In our previous post, we talked about the basics of real estate purchase agreement. Now, we’re going to learn more about it by discussing earnest money deposit and closing expenses while answering some of the most frequently asked questions about real estate purchase agreements.

So, What Is An Earnest Money Deposit

Consider earnest money as a deposit made in good faith by a buyer to a seller to demonstrate the buyer's commitment to their deal to buy a house. A buyer may withdraw from this deal at any time but will forfeit the earnest money deposit, save if the seller fails to satisfy specified restrictions.

The purchase agreement will specify how much earnest money is needed for the real estate contract. In a sense, it acts as insurance for sellers who usually want to make sure they aren't wasting their time or missing out on other chances by pursuing a contract that won't close.

To prevent any problems and guarantee that it is distributed properly and on schedule, this earnest money is often kept in escrow by a third party. When you close on the property, any funds deposited into escrow will be used for your closing expenses or down payment. 

What Are Closing Expenses?

Closing costs are the additional charges that purchasers and sellers must pay in order to finalize a real estate transaction. Loan origination fees, discount points, appraisal fees, title search fees, title insurance, surveys, taxes, deed recording fees, and credit report fees are a few examples of these expenses. Three business days prior to a scheduled closing or settlement date, lenders are required by law to give buyers a closing disclosure.

What fees apply to closing? They are essentially processing costs and ongoing costs that you will pay to your lender after you close on a home.

Amounts for typical expenses including home appraisals, title searches, property taxes, homeowners insurance, lender's fees, and ownership transfers are included in closing costs. Your purchase agreement should specify who is responsible for paying these closing charges (parts of which may be divided between the buyer and seller).

Final closing fees may range from 3% to 6% of the cost of a home.

Real Estate Purchase Agreements FAQs

The most frequently asked queries about real estate acquisition agreements are listed below.

Does a real estate acquisition contract require notarization?

A real estate purchase agreement is not filed with county records, so it does not need to be notarized in order for it to be legally binding.

Can a real estate agreement be canceled?

When the option is specified in the real estate contract or when the laws of your state permit it, a real estate contract may be ended. State laws typically permit the termination of a contract when a seller omits to disclose any significant problems with the property.

The purchase agreement's cost is borne by who?

The costs involved with creating this contract are normally covered by the seller's agent commission charge, which is paid as part of the closing costs.

Final Note

The terms and conditions under which a property will be sold are clearly spelled out in a real estate purchase agreement, which is a binding legal instrument. It's created to assist you prevent hitches by taking into consideration aspects related to a property purchase and sale. It's built to safeguard both buyers and sellers and ensure a smooth transaction.

As you go about buying or selling a home, being aware of the fundamentals of this document can help you avoid any potential hazards.

One of the most common ways to purchase real estate is through auctions. Make sure you're ready with a knowledge of how they operate and what you need to know before bidding to avoid the drama of the bidding contest. 

Various laws and norms apply to auctions, and they differ from state to state. If you intend to participate in an auction, this quick guide offers an overview of what to anticipate as well as advice on how to get ready. 

You must be well-prepared before bidding at an auction because the bidding process is public, and you must pay the deposit and sign the contract after your bid is chosen as the winning one. These are the things you might want to consider. 

Common Auction Terminology

Anyone planning to place a bid at an auction should be familiar with the associated lingo. Here are some of the main terms you should be familiar with, however, this is not a full list:

How Does An Auction Buying Work?

Unless the bidder and seller agree on any additional stipulations before the auction begins, auctions do not often have a cooling-off period and are typically unconditional offers. If your bid is accepted, the deposit must be paid and the documents must be signed right away after the auction. You must enter an auction ready to finish the transaction should your bid be accepted. If you back out of the deal, you could be held responsible for any losses the seller incurs as a result and lose your deposit.

Researching the current auction regulations in the state or territory where you intend to purchase is always a smart idea. 

real estate agent talking to couple buying home

Understanding Pre-Approval For A Mortgage

Before you start looking for a home, it could be a good idea to have your mortgage pre-approval prepared. When a lender determines how much you can afford to borrow based on an evaluation of your finances and credit rating, this is known as a home loan pre-approval. With this knowledge, you may begin your search for homes within your price range without getting overexcited. 

It's crucial to understand that a pre-approval does not imply that your loan application will be approved in full. Keep your lender informed of your financial condition and any changes about the property you intend to bid on. 

Requirements For A Deposit

The deposit amount is specified in the contract of sale and is normally 10% of the property's sale price, though you may be able to agree with the vendor on a different amount before the auction begins. It's crucial to be aware that properties sold at auction do not have a cooling-off period, so if your offer was the highest, you will need to pay a deposit right away.

Settlement Date

The sale agreement specifies the seller's settlement date. Property settlement times range from 30 to 90 days on average, though they can differ. The deposit will be forfeited, and you might also be responsible for any losses incurred by the seller if you are unable to complete the transaction.

