Home prices are rising and interest rates are high at the moment. But that hasn’t stopped momentum in the real estate market.

In fact, the total number of homes for sale in the U.S. rose from 562,000 in March 2023 to 695,000 in March 2024.

Related: Dave Ramsey says the time to buy a house is now

Personal finance author and radio host Dave Ramsey offers a few pieces of advice on buying a home — and some mistakes to avoid when selling one.

The first thing Ramsey suggests for first-time homebuyers is to be sure they are entirely out of debt. That includes car loans, credit cards and student loans.

Ramsey also recommends putting together an emergency fund that can last three to six months. Unexpected expenses can be counted on to arise.

Monthly payments for mortgages, Ramsey explains, should not be more that 25% of one’s take-home pay.

And a down payment on a home should be at least 10%. If possible, however, putting 20% down is best, because that avoids paying for private mortgage insurance, which is set up to favor the lender, not the borrower.

Ramsey warns of mistakes to avoid when selling a home

If you are the seller of a home, there are a number of pitfalls to avoid. The good news is, once you understand them, a successful sale can be financially rewarding.

First, Ramsey wrote, a seller of a home should not think there won’t be costs associated with the sale. There are agent commissions, closing costs and home inspections to consider.

Ramsey then explained that pricing a home in an inappropriate price range can also lead to trouble.

“If you price it too low, you could miss out on thousands of dollars in profit,” Ramsey wrote. “Price it too high, and you could turn away serious buyers or run the risk of wasting weeks or months before you have to reduce the price to get an offer.”

One mistake home sellers often make is believing that repairs that are needed can be hidden during the selling process. After an offer is accepted, a home inspection will likely uncover any major work that is left to be done. And the seller will still be stuck with the bill.

Ramsey makes another simple but important point for people looking to sell a home: Don’t try to move into a home that you can’t afford. You don’t want to turn a great opportunity into a financial burden.

A row of houses is pictured. Dave Ramsey warns home sellers of mistakes to avoid.

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Dave Ramsey offers advice on the selling process

Once all the decisions are made and the paperwork is in order, the process of advertising and selling the home is the next step.

And Ramsey suggests that home sellers avoid some common mistakes during this aspect of the selling process.

Related: Dave Ramsey explains how your mortgage is key to early retirement

This includes being careful about staging.

“Don’t show an empty, cluttered or poorly lit house to potential buyers,” Ramsey wrote. “Instead, keep your furniture in place (and arrange it nicely), clear the clutter, and make sure every room is well lit.”

Sometimes when people advertise a home for sale, they forget to pay attention to the small details, such as photographs of the home. It’s important to remember a professional look and feel to the photos make a big difference.

More on personal finance:

How your mortgage is key to early retirement One big mistake potential homebuyers should avoid Dave Ramsey shares important advice on mortgages 

And as for the showings of the home, it’s important to let an agent handle it and get out of the way, Ramsey advises.

Lastly, when you get an offer that you feel is too low, don’t take it personally.

“If they start out with a low offer, don’t take it personally and get emotional,” Ramsey wrote. “Instead, channel that energy toward negotiating. Work with your agent and make a counteroffer. If they’re truly interested, the potential buyer will improve their offer.”

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