Avoid the Starter Castle When Buying a Home

Some experts point out Millennials make the mistake of buying a “starter castle” or a large home as their first home.

Weighing the pros and cons

When buying a home as a first-time home buyer – weigh the pros and cons of a traditional, small entry-level home vs. a large home.

Avoiding millennial home buying mistakes

According to a recent article by cnbc.com, stretching too much to afford a first home is the biggest mistake made by millennial home buyers. For the most part, Millennials buy fewer homes than their predecessors due to lower salaries, higher home prices, student loans and higher costs. Although some young people enjoy help from their baby boomer or Generation X parents, they struggle to come up with hefty down payments. By working with a Realtor to find a more affordable starter home, it’s possible to step up to a nicer home in 5 to 6 years.

Considering the fixer-upper

Not all fixer-upper homes require a total renovation. By finding homes in need of a few inexpensive cosmetic repairs, you can better afford to own. Talk to your real estate agent about whether the home you like has superficial problems or deeper issues such as a faulty A/C system, mildew or structural problems. Avoid buying homes “as is” unless you hire your own inspector or contractor to give you the go ahead.

Finding a newer resale

Many Millennials gravitate to the new home subdivisions to tour fancy models with expensive staging. Instead of buying a new construction home, talk to your real estate agent about homes less than 5 years old. You will own a home in a new subdivision without paying for the added costs incurred by the first owners. Some home owners buy in a new development, but move for job relocations. Save money by remaining flexible about whether your home has a water view. It’s inexpensive to plant trees, build a gazebo or create a beautiful view after you own the home.

Saving money by buying homes that require little improvement

Even though it’s tempting to buy a home with all new fixtures, appliances and flooring, young buyers save money with homes that require a little improvement. Some young people like to take DIY classes to learn how to install their own backsplashes or flooring.

About Julie Pickens: I show buyers homes in every price range and size. Talk to me about touring a variety of homes until you find one that matches your wish list and budget. For more practical tips on buying a home in Springfield, MO, contact me at (417) 881-5656 or visit my website at www.JuliePickens.com

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