Tips For Bidding At Auction

Although there isn't a foolproof recipe for auction success, the following basic advice might be useful:

Conduct Research

Before the auction, you must have completed all of your pre-purchase investigations and research. Consider pest and building inspections, unit-specific strata reports, and performing your due diligence.

Recognize Your Obligations

Anyone looking to buy a property at an auction should seek advice on the legal requirements in their state or territory, the terminology involved, and the state of their finances due to the demands placed on the winning bidder at an auction, including providing the deposit and signing the contract and the lack of a cooling-off period.

Have Your Finances Under Control

You must have your money in order before signing up on the auction day since you will need to pay a deposit after the auction is over. This also entails having your deposit available.

Make A Firm Offer

Keep lines of communication open with the auctioneer and make sure they are aware of your desired bid amount and the increments you wish to boost it by.

Establish Your Boundaries

It's crucial to be aware of your upper financial boundaries when making split-second bidding decisions. Set an ideal price range and an upper limit so you'll know when to stop bidding.

What Are Online Auctions And How Do They Operate? 

eBay for real estate? Not quite, but granted that they adhere to social distancing rules, property auctions can still take place during lockdowns connected to COVID-19 thanks to the development of internet auctions.

This might enable prospective buyers to view the results and the bidding process of other comparable properties before making a real-world offer. 

How Can You Sign Up For A Web Auction?

If you plan to bid, you must create an account on the preferred platform in advance and successfully pass an ID verification, which typically calls for your driver's license. The agent you visited to examine the property will receive the information.

Our expert real estate experts can help if you're thinking about buying your first house at an auction but don't know where to begin. 

To learn more, contact us at RE/MAX Advanced Realty by dialing 317-316-8224 today!

A property purchase might fall through for a variety of reasons. What if you suddenly change your mind, though? Things can get tricky if you're under contract to buy a house but are having second thoughts and want to withdraw so you’re wondering how to back out of an accepted home purchase offer.

Although it's not impossible, there may be consequences if a buyer decides to break a signed real estate contract with a seller. This is especially true if there are no escape clauses in the agreement. It is crucial to comprehend your legal and financial rights as a house buyer. If you're considering rejecting an offer, take these things into account. 

Can A Homebuyer Back Out After Accepting A House Purchase Offer?

The short answer: yes. When you sign a purchase agreement for real estate, you’re legally bound to the contract terms, and you’ll give the seller an upfront deposit called earnest money. Earnest money shows the seller that you’re serious about your intention to purchase the house and plan to follow through on the agreement.

It is however absolutely permissible to withdraw from an accepted offer if specific conditions are put in place and are not met. These limitations, which shall be incorporated into the Contract, set forth the circumstances under which withdrawal without penalty shall be permitted. Your earnest money will typically be returned. 

Leaving with a backup plan These are the conditions that must be satisfied before you can proceed with a house purchase and are often included in a normal real estate contract. This includes a common understanding of specified activities that must be finished within a set amount of time. 

The house inspection, obtaining financing from their lender, selling their own home first, or the home appraising for less than the asking price are all examples of stipulations that buyers may include. You can easily withdraw from an offer if a predetermined contingency wasn't met, and you'll still get your earnest money deposit back. 

If there are conditions, the buyer typically has additional protection if they decide not to proceed with the transaction. Consider a scenario in which a house inspection report reveals pricey problems, such as a foundational crack or a roof that needs to be replaced due to damage. You can back out of the transaction if there is a home inspection contingency in place, particularly if the seller won't make repairs or provide credits to cover the costs. A financing contingency, which allows you a way out if your lender doesn't follow through with loan approval, is another crucial safety measure. 

real estate agent talking to a couple

To ensure your safety, carefully review the contingencies listed in the agreement, paying great attention to the timeframes associated with each. For instance, you might have to finish a house inspection (and request repairs or credits) within 14 days of the contract being issued. For final loan approval, a financing condition might need to be satisfied in 30 days. If you require additional time to perform a conditional job, your real estate agent will often need to submit a contract addendum for the seller's approval before you can obtain the extension. 

Refusing To Prepare A Backup Plan However, things may get complicated—and sometimes ugly—if a home buyer backs out of a deal for a reason that isn't expressly stated in the contract. You risk losing your earnest money if you reject an offer for a non-contingent cause. The seller is legally entitled to keep your money because you put that money down with the understanding that you would stick to the terms of the contract and only back out for reasons that are not specified in the contract. 

For a buyer, this may be unaffordable, especially if they still intend to purchase another home. Earnest money deposits are normally between 1 and 2 percent of the home's purchase price, but they can occasionally be more. Therefore, a buyer who backs out of a $300,000 house deal stands to lose between $3,000 and $6,000 in addition to legal fees. 

Can You Get Sued By The Seller If You Back Out Of Buying A House? 

Yes, you risk losing your earnest money and the seller may take additional legal action if you break a signed contract for a cause that was not specifically stated as a contingency. Before the purchase agreement is formally signed, it is simpler to back out of the transaction. It will be far more difficult for you to leave after that, or after the contingency periods have passed, without getting into legal or financial difficulty.

