First-Time Homebuyer Tips
One of the most important decisions you can make in your life is buying your first home. This is a major decisions and a very exciting milestone. While the process can be daunting to many, this decision will ultimately change your life forever. For those looking to purchase their first home, you may be wondering how to do so in today’s housing market. It is important to know how much you need to save, where to start, and who to trust. Here are a few first-time homebuyer tips to help you achieve homeownership for the first time.
Considering Every Option
In today’s market, there are far more buyers than sellers. The current trend is a low inventory, high demand problem that could stick around well into the higher rate environments. When this happens, you need to be open to considering all options that are on the table. This could mean expanding your search pool, adding additional housing types, and looking at all options. While most people often times overlook condominiums and townhouses, they can be very lucrative in today’s market. According to Bankrate:
“Townhomes often cost less than single-family homes of a similar size in the same location.”
Later in another article, Bankrate also says:
“Buying a condo can be a great way to dive into homeownership without worrying about the upkeep that comes with single-family homes and townhouses.”
Considering condos and townhomes are great ways to enter into homeownership. Buying either one still allows you to gain the best perk of homeownership, which is gaining equity. This is a surefire way to increase your wealth and net worth.
First-Time Homebuyer Tips For Down Payments
Saving for your down payment is often considered the hardest part about the homeownership journey. As stated by NAR, the National Association of Realtors,
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”
NAR collected down payment data, and has shown a surprising tale based on the data. The median down payment has been less than the mythical 20% that most people expect to need since 2005. In fact, down payments are actually the lowest the have even been. This is often the biggest misconception that prevents people from buying their first home.
Work With Professionals
Working with professionals is the best way to achieve your homeownership goal. Real estate professionals, lending professional, professional inspectors, are all industry professionals that focus on what you should not have to. If you are just starting out on your homeownership journey, these professionals offer the best chance of getting your foot in the door.
These professionals will educate you along every step of the way. The education they offer is often times based on years of experience, and their expertise is often time invaluable. Once you are ready to begin your search, reaching out to a professional agent should be your first step. These agents often times have a list of trusted professionals to get you started. Real estate industry professionals are also required to follow a code of ethics, and have fiduciary duties to put your best needs first.