Overcoming financial hurdles

When we talk about an agent’s role, we typically say “helping clients find the homes of their dreams.” But we know that’s an oversimplification. We don’t only want to help clients find the homes, we want to make sure they can close on the deal.

As our second story shows, many buyers are deeply concerned about costs associated with purchasing a home. It’s our job as agents to help them overcome all those hurdles. 

In today’s Foundation Plans below, we start Part One of our multi-part series with good advice for agents looking to help clients navigate all the financial hurdles that can arise during the homebuying process.

We think it’s this type of knowledge that can make every agent truly valuable.

– James and David

Markets where buyers have the highest leverage

44 of the nation’s 200 largest metropolitan housing markets had more active homes for sale at the end of February 2025 than they did in February 2019, before the pandemic. According to ResiClub, many of these markets—where homebuyers have the highest negotiating power—are concentrated in the Gulf Coast and Mountain West regions. Over the past few years, these areas emerged as pandemic boomtowns, saw home prices surge as housing demand outpaced local income levels, and pushed market fundamentals to their limits.

Here are the top markets where homebuyers have the most leverage, ranked by the highest percentage of active inventory above the amount in February 2019:

1. Temple, TX: 75.9%

2. Punta Gorda, FL: 75.8%

3. Lakeland, FL: 52.3%

4. Ocala, FL: 47.0%

5. Colorado Springs, CO: 46.4%

6. Huntsville, AL: 42.2%

7. McAllen, TX: 37.9%

8. Waco, TX: 35.6%

9. San Antonio, TX: 32.9%

10. Boulder, CO: 31.7% 

Our take

The trends in these markets are understandable. As pandemic-driven migration slowed and mortgage rates surged, markets in Florida and Texas became increasingly dependent on local incomes to support inflated home prices. The markets continued to soften due to the steady growth of new home construction across the Sun Belt, as builders are often willing to lower prices or offer incentives to keep sales momentum strong. This shift in the new construction market also puts downward pressure on the resale market, as some buyers who might have purchased existing homes have been drawn to new builds where better deals remain available.

The obstacle to homeownership for most buyers

81% of would-be buyers say that down payment and closing costs are “significant” obstacles toward owning a home, according to a Bankrate report via CNBC. For 52%, the hurdle is “very significant” while for 29% it’s “somewhat significant.” This is based on a mid-January survey of 2,703 U.S. adults.

The median down payment among homebuyers nationally was $63,188, up 7.5%, or about $4,000, from a year prior, according to Redfin via CNBC. The typical homebuyer's down payment was equal to about 16.3% of the purchase price, where the median home-sale price was $428,000.

Our take

Even though it’s a buyer’s market, homebuyers need real help navigating their options and financial obligations. Outside of wealthy buyers who can make all-cash deals, many buyers face difficulties meeting the down-payment requirement and paying the closing costs on a purchase. As agents, we need to help our buyer-clients find ways around these obstacles. Scroll down to today’s Foundation Plans, where we offer some tips on how to educate and guide your buyers on the financial side. Hopefully, they help you and them on the path to affordability.

Markets least vulnerable to a housing downturn

Of the 566 counties they analyzed, ATTOM determined that 51 are the “least vulnerable” to any housing downturn. This conclusion was based on a risk analysis of factors such as the percentage of homes at risk of foreclosure, the share of properties with mortgage balances exceeding estimated values, the portion of average local wages needed to cover major homeownership costs for median-priced single-family homes, and local unemployment rates. Of the 51 counties, 23 were located in the South, 13 in the Midwest, 13 in the Northeast, and two in the West.

Here are the top 10 counties at the lowest risk of facing a housing downturn:

1. Winnebago County, WI

2. Outagamie County, WI

3. Brown County, WI

4. Chittenden County, VT

5. Medina County, OH

6. Ontario County, NY

7. Arlington County, VA

8. Tompkins County, NY

9. Durham County, NC

10. Henrico County, VA

Our take

This report highlights key opportunities for residential brokers. Markets with strong job growth, balanced supply, and steady demand offer stability, making them attractive to both buyers and sellers. As Pere notes, “34% of investors are hungry to invest more capital in private real estate in the next 12 months.” These low-risk markets where single-family homes either retain or increase their value are precisely the kind of markets they desire. Use this intel to help investors make a play in these markets.

The news that just missed the cut

• 5 sources of income every agent should have

• Moody’s chief economist raises the chances of a recession to one in three

• Rocket Companies buys Redfin for $1.75 billion 

• Here’s how tariffs will hit the housing market

• This is the strategy homeowners are using to save on home insurance

Foundation Plans

Advice from James and David to win the day

As we noted in our second story, even though it’s a buyer’s market, many buyers still face financial hurdles when trying to close on homes. As agents, it is our job to help them overcome these challenges. Today, we are presenting Part One in our series on helping buyers navigate their options and setting them up for success to quickly and smoothly close deals.  

Meet with multiple lenders – If your clients opt to buy a pre-existing home rather than a new home from a builder, make sure they see at least 3 mortgage lenders. Encourage your clients to start their search at least 60 days before they start their home search. Make sure your clients get a good-faith estimate from each lender. That way, they can make an apples-to-apples comparison between offers. A good-faith estimate breaks down the terms of the mortgage, including the interest rate and fees.

Make sure your clients are pre-approved not just pre-qualified – Here’s the difference: pre-qualification is just a basic overview of a borrower’s ability to get a loan. You provide a mortgage lender with information—income, assets, debts, and credit—but you don’t need to produce any paperwork to back it up. In return, you’ll get a rough estimate of what size loan your client can afford. However, it’s not a guarantee that they’ll get approved for the loan. By contrast, pre-approval is an in-depth process that involves a lender running a credit check and verifying income and assets. Then an underwriter does a preliminary review of your client’s financial portfolio. If all goes well, the underwriter issues a letter of pre-approval, a written commitment for financing up to a certain loan amount. Sellers typically will accept offers only from pre-approved buyers. 

Don’t change jobs or apply for new lines of credit before a purchase – If your clients do these things right before purchasing a home, that will hurt their chances with mortgage lenders. Applying for multiple lines of credit can make a mortgage lender think that your clients are desperate for money. The lender might change the mortgage terms or even deny the mortgage altogether, even if your client has a closing date on the books. Changing jobs while under contract on a property can create a big issue in the eyes of an underwriter. Mortgage lenders like to see at least two years of consistent income history when pre-approving a loan.

As we said, the best thing your clients can do is apply for new credit and/or change jobs AFTER they’ve closed on their house. 

Follow these tips and your closings should go a whole lot smoother and easier. To learn more about what you can do to help your buyers seal the deal, start here, here and here. 

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

"Be so focused on your own ambitions that no one can distract you from achieving them." – Kobe Bryant

We know this business is tough, friends. But don’t let that stop you. Success takes work — real work. If you want to be great, you have to care. You have to obsess. The quarter ends in three weeks. Stay focused. Finish strong.

– James and David