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What Millennial Homebuyers Should Look For In a Home
Back in March, a study done by the National Association of Realtors revealed that the largest group of current homebuyers were millennials, those who are 34 years old or younger. With todays’s changing demands of what homes should include, there are certain things that millennials look for. Because of that, millennials have become an increasingly important market segment in real estate, and if you’re a millennial, like myself, you should have an idea of what to look for in a home.
The kitchen and bathrooms of a home can become a very costly renovation, so if you’re on a budget due to student loans, car payments, etc., it will be better if you purchase a home that already has them upgraded. When buying a home, you already know you’ll be putting a lot of money into it, so you shouldn’t have to worry about spending additional expenses on upgrades in your new home. Plus, you don’t want to become more stressed in an already stressful time. Although there might be a few things you’ll want to fix after you have settled into your new home, you don’t want to have to focus on shelling out more money for significant renovations later on.
Another important feature you should look for in your home is an office. If you have a family and want to do some work at home, it’s beneficial to have your own separate place where you can go and be alone to get things done. Given how mobile our generation is, the ability to work from home has become a lot more attainable, depending on your profession. If you normally work from home, this is a very useful amenity. If you usually work away from home, you can still use a home office on weekends or other days off when you’re in the mood to get some work done.
Location is another significant factor that you should take into consideration when searching for a home. When thinking about a location, you have to contemplate what will work best for your situation, such as needing access to public transportation; or, if you have children, looking for an area that’s a little more suburban and has a great school district. You don’t really know for how long you’ll be living in a certain home (you might find an even better one in the future), so you want to be sure that it’s not just the home that you think about, but also the location, the community, and what that area offers.
We live in a reality-TV era, and when you’re looking for a new home, there’s a chance that you might get hooked on a reality television show or two about real estate. While it’s okay to watch these shows from time to time, you shouldn’t let your expectations get out of hand as to how the home-searching process is going to play out.
“The millennial buyers are the buyers who have had the most exposure to the popular TV shows that showcase real estate,” said Donald Dwyer, real estate associate broker for Better Homes and Gardens Rand Realty and manager of its Yorktown office. “In watching these shows, they are often influenced by transactions occurring out of state and frequently come to our agents with unrealistic expectations. These expectations are often about the condition of homes, size of bedrooms, price, and seller concessions.”
If you’re a millennial, you’re most likely going to ask about the home’s technology. According to a 2013 survey done by Better Homes and Gardens Real Estate, 56 percent of millennials say that technology is more important than curb appeal, 64 percent wouldn’t live in a home that doesn’t have the latest technologies, and 84 percent believe that modern technologies are a must-have for a home.
Given how mobile devices and the Internet are used heavily in our day-to-day activities, you’re going to be looking for homes that are compatible with today’s technology. In this case, a home that includes excellent phone reception from a mobile carrier’s signal and a Wi-Fi connection from a service provider will certainly be high on your list during the searching process.
“Millennial buyers tend to be very tech-savvy and love to search for homes on their own,” said Dwyer. “They attend open houses and are highly selective. They only involve an agent when they have found a particular home they want. Many of these buyers are straddled with college debt, which often makes them less eligible to buy the house that fits their dreams, which can pose a challenge for their agent. Millennials are going to be 90 percent of the workforce in a decade, so agents must be prepared to work with them and stay ahead of the technology curve.”
Speaking of the Internet, more than 80 percent of homebuyers (of any age) use it for their home search, according to the NAR. So, it’s important that a property looks as appealing as possible to potential buyers when they look online. As a millennial, I know our generation is used to having crystal-clear images on our computers and cell phones, so I’m sure you don’t want to see home photos that are grainy or out of focus. The photos should grab your attention and interest, and that can’t happen if you need to squint at the image.
Being a millennial, I know you want to have the latest entertainment and backyard features that will offer your guests a memorable time when you invite them over. If your budget allows it, having something like a patio, a pool, fire pit, a big-screen TV, or a basement built for entertainment purposes will attract family and friends to your home. Once you purchase a new home, you’ll want to throw a housewarming party, so including any of these fun amenities will have your guests coming back.
If you’re a millennial homebuyer and are just starting out on your search for a home, make sure to find a place that fits your needs, but don’t go for more than you can afford. Owning a home is a huge responsibility, but if you know what to look for, your search will be a successful one.
To learn more about Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
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Are We In a Buyer’s or Seller’s Housing Market?
The real estate industry is constantly going through changes, and that includes the climate of the market. If there is high inventory and low prices, you can bet that you are in a buyer’s market, and if there’s low inventory and high prices, you can be sure that you’re in a seller’s market. In the U.S., however, the type of market varies by location. Because of the size of the U.S., some areas might be displaying traits of a buyer’s market, and other places might be showing signs of a seller’s market. It all depends on where you live.
