How to Choose a House in 2025

The experts in residential moving at All My Sons Moving & Storage weigh in on how to choose a house in 2025.

The good news for people looking to buy a home in 2025 is that the market is leaning toward a healthier place. According to the Realtor.com 2025 National Housing Forecast, mortgage rates will trend between 6.3% and 6.2% in 2025, down from a high of 7.4% in 2023. For-sale inventory is expected to increase by 11.7%, which means buyers will have more homes to choose from.

Are you looking to buy your dream home in 2025? You’ll need movers to help you get settled once the paperwork is finalized. All My Sons Moving & Storage is a trusted name in residential moving. We performed roughly 94,600 moves into 2+ bedroom homes in 2024, which was about 42% of our total moves for the year. 

Whether you’re a first-time home buyer or looking to find a new place to meet some changing needs, navigating a house-hunt in 2025 will be a challenge. 

Here are ten steps that can help you choose your new home.

Even if 2025 heralded a totally healthy buyer’s market with high inventory and extra-low interest rates, you should not attempt purchasing a home until you are personally ready for the financial responsibility. No real estate market forecast can tell you if you have the stable cash flow and savings to start owning a home. Ultimately, the decision on whether to buy depends on you. 

Before you consider buying, you should probably have:

• A full emergency fund: Typically, three to six months’ worth of living expenses.

• A debt-to-income ratio of 36% or less: You can calculate your debt-to-income ratio (DTI) by adding up all the minimum monthly debt payments you have and dividing that number by your monthly pretax income. You can potentially get approved for a mortgage with a DTI between 36% and 43%, but your chances of getting approved drop significantly if you’re over 43%.

• Funds for a down payment: If you want to avoid paying for private mortgage insurance on a conventional mortgage, then you will need to have a down payment of at least 20%. VA and USDA loans do not require a down payment and FHA loans typically require a down payment between 3.5% and 10% depending on your credit score.

• Extra money to cover closing costs: In addition to your down payment and your emergency fund, you should also have funds to cover the closing costs of the home, which can come to between 3% and 5% of the home’s purchase price. 

If you’re sitting on a stable job, little to no debt, and a nice chunk of savings, it might be time to buy a home. The 2025 market should not dissuade you in the slightest.

A lender might be willing to offer you more money than you can comfortably afford in the long-term. To avoid becoming one of the roughly 18.3 million Americans who are “house poor” or spending more than 30% of their income on housing costs like utilities and mortgage payments, you should budget wisely and purchase a house well within your means. 

Conventional wisdom says your monthly mortgage payment should be no more than 28% of your gross income, but there are many costs of homeownership to factor into your budget.

The following costs should be considered in your new budget as a homeowner:

• Homeowners insurance: You might be used to paying renters insurance if you’ve been renting for a while but be prepared for a price hike when you switch to owning. According to the National Association of Insurance Commissioners, the average cost of a renters insurance policy is between $15 and $30 a month. The average cost of a homeowners policy comes to about $187 per month, up to 12 times more than renters insurance.  

• HOA fees: Your local homeowner’s association (HOA), a private organization that helps oversee the management of your neighborhood, works to keep property values up and preserve treasured community characteristics. HOA fees typically are not included in an escrow agreement, which means you usually won’t pay them with your regular mortgage bill. The average monthly HOA fee is $170, but if you’re looking at an upscale community with many luxury amenities be prepared to pay a lot more. 

• Property taxes: Your local city government uses property taxes to fund schools, police and fire departments, libraries, and other public services. These can be included in an escrow agreement, which means you will pay them with your regular mortgage bill. If your home value goes up, then your property taxes will rise as well. 

• Repairs and maintenance: Your essential home systems like your HVAC unit, water heater, and plumbing fixtures will need regular upkeep not to mention possible replacement when something inevitably breaks. As the homeowner, you are also responsible for your own pest control and utility bills that might be substantially higher than what you used to pay at a rental property. 

• Landscaping services: Your new home might come with a lawn that needs mowing and perhaps a few bushes or trees that could need trimming on a regular basis. Even if you take the Do-It-Yourself route to your new home’s landscaping, you will need to invest in tools to get the job done. Keep seasonal care like leaf removal or shoveling snow in mind as well.

