Buying their first home is an exciting time for newlyweds. They are beginning their new life together. However, charging headfirst into homeownership is not the practical thing to do. As newlyweds, it’s easy to jump into an investment together, the highs of the wedding still in their minds. But remember that buying a home is a long-term commitment. Many couples will need to pay for the home for the next 20 years. That means that if they plan to have a kid in the next year, their kid will be 18 or 19 years old by the time they finish paying off the home loan.
Understanding the considerations and factors that go into deciding to buy a home is important for real estate agents. You will have a better strategy when you have an idea of how newlyweds buy their first family home. The decision-making process is personal and complicated. It has both objective and subjective considerations.
Every newlywed is different. Some have saved enough money for the down payment of the house. Others have spent so much on their wedding that they cannot afford the 10% required for the home’s down payment. While every situation is different, that does not mean that those who did not save have no way to afford their own homes. If they are earning more than those who saved for a down payment, they will also be eligible for a better loan term.
Knowing the financial situation of most newlyweds will help real estate agents come up with the right message. What do they want to hear from you? What are they looking for in a home? Most newlyweds will settle for a two-bedroom apartment as expanding their families beyond one kid will not be in their minds right now.
At the very least, newlyweds expect to have a nice enough abode for a small family, especially if they choose to live in the city. If they are buying a property, newlyweds will focus on staying close to public transportation, schools, workplaces, and other amenities. Real estate agents can highlight the amenities close to the property to attract newlyweds starting a family.
This does not mean, of course, that agents should give in to the demands of the clients no matter how inconceivable and impractical they are. If they can only afford a property that does not have too many amenities, you should explain it. Amenities such as swimming pools, gyms, and saunas in condominium units come at a price. While they expect to have the best, these also come with a hefty price tag, especially if they choose the city.
Newlyweds are particularly worried about the community where they will start their family. Is it a good place to raise a kid? Will there be activities that the kids will love? Are there schools near the property? These are essential to newlyweds because they might want to start a family right now. For those who like to take some time before having kids, they want a property that’s near the social scene. If they love meeting friends and hanging out, a property near malls, public parks, business districts, and entertainment centers is the perfect place for them.
This new generation of homeowners scrutinizes every detail of the property development. They research. They read about the developers. Simply put, they come with knowledge when they reach out to a real estate agent. Remember that these homebuyers belong to an internet-savvy generation. They know what they want. They are usually unbendable when it comes to the amenities they expect a property to have.
Real estate agents have to be careful with how they approach this generation of homebuyers. Although they do not have as much purchasing power as the baby boomers, they are more knowledgeable, educated, and assertive.
It is more likely that newlyweds are thinking about another option: renting a place. If they cannot afford to buy a property right now or are not sure of what they want yet, they might look at renting a condo unit or apartment first. This is an option that real estate agents should also consider. What if your market wants to rent than buy? How can you persuade them that today is the perfect time to invest in property?
Picking the wrong house is the worst thing to happen for a newlywed. They are going to be tied to that house for a long time. It is the job of a real estate agent and a real estate marketer to help these newlyweds find the perfect abode for their families.