Tips for Millennials Looking to Buy
- Determine how much you can afford
Before you get emotionally attached to this beautiful house, create a monthly budget to determine how much you can afford (include HOA fees, taxes, insurance, etc.)
Create an emergency fund for repairs – remember even if your monthly mortgage is less than what it would cost to rent, you need to prepare for when things need to be fixed.
- Research the neighborhood
Don’t buy the most expensive home in the neighborhood – historically speaking this house will be the toughest to sell.
- Make a competitive offer
If you found the home you love and you are already preapproved, make a competitive offer that is within your budget. This may be tough to determine for first-time homebuyers, so be sure to consult with your real estate agent. Don’t make an impulsive offer to knock out the competition!
Tips for Boomers Looking to Sell
- Research and strategize
There are more tools than ever available on the internet, and whether you are selling or researching your next person, researching online is a great place to start. According to The National Association of Realtors, 44% of Boomers looked online first and 50% of buyers found the home they purchased online.
- Sell your home before you buy
Home equity is critical for downsizing and banks these days are usually unwilling to finance a home until you sell.
- Create a detailed budget
On average, people who trade down move to a home worth $27,000 less than the one they sold. Because that’s not a huge difference in value, savings will come primarily from lowering your monthly mortgage payments by using cash from selling your existing home. Eliminate future costs by factoring in savings from property taxes, maintenance and utilities, etc. into a detailed plan.
What are millennials looking for in a home?
- Low Cost of Maintenance
While millennials desire homes that look fancy, most of them are looking for a house that has very little maintenance. Look for features that are new such as a new roof, windows, HVAC systems, etc.
- Strong Community
Millennials are looking for more than just location. This generation is involved in their local neighborhoods both socially and in service.
- They View Home Ownership Differently
Once a symbol of status of the American dream, home ownership now is viewed by millennials as path to fluidity and flexibility. They only expect to live in a home for 10 years before moving. Previous generations saw it as a longer-term investment and likely would stay for 15-20 years in a home.