November 8, 2019

5 Easy and Practical Tips for Millennials Buying Their First Home


 ~ Your Satisfaction is My Success ~ #Izabella #luxuryrealestate #bayarea #luxury #realestate #milliondollarlisting


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

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