National ADA defense, Business, Real Estate Blog

Buying a home is often synonymous with realizing the "American Dream." However, a recent study shows that a home purchase often induces anxiety in first-time buyers.

There are several reasons why people might find buying a new home to be nerve-racking. One reason why people become so nervous when buying a home is that they are unfamiliar with the process and find it to be difficult and confusing. Interestingly, only about 30% of surveyed homebuyers had actually taken a homeownership class before beginning the process of buying a new home.

Ideally, homes in California will be sold the same week that they are listed. If this doesn't happen, homeowners may need to work with their real estate agents to come up with a new strategy. It's important to listen to what the agent has to say as he or she will have extensive knowledge of the neighborhood and market conditions in general. Therefore, this person will likely know how to price or market the home to move it as quickly as possible.

It's often wise to complete cosmetic upgrades to make the home more attractive to buyers. For instance, a seller could decide to put in new carpet, paint the walls brighter colors or make subtle changes to the bathroom and kitchen. The goal is to make sure that the home looks clean and properly maintained.

Home buyers in California have many things to consider when preparing to purchase their first home and enter the housing market. There are a number of major decisions as well as a huge financial commitment involved in a purchase of this type. Home shopping can be exciting but also stressful, and many people are concerned about potentially making the wrong decisions. There are some steps that people can take to help make their home-buying process better and more productive for everyone involved.

It can be important to meet with a mortgage lender before getting started visiting homes, making offers or choosing a budget. The bank will provide a preapproval for a mortgage. This can give people a ceiling to their real estate budget. In addition, people can be prepared to make a firm offer with a mortgage preapproval in hand, particularly important in hot housing markets. Showing up with a preapproval helps to make clear that a buyer is serious about committing to a home. At the same time, potential buyers may want to consult with multiple mortgage lenders. By comparing offers for fees, interest rates and terms, people can find the best mortgage before committing to the loan.

A growing number of young people in California are deciding to buy a home. For the past five years, millennials have represented the largest percentage of people opting to purchase homes. In 2018, 36% of real estate purchases were made by millennials. Various studies have noted that young adults are entering the property market later than their parents with many choosing to rent or live with their parents. Housing affordability and economic concerns have been a major factor for many young people, especially those living in or near major cities. Many have noted that purchasing real estate may be less of a priority than it was for earlier generations.

However, the enthusiasm that millennials have expressed for entering the real estate market may indicate that the issue is far more simply one of basic affordability. Student loans and credit card debt are difficult for many people to surmount. Even people without much debt may have difficulty saving up for a large down payment. Home prices have continued to rise, especially in popular markets, while wages are generally stagnant. As millennials become more established in their careers and begin to command higher incomes, they are more likely to begin to purchase real estate.