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Generational Homebuying Trends: How Different Generations Approach Buying Homes

The real estate market is constantly evolving, and so are the homebuying trends among different generations. Each generation has its unique characteristics, preferences, and priorities when it comes to buying a home. Understanding these generational homebuying trends can provide valuable insights for buyers, sellers, and real estate professionals alike. In this blog post, we will explore how different generations approach homebuying, including millennials, Generation X, baby boomers, and the silent generation.

Millennials – The Tech-Savvy, Value-Conscious Buyers
Millennials, also known as Generation Y, are currently the largest group of homebuyers in the market. Born between 1981 and 1996, millennials are known for their tech-savvy nature and desire for convenience. They heavily rely on online resources, social media, and mobile apps to search for homes, research neighborhoods, and connect with real estate agents. They also prioritize value for money and are often price-sensitive, looking for affordable options and favorable financing terms.
Millennials tend to prioritize urban living, preferring walkable neighborhoods close to amenities such as public transportation, restaurants, and entertainment options. They also value sustainability and energy-efficient features in homes. Many millennials are first-time homebuyers, and they may face challenges such as student loan debt and lack of down payment savings. As a result, they may opt for smaller, more affordable homes or consider alternative financing options such as FHA loans or down payment assistance programs.

Generation X – The Family-Oriented, Work-Life Balance Seekers
Generation X, born between 1965 and 1980, often fall between baby boomers and millennials in the homebuying market. They are typically in their peak earning years and may have families or be planning to start families, influencing their homebuying decisions. Generation X buyers often prioritize larger homes with more bedrooms and ample space for their growing families. They may also prioritize good school districts and safe neighborhoods for their children.
Generation X buyers often value work-life balance, and their homebuying decisions may be influenced by commute times and proximity to their workplace. Many Generation X buyers are also repeat buyers, having owned homes previously, which may impact their financing options and budget. They may also have more equity from their previous homes, allowing them to afford larger down payments and higher-priced homes.

Baby Boomers – The Downsizers and Empty Nesters
Baby boomers, born between 1946 and 1964, are currently transitioning into retirement or have already retired. Many baby boomers are now downsizing, looking for smaller homes or retirement communities with low maintenance and amenities such as recreational facilities or healthcare services. They may also be looking for homes that can accommodate aging in place, with features such as single-story layouts, wider doorways, and grab bars.
Baby boomers may have different financing options, such as reverse mortgages or home equity loans, to tap into the equity of their current homes. They may also prioritize locations closer to their family, friends, or preferred retirement destinations. Baby boomers may have more experience in the real estate market and may be more focused on finding the right lifestyle and community rather than building equity in their homes.

Silent Generation – The Traditional Buyers
The silent generation, born before 1946, are the oldest generation of homebuyers. They may be looking for traditional, long-term homes where they can settle down for the rest of their lives. They may prioritize stability, safety, and familiarity when it comes to their homebuying decisions. Many of them may have paid off their mortgages or have substantial equity in their current homes, allowing them to make all-cash purchases or afford higher-priced homes.
The silent generation may prioritize homes with accessibility features, such as grab bars, wider doorways, and ramps, to accommodate their physical needs as they age. They may also prioritize homes in familiar neighborhoods or close to their established communities, such as places of worship, friends, or family. The silent generation may have a more conservative approach to homebuying, prioritizing stability and security over potential investment gains.

Generational homebuying trends play a significant role in shaping the real estate market. Each generation has its unique characteristics, preferences, and priorities when it comes to buying a home. By understanding these trends, buyers, sellers, and real estate professionals can better navigate the ever-evolving real estate landscape and make informed decisions. Whether you’re a first-time homebuyer, a growing family, a downsizer, or a retiree, understanding generational homebuying trends can help you find the perfect home that meets your needs and aligns with your lifestyle. Happy homebuying!

Appraising New Construction Homes: 6 Tips

Lenders, the FHA, and the GSEs all have distinct approaches to new construction. When valuing new build homes, specific features and attributes must be considered that aren’t always applicable to resales.

Because it necessitates extra effort, you must ensure that you are compensated for your time. But, maybe more importantly, you want to make sure you’re following the correct procedure. Follow these guidelines to ensure you’ve covered all of your bases.

Do not solely rely on plans.

Blueprints are a good place to start, but you’ll need to calculate and confirm the gross living area specified in the plans yourself. The “calls” used by architects are not the same as those used to determine square footage. In the architect’s finished living area, open two-story rooms, outdoor kitchens, finished lower levels, a casita, and a breezeway may be considered.

