By: Zack Schewe
For millennials, the quest to own a home feels like navigating a labyrinth with a blindfold on. It’s no secret that we’re facing challenges our parents never did—sky-high housing prices, stagnant wages, and the never-ending burden of student loans. But despite these hurdles, the dream of homeownership is still very much alive. Zack Schewe, a seasoned real estate expert, offers some valuable insights into how millennials can make that dream a reality, even when the odds seem stacked against us.
The reality is harsh: housing prices are through the roof, literally and figuratively. Millennials are often spending a much larger portion of their income on housing than previous generations. Saving for a down payment feels like trying to fill a swimming pool with a garden hose. But Schewe reminds us that while the path to owning a home may be tougher, it’s still one of the best ways to build generational wealth. The key is to approach the market with strategy and creativity.
In today’s market, having a stack of cash ready to go is a huge advantage. But let’s be honest, most millennials aren’t rolling in extra cash. So how do we compete? Schewe suggests starting by understanding our financial limits and focusing on properties that might not be on everyone’s radar. This means broadening our search to include homes that need a little fixing up. They might not be in the trendiest neighborhoods, but they could offer better value and less competition.
Getting creative with offers is another strategy millennials can use to stand out. Instead of just offering more money, Schewe advises working with your real estate agent to come up with unique proposals. Consider offering the seller perks like free occupancy for a month after closing or using escalation clauses that automatically increase your bid if there’s a competing offer. These tactics can make your offer more attractive without requiring more cash upfront.
A non-negotiable in Schewe’s book is the home inspection. Sure, it’s tempting to waive inspections to make your offer more appealing, but that’s a risk that can come back to haunt you. The shiny new paint and fresh carpet might look great, but they can hide serious issues. Always check the structural essentials like the roof, plumbing, and foundation before you commit.
For those not ready to buy, renting isn’t the end of the road; it’s a stepping stone. Schewe emphasizes that while rent might seem comparable to a mortgage, paying a mortgage builds equity, while rent doesn’t. Each mortgage payment is a step toward owning something tangible, unlike rent, which vanishes as soon as it’s paid. Schewe’s advice? Think of your mortgage as an investment in your future, not just another bill to pay.
Millennials are also changing the game with their buying preferences. We’re looking for homes that offer more than just a place to sleep. We want sustainability, technology, and community. These preferences are reshaping the real estate market, forcing developers and agents to adapt and offer properties that meet these new demands.
Real estate professionals like Schewe are stepping up to meet this challenge by acting as educators, not just salespeople. Schewe believes in empowering millennials with knowledge about the home-buying process. From understanding closing costs to navigating contingencies, he’s all about making sure buyers are equipped with the tools they need to succeed.
The millennial journey into the real estate market is redefining what it means to own a home. While the challenges are significant, the opportunities are equally compelling. Schewe’s insights show that with patience, creativity, and strategic thinking, millennials can not only achieve homeownership but also leave a lasting impact on the market. We’re not just buying homes; we’re shaping the future of real estate, one smart decision at a time.
Published by: Khy Talara