• New furniture and appliances: If your rentals have always come with a fridge, freezer, washer, and dryer in-unit then when you switch to owning you might need to purchase these appliances for your new home. Your home might come with more space to furnish, and you could need additional pieces like a new loveseat for a larger living room or a new bed for a guest room.

Don’t forget to include the hidden costs of moving into your new budget as well. 

With your monthly budget in hand, you’ll be able to determine exactly how much you should spend on your housing every month.

Take a moment before you start house-hunting to think about what you truly want out of a house. If you have a growing family then your needs will be different from someone looking to invest in a fixer-upper to renovate and remodel.

Create a wish list of all the things you want your house to have. Rank the list in priority order. If you have three household members who will all need a bedroom, then your number of bedrooms will go higher on the list. If you would like to have company over consistently, you might want to choose a home with an open living room concept or ample kitchen space to prepare meals.

Address each of the following in your wish list:

• Location: Where you live can have a dramatic impact on your overall satisfaction in life. Think about the places and people that you want to be close to, and let the answers guide you to your ideal location. 

• Number of bedrooms and bathrooms: You need enough space to comfortably accommodate everyone in your household, plus space for any extras you might want like a home office or a guest room.

• Number of stories: A two-story house allows more space to accommodate your needs, but if you have any household members who have difficulty traversing staircases you might want to stick to a one-story house.

• Storage space: Think about whether you will need walk-in closets, an attic, or a basement. 

• Backyard and front yard: Families with energetic dogs or growing children might love a space for them to run around and play. If having a yard is not important to you, or you’d rather not spend time keeping a yard in good shape, be sure to strike it from the list.

• Garage: If you would like a space to park your car, or additional storage space, then a garage could be a must for you.

Keep in mind that houses can be modified if you find a house that meets all your needs, but there’s something you don’t quite love like the color of your kitchen tiles. Be sure to identify the areas you’re willing to compromise on and the areas where you have no flexibility early.

A mortgage preapproval shows sellers how much you’re able to borrow, and the process for getting preapproval is much like the actual mortgage application process. In competitive housing markets you won’t be able to make an offer without a preapproval letter, unless you’re paying for the house in cash.

To get a preapproval, you will have to provide a lender with:

• Government ID: Documents to verify your identity such as a driver’s license or passport. If you are not a U.S. citizen, you may have to provide your visa or green card.

• Social Security Number: As preapproval typically requires running a credit check, you will need to provide your social security number.

• Proof of Income: These can be W-2 wage statements, pay stubs, or other proofs of income from other sources. 

• Proof of Assets: Bank statements that show funds available for a down payment and closing costs.

• Authorization to Pull Credit Score: A mortgage preapproval requires a hard credit check, which will impact your credit score. If you apply for preapproval from more than one lender within a 14-day window, VantageScore only counts it as one inquiry. FICO typically uses a 45-day window to count multiple mortgage loan inquiries as one inquiry.

A preapproval letter is typically valid for up to 90 days, but check with your lender if you are unsure.

Once you have a preapproval you’ll be able to see exactly how much you’re able to afford, and you’ll be able to make offers on any houses that catch your eye.

While it’s possible to house-hunt without one, finding a licensed real estate professional who works in your best interest can save you time in your search. A buyer’s agent can act as your advocate during your home search, recommend the right properties for you, help during negotiations, and provide referrals to other professionals like home inspectors and movers. 

Due to a recent settlement with the National Association of Realtors (NAR), the way that buyer’s agents are compensated has changed. Before the settlement, buyer’s agents were typically paid by the home seller out of the sale price of the property. Starting in August 2024, buyer’s agents must have anyone they work with sign an agreement upfront. According to NAR, the agreement needs to have a specific disclosure for how much and how the buyer’s agent is to be compensated. This fee remains negotiable. 

Buyer’s agents might have the initials ABR after their name on web listings. This stands for Accredited Buyer’s Representative which is a special certification designated by NAR.

If you have a buyer’s agent helping you, they should be able to provide you with some listings that align with your house wish list. Look at any photos you’re provided with and study the descriptions to decide if a house is worth visiting in person. Some listings will offer 3D tours and video tours of the homes.

If you are embarking on your house-hunt without a buyer’s agent, some popular sites to search for home listings that anyone can access are:

• Zillow

• Realtor.com

• Redfin

• Trulia

• Homes.com

You can also walk around neighborhoods where you’d like to live and see what homes are up for sale. Sometimes you can find a great home and check out its curb appeal in person long before you’re able to locate its listing online.

