Millennial Homebuying Mistakes
Some millennials made a series of mistakes when they first bought their first houses. For some, they attempted to embrace tiny living only to realize a tiny house won’t really fit their lifestyle needs. Other millennials were into fixer-uppers which gave them more financial headache than relief.
Other millennials fail to realize that dipping into their retirement funds to pay their down payment can have serious financial consequences. There are also some who chose to pay a down payment lower than 20%, which only added up their monthly costs.
These are but a few reasons why many millennials regret their home purchase. Even one mistake can instantly impact the homebuying process and homeownership after closing the sale. While some of them have homebuying regrets, we still can’t deny the fact that they continue to challenge the norm of buying houses.
How Millennials Differ From Other Buyers
Gen Y tackles homebuying as a serious matter. They now take into consideration everything before they make a home purchase. These are but some reasons millennials are different from older homebuyers.
Homebuying Before Marriage and Childrearing
More millennial women are buying houses as single buyers. Marriage and raising a family are not yet a priority. But the does not mean they are delaying a home purchase.
In the U.S. alone, millennials make up one-fourth of home purchases. There are actually more single millennial women who are homeowners than men. This goes to show that today’s modern generation no longer waits for marriage and kids before they buy their own house.
Millennials are delaying marriage and children due to the high costs of living. They want to make sure they have everything ready before they even commit. They want to save more so they can provide better for their future families.
Online House-hunting and Mortgage Shopping
Millennials pretty much do everything online, even when looking for houses and companies offering mortgages. They are not simply checking home prices and home loan terms. They are actually doing online research before they commit.
The younger generation values recommendations from family and friends. But they also do their own research before making the call. They look for lenders with a great reputation and would hunt down houses for sale that meet their home requirements and budget.
They make use of homebuying apps to find houses in their desired locations. Even before they have plans to buy homes, they are already searching for their dream houses. They do this to get an idea of what they could possibly want and need in their home and to understand how much real estate is in their preferred location.
Social Media Homebuying Tricks
It is no secret that millennials spend a few hours each day on social media. They are on different sites not just to entertain themselves. They also use these platforms to get ideas of how to be a better homebuyer.
People from all walks of life now use social media to accomplish many tasks. Even professionals use such platforms to educate people about many things. These days, home buying and real estate are trending searches as more people plan on buying their house soon.
In TikTok alone, millennials follow different realtors, real estate investors, and financial advisers who give free tips when buying properties. They want to get the most out of their next purchase by picking up tips that can help with their homebuying experience. They are also taking notes of the different mistakes professionals claim are common among buyers.
While it is true that not everything we see on social media is right, we cannot deny the influence that such platforms have. This is why influencers and professionals try to utilize these sites. Millennials and other users, in return, try to use whatever knowledge they acquire from these free tips.
Saving for a Down Payment
During the past years, some millennials turned into boomerang kids. They went back to their parent’s nest to save money. For most of them, their financial situation is the main reason why they chose to move back into their parents’ house while they save up for a house.
Their sky-high student debt makes it hard for them to be able to afford a down payment, their needs, and their debt payment. Eradicating rent makes sense for them since their parents are still willing to take them in after graduation. While they stay at their parent’s house, they work, save up for a home down payment, and would continuously reduce their student loan savings to increase their chances of a home loan approval.
In a nutshell, millennials are able to embrace homebuying by saving enough down payment, using technology to their advantage, and delaying future plans. They do plan on having a family someday, but would rather prepare everything beforehand if possible. These things are some qualities everyone can learn from millennial buyers.