You may still be a year (or more) away from having your down payment saved up and thinking ‘there’s no point in looking at houses yet. I’m nowhere near ready to buy.’ While I agree you may not need to be searching multiple listing per week, I would however, highly recommend browsing through the listings every few weeks and attending a couple open houses that look like the type of property you might eventually own.
You might still be asking ’why does this help me in the long run?’ And we’re here to shed some light on this exact question.
You Get To Know the Market.
Knowing the market is very useful when looking at real estate, ESPECIALLY if you’re hoping to find a good deal. I’ve seen many new home buyers start to look at homes and pass on a home that they later realized was the deal of the year. If they only knew the market, they would have realized, that particular house was a steal of a deal for that area.
The fact is, most people are afraid to make an offer on the first house, or one of the first few houses they look at. This gives us the feeling that we’re rushing into things or that we haven’t done our research and due diligence. This is exactly why we suggest doing the research ahead of time. The other benefit is that you actually can’t jump into anything too quickly, because you don’t have the money yet. It’s the perfect time to start educating yourself.
You’ll Eventually Get the Best Possible Deal On a Home.
Once you’ve spent a year browsing listings and looking at open houses, you’re going to feel like an expert in the market. With your down payment ready, you’ll now be browsing listings with all the information you need to make an informed decision. Even if the house of your dreams shows up the first day you have your down payment ready, you can put in an offer with total confidence because you’re prepared.
I feel like I see small examples of this every time I’m at the grocery store with my wife – She’ll get excited about a deal, telling me about how it’s less than half price as she puts it in the cart. Yes, I realize there’s a yellow sale tag that tells me how much per pound this meat is on sale for, but it doesn’t mean much to me. She, however is there every week, and knows the pricing of everything in the store. Because of this, it takes her seconds to spot a deal that I would walk by.
You’ll Save For Your Down Payment Faster
When home purchasing is a year or more away, it can feel like a goal that’s part of your distant future and feels too far away to get excited about. But, when you start looking at listings and checking out open houses, it’s going to get real in a hurry. You’ll get excited about what the future has in store for you.
This can be very motivational when saving for a down payment.
When you’re actually walking through houses that could be yours (if you had a down payment saved up), you may think twice about your morning latte, or going out for dinner this Friday, when you could save the money and eat at home. Invite your friends over instead for a homemade pizza night! By staying on track and keeping your target in mind, you’ll end up reaching your down payment goal much more quickly, which is why you’ve come to Millennial Homeowner in the first place.
Go to an open house this weekend and take a look around. When you get home, put some money in your down payment savings account. This next year is going to go by quickly, so start making progress today!