A home equity loan might be great for those who need quick cash for things like debt consolidation or for paying contractors who offer a clear quote on a remodeling project. You’ll also appreciate the repayment schedule and fixed interest rate. But if interest rates do drop during your loan term, you’ll need to refinance to lock in a preferable rate.

Please visit CrossCountry Mortgage for the full article and for more information.

7 IMPORTANT THINGS HOME SELLERS OFTEN FORGET TO DO

When you’re selling your home, there’s so much to do: find a Realtor®, do touch-ups, get that balky air conditioner fixed, look into staging, etc. It’s no wonder that sometimes things fall between the cracks. Big things. (We’re not pointing fingers!)

Our arsenal of experts—aka real estate agents who have worked with many home sellers—identify the to-do’s that sellers typically overlook. We promise you, these tasks are well worth the time it will take to complete them, which isn’t very long at all.

Heed this sound advice, and there’s a good chance selling your house won’t be nearly as stressful as everyone tells you it is.

1. Google your address

Not all sellers scour the internet to find out what’s being said about their property, but they should. Nearly all buyers—90%—search online during their hunt for a home, according to the National Association of Realtors®.

You should be aware of what your online listing looks like, since it will influence the kinds of concerns buyers will have, says Avery Boyce, a Realtor® with Compass Real Estate in Washington, DC.

“Is the site’s estimated value very different from your asking price? It might be because tax records have the wrong information about the number of bedrooms or bathrooms your house has, and this is easily fixed,” Boyce says.

There’s another factor to consider with cars constantly mapping our world. Google Maps’ street view of your property may not show improvements that you’ve made, so you’ll want to be sure to include those updates in your listing.

2. Account for improvements and issues

“If you’ve owned your home for a while, make a list of all the problems you’ve solved while you’ve lived there,” says Boyce.

This could include chimney fires, water damage, or a flood in the basement. Whether you solved the problem or not, you should disclose this information to the buyer so you don’t wind up in a lawsuit after the sale.

Disclosing “invisible improvements” that you’ve made, like regrading or adding a French drain system, can also be a great source of comfort for buyers, adds Boyce.

“The same goes for sewer lines or tanks, radon remediation, or leaky skylights,” says Boyce.

3. Check your real estate agent’s references

An agent’s bad behavior or incompetence could cost you time, money, and peace of mind, so it’s well worth taking extra steps to find the best real estate agent for you. Ask friends for recommendations.

Check that the people you’re considering have a current real estate license—with no complaints filed against them. Meet with the agent, and reach out to a few of their references directly.

“Real estate agents should be happy to provide a number of references for a new client to call,” says Marianne Leonard Cashman, a Realtor with William Raveis Real Estate in Andover, MA. As far as talking to your friends about a real estate agent recommendation, here are some questions Cashman suggests asking:

• Did you have confidence in your real estate agent?

• Do you think he/she had good knowledge of the local market?

• Did your agent communicate well and keep you informed during the entire transaction?

• Do you think that he/she negotiated well on your behalf?

• Did your agent have good vendors who could assist you?

• Did your agent return calls/emails in a timely fashion?

• Would you recommend this person? Why? (Or why not?)

4. Insist on social media marketing

You staged your home beautifully, picked a competitive price, and listed the property, but there’s something else you’ll need to prepare before you’re fully ready to sell: a social media marketing plan. Video tours, floor plans, and photo galleries promoted on Facebook and Instagram are must-do’s, advises Cashman.

“You want to make sure that your agent is using all avenues to attract the right buyer for your home,” she explains. “Make sure your home has a presence on your agent’s website, their agency’s website, and is promoted on various sites that will market the home and give information about open houses.”

5. Make sure the doorbell rings

Ah, attention to detail. It’s those little cosmetic repairs that could cost you your home sale. If buyers see that you can’t even be bothered to repair a busted doorbell, they’re automatically going to think about what else may need fixing and view the home negatively.

“First impressions make all the difference,” says Cashman. “A well-kept home, starting with the view from the curb, gives the perception that the seller has great pride in the home and has taken good care of it—which translates into less energy and costs for the buyer as they prepare to move in.”

