Dreaming of living like Jacob Elordi? Between the sleek mid-century modern homes, canyon views, celebrity neighbors, and effortlessly cool Los Angeles lifestyle, it’s easy to see why Hollywood Hills has become one of the most coveted neighborhoods in California. But behind the aesthetic kitchens, designer furniture, and infinity pools comes a very real price tag.

From multimillion-dollar home prices and soaring insurance costs to luxury interiors and everyday expenses, we’re breaking down what it actually costs to live in Jacob Elordi’s Hollywood Hills neighborhood. Whether you’re casually browsing Redfin listings or plugging numbers into a home affordability calculator just for fun, here’s what it takes to afford the Hollywood Hills lifestyle.

Key takeaways:
– Median home price: $4M–$10M+ (higher in view-heavy, celebrity-adjacent pockets)
– Estimated mortgage (20% down, ~5.5–7% interest): $25,000–$50,000+/month
– Property taxes: ~$50,000–$180,000+/year (≈ $4,000–$15,000+/month depending on value
– Insurance: $8,000–$100,000+/year+ (wildfire exposure, coverage level, and home value heavily impact pricing)
– Down payment expectations:
3%: $120,000–$300,000+
10%: $400,000–$1M+
20%: $800,000–$2M+
30%: $1.2M–$3M+
– Architect/designer costs for a Hollywood Hills–style home: ~$250,000 to several million dollars, depending on scope, customization, and finishes
– Median rent in the area: $7,500–$12,000/month (luxury homes can exceed $20,000+/month)
– 5-year appreciation rate: ~25%–40% (higher in premium view or renovated properties)
– Estimated income needed to comfortably afford: ~$400,000–$900,000+ per year

Bottom line: Limited inventory, hillside terrain, and strong demand for privacy and views all contribute to Hollywood Hills’ multimillion-dollar price points. Living in Jacob Elordi’s neighborhood comes with significant upfront and ongoing costs, but the combination of architectural design, exclusivity, and long-term desirability makes it one of Los Angeles’ most iconic luxury enclaves.

What it takes to buy a home in Hollywood Hills

Living in Hollywood Hills comes with a luxury-level price tag. While some homes in the neighborhood start around $2 million, many of the modern hillside properties associated with celebrity residents like Jacob Elordi can easily climb past $5 million to over $10 million. Between mortgage payments, property taxes, insurance, and maintenance costs, buyers often need an annual income well into the high six or even seven figures to comfortably afford the area.

Samuel Rad, Financial Advisor and Men’s Coach, explains: “Hollywood Hills is not a neighborhood you casually qualify for – it is a lifestyle purchase with a spotlight attached. To live comfortably near someone like Jacob Elordi, a buyer likely needs closer to $750,000 to over $1.5 million in annual income, strong liquidity, and the discipline not to let the house become a performance. In neighborhoods like this, the real question is not ‘Can I buy it?’ – it is ‘Can I own it without being owned by it?’”

Mortgage

For buyers purchasing a typical luxury home in Hollywood Hills, monthly mortgage payments can easily reach $20,000 to $50,000+ depending on the home price, interest rate, and down payment. With many properties in Jacob Elordi’s neighborhood priced well above $4 million, financing alone can rival the cost of owning multiple homes in other parts of the country.

Taxes

Property taxes in Hollywood Hills are another major expense to factor in. In Los Angeles County, homeowners generally pay around 1% to 1.25% of a home’s assessed value annually, meaning a $5 million home could come with property tax bills of roughly $50,000 to over $65,000 per year before additional local assessments or fees.

Insurance

Insurance is one of the biggest hidden costs of owning a home in Hollywood Hills, largely due to the area’s elevated wildfire risk. Many legacy insurance carriers have limited or paused new policies in California’s highest fire-risk zones in recent years, pushing some homeowners toward specialty or surplus-line insurers instead.

“The Hollywood Hills is a coveted area for its amazing views, affluent demographic, convenient location, convenient access, etc. Due to a home’s size, building grade and topography, insurance can be tricky,” says Eric Einhorn at Einhorn Insurance. “Each home (and its unique property characteristics) and the individual homeowners are underwritten by the insurance company for eligibility and rating. For a Hollywood Hills homeowner to obtain comprehensive insurance protection, it’s not uncommon to purchase multiple policies (each would cover damage from different perils…i.e. fire, water damage, theft, liability, earthquake, etc.) to avoid gaps in coverage. Nowadays, Hollywood Hills home insurance options are limited and can range from $10K annual to over $100K annually depending on a variety of factors (including a home’s specific geographic location, building materials/reconstruction costs, preventative wildfire mitigation efforts, etc.).”

Unique considerations for Hollywood Hills homes

Living in Hollywood Hills comes with more than just a multimillion-dollar mortgage. From wildfire preparedness to maintaining steep hillside properties, homeowners in the neighborhood often face added costs and logistics that come with luxury canyon living.

• Wildfire risk: Many homes sit within high fire severity zones, making wildfire preparation and specialized insurance coverage a major part of homeownership.
• Steep hillside lots: Retaining walls, drainage systems, and hillside foundations often require more maintenance than traditional homes.
• Privacy and security: Gated driveways, cameras, hedges, and private security systems are common for celebrity and luxury properties.
• Indoor-outdoor living upkeep: Pools, outdoor kitchens, expansive decks, and landscaping can add significant ongoing maintenance costs.
• Narrow roads and parking challenges: Some hillside streets are steep, winding, and limited on parking, which can make daily logistics more difficult.
• Luxury home maintenance: High-end finishes, custom architecture, and designer interiors often come with higher repair and replacement costs.

“Most of the legacy carriers paused new business in California’s Very High Fire Hazard Severity Zones, so for a stretch there, a lot of Hills homeowners were stuck with just the California FAIR Plan,” states William Lemmon at Broadway Insurance Services. “Every home in the Hills is its own case, but pricing generally runs 5x what typical homes are priced at, with most luxury estates landing somewhere between $8,000 and $100,000 a year, and the biggest, hardest-to-place households we’ve seen cost over $150,000 once you stack the dwelling, DIC wrap, excess, earthquake, and high-value contents together.”

Down payment expectations

For a $5 million Hollywood Hills home similar to those found in Jacob Elordi’s neighborhood, buyers could expect down payments around:

3% down: $150,000

10% down: $500,000

20% down: $1 million

30% down: $1.5 million

In competitive luxury markets like Hollywood Hills, lenders often rely on jumbo loans, where 20%–30% down is far more typical..

Home styles commonly seen in Hollywood Hills

Hollywood Hills homes lean heavily into architectural drama and modern California living, with a mix of new builds and renovated mid-century properties. The neighborhood is known for homes that prioritize views, privacy, and indoor-outdoor flow, often with bold design choices that stand out against the hillside landscape.

“The key to creating these spaces unique and special is the collection of art work and gallery style walls that give personality and insight to a person’s home. It’s the paintings and prints of what he’s collected and chosen to show people his world,” shares Peti Lau. “He keeps the walls color in neutral warm crème tones allowing blank canvas space. Warm table and floor lamps throughout the space, so there isn’t overhead lighting and can allow different light sources at eye levels. The furniture has clean lines and comfortable upholstery. The use of natural woven textile can create warmth into the interiors that feel elegant and understated.”

Some of the most common home styles in the area include:

• Mid-century modern: Clean lines, flat planes, large glass walls, and seamless indoor-outdoor living—one of the most iconic styles in the area.
• Contemporary luxury: Newer builds featuring open floor plans, floor-to-ceiling windows, minimalist interiors, and high-end finishes.
• Modern architectural estates: Custom-designed homes with striking geometric forms, cantilevers, and dramatic hillside positioning.
• Hollywood Regency influences: Glam-inspired homes with bold finishes, symmetry, and upscale decorative detailing.
• Renovated classic homes: Older hillside properties updated with modern materials while preserving original character and structure.

What it costs to design a Mid-Century Modern Contemporary style home

A home in Jacob Elordi’s Hollywood Hills neighborhood typically reflects a mid-century modern–inspired contemporary style, blending clean architectural lines, expansive glass walls, warm natural materials, and seamless indoor-outdoor living. Designing and furnishing a home in this aesthetic can vary widely depending on the level of customization, but luxury execution in Los Angeles tends to come at a premium.

For a full design build or high-end interior furnishing package, costs often range from:

• Design fees (architect + interior designer): $100,000–$1.5 million+
• Custom furnishings + decor: $150,000–$750,000+
• Full luxury build-out or redesign: $500,000 to $2 million+

“Designing a contemporary home inspired by the warm, collected feel of Jacob Elordi’s Hollywood Hills aesthetic is less about following trends and more about creating an atmosphere that feels architectural, layered, and collected,” encourages Krystal Reinhard, CEO and  Principle Designer of Old Soul Design Studio. “A fully furnished luxury home of this caliber (specifically in LA) blending mid-century influences, custom upholstery, artisan materials, natural wood tones, and seamless indoor-outdoor living can realistically start at $500,000 to well over $1.5M, depending on the size of the home, level of customization and professional design services. Much of the investment comes from architectural elements, vintage and collectible pieces, and the restraint required to make a space feel effortlessly curated rather than overdesigned.”

Renting vs. buying in this area

In Hollywood Hills, the gap between renting and buying is especially wide due to high home values and luxury demand. Many residents choose to rent first before committing to a purchase in the neighborhood.

