The Millennial Home Buyers Guide: Navigating Real Estate in Your Early 30s
Because Renting Forever Is an Option, But Homeownership Might Be Worth It
I turn 30 in 526 days (who's counting, right??), so the thought of what I have and haven't accomplished so far has been weighing heavily on my mind. My 20s have been a fever dream… you know, like the kind you wake up from and mouth "WTF…"? But one thing I have been fortunate enough to do (successfully) throughout my 20s is to navigate the real estate market. From a buyer's market, the COVID market, a seller's market, a stabilized market to whatever you want to call the market now, I hit the jackpot a couple times for myself (and for my clients). If you're starting to feel like buying a house is something you're called to do, then allow me to welcome you to my personal hell: adulting. Now, take some deep breaths and walk through this real estate circus together.
Understanding the Market (or Pretending To)
Current Trends: Millennials are officially grown-ups. We've taken over and dominated several spaces over the years. From advocating for greater diversity and inclusion to shaping the online landscape, we've accomplished a lot. It should come as no surprise that we're taking over the real estate market now, too. Whether you want a trendy loft downtown or a suburban house with a yard for your imaginary dog, the world is your overpriced oyster.
Economic Factors: Interest rates, inflation, housing supply—blah, blah. Just know these things will make your dream home affordable or laughably out of reach.
Financial Readiness (AKA Trying Not to Panic)
Budgeting: It's time to figure out how much you can afford without living off ramen for the next 30 years. Pro tip: Don't forget those "little" things like down payments and closing costs—because they definitely aren't little.
Credit Score: If your credit score is more of a SAW movie than a Cinderella story, you might want to clean that up first. Higher scores = better mortgage rates. Learn more about improving your score here.
Saving for a Down Payment: The mythical 20% down payment is a nice idea if you've been saving since birth or if you were lucky enough to be a boomer (sorry, not sorry). If not, there are lower down payment options. Talk to me or, preferably, talk to Amy Goss at Guild Mortgage about your down payment options.
Exploring Mortgage Options (or Which Loan Will Stress You Out the Least?)
Fixed-Rate vs. Adjustable-Rate Mortgages (ARMs): Fixed-rate means predictable, unchanging payments. ARMs start low but can rise—like a surprise bill you didn't know you signed up for. Choose wisely, grasshopper.
Government-Backed Loans: FHA, VA, USDA—sounds like alphabet soup, but these loans can help if you're short on cash or have less-than-perfect credit. Thanks, Uncle Sam!
Choosing the Right Location (Your Social Life Might Depend on It)
Urban vs. Suburban vs. Rural: Do you want to walk to brunch, drive to Target, or enjoy nature? Each has its own vibe, commute, and life choices.
Future Growth Potential: Look for areas that might become the next big thing. Translation: Buy before it's cool so your home's value skyrockets when everyone else catches on.
Finding the Right Home (and Not Just the One with a Cute Porch!)
Prioritize Your Must-Haves: Make a list of deal-breakers and non-negotiables. However, be aware that compromise is the name of the real estate game.
New Construction vs. Resale Homes: New homes are shiny and problem-free with higher price tags. Older homes have charm and character with a few "quirks" you’ll probably have to fix, but will likely have a lower price tag.
Making an Offer (AKA, The Real Work Begins) Negotiating Price
This is the part where all of the adults fake it til we make it and pretend to know what we’re doing. Whether it's a buyer's or seller's market, just don't overplay your hand.
Honestly, worry less about this part; just text me.
Navigating the Closing Process (Because It's Not Over Yet)
Let me worry about the 10,000 other things. It's what I get paid to do.
Congratulations, You're a Homeowner! (Now the "Real Fun" Begins)
Building Equity: This is the part that makes being a homeowner really worthwhile. Stick with your payments; the house will be all yours one day. Who knows, you might even turn a profit when it's time to sell.
Final Thoughts…
Buying a home in your 30s is like playing the wordle for the first time. It's stressful, exciting, and probably won't go as planned. But if you survive the process, you'll have a place to call your own—and maybe even some equity to show. Good luck!
If you need more tips (or just a reality check), you know where to find me.
Chat soon,
Rachel