7 Gen Z Homebuying Tips From a Realtor

Buying a home is one of those major life milestones that feels equal parts exciting and overwhelming, especially for Gen Z. As the first generation to grow up fully immersed in the digital age, navigating the real estate market brings challenges and opportunities.

Whether you're starting to think about purchasing a home or are already deep into Zillow searches, this guide covers some important things to consider. By making sure you don’t believe everything you see on social media, you'll be well-equipped to make informed decisions throughout the homebuying process. Here are seven tips to keep in mind if you are thinking about buying a home.

1. There Is No “Carfax” For Homes

Most of us rely on Carfax or similar services to get a detailed vehicle history when buying a used car. But when it comes to purchasing a home, there’s no equivalent.

Sure, most counties have tax and sale history, and certain startups seek to compile property information for buyers, no service will tell you all of a home’s flaws and history.

While some states require sellers to disclose what they know to be majorly faulty about the home, they do not always provide a comprehensive list of every detail. This lack of transparency can make the process of buying a house feel like a gamble. You’re investing in what might be the biggest purchase of your life without a complete picture of the property’s past.

While you can get some information from inspections and disclosures, they often don’t tell the whole story. Issues like past water damage, previous renovations, or even the neighborhood’s history can be hidden from view. Without a “home Carfax,” buyers should ask the right questions and work closely with trusted professionals like home inspectors to uncover as much information as possible before making that big commitment.

The good news is that you don’t have to complete inspections until after you have an accepted offer. Have your real estate agent build in contingencies – or conditions – into the purchase contract to allow time for inspections. If the inspections don’t go well, you can back out of the agreement.

2. No Home Will Be Perfect

It’s easy to get swept up in the picture-perfect homes you see on social media, where every room is styled just right and everything seems flawless. But the truth is, no home will be perfect, especially not from day one.

That stunning kitchen might have quirks you didn’t notice, or that spacious backyard could require more upkeep than you expected. The key is to manage your expectations and remember that homes are living spaces, not static photos. They come with their own set of imperfections, but those are often what make them unique and personal. Instead of searching for a flawless house, focus on finding a space that has potential. A home you can make your own over time.

Additionally, if a home meets 85% - 90% of your criteria, it’s worth seriously considering submitting an offer. It’s rare you’ll find a home that checks every one of your boxes, regardless of your budget. Being flexible on what you’re willing to live with will help you get on the ladder of homeownership sooner, even if it’s not your dream home. You can always upgrade later.

3. Your Monthly Payment Will Go Up Over The Years

When you hear that a mortgage payment stays the same over 30 years it sounds like a great deal, especially if your reason for buying a home is that you’re seeking long-term stability. But here's the catch: while your base mortgage payment might remain steady, the overall monthly cost of owning your home can increase over time.

Your principal and interest amount never changes as long as you get a fixed-rate mortgage.

However, your monthly payment typically includes property taxes and homeowners insurance. Both of those fees can go up annually. Property taxes might rise as your home’s value increases, and insurance premiums can climb due to factors like inflation or changes in coverage. Additionally, if you live in a neighborhood with a homeowner’s or condominium association, the community fees can increase annually as maintenance costs increase.

Create your budget with this in mind, understanding that your monthly payment today might look different in a few years. It’s wise never to spend your full budget on a home so that you have a buffer if your monthly payment increases.

4. The Internet Is Not Always Right

While TikTok videos might offer quick tips or blog posts may claim to have the ultimate home-buying secrets, not everything you see online is accurate or relevant to your situation.

Real estate is highly localized, and what works in one area may not apply in another. Plus, a blog post written a few years ago could be outdated, missing critical changes in market conditions, laws, or even the local economy. And don’t forget that everyone’s homebuying journey is different. Friends and influencers might have had certain experiences, but that doesn’t mean yours will be the same. Their advice might not consider your unique financial situation, goals, or the specific neighborhood you’re looking in.

You can use the internet as a starting point, but don’t use it as a definitive guide. Verify the information you find with trusted professionals like real estate agents and mortgage brokers as they will understand your local market and your personal goals.

5. You’re Not Too Young To Buy A Home

If you're part of Gen Z, you might think buying a home is something reserved for later in life. But the truth is, you're not too young to start thinking about homeownership. In fact, two-thirds of Gen Z is now old enough to legally buy a home. The average age of first-time homebuyers in the U.S. is around 34, but many people purchase homes well before that.

With the right planning and financial habits, buying a home in your 20s is entirely possible. The key is to start educating yourself early and making informed decisions. Building a strong credit score, saving for a down payment, and understanding the real estate market are steps you can take now to prepare.

Plus, buying a home young can be a smart investment, allowing you to build equity over time. So don’t let your age hold you back. If homeownership is a goal, you’re never too young to start planning for it.

6. Buying Isn’t For Everyone, But It Could Be For You

Buying a home is a big decision, and it’s not the right move for everyone, especially if you value flexibility or aren’t ready for a long-term commitment. Renting might be the better option if you're unsure where you want to settle or if your career or lifestyle demands mobility.

However, if you're someone who craves stability, enjoys the idea of customizing your space, or wants to build equity over time, buying a home could be a great fit. If you’re planning on staying in the same area for at least four to five years, homeownership can be the smarter financial choice. It can also offer you the opportunity to invest in your future and create a space that truly feels like your own.

It’s all about finding what aligns with your goals and lifestyle. Don’t feel pressured to buy just because others are doing it, but also don’t dismiss it as out of reach. If the idea of owning a home excites you, it might be worth exploring further to see if it’s the right path.

7. More Of Your Peers Are Buying Homes Than You Think

It might seem like homeownership is something only older generations are doing, but more of your peers are buying homes than you might think. As of January 2024, 26% of adult Gen Zers owned a home, says Redfin. That’s one in four.

While social media often makes it seem like no one can afford to buy and the goal of owning a home is unobtainable for younger people, the reality is that a significant number of Gen Zers are already stepping into the housing market. Don’t let the stigma that “young people will never be able to afford to buy a home” stop you from finding out if it’s an option for you.

With access to more financial resources, young buyers are making moves in the real estate world. Whether it’s in affordable suburbs or up-and-coming urban areas, Gen Z is finding ways to make homeownership a reality.

Ready To Make Moves?

As you dive into home buying, separate fact from fiction. Gen Z faces unique challenges and misconceptions, often fueled by the internet and social media. Navigating the real estate market as a Gen Z buyer can be daunting, but with the right knowledge and preparation, it's entirely within reach. The key is to stay informed, be realistic about what to expect, and approach the process with an open mind.

Don’t let myths cloud your judgment and make the process more daunting than it needs to be. Remember, every homebuying journey is different, and what works for someone else might not work for you. With the right mindset and preparation, you can take confident steps toward owning a home.