A buyer who violates the terms of the contract may be sued for "specific performance," in which case the court orders the buyer to close on the house. This scenario is not particularly typical, though.

A clause in several property purchase contracts stipulates that if a dispute arises, both parties must consent to mediation. With the aid of a third-party mediator, you will thus have the opportunity to present your case to the seller directly in the hopes of finding a non-judicial solution. 

In conclusion, A substantial commitment to home ownership shouldn't be viewed lightly. A buyer can cancel a binding real estate agreement with a seller, but there might be substantial repercussions. Including contingencies in the contract before you sign is the greatest approach to safeguard yourself. Here, working with an experienced real estate agent and possibly an estate lawyer can be essential. 

If you do need to back out of an accepted offer, be upfront with the seller as soon as you’ve made your decision. Work closely with your agent and attorney, who can help you communicate (in writing) why you want to back out. Ultimately, you may lose your earnest money deposit — but buying a home you don’t want or can’t afford would be a more expensive mistake in the long run.

An agreement that controls the acquisition and selling of real estate in Indiana is known as a real estate purchase agreement. It specifies the parameters of the transaction and the circumstances under which a sale will take place and is made between a buyer and a seller.

Make sure your contract is unbreakable whether you want to sell your permanent residence or an investment property, purchase a new house, apartment, condo, or both.

It is crucial to take the time upfront to clearly define the conditions under which a property transaction will take place and to protect against potential delays or unforeseen events since it can help you avoid financial or legal obstacles later on. 

What Exactly Is A Purchase Agreement?

An agreement between a buyer and seller to conduct a real estate transaction is outlined in a real estate purchase agreement. By signing a purchase agreement, the buyer and seller are effectively "under contract," as is the subject property.

A real estate purchase agreement, also known as a real estate sales contract, home purchase agreement, real estate purchase agreement, or house purchase agreement, is a binding legal document that outlines important terms of the home sale transaction. 

In essence, when a prospective buyer submits an offer to buy a new house, the buyer will include essential financial information, including their offer price and suggested terms for the sale. The parameters of this offer will then be open for the house seller to accept, reject, or negotiate. 

Essentially, when a potential buyer files a purchase offer for a new home, the buyer will include crucial financial information, such as their offer price and suggested parameters for the sale. The home seller will then have the option to accept, reject, or negotiate the terms of this offer. 

This contract outlines the requirements that must be satisfied for the sale to close and for the new buyer to take the title of the property, signaling the parties' intent to engage in a home-selling transaction. 

Who Drafts The Purchase Contract?

The real estate agent representing the buyer will often draft and prepare the purchase agreement for a home. The fact that agents cannot draft their contracts because they are not licensed attorneys is important to note. Instead, they often complete forms that have already been developed by a legal firm that specializes in real estate transactions, for the sake of consistency and the protection of all parties.

In other words, a pre-drafted purchase agreement template will be used to purchase the particular house, with the agent filling in any blanks with specifics on the property's particulars.

Elements Of A Real Estate Sales Contract

The facts of the property transaction are outlined in a real estate sales contract and purchase agreement. You'll discover several recurring components within its pages, such as:

Appliances and fixtures: Any home appliances, wall-mounted accessories, and fixtures that are either included in or excluded from the sale of the real estate in Indiana. 


A contingency is a requirement that needs to be satisfied and is dependent on certain occurrences in reality. A purchase agreement with contingencies in real estate specifies that even if an offer has been made and accepted on a property, there are still some conditions that must be met before the transaction is finalized. 

real estate agent giving key to new homeowner

When buying or selling a home, you could encounter many contingencies, such as:

Appraisal Contingency: To guarantee that the appraised value of a home is the same as or greater than the agreed-upon purchase price, an appraisal contingency is used.

These are the basics of real estate purchase agreement. In the next part, we’ll dive deeper into earnest money deposit and closing expenses and answer some of the most frequently asked questions on purchase agreements.

Although it might be a daunting task, decorating a home can be surprisingly exciting. After all, there are various choices to make. There are rooms to furnish, walls to paint and a decent quantity of upholstery, décor, and hardware to choose from.

Luckily, you're not the only one trying to create a beautiful space, and many interior designers are more than willing to provide tips on how to decorate a home.

So whether you want to give your house a quick makeover or take on a major renovation, these tips might help you!

Tip #1: Add Color to a Wall

One of the most economical decorative changes you can make to your home is painting the walls, and even painting one wall is a cost-effective (and incredibly cool) improvement.

Tip #2: Use A Slipcover To Give A New Look

To give your area a fresh look, get a basic slipcover as opposed to a brand-new sofa.

Tip #3: Remove Unattractive Items 

Consider what you should get rid of before worrying about what you can and cannot afford to acquire. Items that are out of date, worn out, or damaged may be ruining the appearance of your home. If they're not necessary, getting rid of them might offer your home a fresh start.

Tip #4: Enhance Your Curtains With Trim

Instead of purchasing new curtains, upgrade your current set by adding an iron-on accent to simple curtain panels.

