No one likes making mistakes, especially in the home buying process. Mistakes in this endeavor are costly and lengthen the process even more. But alas, each generation of home buyers has their respective pitfalls, whether they’re first-time homebuyers or seasoned ones.
Here are the most common mistakes made by each home-buying generation:
Millennials
Born: 1981 to 1996
Age range: 22 to 37
Millennials now register as the largest group of home buyers, and this has been so for the past couple of years. They are further categorized into two batches: the older millennials and younger millennials.
One of the biggest mistakes that millennial home buyers make is not planning ahead. When millennials buy a home, they tend to think about their present needs instead of their long-term goals. Consider your long-term plans before making the purchase. How long do you plan to stay in the home? Are you planning on starting a family soon? Or will you be relocating to a new job?
Millennials also prefer to get adjustable-rate mortgages (ARM) due to their lower and shorter introductory interest rates. However, this type of mortgage poses more risks due to its uncertainty and the possibility of higher monthly payments later on. Instead, it’s better to go for fixed-rate mortgages. It’s more predictable, easier to understand, and protects the borrower from sudden increases in monthly mortgage payments.
Generation X
Born: 1965 to 1980
Age range: 38 to 53
Gen X is the second-largest group of home buyers after millennials. This generation often makes the mistake of overestimating their home buying budget. According to an article by the National Association of Realtors, Gen Xers tend to purchase the largest and most expensive homes in their area. However, buying a home is more than just paying for its purchase price. There are other home buying and homeownership costs to consider, as well.
That’s why it’s important to know – and stick to – your price range when buying a home. This way, you can avoid overestimating what you can afford. List down your income and expenses per month, including your non-monthly expenses. Use this information as your basis for creating a budget then find a home that won’t go beyond it.
Baby boomers
Born: 1946 to 1964
Age range: 54 to 72
People under this age group are retired or are close to retirement. By this time, they’re already on the hunt for their future retirement home.
It’s not uncommon for baby boomers to go on vacation or take frequent trips out of town. They do, however, have a tendency to fall in love with their vacation destination and make plans to purchase a home there for future retirement. This could result in buyer’s remorse when they realize that the home or location isn’t suited for them at all.
Before making a decision on a retirement home, consider the neighborhood and its accessibility. How far is it from your family? Is it close to your doctor or to any medical facility? The home’s structure should be elderly-friendly as well. We do recommend that you try renting first before committing to a property.
Soldavi Realty is committed to helping clients of all ages in buying a home. Contact our team today at 209.975.7653 or info(at)soldavi(dotted)com to get started on your Chowchilla real estate journey.