A Real Estate Lawyer's Home-Buying Advice for Millennials | Slevin & Slevin, Esqs.

A Real Estate Lawyer's Home-Buying Advice for Millennials | Slevin & Slevin, Esqs.

Congratulations! You’ve gotten married, and you and your partner have 2.5 kids and a cat – or dog – named Chester. Suddenly that 2-bedroom 1-bath apartment is starting to look really small. Or, you’ve gotten a big promotion at work and your savings account is growing. You want to invest your money in something smart.

Why Buy a Home?

It’s the American Dream, of course! But you think to yourself: times have changed, and I’m not sure a home is worth the investment. Buying a home is a big financial step, and the process can be daunting. Is it worth it in the long run? What about all those horror stories I’ve heard from friends and family about brokers and lawyers etc., etc., etc.? 

Why buying a home is (still) a good investment for millennials

Purchasing a home can be a prudent investment. Real estate, with some exceptions (as with everything) will increase in value over time. You build ownership interest in your property, otherwise known as equity, when you perform proper maintenance and make improvements. To encourage homeownership, the interest paid on a home mortgage is typically tax deductible. Depending on your price point, you may be paying less in monthly mortgage payments than you would pay in rent. If you are looking to stay in a location for an extended period, owning a home can provide stability and a sense of community. Additionally, you are the master of your own house! You can decorate and paint however you want!

Having the right team in place - don’t do it alone

It is important to remember that the right team can make the process easier for you and your loved ones. Real estate is fickle and navigating the field requires expert advice and local knowledge.  It is important to find a buyer’s agent or broker who knows the local trends and is familiar with the neighborhood or school district you are interested in purchasing in. A good broker will know what neighborhoods have young children, or what houses will border a train-line, or are located on a double-yellow lined road or an area that has heavy back-road traffic (hint: if any of these things made you go “huh” THAT is the reason you need an experienced broker – to think of the things you may not). The buying process is a lot of work and having a good and experienced team is essential to finding and buying your new home.

Anecdote: A couple is engaged to be married and are looking to purchase their first home. They decide to use an attorney who is an old friend from college. The friend does not actively practice real estate. In fact, he does not practice real estate at all but works in a related field. Couple makes an offer, and it is accepted. Couple is going to buy their first home! Or not. Friend blew the deal. He is not from the area and was totally unfamiliar with the standard course of business. He doesn’t understand the art of real estate negotiations or the regular compromises and changes that are standard with every real estate transaction. Friend took such a hardline stance on contract negotiations that the seller’s decided not to pursue the sale. 

But how do you know if you can afford it or not?

This is not to say that buying a home is for everyone. If you’re curious about what you can afford you can use the free Mortgage Calculator website which can give you an idea of what your price range should be.

Need an experience real estate attorney to help you with your home purchase or sale? Get in touch with us today for your free consultation!