The Gresham Group InsiderJanuary 2026

What financial habits should buyers focus on most in the months leading up to homeownership?

• The biggest habit would be not moving money around and not keeping cash on hand. As we are always under the impression “cash is king” when it comes to lenders, large cash deposits can’t be sourced and unfortunately those cash deposits sometimes can’t be used. When it comes to preparing in buying a home, I would recommend utilizing a high yield savings account or money market account to keep your funds growing there until they are ready to be applied toward the down payment and/or closing cost the next home.

How far in advance should someone talk to a lender before they plan to buy?

• You can never prepare too soon. Whether someone is thinking of buying tomorrow or next year, being prepared pays off. Sometimes it’s beneficial to have a soft credit inquiry to identify a baseline just in case the qualifying credit score isn’t where it needs to be, this would give ample time to make needed improvements or put a strategy in place to secure better financing terms in the future. Understanding loan obligations would also prepare a buyer to start setting aside money for a down payment as well and understanding the steps it takes to save for a house.

What’s one common misconception buyers have about credit scores or loan qualification?

• The biggest misconception is that you need great credit to buy a house. Whereas a more favorable credit score can generally yield a better interest rate, most lenders can secure financing with a credit score down to a 620, some to a 580, and even a few down to a 500 credit score. It might be smarter to take advantage of loan options that pertain to your credit score level versus trying to improve a credit score while home prices could increase.

How does early pre-planning give buyers an advantage in competitive markets?

• Pre planning is a crucial step as a fully approved file with a lender will outshine that of just a pre approved file. I personally tend to have my files fully underwritten to then place a close on time guarantee when an offer is submitted making our efforts stand even above that of cash buyers.  Pre planning will identify any situations that will need solutions far in advance rather than rushing to get solutions which can lead to a stressful experience.

What loan options are buyers often surprised to learn they qualify for?

• Most buyers are surprised that grant programs are available for certain income levels which can yield lower interest rates, lower mortgage insurance rates, grant money to be used toward down payments and or closing cost, and that some loan programs can be used even when a borrower is not a first time home buyer.

Nicole.Bauman@ReeceNichols.com

Homebuying is stressful enough, but nothing is worse than seeing these common mistakes during the offer process.

1. Dragging Their Feet. In competitive real estate markets, hesitation can cost you your dream home. Some buyers take too long to submit an offer after viewing a property, spending days deliberating or waiting for the perfect moment that never comes. Meanwhile, other motivated buyers swoop in with strong offers and secure the home. While you should never rush into a decision without proper consideration, having your financing pre-approved and knowing your priorities in advance allows you to act decisively when you find the right property. Work with your real estate agent to understand the market pace in your area and establish a timeframe that balances careful consideration with competitive action.

2. Lowballing the Seller. Making an unreasonably low offer might seem like a smart negotiating tactic, but it often backfires spectacularly. Lowball offers can offend sellers, causing them to dismiss your bid entirely or refuse to negotiate with you further, even if you come back with a better offer later. In competitive markets, a lowball offer signals that you’re not a serious buyer, and sellers will focus their attention on more reasonable offers instead. While you should never overpay for a property, your agent can provide comparable sales data to help you make a strong yet fair offer that will be taken seriously. Starting with a reasonable offer based on market value leaves room for negotiation while showing respect for the seller’s position.
3. Not Selling Themselves to the Seller. In multiple-offer situations, price isn’t always the only factor sellers consider when choosing a buyer. Many buyers fail to include a personal letter or fail to present themselves as reliable, qualified purchasers who will honor their commitments and close the deal smoothly. Sellers often have emotional connections to their homes and want to know their property is going to someone who will love and care for it. A well-crafted personal letter explaining why you love the home and how you envision your life there can create a meaningful connection. Additionally, demonstrating your financial strength with a substantial earnest money deposit, a strong pre-approval letter, and flexibility on closing dates shows sellers you’re committed and capable of following through.

4. Not Using a Real Estate Agent. Some buyers attempt to navigate the offer process without professional representation, thinking they’ll save money or have more control over the transaction. This approach nearly always costs them more than they save, both financially and in terms of stress and complications. Real estate agents bring crucial market knowledge, negotiating expertise, and familiarity with contracts and legal requirements that protect your interests. They can identify red flags in properties, advise you on appropriate offer prices and terms, and handle the complex paperwork involved in real estate transactions. Perhaps most importantly, agents can negotiate on your behalf without the emotional involvement that often leads buyers to make concessions they later regret. In most cases, the seller pays the commission for both agents, meaning buyer representation costs you nothing while providing invaluable expertise and advocacy.

5. Offering Your Maximum Pre-Approved Amount. Being pre-approved for a certain loan amount doesn’t mean you should offer that full amount on every property or stretch your budget to its absolute limit. Lenders qualify you for the maximum amount they believe you can afford based on debt-to-income ratios, but they don’t consider your other financial goals, lifestyle expenses, or desire to maintain an emergency fund. Offering your maximum pre-approved amount leaves no room for unexpected costs that inevitably arise with homeownership, such as repairs, maintenance, property taxes, insurance, and furnishings. It also limits your ability to save for other goals or handle life changes like job transitions or growing families. Smart buyers determine their own comfortable monthly payment based on their complete financial picture, then work backward to establish their actual home budget, which is often 10-20% below their maximum pre-approval amount. This approach ensures you can truly afford and enjoy your home rather than becoming house-poor and struggling to maintain your lifestyle.