Tip #5: Add Framed Prints

A room can be completely changed by framed images, which don't have to be pricey. Try your hand at creating your own work of art and frame it to hang alone or as a component of a gallery wall if you're truly up for the challenge.

Interesting Reads:

DIY Home Decorating Tips - Cheaper Ways To Update Your Home’s Look

Home Staging Tips For Beginners For An Easy Sale

Everything You Should Know About Home Renovation And Transforming A Home On The Market

Tip #6: Use Faux Plant

Faux plants can be used to create stylish décor at an affordable price. Choose a cost-effective solution, then present it on a lovely stand or in a custom-made pot. 

Tip #7: Buy It On Sale

Try to purchase it on sale if you have your heart set on something that is out of your price range. Get notifications or sales alerts from shops you want to get an email or SMS in advance if any of their items will reduce its price soon.

couple decorating home

Tip #8: Organize Cords

Cord concealers are available from reputable sellers like Amazon. Making your home appear effortlessly tidy and organized will depend greatly on if you can hide unsightly cords and wires from the TV or light fixtures. 

Tip #9: Re-Decorate An Old Ladder

Your garage's rusty wooden ladder might become your newest favorite decorative item. Use one to keep extra towels or throw blankets after cleaning it up with some sandpaper and possibly a coat of paint. 

Tip #10: Visit A Flea Market

Purchasing used (pre-loved) furniture and home accessories is a terrific method to save money on items that would otherwise be quite expensive. You never know what secret treasures you'll find in a flea market or thrift shop. 

Tip #11: Re-Paint An Old Table

You can give an old-end table a brand-new look with a little paint and creativity. Think about adding gold paint to the edge of a plain black piece. 

Tip #12: Use Plate Sets As A Wall Art

Plates may make for some very stylish wall décor whether you never use the china from your wedding or the set you scored from an H&M sale. Install the customized plates on an empty wall for a quick update.

Tip #13: Re-Decorate Old Vase

Want to add a beach vibe to your room? Then using a glue gun and jute rope, re-decorate an old vase or dish for a rustic touch.

Tip #14: Update Kitchen Cabinets

The kitchen is one of the most utilized rooms in the house, so painting the cabinets will give it an instant facelift.

Tip #15: Move The Furniture

Looking for ways to decorate a home on a budget? Well, your wish is our command!

One of the cost-free decorating concepts simply needs creativity, time, and muscles. By rearranging the furniture, you can give your space a fresh feel.

Tip #16: Personalized Bookcases

Re-design a bookcase either by repainting or using removable wallpaper. 

Tip #17: Purchase A New Mirror

A new mirror hung above the vanity or sink is the fastest way to update an outdated bathroom. Luckily, there are many reasonably-priced options you can choose from online.

Tip #18: Recycle Wine Bottles Into Vases

After your next dinner party, save a few wine bottles and turn them into unique vases. With a little hot water and soap, the labels come right off, leaving behind a slim vase suitable for containing a few fragile stems. 

Tip #19: DIY Woven Baskets

You can find affordable woven baskets at almost any retailer, online and offline.

Woven baskets are only good at keeping your space clutter-free; it also gives a quick Bohemian touch to the room.

Tip #20: Mix And Match

Eclectic designs are frequently the simplest to reproduce across the board for interior design. Why? Mixing, not matching, is the key to this aesthetic. It will be far more economical to search for furniture and décor because there is no need to acquire a certain side table or that precise shade of blue.

These are just some decorating tips on a budget that you can consider. If you have more techniques, feel free to share them in the comments below. 

Finding the proper loan to suit your needs can be challenging given the abundance of lenders from which to select and the variety of home loans on the market. As a result, you might decide that it's simpler to seek assistance from a mortgage broker when shopping for the ideal home loan.

What does a mortgage broker do?

Mortgage brokers coordinate home loans between lending institutions and borrowers, or those looking for a mortgage. They can help you with the application process and identify home loan options that are appropriate for your needs and goals.

Brokers should take the time to learn about your unique position, determine how much you might be able to borrow, provide you with options for house loans, go over how each would satisfy your needs, and inform you of the loan's cost. The broker can help you with the application procedure through loan settlement with the lender after you've determined which house loan best suits your needs. 

How To Choose The Right Mortgage Broker

Choosing the right mortgage broker can be a crucial step in obtaining the best mortgage for your needs. Here are some tips on how to choose the right mortgage broker:

Do Your Research

Before you choose a mortgage broker, do some research to learn about their reputation, experience, and track record. 

You can start by checking online reviews and testimonials, asking for referrals from friends or family members who have recently purchased a home, and researching the broker's credentials and licensing.

Look For Experience

A mortgage broker with years of experience is more likely to have the expertise and connections necessary to find you the best mortgage deal. 

Ask about their experience in the industry and their success rate in securing favorable mortgage terms for clients.

mortgage application with phone

Look For Credentials

Make sure the mortgage broker is licensed and registered with the appropriate regulatory body in your area. 