• Median rent: ~$7,500–$12,000/month (luxury homes and view properties can exceed $20,000+/month)
• Estimated mortgage: ~$25,000–$50,000+/month (based on multi-million-dollar home prices, depending on down payment and interest rates)

Home value trends over time

Hollywood Hills has seen strong long-term appreciation driven by limited inventory, celebrity demand, and consistent luxury buyer interest. While exact numbers vary by sub-neighborhood and property type, trends generally show steady upward growth over time, with occasional slowdowns during broader market shifts.

• According to Redfin data, Hollywood Hills properties have generally seen strong long-term appreciation over the past decade, often outperforming many surrounding areas due to limited hillside inventory, architectural uniqueness, and consistent demand for view-driven, celebrity-adjacent homes.

What it really costs to live in Jacob Elordi ’s neighborhood

In Hollywood Hills, the cost of homeownership rises quickly once you factor in the price of luxury hillside properties, elevated insurance needs, and ongoing maintenance tied to steep terrain and high-end finishes. Monthly mortgage payments for a typical multi-million-dollar home in Jacob Elordi’s neighborhood can range from about $25,000 to over $50,000, with property taxes adding another $4,000 to over $15,000 per month depending on purchase price and assessed value.

Once you include insurance – often ranging from $700 to $8,000+ per month for standard to high-exposure homes – along with wildfire mitigation, security systems, landscaping, and general upkeep, total monthly ownership costs can realistically reach $33,000 to $75,000+ per month, and even higher for fully custom estates. This reflects not just the home itself, but the exclusivity, views, privacy, and lifestyle that define living in one of Los Angeles’ most iconic hillside neighborhoods.

The post What It Really Costs to Live in Jacob Elordi’s Neighborhood appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

When preparing to sell your home, the outside matters just as much as what’s inside. Learning how to stage your outdoor space to sell can help create a memorable first impression, boost curb appeal, and make buyers feel emotionally connected before they even walk through the front door. From refreshing landscaping to creating cozy gathering areas, thoughtful outdoor staging can help your home stand out in a competitive market.

In this Redfin guide, we’ll share expert-backed tips for transforming your yard, patio, porch, or garden into a space buyers can easily picture themselves enjoying. Whether you’re preparing a bungalow in Boise, ID, or listing a modern home in Savannah, GA, these outdoor staging ideas can help sellers create inviting spaces that feel polished, functional, and move-in ready.

Why outdoor staging matters when selling a home

Outdoor staging helps buyers form an emotional connection with a home before they even step inside. A clean, inviting exterior can make a property feel more cared for, while thoughtfully designed outdoor spaces help buyers imagine themselves relaxing, entertaining, or spending time outside. In competitive markets especially, those details can help a listing stand out from similar homes nearby.

“Staging allows buyers to see the potential of the space and aids realtors in securing high-investment buyers,” shares Julia, CEO of JP Urban Moving. “Staging is an aspect of the moving industry that customers generally don’t consider, but it’s vital and on the rise.”

Outdoor staging can also help:

• Create a stronger first impression during showings.
• Highlight usable outdoor living areas like patios, porches, and backyards.
• Make the home feel move-in ready.
• Showcase the lifestyle the property offers, not just the structure itself.
• Help buyers remember the home after touring multiple listings.

Focus on curb appeal first 

Curb appeal plays a major role in shaping a buyer’s first impression of a home. Before buyers notice updated interiors or spacious layouts, they’re already evaluating the condition of the yard, landscaping, and exterior maintenance.

“Ensure your home is move-in ready by maximizing its curb appeal and value through thoughtful landscape design,” suggests Fel Quinn, Marketing Director at TerraVita Landscape & Gardening Inc. “Carefully consider how the trees, shrubs, and perennials add interest while keeping the space low-maintenance. Sometimes less is more – by prioritizing strategic planting and the overall health of your landscape, you can create a welcoming space that is both well-kept and inviting.”

To improve curb appeal before listing your home:

• Trim overgrown trees and shrubs.
• Refresh mulch in flower beds and garden areas.
• Mow and edge the lawn regularly.
• Keep walkways, driveways, and entryways clean and clutter-free.
• Choose landscaping that looks attractive while remaining low-maintenance.

Create outdoor spaces buyers can picture themselves using 

When staging an outdoor space, the goal is to help buyers imagine how they would actually live there. A cozy patio setup, welcoming front porch, or peaceful backyard can make the home feel like a retreat rather than just another property on the market. Buyers are often drawn to spaces that feel functional, relaxing, and easy to enjoy from day one.

“Think about it: It’s Friday afternoon, you just got off a busy work week, you’re dreaming of how long until you escape to your home, that peaceful haven from the chaos,” says Justin Wilson of American Irrigation Repair. “When you’re selling your house, you’re not just selling just the structure, you’re selling a vision of how a buyer feels when they step on the property.”

To create outdoor spaces buyers can connect with:

• Arrange simple seating areas on patios or decks.
• Add outdoor pillows or neutral decor for warmth.
• Incorporate planters or flowers for natural color.
• Keep pathways and gathering spaces open and uncluttered.
• Highlight features like fire pits, gardens, or dining areas.
• Use lighting to make the space feel inviting during evening showings.

Less clutter, more function: Keep outdoor staging simple 

When staging outdoor areas, simplicity often has the biggest impact. Buyers want to see spaces that feel open, functional, and easy to maintain, rather than overcrowded with furniture, decorations, or excessive landscaping features. A clean and thoughtfully arranged yard allows buyers to focus on the home itself while still appreciating the outdoor lifestyle it offers.

“When staging an outdoor space to sell, focus on making it feel clean, welcoming, and easy for buyers to picture themselves comfortably living in and using the space,” says Beth Wren of Copper Creek Landscaping. “The goal is to create an outdoor space that feels polished, functional, low-maintenance, and like a natural extension of the home.”

To keep outdoor staging simple yet effective:

• Remove broken furniture, excess décor, and unused yard items.
• Define seating areas without overcrowding the space.
• Add fresh mulch and trim overgrown plants.
• Highlight one or two focal points, like a bird bath or statement planting.

Don’t forget the emotional connection buyers feel outdoors

Outdoor spaces often leave the strongest emotional impression during a home tour. Long after buyers forget square footage or listing details, they tend to remember how a home felt – especially in areas where they can imagine relaxing, gathering, or unwinding. A thoughtfully staged exterior helps turn a property into something more personal and memorable.

At its core, outdoor staging is about selling a feeling as much as a space. Buyers respond to environments that feel peaceful, cared for, and inviting, where they can easily picture everyday moments unfolding.

Key emotional drivers in outdoor staging include:

• A sense of calm and retreat from daily stress.
• The feeling of a “personal oasis” or private escape.
• Warmth and comfort created through greenery, lighting, and layout.
• Subtle signals that the home has been well cared for over time.
• Spaces that feel ready for connection, whether with family, friends, or nature.

How to stage your outdoor space to sell successfully

Staging your outdoor space is about more than improving curb appeal – it’s about helping buyers imagine the lifestyle your home offers. Small updates like fresh landscaping, defined seating areas, lighting, and thoughtful decor can make your property feel more welcoming, memorable, and move-in ready. By taking the time to stage your outdoor space to sell, you can create a strong first impression that helps your home stand out to potential buyers.

The post How to Stage Your Outdoor Space to Sell Your Home Faster appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Closing costs aren’t just a buyer’s concern. Sellers pay their own set of fees when a home sale closes, including title fees, transfer taxes, escrow charges, and other costs that are deducted directly from their proceeds. 

But there’s an important distinction sellers should understand before listing their home: closing costs and total cost to sell are not the same thing.

Seller closing costs run around 1–3% of the sale price. Once agent compensation, repairs, moving expenses, and other selling costs are factored in, the total cost to sell is often much higher. 

The current housing market can also affect how much a seller ultimately pays. While homebuying demand has improved this year, many markets still have more sellers than buyers, giving buyers added negotiating power. As a result, sellers may be more likely to offer closing cost credits, repair concessions, or mortgage-rate buydowns, all of which can reduce their net proceeds from the sale.

This guide breaks down what closing costs for sellers include, what’s negotiable, and how to estimate what you may actually walk away with after selling your home.

Seller costs at a glance 

What are closing costs for sellers?

Closing costs are the fees and expenses required to finalize the sale of a home. These are deducted directly from your proceeds at closing, so you won’t need to pay them out of pocket on the day of the sale.

Seller closing costs can include:

• Transfer taxes and local fees
• Escrow, title, and recording fees
• Owner’s title insurance
• Prorated property taxes and utilities
• Certain HOA-related fees, such as transfer fees and prorated dues

But closing costs are only part of what it costs to sell. The total cost to sell is a broader number that includes everything you spend before, during, and after the sale, including: 

• Real estate agent compensation
• Seller concessions negotiated with the buyer
• Repairs and renovations
• Home staging
• Photography and listing prep
• Moving expenses
• Carrying costs while the home is listed
• Mortgage payoff

Understanding the difference matters because many sellers focus only on closing costs and underestimate how much they’ll actually spend throughout the selling process.

How much are closing costs for sellers?

Seller closing costs typically range from 1% to 3% of a home’s sale price before agent compensation, though the exact amount depends on location, transfer taxes, and the terms negotiated during the sale.

