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WHAT I WISH I HAD KNOWN IN MY 20s ABOUT HOME OWNERSHIP

Start preparing well in advance: Start exploring the idea of becoming a homeowner long
before you’re ready to buy. You will want to look at a lot of homes for sale and get familiar
with the process. Exploring websites like Redfin and Zillow, walking through neighborhoods
you like, going to Open Houses…all of these will help you understand what’s out there and what
you can afford. This will give you a realistic look at what you need to do financially. To begin,
start paying down your debt and building up your savings.

Where do I start? Start with something you can manage. You don’t want your first home to be
too much of a money burden or more house than you can take care of. Remember, when you
become a homeowner, it’s all on you…there’s no landlord to call when the roof leaks or the
water heater breaks. Don’t stress too much about “Is this where I want to live forever?” This
first home can always turn into an investment property. There’s a general rule of thumb when
buying a home: you don’t want the nicest house on a not-so-great block but rather the most
modest home on the best street. The bigger and fancier houses around you will pull up the
value of your home. With a little bit of work and sweat equity and a few years’ time, you’ll be
able to sell your home at a nice profit, giving you the ability to now buy a nicer home.

Be practical: When buying your first home, weigh your must-haves against your dream wish
list. You’re still in your 20s, and if you buy smart, this will set you up for being able to
eventually buy your dream home, hopefully sooner than you think!

 

Be prepared: Have some savings for when things go wrong. It’s not a bad idea to have two
funds: one for emergencies and another for maintenance costs for the home you’re buying and
for some basic furniture. You will also want to have some money set aside for closing costs and
to address the repairs that will come up in the inspection.

Use a good realtor: Work with a knowledgeable realtor you are comfortable with, but don’t be
afraid to ask for more right up front. You can be firm about what you need. After all, the sellers
can always say no, but they certainly won’t say yes if you don’t ask.
Buying your first home can be a daunting prospect! Approaching this major goal with some
hatting, knowledge and preparation can set you up for a big win!

At RWT Design & Construction, we consult with many home buyers, often during the inspection
stage of the sale, while the house is still in escrow. With our 30+ years of experience in home
repair and remodeling, we can help you decide if this home is the one for you.