This will help ensure that they follow ethical and legal standards when dealing with clients.

Interesting Reads

Compare Rates

Get quotes from multiple mortgage brokers and compare their rates and fees. 

Make sure you understand the fees associated with each quote and ask questions if anything is unclear.

Ask About Their Process

Ask the mortgage broker to explain their process for finding and securing a mortgage. 

Make sure you are comfortable with their approach and that they are transparent about their fees.

Communication Is Key

Choose a mortgage broker who is responsive and communicates clearly and regularly. 

You want to be sure that you are kept informed throughout the process and that your questions are answered promptly.

Trust Your Instincts

Ultimately, trust your instincts when choosing a mortgage broker. 

Choose someone who you feel comfortable working with and who you believe has your best interests in mind.

What Questions Should A Mortgage Lender Ask You?

Mortgage brokers should enquire extensively about your financial condition as well as what you desire from your house loan, including your:

What Should You Ask Your Mortgage Lender?

When you're considering applying for a mortgage, it's important to have a good understanding of the terms and conditions associated with it. Here are some important questions to ask your mortgage lender:

Remember, it's important to ask any questions you have and make sure you fully understand the terms of your mortgage before signing on the dotted line.

If you have more questions or clarifications about real estate and/or mortgages, you can leave a comment below or send us a message here.

The American Dream has long included homeownership, which is one of the major expenses most individuals hope to make in their lifetime. Demand rises as more people rush to buy new homes in the housing market when property prices and interest rates fall. 

One group of people, however, isn't too excited at aiming for the milestone of homeownership even in the current presence of cheap interest rates. More Millennials are putting off buying their first house. 

In this article, we'll find out the various reasons that are keeping this group from buying their properties.

Reasons Why Most Millennials Don't Buy A Home

1. Affordability 

Generally speaking, a homeowner's monthly gross income should not be more than 25% of their mortgage payment. Anything higher implies they cannot afford the house. That being said, it might be more difficult for millennials to purchase a property as the affordability gap between home values and income levels develops.

This might be one of the biggest reasons why millennials can't buy homes.

The National Association of Realtors (NAR) reports that in January 2020, the housing affordability index again exceeded 100. The index value dropped as low as 92.5 in 2018 from a high of 109.3 in 2015. An index value of 100 indicates that a family making the median income has exactly enough money to be approved for a property costing the median price. There are parts of the country that are more affordable because the index represents an average across the U.S. The issue is whether Millennials are prepared to move and part ways with their jobs, friends, and families to purchase a property. 

2. Relationship Status

Compared to 1967, when 80% of adults aged 25 to 34 shared a home with a spouse or partner, less than 60% did so in 2018. People are now getting married later, with the average marriage age for women being 27.8 and for men being 29.8 as per 2018 U.S. statistics. Counting Houses.

The Centers for Disease Control (CDC) reports that the average age of a first-time mother is 26, while this age rises for urban and college-educated women. Due to the evolving nature of marriage and parenthood, Millennials are delaying the purchase of their first house and living at home with their families for extended periods.

A survey conducted by the Bank Of Millennials on the purchasing trends of Millennials suggests that "life events like getting married or having kids are typical triggers to buying a home. The longer this age group lives with parents or independently, the more homeownership will be delayed." 

The share of Millennials living at home or with family has increased by nine percentage points since 2005, to 22.5%, in part due to delayed childbearing and later marriage.

More than 50% of homebuyers under the age of 36, according to NAR, claimed that student loan debt prevented them from purchasing a home. According to an estimate from Apartment List, college graduates in 2018 who had no student debt needed to save for a 20% down payment in 7.6 years, whereas those who had debt needed to save for more than four years longer. 

3. Student Loans

By the beginning of 2020, student debt in the United States had reached almost $1.6 trillion. As a result, it has now become a hardship for Millennials who are trying to enter the home market. The same group is also struggling with low incomes and raises in the majority of the job market, which makes it harder for them to repay their debt. The purchase of a house was delayed by student loan debt for more than 50% of buyers under the age of 36, according to NAR. According to Apartment List, college graduates with student debt were required to save more than four years longer than those without debt in 2018, needing 7.6 years to accumulate a 20% down payment. 

two millennials holding paper

4. Lending Requirements

To lower risk, banks tightened credit underwriting. They also doubled down on the requirement that homebuyers put 20% down. However, Millennials are taking longer to save up enough money to put a down payment on a home as prices rise. 

The majority of the current 25 to 34-year-old generation began their careers during the financial crisis and the early stages of the recovery, when the economy and job market were shaky, according to Bank of America. 

Even though lenders may offer loans with less than 20% down payments through mortgage affordability programs, lenders frequently charge higher interest rates on these loans to make up for the higher default risk. The majority of these mortgages will also demand that Millennials purchase private mortgage insurance (PMI), which would raise monthly payments even further. 