Some sellers may also have additional expenses beyond traditional closing costs, including agent compensation, repairs, moving costs, and seller concessions. That’s why it’s important to understand both your closing costs and your broader selling expenses when estimating your net proceeds.

Breakdown of closing costs for sellers

Seller closing costs are the fees directly associated with transferring ownership of the home and finalizing the transaction. These costs are typically deducted from your proceeds at closing.

1. Transfer taxes and local fees

In some states, sellers may be required to pay transfer taxes, which are calculated as a percentage of the sale price or the property’s value. These taxes can vary widely depending on location. For instance, some areas may charge 0.5% to 2% of the sale price as a transfer tax, while other regions might have a flat fee or no tax at all.

For example, if you’re selling a home in Providence, RI, you’ll likely owe transfer tax. In contrast, Texas doesn’t impose a state transfer tax, so selling a home in Austin, TX may come with fewer tax-related costs – though local fees may still apply.

In addition to transfer taxes, there may be other local fees, such as certification or inspection fees, required by local governments before the property can be officially sold. These costs range from $100 to $500, depending on the area. Because transfer taxes and local fees vary significantly by location, sellers should check with their real estate agent, title company, or local government office to understand what costs may apply in their market.

2. Escrow, title, and recording fees

Escrow, title, and recording fees help facilitate the sale and transfer ownership of the property from the seller to the buyer.

• Escrow fees: Charged by the escrow company handling the transaction. Who pays varies by market and local custom.
• Title search fees: Cover the research needed to confirm clear ownership and check for any liens or claims against the property.
• Recording fees: Paid to the local government to officially record the property’s transfer to the new owner.

These administrative closing fees generally range from $200 to $1,900, but the exact amount will depend on the local jurisdiction and the complexity of the transaction.

3. Owner’s title insurance

Owner’s title insurance protects the buyer against future ownership claims and title defects, including unknown liens. The all-in cost averages about 0.67% of the purchase price, though total title-related fees can vary by location and provider. 

In many states, sellers cover this cost as part of the closing process, but who pays can vary by region, local custom, and negotiation. 

4. Prorated property taxes and utilities

At the time of closing, sellers are responsible for paying property taxes up until the day of the sale. If the home is sold mid-year, property taxes will be prorated, meaning the seller will only pay for the portion of the year that they owned the home. 

Utility bills, such as water, electricity and gas, may also be prorated based on the closing date. These expenses can range from a few hundred to several thousand dollars, depending on local tax rates and the sale date.

5. HOA fees 

If your home is part of a homeowners association (HOA), you may encounter additional fees at closing. These can include transfer fees, resale package fees, estoppel fees, and prorated HOA dues owed through the closing date.

In some cases, sellers may also be responsible for unpaid HOA dues or special assessments approved before the sale. The exact fees and who pays them can vary based on the HOA’s governing documents, state law, local custom, and the terms negotiated in the purchase agreement.

Because HOA-related costs vary widely from one community to another, sellers should review their HOA documents and ask their real estate agent or closing professional what fees may apply before listing their home.

Other major costs that affect your net proceeds

Some selling expenses aren’t technically closing costs, but they can still significantly reduce how much money you walk away with after the sale.

1. Real estate agent commission

While real estate agent compensation isn’t typically considered a closing cost, it’s often one of the largest expenses associated with selling a home and can affect how much you ultimately walk away with after the sale.

There’s no standard commission rate, and compensation is fully negotiable. Sellers negotiate compensation directly with their listing agent.

Following the 2024 NAR settlement, buyers are generally required to sign written agreements with their agents before touring homes. Buyers may ask the seller to help cover their agent’s compensation as part of their offer, but they may not. As a result, compensation requests can vary from transaction to transaction, and whether a seller contributes toward a buyer’s agent’s compensation ultimately comes down to negotiation.

2. Mortgage payoff balance

While a mortgage payoff isn’t technically a closing cost, it is deducted from the seller’s proceeds at closing and can significantly impact how much money they walk away with from the sale.

If the home has an outstanding mortgage, the remaining balance must be paid at closing. The lender provides a mortgage payoff statement, including:

• The remaining principal balance
• Accrued interest
• Possible prepayment penalties (less common today)

Sellers should request a payoff statement early to avoid last-minute surprises.

3. Seller concessions 

While seller concessions aren’t typically considered a traditional closing cost, they can increase the amount a seller pays at closing and reduce their net proceeds.

A concession is anything a seller agrees to give or cover to help move a deal forward. In real estate, that means credits, repairs, or cost coverage that gets negotiated as part of the offer and settled at closing — reducing what the buyer has to pay upfront.

Seller concessions can include:

• A seller-paid mortgage rate buydown
• A credit toward the buyer’s closing costs
• Prepaid property taxes or insurance
• Repair credits in lieu of making fixes before closing

Concessions aren’t required, but they can be a useful negotiating tool. Sellers may offer them to attract buyers, address issues uncovered during an inspection, or help keep a transaction on track. In today’s market, where many areas still have more sellers than buyers, concessions have become more common in some transactions.

The amount of seller concessions varies based on market conditions, buyer financing, and negotiations between the buyer and seller. Some loan programs may place limits on the amount a seller can contribute toward a buyer’s costs.

Every dollar in concessions reduces your net proceeds, so it’s important to weigh the cost of the concession against the likelihood of keeping the transaction together.

How to reduce seller closing costs

While some costs are unavoidable, there are strategies you can use to lower your closing costs as a seller:

• Review agent compensation carefully: While agent compensation isn’t typically considered a closing cost, it can be one of the largest expenses associated with selling a home. Compensation is negotiable, so sellers should discuss fees and services with their agent before signing an agreement.
• Shop around for title and escrow services: These fees vary by company, so shopping around can save hundreds of dollars.
• Limit seller concessions when possible: Seller concessions can increase the amount you pay at closing. Depending on market conditions and buyer demand, you may have more or less flexibility when negotiating credits, repairs, or mortgage-rate buydowns. 
• Negotiate closing costs with the buyer: You can work with the buyer to negotiate who pays for specific costs, such as HOA fees or title insurance. If the buyer is rolling in closing costs to their mortgage, they might be willing to cover a bit more to seal the deal.
• Request a mortgage payoff statement early: If you still have a mortgage, ask your lender for a payoff estimate before listing your home. Understanding how much you owe can help you better estimate your net proceeds and avoid surprises at closing. 

Frequently asked questions about seller closing costs 

What’s not included in closing costs? 

Real estate agent compensation, repairs, staging, photography, moving expenses, and mortgage payoff are generally not considered closing costs. These expenses can reduce how much money a seller ultimately walks away with, but they’re separate from closing costs such as transfer taxes, title fees, escrow fees, and prorated taxes.

What factors affect how much a seller pays in closing costs? 

Location has the biggest impact — transfer taxes range from 0% in states like Texas to over 2% in states like Pennsylvania. Your sale price, loan type, what gets negotiated in the offer, and whether you offer any seller concessions all play a role as well. 

How do I calculate my net proceeds? 

Start with this formula: 

Sale price − total cost to sell − mortgage payoff = net proceeds. 

Selling expenses may include closing costs, agent compensation, seller concessions, repairs, moving costs, and other costs associated with the transaction.

On a $400,000 sale with $30,000 in selling costs and a $120,000 mortgage balance, net proceeds would be approximately $250,000, before any applicable taxes. Use Redfin’s home sale proceeds calculator to run your own numbers.

Ready to see what your home is worth? Find a Redfin agent near you. 

The post Closing Costs for Sellers: A Breakdown of How Much You’ll Pay appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Buying your first home comes with major financial decisions, and understanding available tax credits and incentives can make a meaningful difference. While federal programs have changed over the years, there are still several tax benefits and assistance options that can help reduce the cost of homeownership in 2026. Whether you’re buying a home in Denver or a house in Orlando, this Redfin real estate guide breaks down what first-time buyers need to know about available tax credits and incentives in 2026.

What qualifies you as a first-time homebuyer?

For most programs, you are considered a first-time homebuyer if you have not owned a primary residence in the past three years. This definition applies to many state and local assistance programs, as well as certain federal-backed options.

You may still qualify even if you owned property in the past, as long as you have not owned a home recently.

Tax benefits available to first-time buyers

While there is no active federal first-time homebuyer tax credit in 2026, homeownership still comes with several tax advantages. Understanding how these deductions and credits work can help you estimate potential savings and make a more informed financial decision before you buy.

“Prospective buyers should inquire what exemptions or dedication the sellers are receiving and get an estimate of what their taxes would be,” says Lisa Miura, real property tax administrator at the County of Hawai’i. “There are other programs available if the buyer is not intending to reside on the property including agricultural and long term rental.”

Mortgage interest deduction

Homeowners who itemize deductions may deduct mortgage interest paid on qualified home loans, subject to IRS limits. This can reduce taxable income, especially in the early years of a mortgage when interest payments are higher.

Property tax deduction

You may deduct state and local property taxes, subject to the current federal cap on state and local tax deductions.

Mortgage Credit Certificates

Some state and local housing finance agencies offer Mortgage Credit Certificates, often called MCCs. These allow eligible buyers to convert a portion of their annual mortgage interest into a dollar-for-dollar federal tax credit, up to a capped amount. This can provide ongoing annual tax savings for qualified homeowners.

