Potential homebuyers are getting increasingly annoyed about what they consider unreasonably high housing costs. That’s why more are backing out of deals they already cut.

“We’re seeing nightmare scenarios, where deals are getting canceled at the last minute for the most minute reasons,” says Rafael Corrales, a Redfin real estate agent in Miami.

Across the nation, "nearly 56,000 home-purchase agreements were canceled in June, equal to 14.9% of homes that went under contract that month," Redfin reports. Florida was especially affected, with 17.6% of deals canceled in Miami alone in June.

How can purchasers exit a signed deal? “Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue,” Corrales says.

Although inventory levels are gradually rising, home prices have stayed stubbornly high in many neighborhoods across the country. Indeed, throughout the nation, the median home price now exceeds $442,000.

“Affordability remains stretched,” says Ivy Zelman, a stock analyst who tracks the housing industry for investors.

Given the currently breathtaking cost of housing, many prospective purchasers are choosing to wait on the sidelines, hoping for better buying conditions ahead, particularly if mortgage rates finally come down a bit later this year, as some economists predict.

Still, real estate agents point out that the costs of delaying a purchase indefinitely can be considerable, especially for tenants under pressure to renew their leases at higher rental rates.

“You’re rolling the dice if you wait too long to buy,” says Ashley Richardson, a longtime agent with Sothebys International Realty.

Are you a wannabe homeowner seeking to move forward later this year or by early 2025 rather than delay still longer? If so, these few pointers could prove helpful:

-- Schedule an in-person interview with a mortgage lender.

Financial studies show that people save more if they have a concrete objective in mind. But how can you make your home-buying goal more tangible?

Gerri Detweiler, a personal finance expert and author, says one way to reorder your priorities is to visit a mortgage lender to determine how much you could afford to spend on a property and how large a down payment you’ll need.

Once you’ve established your borrowing ceiling, Detweiler recommends you embark on a very limited property search by stopping by a few open houses in the neighborhood you’ve targeted.

“So long as you’re still saving, you shouldn’t go on a big home shopping tour because you could fall in love with a specific home before you’re ready to buy. But getting a quick overview of the market can prove highly motivating to help you save,” she says.

-- Reconsider your current spending habits.

Celia Brugge, a Tennessee-based financial planner, says Americans slip easily into temptation when it comes to discretionary purchases.

“It’s easy to fall into impulse purchases for clothing, shoes or electronics. And eating out is a huge category,” says Brugge, who’s affiliated with the National Association of Personal Financial Advisors (napfa.org).

Brugge urges anyone trying to embark on a savings program for the purchase of a home, or any other major financial goal, to first go through what she calls “the boot-camp period.”

During this initial phase, she suggests you do an inventory of where your money has gone during a recent three-to-12-month period. You can do this by reviewing the entries on your checking or credit card statements and then summarizing your outlays.

Many people use Excel spreadsheets to track their spending. Once you know where your money is going, it’s time to start making cuts in low-priority categories. To help exercise willpower against out-of-plan expenditures, Brugge encourages would-be buyers to give up shopping as a recreational activity.

She says many people find that low-cost social activities, like inviting friends over for a potluck dinner, to be more gratifying than recreational shopping. To stay on track and accountable for their spending, Brugge advises couples to set regular times, as often as weekly, to allocate 15 minutes or so to reporting to each other on their recent spending.

“It’s a huge problem when couples don’t tell each other what they’re spending,” she says.

-- Review your commuting expenses.

Detweiler says many people take their need for a late-model car or SUV as a given. But to save for a home of your own, you may need to downscale your expectations in this category, if only temporarily.

“Owning a new car is not a necessity, though some people treat it as one. And it can be a lot more costly to the budget than people think,” says Detweiler.

Ideally, those with a big savings goal will consider selling a vehicle they own and commuting by rail or bus until they reach their savings goal. Another option is to carpool with a colleague from work. Of course, working from home can save a bundle on commuting costs, and remote work is often possible in this post-pandemic period.

-- Seek to reduce your insurance costs.

Insurance brokers and salespeople can be persuasive when encouraging clients to maximize their coverage. But Detweiler says would-be buyers should examine their spending in this domain. For instance, you might find a way to reduce the cost of your car insurance policy without compromising your core coverage.

