Millennials!

A recent article by Megan Leonhardt in CNBC “Make It” stated that 70% of millennials who are purchasing homes, have regrets. Wow, that’s a lot of regrets. In a survey by Bank of the West, 4 out of 10 millennials felt they made poor financial choices. Some took money out of retirement funds for their down payment. Some, underestimated on-going costs while others, discovered damages after the sale that were costly. Some found the house did not really work for their family.

Having worked with lots of millennials, Diana and I have discovered, many millennials are coming to the table thinking they are prepared. And to be honest they have done a lot of homework, on line or listened to a friend who had a totally different experience. There are a few problems with this. To begin, all online information is not always true. Take Zillow for instance– there are homes showing they are on the market but, they sold years (that’s right–years) earlier. We have had many calls from listings that closed years ago. Also, forget the Zillow Zestimate–it is not always true. Have a realtor® do his/her homework and look at true comps–it’s what we do–part of our job. A Zestimate does not consider “stressed” sales, updated vs fixer uppers. Zestimates don’t even consider areas other than city or county. We’re not sure where they get their numbers.

Listening to a friend is not really the best way to get information. Though a friend can tell you their experience–every buyer/seller has different circumstances. Everyone has a different experience and no two can be compared. One point in your credit score can change everything about your loan. Location can change your loan–some loans are not offered in some locations–for instance USDA is only offered in certain areas. Your downpayment can change your loan. Trust your lender and answer things honestly. In fact, talking to a lender to find out how much you can afford before looking is very important. It is also important to make sure everything is in order. This is why a realtor® is so important. They can refer you to a reputable lender. We work with different lenders on a daily basis. In fact, Diana and I have a few who we recommend depending on needs. For instance, we have a lender who is a great hand holder–she will  walk you through each step and guide you like you are her son or daughter. Then we have one who will still guide you but, she is a little more direct. They are both awesome but they suit different buyer needs. So, millennials–continue to do your homework but be sure to listen to your lender and realtor.

The survey also showed that half–that’s right, half, of the millennial buyers were not happy with their home. Wow, that is a lot. Perhaps they did not make a want/need list. This is tough because, our millennial buyers have all been happy so we are not sure why the survey had such a high percentage of disappointed homeowners. Maybe all millennials need to use me and Diana. Because, not only do you have to listen to your realtor® but, your realtor® has to listen to you. As long as you open up to us, we will find your home. What we can’t do is read your mind.

As for damages that were discovered after the sale.  Make sure you have a home inspection so you don’t have surprises after the closing. Even if you are purchasing a home that is being sold “as is” you will want to do a home inspection so you are prepared for the cost of repairs.

Diana and I welcome millennials and love working with them. We also have been very successful and had no regrets from our millennial clients. Maybe the millennials need to call us.

 

 

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