“Buyers need to contact their state housing finance agency before signing a purchase contract to confirm MCC availability and reserve the certificate,” says Mike Habib, EA. “If you close without securing it, the federal credit is permanently lost for that home. It is also important to run the numbers to see whether itemizing makes sense and to keep a complete closing file with your MCC certificate, Closing Disclosure, and Form 1098. Most of the problems I see could have been avoided with a brief conversation before closing rather than after the tax return is filed.”  

State and local first-time homebuyer incentives

While federal credits are not currently available, many state and local governments offer financial assistance programs designed specifically for first-time buyers.

These programs may include:

• Down payment assistance grants
• Forgivable loans
• Low-interest second mortgages
• Closing cost assistance
• State-level tax credits

Eligibility often depends on income limits, purchase price limits, and whether the home is located in a targeted area.

Because programs vary widely by state and city, buyers should check with their state housing finance agency or local housing department to review available options.

First-time homebuyer programs in Canada

“Many first-time buyers assume all homebuyer programs work the same way, but the rules can differ significantly,” says Clayton Achen, CPA and managing partner at Achen Henderson CPAs.  “For example, the First Home Savings Account and the Home Buyers’ Plan are often confused, even though FHSA withdrawals can generally be tax-free without repayment, while HBP withdrawals from an RRSP generally must be repaid over time. Buyers also frequently overlook timing requirements and assume that qualifying for one program automatically means they qualify for others.” 

“A common issue is that eligibility rules vary from program to program, especially around the definition of a first-time home buyer. Income limits, purchase price thresholds, occupancy requirements, and documentation can all affect access to credits, rebates, or incentive programs. In practice, buyers are often disqualified because they misunderstand prior home ownership rules, they miss filing deadlines, or they fail to keep the records needed to support their claim,” Achen explains.

Other programs that reduce upfront costs

Although not technically tax credits, these programs can significantly reduce the cost of buying your first home:

• FHA loans with lower down payment requirements
• VA loans for eligible service members and veterans
• USDA loans for qualifying rural properties
• First-generation homebuyer assistance programs in some areas

Lower upfront costs can make homeownership more accessible and improve overall financial flexibility.

How to maximize your savings

If you are planning to buy your first home in 2026, consider these steps:

1. Review your tax situation with a CPA or tax professional before purchasing.
2. Ask lenders about Mortgage Credit Certificates and local assistance programs.
3. Research state and city housing programs early, as some require pre-approval or homebuyer education courses.
4. Compare the long-term tax benefits of owning with the costs of renting in your area.

The post First-Time Homebuyer Tax Credits and Incentives appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

There’s usually a moment that tends to hook people on the idea of buying property abroad. You’re sitting on a balcony somewhere you don’t live, coffee in hand, watching a street come to life at a slower pace than you’re used to. Maybe it’s coastal Spain, maybe it’s a condo in London, perhaps it’s somewhere you hadn’t even heard of a year ago.

And at some point, the thought bubbles up: I could live here.

That’s where things start. But buying a home abroad isn’t the same as visiting one. A place that feels effortless for a week can become complicated when you try to own a piece of it.

Homes come with systems—legal, financial, and cultural. And when you’re operating inside a system that isn’t your own, small misunderstandings have a way of turning into expensive ones.

Here’s what experts say buyers should understand before purchasing a home overseas.

Don’t buy the vacation version of a place

The biggest trap in buying property abroad is confusing a short stay with real life.

A home isn’t just the view from the terrace or how close it is to the water. It’s what the neighborhood feels like in February. It’s how loud it gets at night, how far the nearest hospital is, how easy it is to get basic services handled when you’re not a local.

Timothy Scott, Editor at Luxury Latin America, puts it this way:

“Swooping in on vacation and making a quick purchase is very risky because you don’t have a handle on real market prices, the pros and cons of different neighborhoods, or what pitfalls are common there. If you rent for a year before buying and spend plenty of time learning the market characteristics as well as what others before you have experienced, you have a much better chance of avoiding any downside and paying a fair market rate for what you’re purchasing.” 

If you’re serious about buying a home abroad, spend time living there first. Not as a visitor, but as someone running errands, dealing with utilities, and experiencing what daily life actually looks like. That’s the version of the place you’ll own.

A house is only as clean as its paperwork

A home can look perfect and still carry problems you can’t see—especially in another country.

Title issues, unpaid taxes, shared building debts, missing permits—these aren’t rare problems. And when you’re buying property abroad, they don’t stay attached to the previous owner. They follow the property.

Mikkel Thorup, Founder and CEO of Expat Money®, puts it plainly:

“When it comes to buying real estate abroad, the first thing I’d tell you is this: do not fall in love with or become overly attached to any property before a trusted local lawyer confirms the property is actually clean and ready for sale. They should also check for ownership disputes, liens, unpaid taxes, or other hidden problems that could become your problem after closing.” 

This is where a good local lawyer earns their keep. Not someone recommended by the seller, not someone cutting corners—someone who works for you and understands the local system well enough to catch what you can’t.

Every country handles homes differently

Buying a home abroad means stepping into a process that may not resemble what you’re used to.

In some places, verbal agreements carry weight. In others, everything hinges on notaries and government registries. Even something as basic as who holds funds during a transaction can differ.

Spain is a common destination for buyers, and it offers a good example of how specific the process can get.

Heidi Wagoner, a Move to Spain Consultant for Wagoners Abroad and Almuñécar Info explains:

“If you’re buying property in Spain, always hire an independent Spanish Lawyer to check the legal status of the property, debts, and licenses before signing anything, as you will inherit the debts. It’s important to obtain an NIE number (foreign identification number) early, as you’ll need it for the purchase process and utilities and the lawyer can help with this. Finally, take time to research the area year-round, especially in coastal towns where summer and winter lifestyles can feel very different.” 

That last part matters for homes in particular. A house isn’t just a structure—it’s tied to a community, and that community can change dramatically depending on the time of year.

The real cost of buying a home abroad

The listing price of a home abroad is rarely the full story.

There are always additional costs—some obvious, some less so. Taxes, legal fees, notary costs, registration fees, and ongoing community expenses can add up quickly.

Louize Christaens, Marketing Director at Globexs, breaks it down:

“When purchasing property in a foreign country, you must look beyond the initial purchase price and factor in the localized ‘acquisition overhead,’ which can add an unexpected 12% to 13% to your costs. Additionally, because international buyer dynamics change rapidly, it is vital to secure a local, independent legal partner who can navigate regional administrative hurdles like acquiring tax IDs and vetting properties for hidden community debts.”

If you’re buying an apartment or a home in a shared development, those “hidden community debts” matter. You’re not just buying walls—you’re buying into a system of shared responsibility.

Know what you’re solving for before you buy a property abroad

Most bad decisions around buying property abroad don’t come from picking the wrong house. They come from not being clear on why you’re buying in the first place.

Nasos Fousias, Head of Astons in Greece, frames it this way:

“Before buying property abroad, clients should first define the purpose of the purchase: investment, lifestyle, relocation, or long-term optionality. An investment-led decision requires market data, rental demand, local regulation, and proper legal due diligence. A lifestyle or relocation purchase should start with understanding how the area works beyond the holiday season. For international buyers, it is also important to consider whether property ownership can support wider objectives, like capital diversification or alternative residency planning. The strongest outcomes usually come when the property decision is assessed not in isolation, but alongside legal, tax, mobility, and family considerations.”

If you’re chasing yield, you need data, demand, and a clear understanding of local rules. If you’re chasing a lifestyle, you need to know what a Tuesday feels like in that place when nothing special is happening.

Clear intent makes the rest of the process simpler. It tells you what matters, what doesn’t, and where you’re willing to compromise.

Don’t confuse a home with an investment thesis

It’s easy to start treating a home abroad like a line item instead of a place you’ll actually live. Numbers take over—projected appreciation, rental yield, and resale timelines. It feels practical, but it leans on the shaky assumption that you understand a foreign market well enough to predict how it behaves.

Most of the time, you don’t.

Andrew Motiwalla, Founder and CEO of The Good Life Abroad, puts it in plain terms:

“Foreign property markets are notoriously difficult to predict, and you won’t have the local knowledge edge. The buyers who never regret it are the ones who bought because they genuinely wanted to live there — not because they were chasing appreciation. If the rental income and resale value disappeared tomorrow, would you still want it? If yes, buy. If not, just rent a home.”

That question cuts through a lot of the noise. If you’d still want to live there without the promise of appreciation or rental income, you’re probably making the decision for the right reasons.

Understand residency and visa rules before buying

Owning a home abroad doesn’t automatically mean you can live there full-time.

Residency rules, visa limits, and administrative requirements all shape what your life will actually look like once you own the property.

Tracey Roberts, Senior Advisor at U.K.ABROAD explains how often this gets missed:

“One of the most overlooked parts of buying property abroad is ensuring your residency, visa, and passport situation is properly organized before making a major financial commitment. Many expats only realize later that visa renewals, residency permits, or even an expired passport can create unexpected complications when purchasing property, opening bank accounts, or finalizing legal paperwork overseas. Buying property abroad can be an exciting long-term investment, but preparation and understanding the local legal system are essential to avoiding costly delays and unnecessary stress.”