5. Relocation

Millennials are still moving in huge numbers to urban areas. According to a 2018 Pew Research study, 88% of Millennials currently reside in urban regions. Millennials are relocating to areas where there are more renters than homeowners, driving up rental prices in the urban areas where they choose to live, whether it's due to a social movement or the allure of better job possibilities. Millennials don't seem to want to own a backyard or even commute thus far. BuildZoom claims that while new home sales are above 2000 levels within five miles of the cores of the ten densest cities, they are around 50% below 2000 levels ten miles outside of the city. 

The purchasing habits of Millennials in big cities, such as their love of new clothing, Amazon Prime, the newest smartphones, and daily Starbucks trips, have received a lot of attention. Data from the Bureau of Labor Statistics (BLS) however, somewhat refutes this idea. Between 2004 and 2015, spending on clothing and entertainment dropped 1.4%. Spending on privately owned housing fell 2.6%, which was the greatest decline in Millennials' shopping baskets. During this time, the 3.2% increase in rental housing costs was the biggest. 

Final Note

While Millennials are delaying homeownership due to rising home prices in the US, evidence suggests that it may not be entirely out of their price range. The average age of Millennials who are still living at home has increased, even if some financial barriers—student loan debt and down payments—remain. These societal changes in how young adults are living have driven homeownership to record low levels.

It’s not just about having the money; owning a home means going through a decision making process, talking to various people, accomplishing forms, and many more. It’s a big and difficult decision because it could be the most expensive and emotionally taxing purchase of your life. But with careful planning and persistence, you can be one step away from your dream home. 

So the question is, how to buy a house for the first time?

The Purchase Decision

It's crucial to think about if homeownership is suited for you before entering the buyer pool.

>> MORE: Before Buying a Home, Get Your Finances in Order

To Rent Or To Buy?

The first question you ask yourself when looking for a real estate in Indiana to reside will influence the remainder of your decision-making. Should you purchase your own home or rent it? The ability to develop wealth and eliminate rising rent may make buying appear thrilling. Regular home maintenance and repairs, though, can quickly empty a cash account.

The greatest option for you will generally depend on your particular circumstances, whether you should rent or buy.

Here are some fundamental queries to take into account when considering purchasing a home:

happy couple holding a key after buying a home

Another aspect to take into account is that the current housing market is among the most competitive in recent memory due to record-high prices and record-low inventories.

Buyers should be prepared to submit numerous offers as they may need to offer more than the home is listed for, often by hundreds of dollars more, in order to have their offer approved.

>> MORE: 9 Advantages Of Buying A Home Over Renting

What Size Home Can I Afford? 

Look closely at your budget to evaluate how much you can afford to spend on a property. Analyze your bank records and spending patterns from the last few months to see how much you are spending on everything from telephone bills to streaming services to your weekly take away from the restaurant. 

Homeownership is more accessible than ever, thanks to the pandemic. Mortgage interest rates currently hover around 3 percent, which is very close to a record low. These rates add up to significant savings over a 30-year loan if you can qualify for one.

Decide how much you want to set aside for a monthly mortgage payment once you have a better understanding of your spending patterns. This quantity represents your monthly mortgage payment, which consists of your principal, interest, tax, and insurance payments.

Numerous lenders advise using no more than 31% of your monthly income for housing payments, according to the Federal Housing Administration formula. The amount of debt you have will affect this figure. Budgeting up to 40% of monthly income for a home may be possible for buyers without any other debt. Overall, your total debt-to-income ratio, including car payments and credit card bills, should not be higher than 43% (but bear in mind that the remainder of your budget will need to be allocated for heat, water, electricity, regular home maintenance, and food).

But keep in mind that, in addition to the mortgage, purchasing a home also entails one-time costs that can quickly mount, such as closing costs, legal fees, and other costs related to the transaction, such as a property inspection. Not to mention relocation costs and house renovations. 

The housing market is so competitive that many purchasers are now preferring to forego contingencies to have their offers accepted, raising the stakes financially for new homeowners as a result of the pandemic. Buyers have a way out with contingencies in case of unforeseen circumstances. They provide you the option to terminate transactions if an independent house assessor determines that the home's value is far below the purchase price or to renegotiate deals if an inspector determines that significant home repairs are necessary. If buyers are unable to secure financing promptly, a mortgage contingency allows them to back out of the deal. Additionally, if selling your current home is necessary for you to purchase the new one, you should condition your offer on doing so.

To learn more about the home process, call us at (317) 298-0961 so we can assist you!

We are going to be halfway into the year, but we bet it's never too late to share with you our predictions for Indiana's real estate market this 2023. 

We know a lot of people are interested to know this so if you're one of them, sit back, relax, and keep on reading.

Indiana & Northwest Indiana Housing Market Statistics For 2020–2021

It's no secret that house prices in Indiana have risen in recent years. Let's find out more about this increase from 2020 to the present along with some observations regarding what is causing the state's home prices to rise so quickly.

Home Prices In Indiana

In Indiana, rising property prices have been a consistent trend in the real estate market. Over the past three years, home prices have risen all over the state. 

