Studies Show Millennials Are Lacking On Full Cost Picture
Millennials are beginning to make the move to the housing market. After years of renting, fueled by a lackluster economy and loss of faith in the real estate market after the housing market crash, they are beginning to see the long-term value of buying a home and are making the transition from renters to homeowners.
While this is great news, both for their wealth building and for the housing market in general, studies show that their desire to move into homeownership may not be bolstered by a full understanding of its cost. When surveyed, two out of three Millennials who say they plan to own a home said they are “not at all” aware of closing costs.
As closing costs generally end up between two and five percent of the purchase price of the house, it is important to factor them in when budgeting for their home. Millennials, be aware that lender fees, home inspections, escrow fees, and title insurance are all costs you will face when closing. While they can be shared with the seller, you should know that you will need to budget for more than just the purchase price when deciding how much home you can afford.
Fortunately, the majority of people who know about closing costs said they learned about them from their real estate agents, so the likelihood is high that once they begin the home buying process Millennials will be informed about these additional expenses.
For information about all of the costs you can expect when closing on your next home, contact Brighton Escrow in Hermosa Beach. We are here to help guide you through the home buying process, and offer our expert escrow services to ensure that nothing will stand in the way between you and your new California home. To get the service and expertise you deserve, call us today.