Before you buy, make sure you understand how often you can stay, what’s required to extend that stay, and whether ownership gives you any additional rights. In many cases, it doesn’t.

A home includes everything around it

A house isn’t just what’s inside the walls. It’s access to healthcare, infrastructure, and basic services—things that are easy to take for granted until they’re different.

David Tompkins of TFG Global Insurance Solutions Ltd. explains:

“Buying a home abroad can be an exciting lifestyle investment, but it is important to understand local property laws, tax implications, residency rules, and access to healthcare before making the move. Many expats are surprised to learn that local healthcare systems may be limited or unavailable to foreigners, making comprehensive international health insurance essential when living overseas.”

If you’re planning to spend real time in your home abroad, you need to know how the surrounding systems work. Not just when everything is going smoothly, but when something goes wrong.

A practical way to approach buying property abroad

There’s a steady way to go about this—one that favors patience over impulse.

• Live in the area before buying, even if only for a few months.
• Learn how neighborhoods function outside peak seasons.
• Hire an independent local lawyer to review every detail.
• Confirm the home’s legal status, debts, and permits.
• Budget beyond the purchase price for all associated costs.
• Secure required identification numbers and documentation.
• Understand residency, visa limits, and tax exposure.
• Plan for healthcare, insurance, and long-term logistics.

Buying a home abroad isn’t just a transaction—it’s an entry point into a different way of living.

The difference between visiting and owning

A good trip is easy. Everything is temporary, flexible, and designed to be enjoyed.

Owning a home abroad is different. It ties you to local rules, systems, and the realities of daily life. But if you take the time to understand those systems before buying, you give yourself a much better chance of ending up somewhere you can truly live — not just vacation.

The post Buying Property Abroad: What a Home in Another Country Really Demands appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Known for its thriving tech industry, beautiful green spaces, and rich cultural scene, Raleigh, NC offers a dynamic and inviting environment for residents and visitors alike. If you’re looking to move to Raleigh, then you also may be considering whether to rent versus buy a home in Raleigh. With Raleigh’s real estate market conditions, you’ll find there are pros and cons to both buying and renting a home, making it that much tougher to decide which option suits your goals.

Ultimately, deciding between buying or renting a home in Raleigh is personal and dependent on many factors. From your financial goals and your desire to stay in the area long-term, to what Raleigh neighborhood you hope to live in, there’s lots to consider in the decision process. We’ll guide you through the pros and cons of renting vs buying in Raleigh so you can make a decision that meets your goals this year.

Advantages of buying a home in Raleigh

Building equity

Homeownership presents a unique opportunity to build equity over time. As homeowners make mortgage payments, they gradually accumulate equity, representing the difference between the property’s market value and the remaining loan balance. This growing equity can serve as a valuable asset and a pathway to long-term financial growth, providing potential benefits and opportunities for the future.

Growth in the area

We have seen a steady flow of new residents moving to the Raleigh area within the last two years, and the outskirt towns continue to grow as well. Our area offers the charm of the South with the progressive feel of the North. Opportunities in tech, shopping, dining and academia.  There is something for everyone, with temperate seasons and affordable cost of living compared to some of the Nations bigger meccas.  Whether it’s the charm of a historic bungalow or the modern style of a new build, Raleigh has something to offer everyone.

Tax benefits

Another advantage of buying a home in Raleigh rather than renting is the potential tax benefits you could receive as a homeowner. For example, you may be eligible to deduct mortgage interest or property taxes. You also may be able to further benefit from tax deductions on eligible home improvement expenses and energy-efficient upgrades.

Disadvantages of buying a home in Raleigh

Competition

Some neighborhoods in Raleigh lack inventory so you can still run into bidding wars for popular, well-priced homes. When a new home hits the market, you have to be ready to jump.

Higher interest rates

Interest rates are a nationwide concern right now so that plays a role in the flexibility of a buyer’s budget. Many buyers want to shop at the top of their budget so interest rates really guide a lot of decisions.

Determining if you are ready to buy a house in Raleigh

If you aren’t sure whether or not you should buy a home in Raleigh or rent a home right now, there are a few key factors to take into consideration as you make your decision. 

1. Financial stability: Before starting your homebuying journey, it’s important to have a stable income and a good credit score. You’ll also need to have some additional funds saved for a down payment, closing costs, home insurance, and other expenses that go into buying a home. It’s also a good idea to build an emergency fund in case you have any unexpected expenses.
2. Housing market conditions: Raleigh’s housing market is somewhat competitive, so it’s important to know today’s market conditions – and what you can afford. 
3. Long term commitment: Compared to renting, buying a home is a significant investment – both financially and over time. If you’re not planning to stay in Raleigh for a longer period of time, it may be a better idea to continue renting until you’re ready to stay in the area long term.
4. Personal goals: Lastly, you’ll want to consider your own personal goals and evaluate your priorities before making a decision to buy a home. Are you looking for more space or a big backyard? Do you want a new construction home or an older property with character? Decide what’s important to you in the home search and if buying a home in Raleigh aligns with your goals.
5. Local laws: North Carolina has due diligence and is a buyer beware state. These are factors that are a real adjustment for someone moving from different areas or are new to buying a home. Understanding what that means to you as a buyer and the process is key.

If you’re unsure whether you’re ready to buy, consider consulting with your real estate or financial advisor to fully understand your options.

“In 2026, the decision to buy or rent is less about timing the market and more about personal financial readiness,” says Melinda Golde, director of mortgage banking at Stock Yards Bank & Trust Co. “Buyers should have steady income, manageable debt, and enough savings to cover upfront costs (including a down payment) plus several months of expenses. It also helps to plan to stay in the home for at least 5–7 years to make the numbers work. In the end, buying only makes sense if the payment is truly affordable and supports long-term financial stability – not just because you qualify for the loan.”

“To compare renting versus buying, start by calculating the true monthly cost of homeownership, including mortgage, taxes, insurance, maintenance, and other ongoing expenses, then compare it directly to rent. If owning costs only slightly more and still fits comfortably within your budget, it may be worth it, especially over time as you build equity. But if the gap is significant, renting and investing the difference can be a strong financial strategy. The key is evaluating both costs and long-term benefits over several years, not just focusing on the monthly payment.”

Is it competitive to buy a home in Raleigh?

We are consistently seeing multiple offers on all price points when the home is nice and competitively priced. They go for over asking and in many instances they are under contract within a couple days, so it’s important to be prepared to pull out all the tools and strategies to secure a contract.

Advantages of renting a home in Raleigh

Time to watch the market and adjust to a new area

Finding a short term lease may afford you the time to watch inventory and the interest rates to see if the end of year will see some positive trending in those areas. Raleigh, like lots of major cities, has many smaller community towns around the outskirts. If you are new to the area, renting would allow you six months to a year to familiarize yourself with your commute for work and the amenities that you enjoy.

Lower upfront costs

Buying a home can come with many additional costs beyond the down payment. By renting a home or apartment in Raleigh, you won’t have to worry about these additional, large upfront costs.

Lower maintenance costs

As with upfront costs when renting a home, you’ll also have lower maintenance costs. If something needs to be repaired or replaced, that responsibility falls on your landlord rather than you.

Disadvantages of renting a home in Raleigh

Higher rent prices compared to previous years

The lack of inventory has affected rent prices as well.  For the same monthly payment for a small apartment, you could afford a moderate home mortgage. 

Un-experienced landlords

There are many homeowners that couldn’t sell during a hot market that are new to leasing their home and being a landlord. This could lead to potential future issues as they learn to navigate the responsibilities of a landlord.

Risk of continuous rent increases

A significant disadvantage of renting compared to buying is the lack of control over rent increases. Rent prices can fluctuate annually based on the landlord’s decisions, potentially leading to financial strain or the need to move frequently. In contrast, homeownership offers the stability of a fixed mortgage payment, allowing for predictable housing costs over the long term and providing a sense of security in managing one’s budget.

Renting vs buying in Raleigh: A financial advisor’s final thoughts

“Ultimately, purchasing a home is more than just a financial decision and potential buyers should be prepared for possible price corrections that could reduce or eliminate home equity leaving them underwater, especially with lower down payments.  However, job security, projected income growth, demographic factors, the possibility to decrease housing costs by refinancing if interest rates decline and conversely the protection afforded against rent increases and inflation by locking in a fixed rate all factor into the decision to rent or buy.  It may make sense to continue to rent if your job security is questionable, you need more time to build sufficient savings or improve your credit score, or if it’s likely you may need to relocate in under 5-7 years.  In addition, some people may find more value renting due to amenities like pools and gyms and the peace of mind provided by not having responsibility for maintenance and repairs associated with home ownership.” – Joseph P. Kalmanovitz, CFP, CCO & head of financial planning at Canter Wealth

Redfin does not provide legal, financial, or tax advice. This article is for informational purposes only, and is not a substitute for professional advice from a licensed attorney, financial advisor, or tax professional.

The post Renting vs Buying in Raleigh, NC: Which is Right for You? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Whether you’re moving on from a historic home in New Orleans or a charming but outdated house in Seattle, selling a fixer-upper isn’t always straightforward. That said, it can be a smart and strategic move when handled correctly. Whether you’re dealing with an inherited property, a home in disrepair, or simply don’t want to take on renovations, understanding how to navigate the process of selling a fixer-upper can help you maximize value while minimizing stress.

