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5 Easy and Practical Tips for Millennials Buying Their First
Home
The millennial generation is
quickly becoming the largest home-buying demographic in America. They are
entering their prime earning age and are all eager to own their very first
home. However, statistics show that though 87% of millennials want to own a
home, 67% would need to wait 20 years to afford buying one. Many millennials
are first time home buyers who have to navigate the real estate buying process
on their own. Buying a home is difficult enough for a seasoned adult, it gets
worse when you are young and don’t have any experience. Fortunately, millennials
are the most tech savvy generation of home buyers that there is today. While
they spend most of their time with their gadgets, they put this to good use by
searching online to guide them through this difficult process. Because of this,
millennials have very specific needs that need to have specific advice.
Here
are 5 easy and practical tips for millennials looking for their first home.
1. Think
It Through – Let’s face it, owning a home is not right for everyone. Even if
you have the requisite down payment for that lovely condominium you saw
downtown, the expenses do not end there. You will have to consider mortgage
costs, association dues, money for repair and maintenance, etc. These costs
will pile up when not considered and will prove to be a heavy burden once you
jump into buying your own house without thinking it through. This is aside from
the possibility that maybe buying a house is not your priority at all. You may
want to travel and see the world first before you decide to settle down and put
down your own roots. Or perhaps, you are yet undecided as to where to really
put your roots down. Whatever your priority is, it would be in your best interest
to think everything through.
2. It’s
The Budget, my dear – Most of us, when
we hear the word budget, shivers creep up our spine. In today’s age, sticking
to a budget is like being on a crap shoot, you’ll win if you get lucky.
However, this is a reality that most millennials have to face. Most millennials
come in with huge student loan debts that they are still in the midst of paying
off when they go look for their first homes. As if this is not burden enough,
they have to figure out how to save up for the down payment for their dream
homes. This is the reason why you need to really take a close look at where you
are financially before you do decide to buy your first house. The good news is
that there are a number of ways that you can do to help you set your finances
straight. Since buying a house is a major financial investment, you need to be
at least debt-free in order to afford one. So do whatever it takes. Get a
second job to help bring in more money. Or sell stuff perhaps? It also does not
hurt if you are able to receive money gifts from friends and family. And then
there’s the question of how much house can you really afford? But whatever it
is that brings in every dollar, you have to be mindful of your budget and you
have to stick to it.
3. Love
at First Sight Does Not Mean “The One” – Here’s a pitfall that most home buyers
make, not only millennials. Not looking at enough houses before they decide on
what to buy. Most home buyers liken buying a house to falling in love. The first
house they see that they “fall in love” with is “The One”. This may be true,
but hold your horses! Before actually falling for it, go back to step No. 1 AND
THINK IT THROUGH. Is the house too big or too small for me? Do I have enough
money for a down payment? (and that is assuming you are already student loan
debt-free) Do I really want to buy a house? Whatever it is that you fell in
love with in the house, pause a little. Do not settle immediately.
4. Think #ForeverHome – “Oh the house at the end
of the street is perfect”! or “I love the view from that condominium” are
statements that we have heard often enough only to have buyer’s remorse in the
end. Why? Because you have not put in your due diligence and you are not
thinking about having a “foreverhome. Am I ready to settle down? Am I in the right
location? How big (or how small) of a house do I need? How expensive of a house
can I afford? Is this the neighborhood where I want to raise my family? These
are the questions you should be asking, more than the view from that beautiful
condo. Of course you have to consider a home’s curb appeal. Who wouldn’t want a
house that will make your heart flutter when you see it? It’s just that there
are more pressing questions to answer before you decide on what to buy.
5. Seek
the help of a competent and trustworthy Realtor – This advice is last on the
list, but definitely not the least. When you are ready to buy your first home,
it is imperative that you engage the services of a reputable and trustworthy
realtor who can help guide you through the buying process. The realtor of your
choice should be very knowledgeable in the area you wish to buy a home from and
financially savvy to be able to get a good price for you. And since we are
dealing with money for a major investment, it goes without saying that your
realtor should be trustworthy. So ask around your friends, neighbors and even
office mates who have had the chance to deal with a realtor and seek their
recommendations. Better yet, go online and search for realtors within the area
of your choice who have had very good reviews. This will give you an idea who
to engage and give you the best home buying experience that you can have. Once
you engage, ask a lot of questions. It would be in your best interest, and your
realtor will be more than happy to answer all your questions and assist you.
Buying a house is a life-changing
event. It is probably one of the, if not the biggest decision you will ever
make. You and your family’s future depends on how well you are able to analyze
your present situation and predict/mitigate all future circumstances.
Fortunately for the millennial generation, help is just a phone call or a simple
keyboard click away.
If you are ready to buy your #foreverhome,
I am here to help.
Izabella Lipetski
COMPASS / CAL BRE#01372992
(510) 506-2072 / ilipetski@gmail.com
