A Trend-Setting Group
The average life expectancy in America, now around 79 years, grew significantly during the 20th and 21st centuries. One consequence is the appearance of generations of Americans with very distinct views on life, including homeownership.
Millennials are the Americans born between the early 1980s and the early 2000s, as per the most accepted definitions. We are talking about people from 42 to 21 years old. Under a narrower definition (25-44), Millennials are about 27% of the total U.S. population or 88.2 million people.
This group will set the trends in the housing market for decades to come. And many have already purchased their first house or condo. So, there is enough data to know what they regret about that purchase.
Different Home Buying Practices
One of the main differences in Millennial home-buying behavior versus their predecessors (Baby Boomers) is that they are more willing to purchase a “fixer-upper.” Not surprising, as they are dealing with a market with very tight inventory, fierce buyer competition, and all-time-high house prices.
Facing these obstacles, Millennials have had to consider more locations and houses that are not new or not recently renovated. Most of them (90%) are willing to buy a home sight unseen if it helps them get the house they want. But unfortunately, previous owners sometimes exaggerate or even mislead about the value and quality of repairs.
Once they live and work in those “fixer-upper” homes, they realize there are reasons to regret their decision. The reasons go from bad neighbors to distance and more. The cost of upkeep and renovations is way above estimates. They discover that they overpaid for the repairs done by former owners.
Regreting Home Buying
A common complaint about those Millennial home buyers is that their Realtor was not aware of the full extent of the need for maintenance. And that is not entirely the Realtor’s fault, as their area of expertise facilitates Real Estate transactions. However, they are not experts in construction safety, repairs, building codes, or renovation costs.
You Need A Multi-Functional Team
Whether you are a Millennial or not, it is always better to employ a Realtor with the support of an architect, designer, and a general contractor, as those from The Cal Agents. Our team has the backing of a whole range of professionals and with them, giving you different perspectives and expertise in the home buying process.
If you ultimately decide on buying a fixer-upper, The Cal Agents has a branch of home renovators that are experts in pre-owned houses. So whether your problem is mold, making an enclosed kitchen open, or updating an unattractive bathroom, they will turn your house into a place you can call HOME.
A Success Story
Let me share an experience. K. Ho from Livermore, CA, wanted to buy a house that needed serious work. So he approached The Cal Agents for advice. First, we gave him an assessment of the house’s improvements with a realistic budget. Then our team guided him to choose the best materials and the right finishes for the home. Finally, The Cal Agents connected the Ho family with a contractor that offered good prices on new flooring. Due to a labor shortage, Mr. Ho was unable to find any outside contractors to paint the cabinets for the price that we originally projected. The Cal Agents team tapped into our in-house remodeling team and delivered the job at the originally projected price, saving Mr. Ho $3,000. No Realtor can deliver that!
I believe that Real Estate transactions must lead to long-term prosperity and wellbeing. To achieve this, I have put together a multi-discipline team that can help you look at a property from many different angles and make the best possible decision.