In fact, homeowners spent 11.7 hours per week outside at their homes in 2025 compared to 9.6 hours per week spent outside the year before — that’s an increase of 22%.

Consider what activities matter most to your family when designing your outdoor oasis. Are you dreaming of a cozy fire pit area for evening conversations and roasting marshmallows? Perhaps an outdoor kitchen and dining space for al fresco meals would enhance your lifestyle. Many homeowners are adding comfortable seating areas with weather-resistant furniture, shade structures for hot summer days, and landscape lighting that extends the usability of the space into evening hours. Water features like fountains or small ponds create soothing ambiance, while dedicated play areas or sport courts keep children active and outdoors.

The wellness benefits of outdoor spaces cannot be overstated. Studies show that spending time in nature reduces stress, improves mood, and promotes better sleep. By creating an inviting backyard environment, you’re investing in your family’s physical and mental health while also creating a space that disconnects you from screens and reconnects you with each other. Gardens with native plants, bird feeders, and butterfly-friendly flowers bring nature closer and provide educational opportunities for children.

From a real estate perspective, well-designed outdoor living spaces offer excellent return on investment. Buyers consistently rank outdoor amenities as highly desirable features, and a beautiful backyard can be the deciding factor in competitive situations. Even simple improvements like defining separate zones for dining, lounging, and playing, adding landscape beds with perennials, or installing low-voltage lighting can dramatically enhance your home’s appeal and value.

Start this January by walking your yard with fresh eyes. Take photos from different angles, note problem areas like drainage issues or dead spots in the lawn, and sketch out ideas for how you envision using the space. Create a Pinterest board or collect magazine clippings of outdoor spaces that inspire you. Set a realistic budget that prioritizes the elements most important to your family, and remember that you can phase projects over multiple seasons if needed. Reach out to local landscape professionals for consultations, as their expertise can help you maximize your space and avoid costly mistakes. By the time spring arrives, you’ll have a solid plan in place and be ready to create the backyard oasis you’ve been dreaming about.

Kelley Gatlin

Stay informed and take necessary precautions when buying and selling. AI comes with pros and cons. Lean on your Gresham Group agent to keep you in the know!

Paul Gessler

Buyers should focus on locking in rates now. Sellers need to price aggressively.

Lisa Ferguson

Buyers should expect a calmer, more balanced market with modest price growth. The frenzy of bidding wars is fading. Homes are taking longer to sell, and listings are up compared to recent years, giving buyers more breathing room.

Inspect and Replace HVAC Filters. January’s cold weather means your heating system is working overtime, so check your furnace filters and replace them if they appear dirty or clogged. Clean filters improve air quality, increase system efficiency, and reduce energy costs. This simple task should be performed monthly during heavy heating seasons to ensure your system runs smoothly and to prevent costly breakdowns.

Check for Ice Dams and Roof Damage. Winter storms can create ice dams along your roof’s edge, which can lead to water damage inside your home. Inspect your roof for ice buildup, missing shingles, or signs of damage after each significant weather event. If you notice ice dams forming, consider using a roof rake to safely remove snow from the edge of your roof, and ensure your attic insulation and ventilation are adequate to prevent future issues.

Test Smoke and Carbon Monoxide Detectors. With fireplaces, furnaces, and space heaters in regular use during winter, January is the perfect time to test all smoke and carbon monoxide detectors throughout your home. Replace batteries as needed and replace any units that are more than ten years old. This simple safety check can save lives and gives you peace of mind during the coldest months.

Inspect Weatherstripping and Caulking. Cold drafts around windows and doors not only make your home uncomfortable but also drive up heating costs significantly. Walk through your home and check all weatherstripping and caulking around windows, doors, and any other potential air leaks. Replace worn weatherstripping and apply fresh caulk where gaps have appeared to keep warm air inside and cold air out.

Reverse Ceiling Fan Direction. Most people don’t realize that ceiling fans can help distribute heat during winter months. Switch your fans to rotate clockwise at a low speed, which pushes warm air that rises to the ceiling back down into your living space. This simple adjustment can improve comfort and reduce heating costs without any additional energy consumption.

Clean Gutters and Downspouts. Even in winter, it’s important to ensure your gutters and downspouts are clear of debris, ice, and blockages. Clogged gutters can lead to ice dams, water damage to your roof and siding, and foundation problems when melting snow has nowhere to drain. On a mild day, check that water can flow freely through your gutter system.

Check Pipe Insulation and Prevent Freezing. Inspect pipes in unheated areas like basements, crawl spaces, attics, and garages to ensure they’re properly insulated. Frozen pipes can burst and cause thousands of dollars in damage. Let faucets drip slightly during extreme cold snaps, keep cabinet doors open under sinks to allow warm air circulation, and know where your main water shutoff valve is located in case of emergency.

Service Your Fireplace and Chimney. If you haven’t already had your chimney inspected and cleaned this season, January is an important time to schedule this service. Creosote buildup can create a fire hazard, and blockages from debris or animal nests can cause dangerous carbon monoxide to enter your home. A professional inspection ensures your fireplace is safe to use throughout the remainder of winter.