In today’s shifting real estate market, selling a fixer-upper requires a different mindset than selling a move-in-ready home. From pricing and buyer targeting to evaluating whether to sell as-is or renovate, every decision plays a role in your final outcome.

What It Means to Be Selling a Fixer-Upper

Selling a fixer-upper means listing a property that needs repairs, updates, or full renovation. These homes often appeal to a more specific group of buyers, including investors, flippers, and those looking to build equity through improvements.

Because of their condition, some fixer-uppers may have difficulty qualifying for traditional financing, especially if major repairs are needed. This can limit the buyer pool and shift demand toward cash buyers or renovation-focused investors.

As Dev Horn, VP of Marketing at WeBuyHouses.com, explains:

“In many areas, housing inventory has grown, making it a buyer’s market. Buyers using financing must purchase a home that is in good condition and passes inspections. Investors, on the other hand, often want houses that need repairs and renovations. Selling to a cash buyer is often the best option for a seller with a distressed property.”

When selling a fixer-upper, recognizing who your likely buyer is can dramatically improve your chances of a fast and successful sale.

The True Cost of Holding a Fixer-Upper

One of the biggest mistakes homeowners make when selling a fixer-upper is underestimating the cost of holding onto the property. Even if you’re waiting for a better offer or considering renovations, expenses continue to build daily.

Andrew Burless of Jeff Buys Your House puts it plainly:

“One aspect of owning a house in poor condition that often goes overlooked is the cost of holding onto a property for an extended period of time. Each day you hold onto a property that is not in good shape can cost you hundreds of dollars in utilities, insurance, taxes and other expenses. If you have a property in poor condition, look for a buyer who can offer the certainty of an as-is purchase with a fast close.”

For many sellers, minimizing holding costs and avoiding repairs matters just as much as maximizing the final sale price. The longer the property sits, the more those carrying costs can eat into your potential profit. This is why some homeowners prioritize speed and certainty over squeezing out every last dollar.

Selling a Fixer-Upper As-Is vs. Making Repairs

A central decision when selling a fixer-upper is whether to renovate or sell the property as-is. Both approaches have clear advantages and trade-offs.

Renovating can increase your home’s value and open the door to traditional buyers. However, it also comes with upfront costs, potential delays, and uncertainty around return on investment.

Selling as-is, on the other hand, simplifies the process. You avoid repairs, showings are often minimal, and closing timelines are typically faster.

Brian Smith, Owner of Cedar Cash Home Buyers, explains this balance:

“Selling a house in poor condition can absolutely make sense, depending on the seller’s priorities. If maximizing price is the goal, making repairs or listing on the open market is usually the better route—but that comes with time, uncertainty, and upfront cost. For homeowners dealing with major repairs, inherited properties, or tight timelines, selling as-is to a professional buyer can provide a faster, simpler, and more predictable outcome. The key is understanding the trade-off between price and convenience and choosing the path that best fits your situation.”

When deciding whether to make repairs, it’s important to focus on updates that could meaningfully improve the home’s value or buyer appeal. In some cases, basic cleaning, landscaping, paint touch-ups, or minor repairs may help attract more buyers without requiring a full renovation.

Why Cash Buyers Dominate the Fixer-Upper Market

Cash buyers play a central role in selling a fixer-upper. These buyers are typically investors who specialize in purchasing distressed properties, renovating them, and either reselling or renting them.

Because they don’t rely on financing, cash buyers can close quickly and purchase properties in virtually any condition.

Ryan David, Owner of WeBuyHousesInPennsylvania.com, highlights why they’re such a natural fit:

“Selling a house in poor condition is a fine idea as long as you know who you’re selling it to. A local cash homebuyer has no problem buying a fixer-upper because they’ll purchase it as-is. Most cash home buying companies love homes in poor shape because those are prime candidates to fix and flip.”

For homeowners focused on convenience, speed, and certainty, selling a fixer-upper to a cash buyer is often the most practical path.

The Investment Appeal of Fixer-Uppers

While selling a fixer-upper may feel like offloading a problem, investors see these properties as opportunities. A home in poor condition can often be transformed into a high-value asset with the right improvements.

Margo McDonnell, President and CEO of 1031 CORP, explains this investor mindset:

“A property in poor condition can present an excellent opportunity for buyers, particularly investors or 1031 exchange participants, to acquire a structurally sound building and add value through strategic improvements. With continued demand for affordable housing, well-renovated rental properties remain highly sought after.”

Understanding this perspective can help you better position your property when selling a fixer-upper. Instead of focusing only on flaws, highlight features like location, lot size, layout, historic character, or renovation potential.

How to Price a Fixer-Upper

Pricing is one of the most critical aspects of selling a fixer-upper. Because the home requires work, it won’t command the same price as comparable move-in-ready properties.

Most investors use formulas based on after-repair value (ARV), estimated renovation costs, and desired profit margins. This often results in lower initial offers, but these offers reflect the realities of the investment.

When selling a fixer-upper, realistic pricing is key to attracting interest and avoiding long days on market. Overpricing can deter investors, while competitive pricing can generate multiple offers and faster closings.

Marketing Tips for Selling a Fixer-Upper

Effective marketing can make a significant difference when selling a fixer-upper. The goal is to attract the right buyers while setting clear expectations.

Key strategies include:

• Emphasizing opportunity with phrases like “investment potential” or “needs a little TLC.”
• Being transparent about the property’s condition to build trust with buyers.
• Using clear, honest photos that reflect the home accurately.
• Targeting investor-friendly platforms and buyer networks.

When selling a fixer-upper, the goal isn’t to make the home look perfect—it’s to showcase its potential and connect with buyers who can see that vision.

Choosing the Best Strategy for Selling a Fixer-Upper

Ultimately, selling a fixer-upper comes down to your priorities. Some sellers are focused on maximizing price, while others value speed, simplicity, and certainty.

If you have the time and resources, making improvements and listing on the open market may yield a higher return. If you’re dealing with financial constraints, major repairs, or a tight timeline, selling as-is to a cash buyer can provide a faster and more predictable outcome.Selling a fixer-upper doesn’t have to be overwhelming. With the right strategy, a clear understanding of your options, and realistic expectations, you can turn a challenging property into a successful sale.

The post Top Tips for Selling a Fixer Upper appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Key Takeaways:

• PMI is required on conventional loans with less than 20% down.
• It adds to your monthly costs but can be removed once you reach 20% equity.
• You can avoid PMI with a larger down payment, VA loan, or piggyback loan.

If you’re buying a home and planning to put down less than 20%, chances are you’ve come across the term PMI. But what is it, why do you need it, and how much will it actually cost you? Whether you’re purchasing a home in Denver, CO or looking at homes for sale in Tampa, FL, understanding PMI is key to budgeting smart. 

In this Redfin article, we’ll break down everything you need to know about private mortgage insurance (PMI) – including how to avoid it or remove it when the time is right.

What is private mortgage insurance (PMI)?

PMI stands for private mortgage insurance. It’s a type of insurance that protects your lender, not you, if you stop making payments on your mortgage.

Lenders require PMI on conventional loans when your down payment is less than 20% of the home’s purchase price. While it helps you buy a home with a smaller upfront investment, it adds to your monthly costs.

Why do lenders require PMI?

PMI reduces the lender’s risk. When you put down less than 20%, you’re considered a higher-risk borrower. PMI provides the lender a financial safety net in case you default on your loan.

Types of private mortgage insurance

There are several types of PMI, and the right one for you depends on your financial situation and lender policies:

• Borrower-paid PMI (BPMI): This is the most common type. You pay the premium as part of your monthly mortgage payment. It can be canceled once you reach 20% equity.
• Lender-paid PMI (LPMI): The lender pays for the insurance, but you’ll typically get a higher interest rate in return. This type can’t be canceled, removing it requires refinancing.
• Single-premium PMI: You pay the entire premium upfront at closing, either in cash or financed into your loan. It lowers your monthly payment but carries risk if you sell or refinance early.
• Split-premium PMI: A mix of upfront and monthly payments. You pay part of the premium upfront and the rest in monthly installments.

Understanding the differences can help you choose the most cost-effective option based on how long you plan to stay in the home and your budget.

How much does PMI cost?

The cost of PMI depends on a few factors, including your loan amount, credit score, and down payment. But here’s a general idea:

• Typical PMI cost: 0.3% to 1.5% of the original loan amount per year
• Example: On a $300,000 loan, PMI might cost $75 to $375/month

Tip: You can sometimes reduce PMI rates by improving your credit score or putting down more money upfront.

Filip Telibasa, CFP and owner of Benzina Wealth, says many homeowners are surprised by refinance-related costs such as prepaid taxes and insurance, escrow funding requirements, transfer taxes in certain states, and the reality that “no closing cost” refinances still include costs somewhere in the loan structure. He recommends requesting a full Loan Estimate early in the process and comparing the total cash to close rather than focusing only on the monthly payment. 

Ways you can pay for PMI?

PMI can be paid in different ways, depending on the loan and lender:

• Monthly premium (most common): Included in your monthly mortgage payment
• Upfront premium: Paid at closing
• Hybrid: Some paid upfront, some monthly

Your lender will explain your options during the loan application process.

When and how can you remove PMI

PMI isn’t permanent. You can remove it once you’ve built enough equity in your home.

