Three tips for first-time buyers

Buying your first home, besides being an important decision, is a milestone in anyone's life. Even if it is, for many, a scary step, it also has the power to provide great improvements in life. So, if you are close to taking this step, you may have some doubts regarding the real estate market: "Is it a good time to invest?"; "How much do you need to save?"; "Where should I start?".

Here are three tips that will help you get the information you need to pursue your dream, of owning a home in the US, with confidence.

1. Consider all options when the number of houses for sale is low

Currently, there are far more buyers on the market than there are homes available for sale. When this happens, a great practice is to do what you can to increase your set of options. This may mean expanding your search to include other types of housing. For first-time buyers, considering condos and townhomes can be an excellent way to increase your possibilities. According to Bankrate:

"'Townhomes' generally cost less than 'single-family' homes of similar size in the same location."

In another article, Bankrate also says:

"Buying a 'condo' can be a great way to immerse yourself in ownership without worrying about the maintenance that comes with 'single-family' and townhouses."

Both condos and townhouses are great gateways to "home ownership". Buying one of these two is a gateway into this type of investment, increasing your equity, and can fuel a future move.

2. Know your way in may be more within your reach than you think

Saving up for a down payment may seem like one of the biggest obstacles for home buyers, but that doesn't have to be the obstacle. As the National Association of Realtors (NAR) says:

"One of the biggest misconceptions among real estate consumers is: what is the typical payment and how much money is needed to get into a home of one's own.

The data from NAR show that the advance has not been higher than 20% since 2005. The chart below breaks down the average down payment by age group for recent home buyers according to the 2022 Home Buyers and Sellers Generational Trends Report from NAR (see chart below):

Based on the data above, the average down payment for all home buyers is only 13%. This is well below the common misconception of 20% and is even lower for younger buyers. This may mean that you may not need to save as much for a down payment as you initially thought.

There are also assistance programs available for many buyers. Not to mention, some loan options require as little as 3.5% (or even 0%) for buyers who qualify. While there are advantages to reducing 20%, especially in today's competitive market, know that you have options. For more information on how much you may need to save and the help available, talk to a professional.

3. Work with a reliable real estate consultant during the entire process

Finally, no matter where you are in your ownership journey, the best way to ensure success is to work with a real estate professional.

If you are just starting out, they can help you with the initial steps, such as guiding you through the process and connecting you with a trusted lender to get pre-approved. When you're ready to start your search, a real estate professional can help you understand the local market and search for available homes. And when it comes time to make an offer, he or she will be an expert consultant and negotiator to help your proposal stand out from the rest.

Did you like the article? Keep an eye on our blog! Looking to live or invest in real estate in Florida? Check out the list of homes for sale in Florida that we have selected for you!