Indiana's average house sale price rose 7.9% from 2021 to 2023 on a state-wide basis. Additionally, there are larger increases in some regions. More crowded places tend to have higher appreciation rates. 

Northwest Indiana is one of the state's markets that is growing the fastest, with a significant increase in the number of homes for sale. Home prices in Northwest Indiana climbed by 11% in 2020, 10% in 2021, and 7% in 2023.

Real Estate In Indiana

Indiana property values are rising as a result of various factors. The demographic problem comes first. During the past ten years, Indiana has seen an increase of 340,000 residents. Indiana's steady economy, low levels of crime, and low taxation draw people there.

The housing market is under strain due to two additional population challenges. The first is that there are more people aged 25 to 35 than ever before. For Indiana's housing market to be stimulated, this age group is crucial. Second, there are now more individuals living alone than ever before. We consequently require additional homes, as a result.

The absence of development and new home construction over the previous ten years is the second problem. The building of new homes plunged dramatically following the Great Recession of the Aughts (the decade from 2000 to 2009). There were too many incoming buyers, but there were not enough homes built. 

Finally, the cost of housing is being impacted by the lack of infrastructure expansion. Since it would be prohibitively expensive to expand a town's municipal water and sewer services, this is most common in small towns. Due to the low taxation, it is difficult for towns, particularly smaller ones, to grow. As a result, the few remaining residences are increasing in value. 

Commission Rates For Real Estate Agents In Indiana

One of the residential real estate market trends to watch is what real estate agents are charging for their fees. Real estate commission rates have stayed high in some markets and have lowered in others. The Northwest Indiana market seems to have seen the greatest reduction in real estate commission rates.

Real estate commission rates in other parts of the state, particularly around Indianapolis, are still higher and range from 5% to 7%. The market has managed to resist some of the more recent business concepts that have emerged. OK, up till now. 

real estate investment

Real Estate Trends And Predictions For Indiana 2023

Increase In Home Pricing

The first prediction for the 2023 real estate market is that property prices will continue to rise in 2023. The rate of appreciation year over year will be slower, though. In general, it is expected that Indiana home prices will rise between 3% and 6% between 2021 and 2023. Inflationary pressure and rising interest rates will be the main causes of this decline. Larger homes with lots of amenities could experience a decline in value. 

Housing Supply Will Slowly Develop

Another forecast for the housing market is an increase in inventory. Two years have passed since the COVID pandemic began. Therefore, the frequency of significant life events is probably already in motion. Changes in housing are brought on by significant life events, including those that tempt some homeowners to sell and others to acquire. 

At the end of the first quarter of 2023 compared to the end of the first quarter of 2021, we found that there were approximately 30% more homes for sale in Northwest Indiana. In 2023, new residential buildings will also increase significantly. Which brings us to our next forecast.

Increase In New Homes

An overall rise in the number of new homes for sale is another trend we'll observe in the real estate market in 2023. Housing starts in the US will significantly rise in 2023. Finally, opportunities for new construction are being seen by builders. Additionally, in 2023 many of the supply chain bottlenecks that hampered the industry in 2021 will be resolved. Building more homes will begin as home builders look to seize the chance that is presented to them. 

Demand In Rural Real Estate

More people going to more rural locations is one of the current real estate market trends that will persist in 2023. Nothing about COVID, city evacuations, or any of that is relevant to this. Truthfully, not many of those widely reported headlines actually occurred. Instead, the affordable home prices in rural towns and hamlets within a 30-minute drive of larger cities make them appealing.

Home prices are rising everywhere and inflation is at an all-time high, but wages are barely rising. Prospective homeowners looking for value. In quest of affordable homes, consumers will go from a 15-minute commute to a 30-minute one. Small towns of a few thousand people within 30 minutes of a city of 30,000 or 40,000 people will frequently have the highest appreciation rates. 

Quick Increase In Mortgage Interest

Another prediction for the real estate industry is that mortgage interest rates will rise and continue to be high compared to the previous 36 months. The first quarter of 2023 will see a sharp rise in mortgage rates. Highly qualified buyers may be able to obtain a mortgage in the threes by late 2021. It was in the low fives as the second quarter of 2023 got underway. This will significantly down property prices. The purchasers and sellers of properties in the top 20% of any local real estate market would suffer the most as a result of the high mortgage rates. 

Reset In Real Estate Tech

The newest dot-com startup that is set to upend the real estate sector is one of the current trends in the market. Numerous innovative tech real estate ideas were released in 2019 and 2020. There was a lot of chatter regarding iBuyers. There were also some other avant-garde concepts. Many fell short quickly. For others, it's amazing how few stories are making the news. 

The real estate broker is still in good health. Furthermore, we go above and beyond simply opening a door, writing an offer for 15 minutes, and collecting a commission. Big tech in real estate has realized this and is probably taking a step back to reconsider how to enter the sector.

More Negotiable Real Estate Commissions

The ability to negotiate real estate commission rates is one of our favorite residential real estate market trends to follow. Some real estate agents may be more flexible regarding their real estate commission rate if there are too many agents and not enough work. While it sounds valid, we hope that consumers will continue to be aware of what real estate agents actually do to help sell their homes.

