Top Tips For First-Time Richmond Virginia Homebuyers
Three Tips for First-Time Homebuyers
Buying your first home is a life changing decision and an amazing achievement. Even if it seems overwhelming at times, it can have a positive impact on your future. If you're thinking about buying your first home, you may be asking the following questions:
What's the housing market like?
How much should I save?
Where do I begin?
It's as easy as 1-2-3... Here are three tips to provide you as much information as possible to make informed decisions throughout the buying process.
1. Weigh All Your Options
In today's market, there seem to be more buyers than there are homes for sale. In this scenario, the best idea is to attempt to broaden your options. How?
Expand your home search to encompass a variety of styles of housing - think rancher, colonial, tri-level, split-level, cape cod, etc. You may even want to consider a condo or townhome, which typically have less competition than a single-family home and may cost less is a similar area. And... don't forget the perks of low maintenance living.
Condos and townhomes may be a good foundational start into home ownership since you are still able to build equity and increase your net worth, ultimately, enabling a future home purchase.
2. Don't Let The Downpayment Discourage You
Saving for a down payment may seem like an astronomical task, but it doesn't have to be. According to the National Association of Realtors (NAR):
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership... However, in actuality the typical down payment for first-time buyers has ranged between six to seven percent since 2018.”
The graph below shows the median downpayment by age group according to data accumulated for NAR's 2022 Home Buyers and Sellers Generational Trends.
In fact, the median down payment for all homebuyers is only 13% which is substantially below the 20% rate that is often quoted. Notice that it is even less for younger purchasers, so chances are you don't need to save as much money as you thought to cover a down payment on a home.
And don't forget, there are assistance programs that offer help with down payments and some lenders advertise anywhere from 0% to 3.5% for certain qualifying borrowers. This is not to say that a 20% down payment is a bad idea, but as you consider a home purchase, it is often helpful to know your options. If you would like additional information, I can put you in touch with local lenders who work with relocation clients all the time.
3. Connect With A Trusted Real Estate Advisor
Finally, no matter where your homeownership adventure may lead, a trusted real estate advisor will guide you to your final destination. Let's connect! I'll walk you through every step of the process and together we will work to achieve your real estate dreams.
My goal is to provide you with as much information as possible in order for you to make informed decisions throughout and decisions that you will be happy with for years to come. I work with a team of professionals that collaboratively will help you to strive towards achieving your real estate goals, including a pre-approval letter from a trusted local lender.
Just let me know when you are ready to begin your search. I will provide you with an understanding of the local RICHMOND VIRGINIA market, help you identify available homes that meet your search parameters. And when it comes time to make an offer, I will help you to put together a strategic package for the seller's consideration.
The End Game
As the old saying goes, "Knowledge is power" and it is certainly the key to unlocking the door to your home purchase. Being aware of market trends, down payment requirements, and today's options can boost your confidence and your success as you prepare to begin the home-buying journey. I look forward to being a part of your team!