Are you a first-time buyer considering making a purchase in the next couple of months?
Jared Chamberlain talked to some of the best agents on our team. They shared the recent trends in the market and expert tips for first-time home buyers.
Tony, Simmi and Randi have all been in the real estate industry for three to seven years. All of them have worked with first-time buyers before.
According to Simmi, first-time homebuyers are now taking more risks than cautious buyers in the past. She's noticing that people nowadays are jumping in, feet first. They're exploring areas that they wouldn't have explored before.
Instead of seeing everything and anything in the market, people are now trusting their instincts a little more. When they feel a certain way about a home, they listen to that gut feeling.
For Tony, he noticed younger couples now skip buying a condo and go straight into purchasing a single-family home. There's a trend with young professionals staying with their parents longer to save up more money. When they are ready, they jump to buying a house to start a family.
Similar to Tony's statement, Randi noticed that first-time buyers now are older. A few years back, there were lots of singles in their 20s buying a condo on their own. This time, you can see more couples who don't want to pay rent anymore and take a leap to make their first purchase.
They can afford a little bit more because they saved up or live with their parents longer.
With our current state, people are now looking at outlining areas or the suburbs. People want a bigger home and a big yard in a price range that they are comfortable with. Cities like Airdrie and Okotoks are becoming more popular as they get cooler with new restaurants and shops.
Still, some clients prefer to keep their lifestyle. Simmi is noticing many people wanting to be close to the inner-city, but their budgets are slightly higher.
There's a lot of interest in duplexes and infills in Nolan Hill and Evanston. Those communities are not so close to the inner-city, but they're not that far out as well, and it's affordable to live there. You can get a lovely house that you can stay in for a long time.
The most important thing is to know what you're buying. If you're going to buy a condo or similar, see the condo fees attached to it.
Some properties can be tricky to sell in the future when you need to purchase your next home. It's imperative to have an agent with you who can explain what you may come across.
When you're buying your first home at 30, your life changes a lot by the time you're 35. If you opt to rent that property out or sell it, five years is a short time to try to make money on real estate. So think of your future self. How do you see yourself in 5 or 10years?
For Tony, the most important thing is to get pre-approved. Find out what you're approved for in terms of mortgages and your spending power.
You can start planning once you know the amount you're approved for. Keep in mind that you don't have to spend the entire loan value for the house purchase.
The future is uncertain, so don't go to your max to avoid being house poor. Try to leave some money behind. Don't jump in with both feet and put all your savings into the home.
Be kind to yourself and trust that you don't need to have it all figured out.
It would be best to work with somebody that you can trust. Find someone to lead, guide, and help you make critical decisions to be able to find your dream home.
In a nutshell, you have to be prepared, find someone you trust, most importantly, be kind to yourself.
You don't need to have it all right now. Everything doesn't have to come to you right away.
Many first time buyers purchased properties that were too much for them. They stretched themselves too far to keep up with the status quo, but that's not ideal.
Create a strategy, and lean on it to find something that's going to work for you. Find a property that you could rent out quickly, and then move forward.
Don't jump to a certain thing because others are already there. They took a lot of time to reach where they are at. So take your time, be kind to yourself, and make it happen.