The Misguided Mindset of the First-Time Homebuyer

It is no secret that young individuals today are having a harder time buying their first home. But, what they do not realize is that they bring some of the struggle upon themselves.

Here is what I mean:

What is the main reason why people quit the number one New Years resolution? They set unrealistic goals! We all know what we want to look like or how healthy we want to be, but we set goals that are very challenging and get discouraged. It is our nature to want to give up on something that seems unachievable.

Perspective first-time homebuyers are falling into the same trap. They set unrealistic goals on what their first home should actually be. How can we not? When you see your friends buying luxury homes, 17 year old celebrities buying mansions, or watching a homebuying show on TV where their pre-approval number is ridiculous, first-time homebuyers want the same thing! Why not us?!

Lets take a look at how these homebuyer hopefuls are actually hurting themselves:

Just Left the Nest

Young individuals are having to do the unthinkable- move back in with the parental units. Sorry mom and dad, but it wasn’t fun. Other than my mom being an amazing cook, I dreamed of the day when I left the nest, again.

But while living in my parents house, I grew accustom to living in that type of home. It only built my mindset that I don’t need to settle for less! Well looking at old family photos, my parents definitely had to settle for less, a lot less. I think sacrifice is something that has been forgotten in our society. We want it now!

Well, we necessarily can’t have it all now and first-time homebuyers need to understand that. Sure, being in a nice home with things that you need are very important. But certain things that you want might need to be set aside for a little bit. Your first home isn’t always going to be your dream home. Find out what is most important and focus on those characteristics.

Money

Money. I don’t know about you, but a lot of emotions come over me when I hear that word. It is definitely the epitome of a love-hate relationship.

I can attest to the fact that many young individuals just don’t understand the role it plays in the home buying process. How much do you actually have to make? How much can you afford? What do we need to save? Down payment and closing costs?

This is when the internet is an evil entity. Zillow, calculators, advice-EVERYWHERE! All of these tools providing incorrect information, building hopes and crushing dreams. There is so much uncertainty when it comes to finances.

First-time homebuyers need financial guidance. Not the kind of guidance where you put it a little information and it says you can afford this amount. I am talking about serious number crunching, data and a plan. That is the only way to get a good understanding and a sense of direction in the home buying process.

It’s the End of the World as We Know It…

Sometimes when I listen to people buying a house, I think of the Veruca, from the movie Willy Wonka throwing a fit. I have to have this. I can’t live without that. It will be the end of the world if I don’t have this.

Many aspiring first-timers think that if they don’t get everything that they want, the world will definitely end. They will be stuck in their home for over 30 years. They are basically buying a coffin. Well this isn’t the case, if you’re smart.

Sure, you can get yourself into a sticky situation if you make a bad purchase. That is why working with a reliable, experienced  and educated realtor is crucial. But just because your first home isn’t your dream home doesn’t mean that the sky is falling.

Buying a home is an investment. The right investment can payoff in the long run. Making certain compromises on your first home can actually be beneficial. You can make the upgrades that you want. Adapt your home to be competitive in the market when you choose to sell. And, build a home that you can be proud of.

The right home can have the right opportunities. Plus, the average homeowner stays in their home 7-10 years.

So, what do first-time homebuyers need to do?

Get educated

I have always said that all institutions of higher education need to teach Life Financial Classes as a requirement. Students need to learn about saving, buying a home, buying a car- basically the cost of daily living, before they hit the real world. So many are being thrown to the wolves and making major financial mistakes at an early age.

Young individuals who are in the market to buy their first home need to teach themselves. Learn the terminology, the costs, and what a reliable real estate agent looks like. Read about the market and what is impacting resale value.

Get Real Help

Sure, you can learn a lot online. I am not sure if you know this, but you can’t believe everything you read on the internet. I shouldn’t be saying that since you are reading this on the internet, but not all advice is accurate online.

The internet can be good for gathering data, looking up neighborhoods, and learning about agents. But, make sure to shop around in person and learn about someone and areas face to face. Shopping around is something that many rookie and veteran hombuyers/sellers forget to do. Do your research and seek out to find if your findings are true.