You can request PMI cancellation when:

• You’ve reached 20% equity in your home (based on the original purchase price)
• You have a good payment history
• Your mortgage is current

PMI is automatically removed when:

• You reach 22% equity in your home (if you’re current on payments)

You can also refinance your mortgage if your home value has increased significantly, allowing you to eliminate PMI sooner.

Telibasa notes that homeowners should evaluate refinancing beyond simply securing a lower interest rate. He says the true breakeven point depends on how long you plan to stay in the home, whether the lower payment meaningfully improves cash flow, and what you plan to do with the savings each month. For some homeowners, investing the difference may create more long-term value than increasing discretionary spending.

Check out our guide: How Much Equity Do I Have in My Home? Here’s How to Calculate Home Equity

How to avoid PMI altogether

Here are a few ways to skip PMI when buying a home:

• Put down at least 20% on a conventional loan
• Consider lender-paid PMI (LPMI): The lender covers the insurance but typically charges a higher interest rate
• Use a piggyback loan: Take out a second loan to cover part of the down payment
• Explore VA loans (for eligible veterans and service members), which don’t require PMI

PMI vs. other types of mortgage insurance

Not all loans use PMI. When researching mortgage insurance, it’s easy to confuse PMI with other similar-sounding terms. Here’s a quick breakdown of the differences:

What’s the difference between PMI, MIP, and MPI?

• PMI (Private Mortgage Insurance): Required for conventional loans when your down payment is less than 20%. Protects the lender if you default.
• MIP (Mortgage Insurance Premium): Required for FHA loans. Unlike PMI, MIP is typically required for the life of the loan, unless you refinance.
• MPI (Mortgage Protection Insurance): Optional insurance that pays your mortgage if you become disabled, lose your job, or pass away. This protects you or your family, not the lender.

Understanding these terms can help you choose the right loan product and avoid unnecessary confusion during the mortgage process.

Is PMI worth it?

PMI increases your monthly housing costs, but it can be a worthwhile tradeoff if it helps you become a homeowner sooner. This is especially in fast-growing markets, where home prices may rise faster than you can save for a 20% down payment.

It’s not ideal for every buyer, but if you’re financially stable and plan to stay in your home long enough to build equity, PMI can be a short-term cost with long-term benefits.

Pros of PMI:

• Buy a home sooner: Avoid waiting years to save a full 20% down payment.
• Start building equity right away: Rising home values may outpace your savings rate.
• PMI can be temporary: Most borrower-paid PMI can be removed once you reach 20% equity.
• Potential tax deduction: PMI premiums may be deductible (consult a tax advisor).

Cons of PMI:

• Added monthly cost: Can range from $75 to $375/month or more, depending on your loan.
• Doesn’t protect you: PMI covers the lender, not the borrower, in case of default.
• Harder to remove in some cases: For example, lender-paid PMI (LPMI) requires refinancing.

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If you’re shopping for a home, you may come across properties listed “as-is.” This means the seller isn’t making repairs or offering credits for defects and the buyer must be willing to accept the home exactly as it currently is.

In this Redfin article, we’ll cover what you need to know about buying a house “as-is,” and whether it’s the right option for you. So, whether you’re buying a home in Raleigh, NC, or a townhouse in Baltimore, MD, read on to learn about the term “as-is” in a real estate transaction.

What does “as-is” mean when buying a house?

Stephen Keighery, Founder of HomeBuyerLouisiana.com, says that “as-is” does not mean buyers ignore the condition of the property. “It means the seller knows we are not going to ask them to make repairs, renegotiate over every issue, or hold them responsible for problems after the inspection.” He explains that his team still has a general contractor complete a detailed evaluation of the roof, foundation, HVAC, electrical, plumbing, termite damage, moisture issues, and overall rehab scope. As long as the repair costs make sense, they move forward with the purchase.

When a property is listed and sold “as-is,” it means the seller will not make any repairs, nor offer any credits for potential defects of the home or grounds. Some examples of major defects that the seller doesn’t have to correct include:

• Structural problems
• Leaking or faulty roof
• Defective drywall
• Active termite infestation or damage
• Non-functioning systems (HVAC, septic system, etc.)
• Mold or mildew problems
• Presence of asbestos or other harmful materials

As a result, agreeing to purchase a property “as-is” is a serious decision for any buyer. In some instances, you may request an opportunity to inspect the property for informational purposes only, even though you’re already contractually obligated to purchase the property.

While unlikely, it’s possible that sellers may agree to a home inspection contingency, which allows the buyer to back out of the contract if the home inspection reveals major issues. Whether this is still considered an “as-is” sale depends on state law, so check with a licensed professional.

What does it mean if some parts of the home are sold “as-is”?

Sometimes sellers may identify specific aspects of a home being sold “as-is,” rather than the entire home. Common examples include:

• Fireplaces, chimneys, and flues
• Detached structures (sheds, garages, etc.)
• Household appliances (washer, dryer, refrigerator, etc.)
• Swimming pools, spas, hot tubs

In this situation, “as-is” refers to aspects of the property that may or may not be functioning which the seller will not repair or change as part of the contract of sale. Because this applies only to certain aspects of the home, it’s often less risky for buyers. However, the level of risk varies by property.

What does “as-is, where-is” mean in a listing?

With the inclusion of “where-is,” the seller indicates that the property must be accepted in its current location. In real estate terms, “where-is” effectively excuses any potential locational faults. Some examples include:

• The property is in a flood zone
• The property is not zoned for its current use
• The property is or may be scheduled to be taken by a government by eminent domain, right-of-way, easement, etc.
• The presence, or lack thereof, of restrictive deed covenants limiting what an owner may or may not do upon the property
• Inclusion, or non-inclusion, within a designated historic zone
• The property lies within an airport flyover zone
• The presence of some geological defect (inability to perc a septic system, elevated radon levels, shrink-swell soil, etc.)
• Title defects or disputes

Pros and cons of buying an “as-is” house

If you’re considering buying an “as-is” home, there are benefits and drawbacks to know.

Pros of buying a house “as-is”

• Lower purchase price: “As-is” homes are more likely to be listed and sell for a lower price. They are often in need of repairs, so sellers often account for this in the list price.
• Less competition: Buying an “as-is” house isn’t for everyone, so there’s a chance there won’t be as much competition for the home. 
• Potentially located in your preferred neighborhood: If you’re looking for a home in a specific area or on a plot of land, buying an “as-is” home may be a good option.
• Extra funds to renovate: “As-is” homes are often less expensive, meaning you may have additional funds to make needed repairs and renovate the home to your liking. 
• Faster homebuying process: There’s typically less room for negotiation between buyers and sellers, leading to a faster process. 

Cons of buying a house “as-is”

• Health hazards: One risk of buying a home “as-is” is the potential of health hazards, like lead paint, asbestos, or mold. You may face costly repairs to make the home livable. 
• Hidden problems: While a home inspection may reveal some issues with the property, it’s possible that there may be additional problems. 
• Additional expenses: As a result of hidden problems or health hazards, you may face expenses you didn’t have the budget for. 

Jonathan Cobey, CEO of CarolinaHomeCashOffer, says “one of the biggest mistakes buyers make with as-is homes is underestimating the true cost of repairs beyond what’s visible during a walkthrough. Cosmetic issues are usually manageable, but the larger risks often involve foundation problems, outdated electrical systems, plumbing issues, roof damage, HVAC systems, or hidden water intrusion.” He recommends getting a thorough inspection and walking the property with trusted contractors before committing so buyers can build a realistic repair budget upfront. 

• Inflexible sellers: Often, sellers may be inflexible when it comes to negotiating or making concessions, as they are aware that the property has problems. For example, they may be less likely to accept an offer with contingencies that allow the buyer to back out of the sale.  
• Financing hurdles: Some lenders may not agree to finance the home if there are serious problems with the home’s condition. Loans like VA or FHA may even require the repairs to be made before the sale can be completed. Buyers should confirm requirements with their lender.

Tips for buying a home “as-is”

There’s a lot to consider before buying an “as-is” property, and one of the most important factors is due diligence. Some examples of due diligence in an “as-is” sale include:

• Consulting with an attorney
• Having a title search performed
• Requesting the seller disclosure and reading it thoroughly
• Examining the deed and land records for potential red flags
• Inspecting the property prior to signing a contract
• Including a provision in the contract that allows for inspections and cancellation of the contract as a result of any inspection findings
• Commissioning a Wood Destroying Insect (termite) inspection in advance
• Having a licensed contractor examine the major structural components of the dwelling
• Consider purchasing a home warranty 

Derek R. Ballard of Inspection Gator Home Inspection advises buyers who plan to renovate an as-is property to evaluate foundation, plumbing, and structural issues before making any cosmetic improvements. Major structural or system problems can quickly consume funds that were intended for aesthetic upgrades. He recommends addressing the costly, essential repairs first before focusing on cosmetic changes.

Should I buy a home “as-is?”

Buying a house “as-is” isn’t for everyone, so it’s important to understand what you’re getting into. In many cases, you may not have the opportunity to walk away after inspection, so make sure you’re fully prepared for potential repairs and costs. At the end of the day, you’ll have to decide if the potential benefits of an “as-is” transaction outweigh the potential downsides and expenses.

