Real Estate Reality Check

Buying or selling a home is part math, part instinct and a whole lot of preparation. From understanding mortgage options and setting the right price to navigating inspections, property values and seller must-dos, today’s real estate market rewards informed decisions. Here’s what Oklahoma homeowners and buyers need to know to move forward with confidence.

Understanding Mortgages  

Unless you’re flushed with cash, you’ll likely take out a mortgage to purchase your home. But what should you know before taking that financial plunge?

Most home loans are either conventional loans or government-backed loans, shares Kenneth Wohl, the Edmond Market President and mortgage loan officer at Regent Mortgage, a subsidiary of Regent Bank. He says conventional loans are the most common and “they typically offer the best pricing for borrowers with strong credit, stable income and reasonable debt levels. These loans tend to be very flexible for buyers purchasing primary residences, second homes or investment properties.”

Wohl says government-backed loans are designed to make homeownership more accessible for specific buyer groups. 

“FHA loans are popular with first time buyers because they allow lower credit scores and smaller down payments,” he shares. “VA loans are eligible for veterans and active-duty service members, and often require no down payment, with very competitive interest rates. USDA loans are designed for rural areas and smaller towns, and can also offer zero down payment options. These programs are excellent tools when used correctly, but they come with additional rules and property requirements that buyers should understand upfront.”

Mortgages can also be categorized by how interest rates work. 

“A fixed rate mortgage keeps the same interest rate and payment for the life of the loan,” says Wohl. “This stability is why fixed loans remain the most popular homeowner options for those who plan to stay in their home long term.”

An adjustable-rate mortgage, or ARM, starts with a lower fixed rate for a set period. After that initial period, the rate can adjust based on market conditions. 

“These loans can make sense for buyers who know they will move or refinance before the adjustment period, but they require thoughtful planning and comfort with potential payment changes down the road,” says Wohl.

Your down payment impacts almost everything about your mortgage, including your monthly payment, interest rate and mortgage insurance. 

“The more money you put down, the less you have to borrow,” Wohl shares. “That directly lowers your monthly payment and reduces the total interest you pay overtime.  If your down payment is less than 20% on a conventional loan, you typically pay private mortgage insurance, often called PMI. This is an added monthly cost that protects the lender. Once enough equity is built in the home, PMI can usually be removed.”

Smaller down payments allow more people to become homeowners sooner. 

“But buyers should understand that lower down payments usually mean higher monthly payments and slightly higher interest costs over time,” Wohl says.

Wohl encourages buyers to keep in mind that “buying a home is one of the biggest financial decisions you’ll ever make, and it should not feel confusing or intimidating. Understand how loans work, and work with professionals who take the time to explain options clearly rather than rushing decisions. Strong credit habits, responsible buying, and long-term thinking always put buyers in a better position.”

He concludes:  “A home is more than just a place to live. It is a source of stability, and often a foundation for building wealth.”

Whether you’re selling a home or buying one, a home inspection is an integral part of the process. 

“A home inspector will do a complete home inspection. This is a limited visual home inspection and will only inspect what is visible,” share Becky Zarecki and Jayne Smith with Chinowth & Cohen Realtors. “They will not move furniture. They could, however, recommend further investigations by qualified experts if defects appear more substantial and an expert in that field is needed.”

The duo mentions that some of the most common issues found during inspections include roof issues or attic ventilation that is undersized. Foundation issues are fairly common, as well, because of Oklahoma’s expansive clay soil. Minor electrical issues, like GFCI receptacles needing to be replaced and windows with failed seals, also present challenges.

Buyers should expect to pay $350 to $450 for a standard home inspection. But added expenses can include inspections for termites, pests, mold, ducts, sprinklers, pool, lead based paint, radon, septic and sewer scope, plus others.

“Inspection companies offer a pre-listing home inspection, giving the sellers a list of repairs to complete and disclose, giving buyers some peace of mind before making an offer,” say Zarecki and Smith.

“The county sets the tax rate – millage – and yearly assesses the market value to determine the property tax due annually,” say Zarecki and Smith. “Homeowners can see tax reduction through Homestead Exemption, Senior Freeze and Disabled Veterans.”

Wohl continues: “Property values are influenced by a mix of local economy, neighborhood quality, housing supply and long-term community investment. Strong job growth, new businesses moving into an area, good schools and access to highways and amenities all tend to push property values higher. Neighbors with well-maintained homes, consistent city services and thoughtful development typically hold value better over time.”

Wohl says that infrastructure also matters. 

“New roads, retail centers, hospitals and recreational spaces often increase demand for nearby housing. When people want to live in an area, prices naturally rise.”

But he says that on the flip side, property values can soften when areas experience declining population, aging infrastructure, poor property maintenance or limited employment opportunities. 

“Excess housing supply can also pressure values downward if there are more homes for sale than buyers,” he says.

Interest rates play a role as well.

“When mortgage rates rise, affordability drops, which can slow buyer demand and flatten price growth,” says Wohl. “When rates fall, more buyers can afford homes, which can increase competition and push prices upward.”

So you’re selling your home. Where should you start? 

First, it’s important to depersonalize the space so buyers can visualize the home as theirs, not yours. Remove all personal items and clutter so buyers can envision themselves, and their personal items, in the home. Also, remove all excess furniture which will help further depersonalize the home and make the spaces look bigger.

“Anything that makes a property look bigger, and maintains the property better, will help in attracting buyers,” say Zarecki and Smith.

The National Association of Realtors website says an inspector will give you a good indication of trouble areas that potential buyers will see, and will give you time to make repairs before open houses begin.

“We recommend a pre-list inspection with a qualified inspector,” say Zarecki and Smith.

Fix minor issues like leaky faucets, broken doors or chipped paint, and address major problems that could scare buyers. Zarecki and Smith suggest tackling curb appeal through various means including freshening up mulch and flower beds, and keeping the lawn trimmed.

“Remove all clutter and keep all walkways clear,” they say. “Freshen up paint, and clean carpets and appliances. Your home needs to pass the eyes and nose test. It must look clean and tidy, and smell fresh.”

As well, the duo encourages sellers to invest in staging if the agent feels it is necessary. 

“It is not always necessary to stage,” they say. “It can be that the seller just needs a professional to better arrange the current furniture, art and so on.”

If there are big-ticket items that will need to be replaced or repaired soon, such as the roof or carpet, NAR Realtors suggests finding out the costs will allow potential buyers to determine if they can afford the home. Also, gather up your warranties, guarantees and user manuals for buyers and have those ready ahead of time.

“Always use professional photos for MLS – Multiple Listing Service – advertising and social media,” add Zarecki and Smith.

To find a selling price for your home, Zarecki and Smith say, “comparable property approach is number one. We pull comparable homes through MLS and use a tremendous product called HouseCanary Report.”

The NAR Realtors website says that a “comp” is what real estate professionals label home sales that can help determine the price of your home. But, your real estate professional helps you determine how to compare your home in areas such as square footage, lot size, upgrades, upkeep and amenities.

As well, the website says competition is key, such as considering how many homes in your area are for sale. Also, factor in whether you are competing against new homes or condos for sale. 

NAR Realtors says a home’s sale price should be in line with a lender’s estimate of its value. Also, have all your repairs, deep cleaning and other changes in place at least two weeks prior to when showing begins.

“For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value,” NAR Realtors says. “Be sure to ask for a market-value appraisal, and find someone who understands the area and type of home you have.”

Be flexible about showings, and decide in advance the price range and terms that are acceptable. And don’t necessarily refuse to drop the price. Consider buyer demand, interest rates and how quickly homes are selling in your area.