Millennials are shaping the future of our world. Their ways of thinking, being, and doing are unique to their generation. They experience the world differently and find themselves navigating big life decisions with this perspective.
Buying a home, for example, is a huge life decision that many millennials will make at some point. But they’re waiting until later in life to buy a home if they do it at all and are having trouble accessing financial resources that make buying a home affordable, even experiencing housing scams due to the rise of technology. The home-buying journey for millennials is different from past generations and will be different from future generations as well.
Let’s talk about a few more things millennials need to be aware of when looking to buy a home for the first time.
What’s the State of the Housing Market?
Do you know the state of the housing market in your area? If not, you’re going into the home-buying process blind, and that’s just not how you want to start your experience.
You should know how many houses are available and the demand for those houses in any area you’re considering. Understanding the housing market ensures that you can identify if the listing price is fair and in line with the rest of the homes for sale in the area.
Use the internet to research the housing market in each area you’re interested in moving to. Make notes and carry them with you when you go to showings.
Watch Out for Scams
Scams are making their rounds in various industries, including real estate. Unfortunately, there are a variety of scams you must be mindful of when buying your first home. There’s nothing more defeating than shelling out money for your dream home and finding out it wasn’t actually available.
If it seems too good to be true, it probably is.
Mortgage fraud schemes are popular among scammers in real estate. Watch out for scammers pretending to be legit property owners selling their homes. They offer to send you “the key” after you send the deposit money. So, beware.
Prepare, Prepare, Prepare
Millennials are known for their “go with the flow” attitudes and impulsive behaviors. They’re down for spontaneity. But when you want to become a homeowner, it’s crucial to prepare for what’s to come.
You want to ensure you’re prepared for the home-buying process internally and externally. Many of us are accustomed to the affordability, availability, and flexibility of renting. So, preparing your mind for the changes that homeownership brings is essential.
Prepare for things like:
- Homeowners insurance
- Homeowners association dues
- Making mortgage payments versus paying rent
- Property taxes
- Making repairs and upgrades
- Keeping a consistent budget
Build Your Dream Home Instead
Many people limit themselves to two options: buying or renting. Either you’re buying your dream home or renting until you can buy your dream home. But have you considered building your dream home instead?
As we flirt with the idea of becoming a homeowner, our first thought usually isn’t, “I want to build my first home.” Well, it may be a thought, but most of us are unable to make it a reality for our first home. Building your first home in Generation X, Baby boomers, and The Silent Generation was feasible because it wasn’t as expensive.
Although money doesn’t seem to stretch as far these days, building your first home from scratch is doable and more affordable than you think. Many millennials are building their first homes themselves, and their wallets are thanking them. You’ll still need to hire some professionals to assist you, take on all the design details, choose a building site, and acquire permits, but building your dream home is a great option.
About Beau Peters