According to RealtyTrac, homes are selling for 108 percent of asking price on average in the Bay Area of California, as well as in Washington, D.C.; Cass County, North Dakota; and Winston-Salem, North Carolina. In these locations, sellers are receiving more than they originally asked for, which shows that there is a high demand for housing.
Then, there are areas, such as Atlanta, Baltimore, Pittsburgh, and St. Louis, where buyers have the most influence and sellers are receiving less than the asking price, and this is happening even though the number of homes on the market are limited.
According to RealtyTrac, less than a third of housing markets in the U.S. have homes that sell for above the asking price, 60 percent have homes selling for below the asking price, and only 14 percent of homes sell at their market value.
If you want further proof that the U.S. real estate industry can’t be pinned down to one kind of market over the other, there are also areas that have markets where the situation is on even ground between buyers and sellers. These places include the D.C. suburbs of Montgomery County, Maryland; Raleigh, North Carolina; the Phoenix metropolitan area; and Riverside County, California.
To give you an example of the areas around near where I live (the lower Hudson Valley and northern New Jersey), there is definitely a situation where there are certain counties that have markets that are more suitable for buyers, some that are better for sellers, and others that are great for both. Orange County is certainly a buyer’s market with its 30-percent sales increase of single-family homes from last year and a median sales price of $220,000. Dutchess County also has a relatively low median sales price, coming in at $249,600.00, but faired even better than Orange County in terms of sales for single-family homes, topping that region with a 21.4 percent increase. Putnam County experienced changes that have made it a decent market for both buyers and sellers, with sales having shown a considerable increase of 18.2 percent and prices displaying more consistency and a promise of growth.
The northern New Jersey counties near the lower Hudson Valley (Bergen, Morris, and Passaic), have been displaying wonderful activity within their markets. All three counties have enjoyed increases in sales and prices, and they also have the lowest amount of average days on market for their homes (ranging from 76-155 days), whereas Westchester, Rockland, Orange, Putnam, and Dutchess Counties in New York have homes that spend a higher average of days on the market (ranging from 170-218 days).
When you’re looking to buy a home, it’s always important to study the current housing market and see where you can get the best deal for a home. Each area has its own market that favors either the buyer, the seller, or both, so you should have an idea about what a certain market is going to offer you before you actually visit that area. As long as you stay on top of the market and use it as a valuable real estate tool, you will surely know where it is best to search for a home.
If you’re interested in Better Homes and Gardens Rand Realty’s full market report for the second quarter of 2015, you can find it here on our blog. The QMR includes a market overview and in-depth analyses pertaining to each county that Rand Realty covers.
To learn more about Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
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How to Help Your Children Adjust After a Move
After moving from a home in which you’ve spent several years, to a home in a completely different location, it will take some time to get used to the new surroundings. Although it might be a little easier for adults to get accustomed to the move, it could be a little more difficult for children to come to terms with it because they are used to the routines and familiarity of their previous home life. It could take some time for them to get used to their new settings, but there are ways how you can assist them with this major transition.
One of the main challenges your children will go through is adapting to a new school with having new teachers and making new friends. It can be hard for children to assimilate into a new school, but you should encourage them to have fun with it. A really easy way for them to make new friends is to join any clubs or athletic teams that will give them the opportunity to meet people who share similar interests. Although they might be hesitant at first, this is a time to be supportive of your children and encourage them to come out of their shells. Also, despite being in a new environment, if your children continue to be a part of the same extracurricular activities that they were involved in at their previous school, it will add some comfort to the process of meeting new friends as they will be a part of something that they enjoy and are familiar with.
When you move a significant distance away from your previous home, it will be difficult for your children to visit their friends. When this is the case, have them take advantage of Skype or FaceTime to keep in touch with their friends. Instead of just calling on the phone or texting, your children can use these applications to enjoy a face-to-face conversation with a friend. This will help your children feel better connected to their old friends and will make their conversations a little more special than if it was just a conversation with voices on the phone or words in a text message.
If you have children who are in pre-K or kindergarten, set up playdates between your child and a friend in their class. Younger children may not have as many extracurriculars outside of the classroom, so this will give them a chance to socialize with a friend when not in school and help build stronger friendships.
You should also help your children find fun things to do around the neighborhood. No matter where your family lives, your community is bound to have different events going on that could attract any age. As a family, encourage your children to discover what the town has to offer, helping them get to know many other families within the town.
Most importantly, you should sit your children down and talk with them about why you had to move and why it was good for the family. Depending on how old your children are, it might take a bit of time for them to understand the necessity behind the move. If they don’t seem receptive to the reasoning behind the move at first, they will eventually warm up to it as they start to make memories of their new lives. If need be, provide your children with some space so they can be alone with their thoughts and process the change that is occurring.
Emotionally, moving to a new home can be one of the most difficult things a person can do, especially for children. It’s a period of leaving behind what you have all come to know and starting a new chapter in your lives. This can be a challenge for children, but not one without its silver linings, so remind your children to always try and find the positives in a big life change. If they do that, then they will surely come to love their new home.
To learn more about Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.