“Shop around for insurance and also look into how much you could save by increasing your deductibles,” she says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Since 2020, a couple of high school teachers in Colorado have been on a determined drive to amass a down payment to buy their first home. But despite extreme frugality measures, like cutting food costs to the bone --they’ve yet to reach their goal.

“Down payments have always been important, but even more so today,” says Skylar Olsen, chief economist at Zillow, the national real estate firm. She says a few statistics tell the whole story for average young families.

As she estimates, a down payment of $127,750 is what a household making the median income needs to put down when purchasing a typical U.S. home -- valued at about $360,000 -- so that their monthly mortgage payments take up no more than 30% of that household’s monthly income.

According to Olsen, an increasing number of young buyers are seeking assistance to finally get their foot in the door of a first property.

“Saving enough is a tall task without outside help -- a gift from family or perhaps a stock windfall. To make the finances work, some folks are making a big move across the country, co-buying or buying a home with an extra room to rent out,” she says.

Of course, each year many young adults do achieve a first-home purchase, even in popular neighborhoods where available properties remain scarce and prospective buyers abound.

One important factor determining who succeeds is how an offer is crafted once the right property is found. Here are a few pointers:

-- Show your love for the house that you want.

When making a fair offer, how can you convince the sellers that you’re sincere? Sid Davis, a real estate broker in Utah, says his clients have gotten results by attaching a brief handwritten note to introduce themselves to the sellers.

“Home sellers are much more likely to warm up to people who appreciate their property. It’s an art form to convince the owners you’re not just a ‘grab and run’ opportunist, particularly now that investors are coming out of the woodwork,” says Davis, the author of “A Survival Guide for Buying a Home.”

But Michael Connerly, the author of “How to Win With Real Estate,” cautions buyers against writing long or flowery letters to owners.

“[T]here’s always the risk that the sellers will get the impression you’re trying to manipulate them or take advantage with a lowball offer,” says Connerly, who worked as a real estate broker for more than 17 years.

-- Always attach a preapproval letter to your offer.

Because sellers are beginning to outnumber buyers in an increasing number of areas, some purchasers see no point in bothering to obtain preapproval for mortgage financing. But bargain-minded buyers know better, says Tom Early, a real estate broker and former president of the National Association of Exclusive Buyer Agents (naeba.org).

“In the present market, you absolutely want preapproval to remove all doubts in the seller’s mind that you’re qualified,” Early says.

Granted, those with tarnished credit or checkered employment situations always face a big challenge when seeking to secure home financing. But if you have a steady job, reasonably good credit and a minimum of debt, your odds of obtaining a mortgage preapproval letter from a reputable lender are still very good, Early says.

-- Never surrender your right to a home inspection.

While it’s true that a condition-free offer is a stronger bid, Early urges you not to waive your right to make your purchase contingent on a satisfactory home inspection.

“I tell my clients that either you have the house inspected or face the prospect of buying a pig in a poke,” Early says.

In most cases, home inspectors find only minor problems, such as leaky faucets, shaky stair railings or a malfunctioning doorbell. These issues are soon resolved at the owners’ expense, and the deal goes through as planned.

“But sometimes, inspectors find catastrophic problems -- like a serious issue with the foundation or a major problem with the home’s electrical system. With a discovery like that, you’ll want the right to walk away from the deal,” Early says.

-- Face the reality that timing is critical to the highly motivated seller.

Whether or not sellers accept an offer, especially a low one, often depends on how much pressure they’re under to sell, Davis says. Obviously, those in a rush are usually more willing to entertain a lowball bid, even if it means making a counteroffer to bring up the dollar amount.

One retired accountant was a case in point. Once she reached her late 60s, she lacked the energy to keep up her elaborate landscaping. So, when a condo-apartment came up for sale in a retirement community where several friends lived, she immediately snapped it up. By the time the young couple came along, however, her house had languished unsold for months, and she was in a financial pinch.