Make a short list of homes that align with your wish list and your budget to visit in person. 

Now comes the super fun part of house-hunting, visiting open houses and doing walkthroughs!

When you walk into a prospective home, don’t let yourself get distracted by cosmetic issues that are fixable if you’re loving the bones of the place. Walls can be painted and carpet can be replaced down the road if you have the time and budget for it. 

Take pictures and video of the home while you walk around and note anything in particular that you really like. 

Fall in love with a place immediately? That happens sometimes! In hot markets, you’ll have to make an offer on a house very quickly, which is why getting preapproval before you go touring houses is very important.

Remember the place you choose to live in comes with a whole neighborhood. It’s important to pay attention to what’s outside your potential new home too.

When you visit homes in person, drive around the immediate area and note how well the neighborhood is kept. Check sites like Niche, NeighborhoodScout, and Area Vibes to get an idea of demographics and statistics for the area. You should pay attention to crime statistics, whether the area has a neighborhood watch, what schools serve the area, and how close you are to the places you need to go. Check your commute time to work or school, especially during rush hour, and take a test walk of the neighborhood if walkability of your home turf is important to you.

Check out the neighborhood fixtures like the library, community centers and clubs, nearby gyms, places of worship, stores of interest, and restaurants you can picture yourself eating at often. Sometimes a so-so house can turn into a perfect home just based on how much you love the neighborhood, and sometimes the perfect house can be made sour by a neighborhood that makes you want to run for the hills. You won’t know for sure until you dig a little deeper.

When you’re working with a buyer’s agent, they can help you make a competitive offer on the house you’re interested in. Offers typically include the following information:

• Offer price: Your buyer’s agent will advise on an amount that could win you the home. Sometimes that will be lower than asking price if the market is slow and the house has been on the market awhile, or it might be above asking price if the opposite is true and there’s a lot of interest in the house.

• Earnest money: This is money that you make as a deposit to demonstrate your sincere interest in the home. If you were to leave the deal without closing for any reason not specified in your contingencies, the seller can often keep the earnest money. 

• Contingencies: These are the reasons you might need to back out of the deal without losing your earnest money. Typical contingencies will include things like not getting your final loan approval or the home inspection revealing problems not previously disclosed.

Get into a bidding war? There are a few things you can do to make your offer a little more competitive like offering an above asking price, increasing your down payment, and removing or limiting contingencies on your offer. 

At this point in the process, the seller can reject your offer, make a counteroffer, or accept your offer. If your offer is accepted, congratulations! You are on the home-stretch to get into your new home. Proceed to the inspection.

Typically during a house sale, the buyer hires and pays for the home inspector to come out and assess the home. According to Home Advisor, the normal price range for a home inspection is about $296-$424, but your specific area may have different averages. Your buyer’s agent may be able to provide a referral for a home inspector. 

If the inspection turns up issues not previously addressed or disclosed, the buyer has a few options for how to proceed:

• Request a decrease in price: You can ask the seller to adjust the price of the property, which will hopefully leave you with enough funds to cover the cost of the repairs yourself.  

• Request the seller make repairs: You can ask the seller to perform or pay for the necessary repairs so that the house is in pristine shape for your move-in.

• Leave the deal: If this scenario was covered in the contingencies of your offer, you should be able to keep your earnest money as you back out of the deal.

If you have gotten the home inspection completed and addressed any issues, then the final step in your home purchase is closing.

Last chance! Is there any reason you shouldn’t purchase this home? While you may be out your earnest money if you walk away for any reason not listed in your contingencies, that may be better than getting locked into a mortgage for a home that you’re not totally thrilled with. Before you sign on the dotted line, make sure your budget and your heart are both in the right place.

It might be a good idea to have an attorney that specializes in real estate deals look over your final paperwork.

Once closing is complete, it’s a good idea to change the locks on your new home (unless it is a brand-new construction) and follow these other great tips to start your move on this Moving Checklist for Homeowners.

When the closing costs are paid and you have your keys, call the specialists in residential moving at All My Sons Moving & Storage to help you get packed, loaded, and moved. 

Our company has been helping businesses and families make a seamless relocation for over 30 years. Join our legion of happy customers and give yourself the gift of a stress-free move. 

You can get your quote online or call our national line at 1-866-726-1579 to reach one of our 90+ locations across the United States.