What younger home buyers have on their wish list
2015 National Association of Realtors®study on home buyers showed that younger home buyers make up 32% of the first-time home buying population. On average they will look at fifteen homes before deciding and will be able to put down at least 20 percent of the price. The study also revealed that many of the younger home buyers purchase with the idea of staying in the home for at least 10 years, this could be one reason their wish list is longer than most first-time buyers.
Waiting for the right time
Each year the real estate market opens its doors to a new generation of home buyers that are younger and more savvy than the last. Many of todays young home buyers rent or live at home for more then six years before they take the leap into homeownership. This is due to the fact many feel they have no need to own a home till they are married or have a significant other in their life. While others comment that they are experiencing a financial struggle to obtain a down payment plus closing cost, struggling to pay off college expenses, or want to make sure their professional career is well established and they can commit to the life-changing investment of homeownership.
Long wish list of features
When the younger generation decide to take the leap into homeownership they have a long wish list of features they want, the only thing is their list may not be within the sellers pocket book or within their own budget, so they have to learn quick to compromise between what they want and what they need. Like so many home buyers they search in locations that they feel will be best for their life style. Many feel if they buy a home with easy access by bike, car or by walking to restaurants, work, entertainment, possible schools or colleges, groceries, and fitness centers they can save on expenses without giving up some of their pleasures. When it comes to the house, younger home buyers look for easy and low maintenance exteriors and yards and would sooner do without any kind of remodeling projects inside or out.
Younger home buyers are big on entertaining so they will be looking for open spaces both inside and out, which means a full finished basement or entertainment room inside the house and a spacious deck or patio area outside will be high on their list. Other items on their wish list inside the house beside a open floor plan will include; an open large kitchen-dining area with energy efficient stainless steel appliances and marble or granite counter tops, two or three updated bathrooms, and a spacious master bedroom with updated private bathroom and large walk-in closets. Many of the younger home buyers have jobs or businesses that allow them to work from home so having one, possible two rooms that can be used as a home office, compete and ready for their tech devices, will be highly desirable.
Extra wants cost, check the budget
As with any home buyer the new generation of home buyers would like all the extras they can get for their buck but unfortunately the extras usually carry a price tag above their budget. Items as simple as a dishwasher and/or a small wine cooler could add $500 to the price of the house, while that energy saving tankless hot water heater and/or that cozy gas fireplace could add another $1000.00 to $1500.00 to the price. Everything has a price tag and the younger home buyer needs to be aware that the longer their wish list is the bigger the price tag. This is why most real estate agencies recommend that it is best, before you even start looking, to sit down and figure out every penny of your budget and write up a list of what is really needed and what would be nice if it's within that budget. That's not to say they can not luck out and get some of those items on their wish list like for instance; those wood floors throughout, swimming pool, LED lighting or maybe even that vegetable/flower boxes ready for planting outside within the budget. Compromise is the key and be prepare to deal with it; remember it might be your first house but it does not need to be your last house.
Would you go over your budget to have a swimming pool?
How do you feel?
Which do you feel is better?
How much would you go over your budget to get everything you want?
NAR Generational Survey
Rent or Buy a home in your 20's?
5 Alternative Housing Options You Can Afford
- 5 Alternative Housing Options You Can Afford
These alternative home options are much cheaper than traditional housing.