Though it has become more elusive than in previous eras, homeownership still remains a central goal for a great many Americans. Homeownership is pursued among all generations and demographic groups – Baby Boomers, Generation X, Millennials, etc. – nearly everyone wants to become a homeowner at some point. In a recent Zillow survey, however, millennials were more likely than any other cohort to express regrets about rushing through the home buying process and about their mortgage selection. In this post, we’ll go over the results of this survey and comment on why this is more likely to happen among millennials.
Millennials and the Home Buying Process
According to the Zillow survey, 81% of younger home buyers (i.e. between the ages of 18 to 34) had at least 1 regret about their purchase. This is comparatively high, as only 65% of those 55 and older had at least 1 regret. What’s more, younger buyers are also more likely to express dissatisfaction with their mortgage interest rate and their mortgage product type. On top of that, younger buyers are more likely to say they regret having rushed through the home buying process. A total of 29% of younger buyers regretted rushing, compared with just 12% of older buyers.
The reasons behind these disparities are not entirely clear, but the report includes some speculations. The report suggests that younger buyers are less experienced and are therefore less likely to conduct an adequate search. Younger buyers are usually first time home buyers, often still living with family at the time of their purchase. Their circumstances can therefore increase their eagerness to get the process finished and make a purchase before fully considering every variable or opportunity.
The report did include some encouraging information on younger buyers, however. Younger buyers are highly likely to contact multiple lenders when searching for a home. The fact that they’re also more likely to express unhappiness with their mortgage interest rates may simply be due to the fact that they tend to have relatively high debt loads and so they may have limited access to better rates.
Always Take Your Time
No matter how eagerly you may wish to become a homeowner, you should always take your time when you go through the buying process. Owning a home is a great goal, but the last thing you want is to select a property prematurely before you have a chance to search the market thoroughly or consider all of your mortgage options. Getting stuck with something which doesn’t really meet your needs is not a good position to be in. When it comes to buying a home, don’t rush, just relax, carefully survey your choices, and remember that you should walk away from something if it doesn’t completely satisfy your needs.
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