Gather as much information as possible regarding the blueprints and specifications.

Building plans and specifications, which include any construction materials that will be used, are kept and maintained by homebuilders. As things change, the most conscientious will revise their plans and specifications. Make sure you have the plot plan, the home-building plan, the spec documents, and the cost breakdown list.

In addition to figuring the gross living area from the designs, you’ll need to look at the specifications, which include the materials utilized, such as doors, windows, cabinets, plumbing fittings, and electrical fixtures. The specs will also detail the size and finishes used in the construction, as well as provide you with an idea of the construction quality and how the planned changes compare to similar sales in the market. This information is essential for creating a list of comparables. You can use a cost service to estimate the cost of the new construction once you know the dimensions, materials, and so on.

Consult with a number of area contractors.

Builders might provide useful information if you speak with them immediately to assess current costs and value. As you perform new building assessment tasks, you get some of the greatest construction cost data. Prior data can be analyzed for those construction projects that are most similar to the subject property in quality, size, and characteristics and used as cost data to support cost estimates for the current appraisal when evaluating new planned development. Depending on how old the cost data is, it may be required to adjust for time as the cost of construction materials continues to rise.

When selecting comparable sales, be cautious.

First and foremost, you must determine which comparables are most appropriate for the job. However, some lenders may have special comparable sales requirements to establish market acceptance, so follow their instructions. Many, for example, need at least one completed sale that does not involve the subject builder.

For site value, use the sales comparison method (if possible)

The optimum technique is to estimate the property’s site value based on selling prices of comparable sites, which is called the sales comparison strategy. In some markets, though, equivalent sites can be difficult to find. Declare in your report that the sales comparison strategy is neither appropriate or trustworthy, and use one of the other methods instead.

Understand the FHA, HUD, and USPAP guidelines.

When appraising new construction properties, the standards vary and can change, so follow your lender’s instructions to the letter.

Advice for First-Time Home Sellers in Real Estate

Advice for First-Time Home Sellers in Real Estate

Comparing home purchases and sales is very different. The suggestions here apply to first-time home sellers, or any seller wanting a real estate refresher, while selling a house often focused on what listing agents like to call “maximizing profit potential.”

Pricing Your House Correctly

An experienced listing agent can help in this situation. Don’t pick the sister-in-law of your cousin who merely dabbles in real estate. If you choose a seasoned real estate agent who sells a decent number of listings, ideally in your community, you’ll do far better.

Your agent will examine similar sales and create a value estimate, frequently referred to as a CMA (comparative market analysis). It is acceptable to compare this to the Zestimate provided by Zillow, but you should take note of the differences your agent will point out because your listing agent ought to have the knowledge and training necessary to provide you a more accurate assessment of value.

Home staging increases appeal and selling power

Request advice from your agent on how to get your house ready for sale. Most homes seem better once roughly half of the furniture has been removed. You’ve done your job well if a buyer enters the home and wonders if anyone lives there. To increase your appeal and selling power, think about home staging.

The ideal time to list your house

Pick the ideal day to put your house on the market. This duration will vary based on your neighborhood, the weather, the season, and a variety of other elements, such as the state of your local real estate market at the time. Basically, the first day your house is on the market is your only opportunity to showcase it in the best possible light.

Consult your agent about the standard real estate commission rate.

If the agent’s normal real estate commission appears reasonable, weigh the pros and drawbacks of hiring them against the whole picture. For performance, look at past performance. A full-service agent won’t negotiate on your behalf. The process must go all the way to close; signing a contract is just the beginning.

Be flexible with your home showings

Be accommodating with showings. If house showings are too much of a nuisance to your schedule the first weekend your house is on the market, think about taking a vacation. It may seem a little intrusive to let visitors look around your home and open your soft-closing kitchen drawers.

Organize an Open House

Allow an open house if your home is suited for one. Not every home should host an open house. If your home is close to a lot of traffic, there is usually a reasonable assumption that the open house signage will attract visitors. Find out if your agent posts information about the open house online. Many would-be buyers aren’t interested in buying a house until they go to an open house and fall in love.

Rapidly respond to a purchase offer

Aim to respond to a purchase offer as quickly as you can. Numerous purchasing offers include an expiration date. Buyers may go nuts while waiting for the seller to decide whether to take their offer or make a counteroffer.

What to avoid with loan applications

Following a loan application, avoid these things.

