2025 New Year’s resolutions for homebuyers, part two

This is part two of Ilyce and Sam’s thoughts on the housing market and their 2026 homebuyer resolutions.

Home Buyer Resolution No. 6: Consider seller concessions and builder incentives.

In many markets right now, inventory is increasing and homes are staying on the market longer. That means you have more leverage than you’ve had in years. Ask sellers to cover part of your closing costs or even buy down your interest rate. If you’re looking at new construction, builders are offering incentives like closing cost credits, free upgrades, and rate buydowns that can meaningfully reduce your monthly payments. Don’t leave money on the table.

Home Buyer Resolution No. 7: Get pre-approved, not just pre-qualified.

Pre-qualification is just an estimate based on what you tell a lender. Pre-approval means they’ve actually verified your income, assets, and credit. In a competitive market, a pre-approval letter makes you a serious buyer. Sellers know you can actually close the deal. This is especially important for first-time buyers who are already at a disadvantage competing against cash buyers and those with massive down payments.

Home Buyer Resolution No. 8: Think creatively about your first home.

Maybe it’s not your dream home. Maybe it’s a starter home in a neighborhood you didn’t initially consider. Maybe it’s a condo instead of a single-family home. Maybe it’s a fixer-upper that you can live in while you wait for your personal finances to catch up. Maybe you buy with a trusted friend or family member to split costs. The goal is to get into the market and start building equity. Once you’re in, you can always move up later. Remember: Every homeowner started somewhere.

Home Buyer Resolution No. 9: Educate yourself relentlessly.

The more you know about the homebuying process, the better decisions you’ll make. Read articles, listen to podcasts, attend first-time homebuyer seminars. Learn about mortgage types, closing costs, homeowners insurance, property taxes, and HOA fees. Understand what affects home values in different neighborhoods. Knowledge is power, and in real estate, it can save you thousands of dollars and years of regret. We humbly suggest you take a look at Ilyce’s latest book, “100 Questions Every First-time Home Buyer Should Ask (4th Ed.),” which has provided nearly half a million homebuyers with answers to their homebuying questions.

Home Buyer Resolution No. 10: Get comfortable with AI — it’s already changing real estate.

Artificial intelligence is transforming the homebuying process, and you need to understand how to use it to your advantage. You’ll encounter AI-powered home search platforms that learn your preferences and suggest properties you might have missed. Virtual staging will show you empty homes fully furnished. Chatbots will answer your initial questions at 2 a.m. Automated valuation models will give you instant price estimates. AI tools can analyze neighborhood trends, predict future appreciation, and even help you visualize renovations before you make an offer. Google is testing how it can pull information and then connect you directly with the listing agent.

Here’s the thing: AI isn’t replacing real estate agents or mortgage professionals — it’s augmenting them. The best agents are using AI to provide better service, faster insights and more accurate market data. Smart buyers will learn to use these tools too. Explore AI-powered home search apps like Zillow and Redfin with their advanced filters and recommendations. Try virtual tour platforms that let you walk through homes from your couch. Use AI chatbots on real estate websites to get quick answers to basic questions. Then verify those answers with a trusted source. Ask your lender if they use AI to streamline mortgage applications and document processing.

As useful as it is, remember that AI is a tool, not a substitute for judgment. Use it to gather information, narrow your search, and understand the market. Then rely on experienced human professionals to guide you through negotiations, inspections, and the complexities of closing. The buyers who succeed moving forward will be those who embrace AI as a powerful research assistant while maintaining the human relationships that really matter in real estate transactions.

Home Buyer Resolution No. 11: Find a great real estate agent who understands first-time buyers.

According to the NAR, 76% of first-time buyers credit their agent with helping them understand the process. A good agent will point out property features or flaws you might miss, help you negotiate, and guide you through one of the biggest financial decisions of your life. Don’t go it alone. Interview several agents and find someone who specializes in working with first-time buyers in your price range and area. Bonus points if they’re tech-savvy and can show you how to leverage AI tools effectively.

The bottom line is this: Yes, the current housing market is challenging for first-time buyers. But it’s not impossible. You just need to be strategic, disciplined, and willing to make some sacrifices to get there. Every journey starts with a single step. Let this year be the year you take yours.

Sam and I wish you a very happy, productive and joyful New Year!

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(Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask (4th Edition).” She writes the Love, Money + Real Estate Newsletter, available at Glink.Substack.com. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, ThinkGlink.com.)