“Of course, she didn’t get as much money as she’d hoped for her property. But she was delighted at the chance to sell to nice people and move on with her life. So, in the end, this was a win-win deal for everyone concerned,” Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

A couple in their early 40s who own a small tech firm are determined to finally sell their 5,000-square-foot colonial-style house in favor of a place twice the size in the same swank neighborhood.

“The new house is the lure. It has a swimming pool, tennis courts and two full acres of land. That compares with the postage-stamp lot where they now live. The couple, who have two elementary-school-age boys, wants an ideal place where the kids can host playdates and parties for their friends,” says Lauren Davis, the Sotheby’s agent handling the couple’s transactions.

Davis is amazed by the recent upsurge in home listings in her suburban area as well as across the nation. She’s especially surprised by the number of owners willing to sell during the typically slow hot summer months rather than waiting until fall.

Indeed, the number of U.S. properties now actively on the market has increased by more than 36% in the last twelve months, according to Danielle Hale, chief economist for Realtor.com, the home listing company.

She estimates that American homeowners are sitting on a record $17 trillion in equity. An increasing number are tempted to sell their present property to climb to a higher rung of the property ladder.

The couple selling a colonial house for a trade-up move are fortunate to live in a community where inventory remains in short supply. They’re confident that their present house will sell quickly for at least the full asking price. But not every neighborhood is so strong for sellers. That means some would-be sellers are waiting for mortgage rates to fall before attempting a trade-up move.

Obviously, no economist or real estate analyst can perfectly predict the direction of your local housing market. That leaves it to households to decide their own course.

Here are a few pointers for potential trade-up sellers:

-- Reconsider your reasons for selling.

Anxiety can prevent people from moving ahead, even when it’s against their interest. But those convinced that now is a good time to buy a bigger home shouldn’t let unwarranted fears constrain them, says Michael Crowley, a real estate broker and past president of the National Association of Exclusive Buyer Agents (naeba.org).

He says one way to put your fears about real estate in perspective is to reexamine your original reasons for moving to a better house. Has your family outgrown its small space, meaning that your kids must share bedrooms? Are your plans for a home-based business on hold?

“It’s worth remembering that life is short and delaying your sale may not yield the financial advantages you expect,” Crowley says.

-- Review statistics on demand for homes in your area.

In many areas, inventories of unsold homes are still very tight or shrinking, making multiple bids commonplace. But in other neighborhoods, the inventory balance is gradually getting better for those seeking to move up. And in still other areas, the picture is mixed. It all depends on your target market

Suppose, for instance, that you’re selling a property in a starter-home community in great demand by millennials trying to break into homeownership. Meanwhile, you’re intending to buy in a luxury-home neighborhood where there’s an ample supply of properties and buyers don’t outnumber sellers. In that case, you could do well on your dual transactions.

“Starter-home buyers are still having a crazy time trying to burst into ownership,” Crowley says.

If you live in an area with many available housing options, you can afford to take somewhat more time to make your selection and seal your trade-up deals. But Davis cautions against waiting indefinitely to buy in any area that remains red-hot.

-- Locate an experienced mortgage lender to help assess your plans.

Not sure whether you want to go forward with a trade-up move? Worried that the numbers or your credit history could scotch your chances for better housing?

If so, Eric Tyson, author of “Personal Finance for Dummies,” recommends you visit the office of a mortgage lender who can analyze your personal situation and determine whether you’d be eligible to buy that bigger house you have in mind.

Even if you’re confident you can qualify for a mortgage on a bigger home, it’s good to gain preapproval to enhance your chances of acquiring your dream house.

As always, lenders want certainty that any mortgage they originate will be solid. This means you’ll need to be prepared to answer the lender’s request for documents.

“Don’t assume that lenders are less stringent than they were in the immediate aftermath of the Great Recession of 2008. That’s why it’s good to have an expert look at your financial documents before committing to a sale and trade-up move,” Tyson says.

As proof of income, many mortgage lenders currently insist on much more documentation than the customary pay stubs and W-2s. They may also require federal tax returns. Also, most lenders now want proof that the funds you’ve amassed for your down payment have been in your savings or checking accounts for some time and weren’t just borrowed last week from a family member.

“In all likelihood, moving up to more luxurious quarters means proving you have the assets and earning power to handle your monthly mortgage payments,” Tyson says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)