5 Tips For Millennial Homebuyers
In previous generations, many people bought homes while in their 20s or 30s. The world moved at a much slower pace then. People tended to stay put in the cities where they grew up. They wanted ‘roots’ and the status that homeownership afforded.
Millennial’s don’t necessarily want to be tied down and start a family early in life. They want the freedom to travel, or to take that new job offer, requiring them to constantly be on the move. Homeownership doesn’t have the same status to them that it had to earlier generations.
Millennial homeowners are faced with obstacles no previous generation has had to deal with, like an average student loan debt that can be overwhelming and expensive. They’re also less romantic the home-buying process than past generations — buying before marriage, owning for shorter periods of time, living by themselves, etc. They may not know where to start, how to afford it or how the process works.
If you’re at the point where you are trying to make the decision between buying or renting, here are a few tips that might help you through the process.
- Don’t Assume You Can’t Afford It.
- So many young adults come out of college with student debt and very little savings. Even after a few years out of college, they assume they either don’t have the 20 percent down payment or don’t have the income to afford a purchase. That doesn’t mean that if you’re in your 20s, you can’t afford to buy a home. Sometimes, renting can be more expensive than buying a home. Do your research and remember that there are other expenses to budget for when buying a home or renting. Budget your money and see what you can afford.
- Take Your Time.
- Once you’ve established your financial situation and are officially on the hunt, don’t rush through the process. Purchasing a home isn’t the same as buying a laptop or new phone. It takes a lot of time and patience to sift through what’s available on the market. Don’t feel pressured by competitive bidders, either. Slowly learn the market, do your research online and go to some open houses. Eventually, you will feel more comfortable with the process. Talk to a real estate agent or even your parents for advice about what steps you need to take in order to make the right choice.
- Work With A Realtor.
- Don’t think that you have to go into this alone. Real estate agents know the market like no one else because they’ve been inside hundreds of homes, have relationships with many other agents and have completed many deals in their career. They know exactly what to do when a red flag arises. It’s best to find a real estate agent you can trust, so that they can help you through the complexities of finding and purchasing a new home. They know what to look for and can help you navigate through this process.
- Choose Your Neighborhood Wisely.
- When you start looking for a home, the best place to begin is to figure out what neighborhood will best suit your lifestyle. Think about the qualities and people you want to surround yourself with. If you’re in your mid to late 20s, you might want to double check that you are searching for homes in a neighborhood with young adults that you can make new friendships with, especially if you’re making a big move to a different state. Just remember that you’re not just buying a home, you’re buying a neighborhood.
- Don’t Skip Inspection.
- Younger buyers tend to be more eager to take on home improvement tasks themselves, and addressing smaller cosmetic issues yourself is a great way to save money. But, unless you have extensive experience, you probably won’t know how to fix a roof or re-do the floors. Home inspections are your safeguard against buying a house with major problems at hand. Hold the seller accountable for necessary repairs before signing.
If you do the proper research and find the right real estate agent, you’ll soon find a place you’ll love and be able to afford.