Research has found that people who belong to Generation X and Generation Y haven’t been deterred by the housing market downturn. 75% of people belonging to Generation X and Generation Y believe that owning a home means they are successful, 69% of people say that the recent market downturn made them more knowledgeable about homeownership than their parents. It turns out that Generation X-ers and Generation Y-ers are more motivated than older generations give them credit for. Research also shows that both Generation X-ers and Generation Y-ers are willing to take on a second job or move in with their parents in order to by into the dream of owning a home. The real estate market during the past five years had its ups and downs, especially for the younger and less experienced homebuyers. A lot of people in Generation X and Generation Y sat on the sidelines. But the real estate market has been able to bounce back, and many believe it’s a great time to buy. You just need to be smart about it. Here are some tips to help Generation X-ers and Generation Y-ers buy into the dream of buying and owning a home:
Have a five-year plan: unlike the boom years, don’t assume purchasing a home will appreciate in value within five years. If you’re unsure about your five-year plans, it’s better to rent.
Use technology: it’s well documented that Generation X-ers and Generation Y-ers start their home search online. Real estate listing sites, mortgage calculators and evaluation tools are typically where buyers start off. Once you’re in the market, there are tons of online resources. Less obvious tools, such as Google Street view, can help.
Beware of information overload: using the Internet and online apps, make an unprecedented amount of information available to homebuyers. Sometimes it can be too much and can cause stress for the buyer. For example, a buyer might learn that the seller stands to make a 10% profit in a short amount of time. Even though the profit is in line with current market values, that information might cause the buyer to make a low offer and regret the decisions they made when they miss out on a great house.
Don’t assume you don’t need a real estate agent: because so much information is now online, many Generation X-ers and Generation Y-ers might think they can buy a home on their own. The role of a real estate agent is no longer about finding the listings. It’s about presenting the offer and getting it accepted, getting through inspections and getting the deal done. A real estate transaction can go a million different ways. A good agent will steer you down the right path. A savvy agent will know the ins and outs of any local market better than an uninformed buyer will with a full-time job and family. It’s their business to be in the know. Experienced agents will have a strong network in the local market that can give you the added edge. Good agents like to work with other good agents. Keep in mind that a listing agent might not even consider working with an inexperienced buyer.
Look for opportunities to increase the home’s value: baby boomers and preceding generations could more or less count on staying in their homes for many years, and, in turn, their homes’ steadily increases in value over time. After the market downturn, that wasn’t the case. Because they’re so mobile, Generation X-ers and Generation Y-ers should avoid buying the best home on the block. Instead, look for ways to add value. Look at homes that don’t show well, are marketed poorly or are out dated. Don’t be afraid of doing a light remodeling or making smart improvements that will add value. If you have to sell your home sooner than you’d planned, you’re covered.
CENTURY 21 Miller Real Estate Ltd.
Brokerage Independently Owned and Operated
#4 Office in Canada
By Production CENTURY 21 Canada 2013
467 Speers Road,
Oakville, ON L6K 3S4