What can Deter a Young Person from Buying a Home

by Fireside Realty Group 10/06/2019

Some of the reasons why the young ones are not buying a home are the high student debt, affordability among others. We are going to discuss the primary reasons why young people are not buying a house in this article. Here we go:

Affordability 

One of the main reasons why millennials are not into real estate investment is a substantial financial implication. The home affordability for first-time buyers decreased to about 92.5 in 2018 according to NAR – National Association of Realtors. The index was 109.3 in the year 2015. A value of 100 shows that a family has what it takes to qualify for a median-priced home. 

High level of student debt

Another reason why many young people could not afford a home is the high level of student debt. In the United States, student debt reached $1.5 trillion, and it is one of the factors that are hindering young people from investing in real estate. Apart from high student debt, they also have to deal with meager wages. The NAR report explained that more than half of the homebuyers who are below the age of thirty-eight that student debt is one of the significant factors that delayed their home buying. Apartment list shows that graduate that does not incur student debt will save for 7.6 years at 20% down payment to get home while those with debt will have to save money for more than 11.6 years.

Tighter Lending 

If you are wondering why young people cannot afford a home, one of the reasons is stricter lending conditions. Financial institutions have tightened credit underwriting to minimize risk. The rise of house prices does not favor the young ones who are planning to buy a home. They will have to accumulate enough cash over a long period to enable them to afford a house. The Bank of America noted that those within the age of 25 to 35 years commenced their career at the time of financial crises when the labor market and economy were recovering.

Not Married Yet 

The delay before getting married and having children means that young people are not considering getting a home sooner. The CDC (Center for Disease Control) reports that the mean age of a first-time mother is now 26.6. They discovered these findings in 2016; they added that the average age might increase when we consider the women in urban areas as well as college-educated women. According to the Census Bureau, getting married and having children are life events that trigger buying a home.

As a young person looking to buy a home, you should speak to a financial advisor and a reputable real estate agent to plan towards owning your own home.

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Fireside Realty Group

The Fireside Promise

5-Star Customer Experiences

We don’t just talk about it. We are about it.

The number one promise at Fireside Realty Group is to always put our client and their needs first. For this reason, providing expert service during every step of the real estate process is nonnegotiable and is something our clients can expect. Our expert staff manages every part of the transaction – Sales, Staging, Photography, Contract-to-Close, Listing Management and Marketing, Technology and Systems, Mortgage Lender Referrals, and Make-Ready Services – to ensure our client’s have a 5-Star Experience. 

How is this different?

Traditional brokerages have little or no concern with the client (buyer/seller) and leave it 100% up to their self-employed real estate agent to deliver the knowledge and service (or lack thereof). This means there is no consistent quality or standard of care and limited service by virtue of the capacity of a single agent. All of this can be risky for the customer. 

Real Estate Specialization & Expertise

Being a “jack of all trades” is a thing of the past.

Mediocrity is not an option at Fireside Realty Group, which is why our agents have areas of specialization and work as experts in their specialty. This means that every Fireside client will work with a real estate professional who has the knowledge and expertise to tend to their specific real estate concerns. You wouldn’t go to a cardiologist to solve a problem with your foot – you would go to a podiatrist! So for instance, why buy a mountain investment property from a typical agent who owns no mountain investment property? 

How is this different?

At Fireside you work with a team of expert agents who are trained to help with a variety of specific real estate needs. If you have a need that isn’t a fit for the agent you are currently working with, we will gladly refer you to another expert, or even outside the company if that is the best course of action…which is not the case in most brokerages.

Technology Delivered

It’s not just a shiny penny!

We invest in and use technology to ensure that Fireside Realty Group operations makes good on our promise of a 5-Star Experience. We have carefully tested and filtered out the gimmicks from the tools that really work. ALL agents are trained to use our technologies, tools, and systems in order to deliver the level of service that is required.

How is this different?

Other brokerages leave technology choices up to their agents. What this means is a lack of consistency because each agent uses a different system and operates based on their own individual preferences. We think you and your home or investment are too important to leave it up to a lone ranger agent and whatever tools they have at hand. 

Our Leaders = Practitioners

We Practice What We Preach.

All Fireside agents have personally purchased and sold at least five homes, so they have first-hand knowledge of the client-side experience. This has shed light on areas in which the real estate experience was lacking and needed improvement. Our leaders have taken that learning and built a solid foundation for Fireside in which they continue to work in and improve all facets of the company including sales, contract-to-close and client responses in order to truly understand . 

How is this different?

Other real estate companies are filled with sales managers and leaders who are full of good intentions but have no experience working with the buying/selling customer, or whose experience is no longer relevant in today’s market. In these companies, the systems, tools, and advice for customers comes from theory or outdated practices.