Real Estate Mistakes Millennials Often Make
The real estate market can be tricky and difficult to navigate if you don’t have in-depth knowledge and experience in the area. Most millennials are new to the real estate and home buying process and are therefore prone to making mistakes. As young professionals, recent graduates and newly weds, millennials are seeking to dive into real estate market and invest in buying a home early.
However, there are several common mistakes they can make due to the changing trends in the real estate sector.
Renting With No Purchase Strategy
The most common mistake made by millennials is expecting to rent long-term, without a real strategy in place to buy their own home. Many millennials view renting as a convenient way of saving money and avoiding getting locked into a lengthy and pricey mortgage. However, real estate trends have shown that home prices increase upwards over time, despite several turbulent periods or perceived down times.
Millennials need to be aware that ups and downs in the market tend to occur, and this should not deter them from pursuing home ownership. They should also be aware of the long-term benefits of owning a home, such as stability and tax deductions.
Searching Listings Without Being Pre-Approved
Another common mistake we see is that millennials are beginning to look for a home by searching multiple listing sites online. We see what stands out to us, however, this can be the wrong approach to take. It often means searching for homes that you’re not sure you can afford, which may actually prove to be unproductive during your hunt for real estate. A better place to start is with meeting a lender and getting pre-approved for a mortgage. This will give you a good idea of what you should be looking for before you begin your search.
Home buying trends are moving towards increased efficiency, where lenders can analyze your financial situation and pre-qualify you for a mortgage that meets your capabilities. Millennials should take advantage of this increased efficiency to make better purchasing decisions.
In the real estate market, timing is everything. If you’re looking into buying a home when demand is high, you’re unlikely to get a good deal on the property you desire. Millennials should target buying a home when demand is low. Watch out for downward trends in the market and time your purchase accordingly. The period between Thanksgiving and January is also a good low-demand period for homes.
For more on this subject read our recent blog, “4 Reasons Why Home Sales Fall Through“
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.