The biggest mistakes Millennials make when buying their first home

Buying a home is a rite of passage, a huge responsibility, and potentially a great investment, but it's also all too easy to make mistakes in the process. Many millennials are reaching a point in their lives when they are finally ready to become first-time homebuyers, which means they soon could be making a number of home buying mistakes. Buying a real estate property for the first time is stressful and expensive. And thanks to flat salaries and the skyrocketing prices of fixed costs like the university, health care, and rent, millennials are buying far fewer homes than the generations that preceded them. But the young people who are able to purchase a house are making one crucial mistake: They’re jumping straight to large new homes or off-market property without considering smaller models or consulting a Buyer Advocacy such as Aspire Advocates.

Some buyer advocacy agents noticed that millennials homes of choice are often "starter castles". These homes are often stunning. Whether it’s in the suburbs, they’re buying real estate property with new construction, new developments, everything is done to the nines or even off the market. That's great if you’ve thought about the financial situation and your top priority is having a beautiful place to live that you can enjoy, but millennials do themselves a disservice if they don’t understand how the numbers work with a fixer-upper. That's where our Buyer Advocacy will explain everything to them.

Another big mistake is that they are not saving enough money before the purchase. After buying a first real estate property, they won't have enough money on hand after the purchase. Being able to afford the down payment for an off-market property and being planned for the monthly mortgage bill is one thing; repairing the damage caused by a burst pipe or replacing rotting floorboards found under an old carpet is another. Until you are sure you have enough cash to cover what experts call the real cost of home buying, keep saving! 48% of a focus group surveyed said they did not plan for the costs of additional home maintenance needed in the first year of ownership, while 46% said they ended up going over budget even for planned improvements.

Not factoring in taxes is another one. A real estate or off-market property price tag and closing costs are one thing, but along with that monthly mortgage payment, there will also be taxes due. Any homebuyer paying any attention to the process knows that, but what even savvy first-time homebuyers often fail to realize is how often and how dramatically taxes can go up. As per our Buyer Advocacy agent, this happens in two primary ways. First, the town, city, or county can simply raise property taxes in a given area. Second, a real estate or off-market property price can be reassessed at a greater value, often through additions and upgrades made by the new owner. The tax burden may well rise with the added value of the improved home.

Also, since millennials are too excited, they tend to not take the inspection seriously enough. The home inspection is one of the most important days in the entire homeownership process; it is the only day on which you, as the buyer, have the chance to identify problems with a property while the issues are still the responsibility of the seller. By not paying for a top-quality inspector, not learning about the critical areas to make sure he or she checks on, and by not attending the inspection yourself in person to make sure it is thorough, you stand to inherit a raft of problems for which you will have no recourse other than spending money for repairs. Once you sign off on the final paperwork, even pre-existing issues, issues that may well have led you to walk away from a property, are all yours.

To avoid these issues and mistakes, you may consult our Buyer Advocacy agents to discuss with you everything you need to know before signing any papers for your first home. Our buyer advocacy services are personalized to each client’s individual requirements and property ambitions. Whether you are seeking your first home, looking to downsize, making an investment or upgrading your family home, unique market factors will determine your ideal outcome.