4 Questions Millennial Homebuyers Should Ask
Are you looking to become a first-time homeowner? As a millennial homebuyer, you’re ready to leave the times of renting other people’s homes and take begin the journey of homeownership. However, this is easier said than done. Here are four questions millennial homebuyers should ask before diving into the home search.
Can I afford a home?
When you’re going from renting to homeownership, the expenses can add up as you embark on finding a home. Millennial homebuyers have to look at the greater scope of the funds it will take to become a homeowner by meeting with a financial advisor or similar professional. Not only do the home costs include the down payment, but there are also the monthly mortgage payments, homeowners insurance and property tax, not to mention the funds needed to take care of home maintenance—something you didn’t have to worry about when renting.
Where do you see yourself in the next five years?
Knowing how long you’ll live in this home is another major question millennial homebuyers should ask themselves. To get a return on your investment, experts say that you should own your home for a minimum of five years so that it increases in value. During this time, you can also make home improvements to increase its value even more. If you foresee having to move sooner due to a job or other reason, you might consider continuing to rent instead.
Is this the best time to buy a home?
There are several time-related factors that come into play for millennial homebuyers. Once you’ve asked yourself if you can afford a home and how long you plan to live in the home, you should next consider this: Is this the best time for me to buy a home? Should I purchase more of a starter home that’s more affordable or wait until I can afford more “home”? What if the real estate market is not in your favor when you’re ready to look for a home in the future? Ultimately the decision is up to you as you ponder the timing of both the market and your income.
Am I willing to hire a real estate agent?
Don’t make the mistake of forgoing the assistance of a real estate agent. Scrolling along sites like Zillow and Trulia are great for easily looking at the details of multiple homes, however, a real estate professional offers a wealth of information that these sites cannot provide. Real estate agents are educated on the current market, are experts on the neighborhoods you’re looking into, and they will alleviate a lot of stress from you as they navigate the transaction between you, the seller and the seller’s agent.