6. Clean inside everything

Storage is a huge selling point for homes. So be warned: Buyers are going to poke around inside closets, drawers, cabinets, ovens, refrigerators, and even the dishwasher, whether they’re cleaned or not—so you’d better make sure they are clean.

“Spending the money on a service to deep-clean your home will come back to you at least 10 times in your sales price,” says Boyce.

Even if you’ve swept up and scrubbed all surfaces to a shine, you’re not done until dust, crumbs, and creepy crawlies are cleaned out from within the small spaces, too.

7. Clarify which items are not included

You don’t want a buyer to fall in love with your house because of the custom window treatments and then rescind their offer when they find out the curtains aren’t for sale.

“The law says that anything bolted to the wall or ceiling goes to the buyer unless specifically excluded in the contract,” says Boyce. “If you want to take your flat-screen TV, chandelier, or custom pot rack, be sure to label it as soon as the house goes on the market, so that buyers don’t bank on owning that item and wind up disappointed.”

For this and related articles, please visit Realtor.com

6 REASONS YOU SHOULD NEVER BUY OR SELL A HOME WITHOUT AN AGENT

It’s a slow Sunday morning. You’ve just brewed your Nespresso and popped open your laptop to check out the latest home listings before you hit the road for a day of open houses.

You’re DIYing this real estate thing, and you think you’re doing pretty well—after all, any info you might need is at your fingertips online, right? That and your own sterling judgment.

Oh, dear home buyer (or seller!)—we know you can do it on your own. But you really, really shouldn’t. This is likely the biggest financial decision of your entire life, and you need a Realtor® if you want to do it right. Here’s why.

Today we’re going to talk about how to find the one.

1. They have the right expertise

Want to check the MLS for a 4B/2B with an EIK and a W/D? Real estate has its own language, full of acronyms and semi-arcane jargon, and your Realtor is trained to speak that language fluently.

Plus, buying or selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. Realtors have the expertise to help you prepare a killer deal—while avoiding delays or costly mistakes that can seriously mess you up.

2. They have turbocharged searching power

The Internet is awesome. You can find almost anything—anything! And with online real estate listing sites such as yours truly, you can find up-to-date home listings on your own, any time you want. But guess what? Realtors have access to even more listings. Sometimes properties are available but not actively advertised. A Realtor can help you find those hidden gems.

Plus, a good local Realtor is going to know the search area way better than you ever could. Have your eye on a particular neighborhood, but it’s just out of your price range? Your Realtor is equipped to know the ins and outs of every neighborhood, so she can direct you toward a home in your price range that you may have overlooked.

3. They have bullish negotiating chops

Any time you buy or sell a home, you’re going to encounter negotiations—and as today’s housing market heats up, those negotiations are more likely than ever to get a little heated.

You can expect lots of competition, cutthroat tactics, all-cash offers, and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you?

And it’s not just about how much money you end up spending or netting. A Realtor will help draw up a purchase agreement that allows enough time for inspections, contingencies, and anything else that’s crucial to your particular needs.

4. They’re connected to everyone

Realtors might not know everything, but they make it their mission to know just about everyone who can possibly help in the process of buying or selling a home. Mortgage brokers, real estate attorneys, home inspectors, home stagers, interior designers—the list goes on—and they’re all in your Realtor’s network. Use them.

5. They adhere to a strict code of ethics

Not every real estate agent is a Realtor, who is a licensed real estate salesperson who belongs to the National Association of Realtors®, the largest trade group in the country.

What difference does it make? Realtors are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics.

6. They’re your sage parent/data analyst/therapist—all rolled into one

The thing about Realtors: They wear a lot of different hats. Sure, they’re salespeople, but they actually do a whole heck of a lot to earn their commission. They’re constantly driving around, checking out listings for you. They spend their own money on marketing your home (if you’re selling). They’re researching comps to make sure you’re getting the best deal.

And, of course, they’re working for you at nearly all hours of the day and night—whether you need more info on a home or just someone to talk to in order to feel at ease with the offer you just put in. This is the biggest financial (and possibly emotional) decision of your life, and guiding you through it isn’t a responsibility Realtors take lightly.

For this and related articles, please visit Realtor.com