What Buyers And Investors Should Do To Get Ready For The Real Estate Market Trend 2023?

Stop attempting to time the market, homebuyers. Market timing is extremely tough and will probably end up costing you more money in the long run. In addition, despite growing inflation and mortgage interest rates, it is unlikely that home values would drop too much in 2023. 

This year, obstacles will be faced by real estate investors. The price of money will first rise. Real estate investors will be impacted by rising interest rates, rising mortgage interest rates, and hard money lenders seeking a bigger return. Second, finding properties at competitive pricing will continue to be difficult for real estate investors. This is because there are still a lot of buyers competing for homes on the market. 

What Sellers Should Do To Get Ready For The Real Estate Market Trend 2023?

Homeowners should be ready for a change in the market in 2023. Home sellers will continue to benefit in early 2023. The second half of the year, though, will provide greater difficulties. A rise in housing inventory levels was visible by mid-2022. Additionally, the number of days that homes spend on the market has been rising in almost every market. As the market grows more difficult for house sellers, those who must sell their homes should be realistic in their expectations.

Selling in 2023 would certainly be preferable for homeowners seeking to time the market. In 2023, it's expected that housing appreciation rates will return to normal. If you're hoping for the next wave of fast appreciation to happen, reconsider. Even though demand is still high, prices have decreased due to high inflation and rising mortgage interest rates.

The Indiana Real Estate Market in 2023 will conclude Through 2023, the Indiana real estate market will be stable. The momentum shown in the rest of the United States will be followed by the Indiana real estate market. However, Indiana is a resilient state; fluctuations that happen elsewhere in the nation also occur here, but not as intensely. It's a lighter swing, to put it another way.

The same issues affecting real estate in many other parts of the country are present in Indiana. Particularly, there aren't enough suitable homes for today's homebuyers. There are tens of millions of Americans between the ages of 25 and 35 who are great homebuying candidates. Indiana's age distribution is comparable to that of other states. The eager and willing homebuyers will prevent the Indiana housing market from collapsing. 

If you're looking for a new place in Indiana, our team at RE/MAX Advanced Realty is here to help!

Call us at 317-298-0961 or click this link to know more.

Indiana real estate agents are accustomed to the bizarre, humorous, and downright odd. Whether it's a client using "creative" bargaining tactics or unexpected wildlife on a home tour, there are lots of humorous events that occur every day in real estate. But why stop at just anecdotes when there are so many things that happen every day that we can all laugh at? Here is a list of seven humorous incidents that all real estate professionals—real estate agents, brokers, and even some buyers—have encountered at least once. Let's check out each incident to see what makes it so funny.

1. Discovering The Seller Is Unprepared For A Listing Appointment When You Arrive

Finding out that a possible seller does not know how anything in the real estate business works, not even how to get their house ready for sale, when you go to meet with them can be a humorous situation.

2. The Attempt To Define The Distinction Between A "Home Tour" And An "Open House"

It can rapidly get complicated and funny to explain the differences between these two terms because many customers need assistance doing so.

3. Dealing With Purchasers Who Believe They Are Real Estate Experts

Some clients may believe their real estate expertise is so wide that they are capable of doing your duties more effectively than you. Observing these buyers' attempts to outwit the experts is always interesting!

>> MORE: 8 Signs You’re A Real Estate Agent - #4 Is Our Favorite!

4. When A Client Is Adamant About Seeing Every House In A Neighborhood, Even Ones That Aren't On The Market

This may be quite a comical sight, especially when their excitement wanes from too many property viewings.

5. Having Unwelcome Wildlife Guests At An Open House Or Home Tour

There have undoubtedly been more occasions than we'd like to admit when animals have wandered into open houses or stopped by for a peep during home tours. Luckily, most clients just laugh at what happened.

real estate smiling shaking hands with clients

6. At The Closing Table, There Were Tough Negotiations Between The Buyer And Seller

With outrageously original proposals, counteroffers, and verbal sparring, both parties may become so engrossed in the negotiation process that it becomes humorous.

7. Keeping A Straight Face When Clients Say Something Bizarre At A Meeting

Everybody has a story of a client who said something hilarious or absurd, and the impulse to laugh is frequently unbearable! Any situation when you have to fight the urge to smile is hilarious!


These are just a few of the humorous incidents that real estate brokers encounter regularly. There are always surprises in this line of work, from uninvited visitors at open houses to heated discussions at closing tables. These instances may be hilarious, but they also serve as a reminder of how much realtors enjoy their work and how devoted they are to giving their clients the best possible service. After all, a good laugh occasionally is all that's required to seal the deal on a purchase!

The following time you find yourself as a buyer or agent in a humorous circumstance, keep in mind that everyone experiences these moments; therefore, embrace them rather than trying to escape them. Who knows, you might even come up with some interesting tales along the road.

© 2022 Copyright RE/MAX Advanced Realty. All Rights Reserved.