The post Buying a House As-Is? Pros and Cons to Consider appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Key takeaways:

• Sellers often prefer all-cash offers because they tend to lead to faster sales and are less likely to fall through than financed deals.
• Paying cash for a home can save buyers thousands in mortgage interest and lender fees over time.
• While all-cash offers provide speed and leverage, they can also tie up significant savings and reduce financial flexibility.

With mortgage rates still elevated and housing affordability remaining strained in many parts of the country, paying cash for a home can give buyers a major advantage in today’s market. An all-cash offer can help you negotiate a better price, close faster, and avoid years of mortgage interest payments and lender fees. At the same time, tying up a large amount of money in real estate comes with trade-offs, especially if it leaves you with limited liquidity afterward.

If you have significant savings available and you’re preparing to buy a home, understanding how to buy a house with cash can help you decide whether this strategy makes sense for your financial goals.

Why cash buyers have more leverage in today’s market

Competition and housing market conditions play a big role in how you should approach an all-cash deal today. During the pandemic housing frenzy of 2021, the market was ultra-competitive, reaching a fever pitch where nearly three-quarters (72%) of all offers faced a bidding war. In that environment, many buyers used cash just to get an edge and improve their chances of getting a home. 

While the market has cooled since then, cash buyers still make up a significant share of home purchases . By the end of 2025, roughly 29% of all U.S. home purchases were still made in all cash.

What’s changed is how buyers are using cash today.  As of March 2026, sellers outnumber buyers by 43%, marking one of the largest gaps in over a decade. In many markets, buyers now have more negotiating power as inventory grows and competition slows.

“When a buyer chooses to purchase a house with all-cash, they generally gain three key advantages: speed, cost, and an upper hand in negotiation,” said Chen Zhao, Head of Economics Research at Redfin. “There’s no lender involved, which means the deal isn’t dependent on mortgage approval or underwriting. Combined with fewer contingencies, this can mean much faster closing times. In a buyer-friendly landscape where sellers are frequently cutting prices to get attention, an all-cash offer can be too good to refuse, giving buyers strong leverage to score a home for faster and less.”

How to buy a house with cash step-by-step

Buying a house with cash is usually faster and simpler than financing a home with a mortgage. Still, there are several important steps to protect your investment and ensure the transaction goes smoothly

1. Get your finances organized

The first step is making sure your funds are accessible and ready for closing. Many cash buyers move funds into one primary account before submitting an offer to simplify verification and avoid delays during the wire transfer process.

If your money is spread across investments, retirement accounts, or other assets, it’s smart to speak with a financial or tax advisor before liquidating anything. Selling investments could trigger capital gains taxes or affect your long-term financial plan. 

It’s also important to avoid draining your savings entirely for a home purchase. Even cash buyers should maintain an emergency fund and reserve money for repairs, moving costs, property taxes, and ongoing maintenance.

2. Obtain proof of funds

Before accepting an all-cash offer, sellers typically want proof that you have the money available to complete the purchase.. Your bank can provide a proof of funds letter showing you have enough money available to buy a house with cash. This document is usually submitted with your cash offer and reassures sellers that the purchase won’t depend on mortgage approval. 

3. Find the right home

Once your finances are ready, you can begin shopping for a home. Even without a mortgage, working with a real estate agent can be extremely valuable. 

An experienced agent can help:

• Evaluate pricing
• Identify potential red flags
• Negotiate better terms
• Coordinate inspections and paperwork
• Help you move quickly in competitive situations

Because there’s no lender overseeing the transaction, buyers and their agents should be especially careful when evaluating the home’s condition and value.

4. Make your all-cash offer

After finding a property, you’ll work with your real estate agent to submit an all-cash offer along with your proof of funds letter. Without a lender involved, cash buyers can often move more quickly and offer flexible closing timelines that appeal to sellers.

While buying a house with cash removes the mortgage contingency, it’s still wise to keep protections like inspection and title search contingencies. 

5. Hire professionals to protect the transaction 

Even when buying a home with cash, you’ll still need professionals to protect your investment. A home inspector can uncover hidden issues, while a settlement agent, escrow company, or attorney may perform a title search to ensure the property is free of liens. 

Some cash buyers also choose to hire an appraiser to independently verify the home’s value, even though an appraisal usually isn’t required without a lender involved. Purchasing title insurance adds another layer of protection during a cash home purchase, helping confirm that ownership can legally transfer to the cash buyer.

6. Close and transfer funds

One major advantage of buying a house with cash is the faster closing timeline. While a financed deal typically takes 30–45 days, a cash purchase can close in as little as 7–14 days, depending on the speed of inspections, title work, and the seller’s specific timeline. 

At closing, you’ll typically transfer funds using a wire transfer or cashier’s check to cover the purchase price and any closing costs associated with the transaction.

7. Move in mortgage-free

After completing the final walkthrough and signing the closing paperwork, you’ll receive the keys and officially complete the cash home purchase. You’ll move into your new home without a mortgage payment. 

How much money can you save buying a house with cash?

One of the biggest financial advantages of paying cash is avoiding mortgage interest.

For example, a buyer financing a $500,000 home with a 30-year mortgage at a 7% interest rate could end up paying hundreds of thousands of dollars in interest over the life of the loan.

Beyond interest savings, cash buyers may also avoid:

• Loan origination fees
• Mortgage insurance
• Some lender-related closing costs
• Certain appraisal requirements

In some cases, sellers may even accept a lower purchase price from a cash buyer in exchange for a faster, more reliable closing.

Still, buyers should also consider the opportunity cost of tying up a large amount of money in real estate instead of keeping it invested elsewhere.

Buying with all-cash vs. financing

If you’re deciding between paying all-cash or financing your next home, here’s how the two approaches stack up side by side.

Pros and cons of buying a home with cash

Pros

Buying a home with cash can offer major advantages, especially in today’s housing market where sellers often value speed and certainty.

• Stronger negotiating leverage: Cash offers stand out in bidding wars because they eliminate lender uncertainty, making them highly attractive to sellers who want a guaranteed sale.
• Faster, smoother closing: Without mortgage underwriting or lender-required appraisals, you can often close in as little as one to two weeks.
• Substantial long-term savings: You avoid loan origination fees and decades of interest. On average, cash buyers pay about 11% less than those using financing.
• Immediate ownership and no monthly mortgage payment: You own the home outright from day one, eliminating the stress of monthly mortgage payments and the risk of rising interest rates.
• No credit hurdles: You can bypass credit checks and rigorous income verification, making the process accessible regardless of your credit score.
• Strategic flexibility: Some buyers use “delayed financing,” purchasing with cash first and refinancing later to regain liquidity if needed.

Cons

While buying a home with cash has clear advantages, there are also important financial trade-offs to consider.

• Reduced liquidity: Tying up a large sum in real estate means your wealth is less accessible. Unlike stocks or savings, property cannot be quickly converted back into cash for emergencies.
• Loss of tax benefits: Cash buyers cannot take advantage of the mortgage interest deduction, which can be a significant tax break for those who finance.
• Opportunity cost: The capital used to buy a home might earn higher returns if invested in the stock market or other high-yield assets.
• Ongoing ownership risks: Even without a mortgage, you are still responsible for property taxes, insurance, and HOA fees. Failure to pay property taxes can still lead to government foreclosure.
• Concentrated risk: Putting a  large portion of your savings into one property leaves you vulnerable to localized real estate market declines.

Requirements for buying a house with all-cash

• Financial documentation still required: You need a bank-issued proof of funds letter to attach to offers in lieu of a preapproval letter, showing sellers that you have the funds to back up your offer.
• Closing costs still apply: Closing costs don’t only apply to mortgages. Even when buying a home with cash, you are still responsible for your share of closing costs, including title insurance, escrow fees, and government recording fees. 
• Cash due at closing: Once the deal is ready to be finalized, you will need to bring a certified check or cashier’s check to closing.

Should you buy a house with cash?

Whether buying a house with cash is the best choice depends on your financial situation, long-term goals, and market conditions. For many buyers, paying cash for a house offers clear advantages, including faster closings, stronger negotiating power, and the total elimination of monthly mortgage payments. Because a cash offer removes lender approval from the equation, sellers often prioritize cash buyers, especially in markets where speed and certainty are the top priorities. Still, the decision to pay cash involves balancing these immediate benefits against significant financial trade-offs. 

Whether paying cash for a house is the right move depends on your financial situation, long-term goals, and how much liquidity you want to keep after the purchase. Paying cash offers clear advantages, including faster closings, stronger negotiating power, and avoiding monthly mortgage payments and interest costs. Still, those benefits need to be weighed against tying up a large amount of money in one asset.

While all-cash offers can be appealing, the reality is that many Americans are already struggling with housing costs. According to a recent Redfin survey, nearly half (49%) of U.S. residents struggle to afford their regular rent or mortgage payments, including about two-thirds (67%) of Gen Zers.

“In many cases, paying cash isn’t actually the most strategic move, even if you can afford it,” added Chen Zhao. “If buying a home outright would tie up most of your savings, you’re taking on liquidity risk, since real estate isn’t something you can quickly turn into cash. That’s why some buyers opt for a mortgage: it allows them to keep their money invested in the home and somewhere like a retirement or high-yield account—so more of their money can earn money. While a widespread crash is not on the horizon, if home values dip in your local market, monetary flexibility can be very helpful.”

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