Tips for Millennial Home Buyers

The millennial generation, which is under the age of 34, is now entering the peak period in which people typically buy a home. This ever-growing portion of the home buying population is starting to move the market, especially the luxury real estate market outside of greater Boston. Many are first-time buyers, heading out of the city and into the suburbs to find their dream homes. Those who have been able to buckle down and save enough for a down payment and get financing are well-equipped for a home purchase, but many thirty somethings are still wary of making the leap into home ownership. What do they need to consider?

Don’t forget the most important rule in real estate – location: millennials often tend to be short-sighted when it comes to a first home. They want a property that’s new and in perfect condition, so they often buy the most expensive house in a second tier neighborhood. It’s become a national trend and in the long run, experts predict these “b” homes won’t hold their value.

Don’t do it alone – young home buyers need to contract with a real estate agent so that they have someone advocating for them and helping them through the process. Buying a first home can be daunting for some and a realtor can not only counsel them on what to look for in an investment, but can also connect them with real estate attorneys, mortgage brokers, inspectors and any number of other industry professionals they’ll need. Additionally, a well-connected realtor may know of properties coming on the market before they are listed, giving you a leg up on competing buyers.

Don’t assume you can’t afford a new home – many young people are overwhelmed with the thought of such a life-changing purchase so they continue to pay rent even in the face of constant increases. They need to consider the cost-savings of buying a home over time, and the tax benefits. Sometimes a home purchase can be a better buy than a condo because of condo fees. Again, a realtor can break down the costs with help from the bank, and the affordability might be surprising.

Don’t be overwhelmed – many in their early-to-mid thirties have a sense that a home purchase is a lot of work, and while that can be true if the search takes a long time, and there are bidding wars involved – for most, it’s a fairly seamless process. Having a checklist, preparing for it ahead of time by pre-qualifying for a loan, and doing research on different communities will make things run a lot smoother.

Consider doing a little work – this goes back to the millennial’s tendency to buy a move-in-ready home that doesn’t need work and ultimately costs more. Rolling up their sleeves and putting a little sweat equity into a home with good “bones” will save money up front and turn into a better financial decision years from now.

The bottom line is -- young, first-time home buyers should consider their investment and make decisions that are better for the long term. Their first home likely won’t be their last and it’s smart to think about those lifestyle goals ten, even fifteen years down the road. Getting proper counsel from a reputable real estate agent at the outset should set them on the right path.

Debi Benoit, principal of Benoit Mizner Simon & Co., has been Wellesley’s #1 real estate agent since 2006. The Wall Street Journal twice ranked her among the top 100 real estate professionals in the country. With offices in Wellesley and Weston, Benoit Mizner Simon & Co provides buyers and sellers in both markets with in-depth knowledge and experience combined with unparalleled client service.

With offices in Wellesley and Weston, Debi can be reached at 617-962-9292 or debi@benoitmiznersimon.com.