There are several important considerations to make when you’ve applied for a mortgage to buy a home. Even though it’s thrilling to begin considering moving in and decorating, use caution when making any significant purchases. Following your loan application, there are a few things you should probably avoid.

Avoid making large cash deposits.

Cash is hard to track down, and lenders need to know where you got your money. Talk with your loan officer about how to properly record your transactions before you deposit any money into your accounts.

Avoid Making Any Major Purchases

You could lose your loan if you make purchases that are not strictly related to your home. Lenders may raise concerns about any sizable purchases. Debt-to-income ratios are higher for those with new debt (how much debt you have compared to your monthly income). Because riskier loans have higher ratios, borrowers might no longer be eligible for their mortgages. Avoid the urge to make any significant purchases, including those for appliances or furnishings.

Loans shouldn’t be co-signed for anyone.

You take on responsibility for the loan’s success and repayment when you co-sign for it. Higher debt-to-income ratios result from that obligation. Your lender will have to count the payments against you even if you pledge that you won’t be the one making them.

Avoid changing bank accounts.

Lenders must locate and keep track of your assets. When all of your accounts are consistent, that work is significantly simpler. Speak with your loan officer prior to making any financial transfers.

Maintain All Accounts

Many purchasers think that being authorized means they are less risky and have less accessible credit. This can’t be. Your credit history’s length and depth (as opposed to just your payment history) and the proportion of credit you’ve used overall to total credit available make up a significant portion of your credit score. Both of those parts of your score are negatively impacted by closing accounts.

In conclusion, be honest with your lender when discussing any changes. Any changes to your income, assets, or credit should be carefully considered and handled so that your home loan can still be approved. Inform your lender as well if your employment situation has changed recently. In the end, it’s always preferable to be completely honest and open with your loan officer before making any financial decisions.

Remote, In Person, or Hybrid? Buying a Home For Your Work Needs.

Remote, In Person, or Hybrid?

Buying a Home For Your Work Needs.

The pandemic has changed a lot of things about our present world. Remote working, for instance, seems to be here to stay, at least in some cases. In other situations, people are doing a hybrid system where they go into a workplace part time and stay home to work part time. And of course, for many people, remote jobs aren’t an option. We are so grateful to all those who have been working in person this whole time to help our world keep turning.

But if you are working remotely part or full time, it’s worth it to consider how your home can better meet your work needs. Here are some questions to think about.

Will I be working from home for the foreseeable future?

The first question to ask is if this working from home situation is here to stay for you. At least, is it here to stay as far as you can tell? If this last year and a half has taught us anything it’s that nothing is certain. But if you do know that your job has given permission to work remotely for now, it’s good to start thinking about what set up will best suit you.

And even if your situation is hybrid and you’ll be staying home to work only part time, this still effects what kind of space you need at home.

What options do I have for a home office?

If the answer to the first question was yes, then it’s time to think about what set up you need. Many of us had to make do over the last year and a half as far as home office space goes. Perhaps you had to share working space with a spouse or partner. Or maybe you have kids who also were stuck home and the house became an all purpose office and classroom. Maybe you were fortunate to have a designated office space at home already, in a spare room or off to the side somewhere. But you also might have found yourself working from a noisy dining room table or shut up in your bedroom all day without a proper desk.

Should I move?

One option you may be considering is to move altogether. Some of us find that with working remotely, we have more options on where to live. Without needing to be so close to a workplace location, maybe you want to move farther to the suburbs or country. Perhaps you just want more square footage and can financially manage that now. Maybe you’re taking care of a family member in your home as well, or your spouse’s job has also gone remote. It’s ok to want a home with enough space so that you’re not all crammed on top of each other. We all can make things work for a short time. But now that you know how your job situation is shaking out, maybe a move is in your best interest. If you’re looking to move this fall, it’s a great time to consider a home with an office or at least office nook.

Can I make this home more versatile?

If moving isn’t a viable option for you at present, how can you make your current home work smarter for you and your needs? Is there a guest bedroom you could multipurpose to turn into a dual functioning office/spare room? Or maybe there’s a vanity or bulky dresser in your bedroom you could replace with a streamlined desk setup. What about a nook under the stairs or off to the side in a living space? Having a designated office area will help tremendously in your productivity and concentration. So even if it’s not a completely private room, do your best to create an intentional space for working.

Use this guide to start determining what kind of home office situation you want moving forward. If the answer is to move, I’m here to help with all your real estate needs.