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Are You Too Young to Buy a House?

Dusty Rhodes • November 25, 2024

Owning a house is often a symbol of financial security. However, purchasing a home requires a young buyer to navigate new financial hurdles and lifestyle commitments. The process can be daunting if you’re trying to balance rising housing costs with a new career and obligations like student loan debt. 


If you’re ready to start house hunting, this article will help put you on the path toward homeownership. 


Is There a Minimum Age for Homeownership?


In most states, you must be 18 to own a house. In Alabama and Nebraska, you must be 19, and in Mississippi, you must be 21. 


Someone younger could technically have their name put on a home title, such as in the case of inheritance. However, most states don’t allow minors to own, manage or sell a home until they reach the age of majority. 


What Is the Average Age to Buy a House?


The median age of first-time homebuyers has reached an all-time high of 38, according to the 2024 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR).


That’s roughly a decade older than the average age in the 1980s when most first-time buyers were in their late 20s.


Overcoming Financial Hurdles: Challenges for Young Homebuyers


These are the common obstacles that young homebuyers may face when trying to break into the real estate market.


  • Down payment and closing costs: Many buyers can put down as little as 3% to 5% to secure a home loan. However, a down payment and closing costs can pose a significant barrier to entry for young people. The Federal Reserve Bank of St. Louis indicates that the median home price in the U.S. is $420,400, which means a 3% down payment would be $12,612.
  • Your credit score: Regardless of age, one of the most significant challenges to homebuying is getting a good interest rate. A low interest rate will hinge on a good credit score, which takes time to build. Many young people may only just be opening their first credit cards in their late teens and early 20s. A short credit history can also hinder a lender’s willingness to issue a mortgage. 
  • Debt-to-income ratio: A young person who is just starting their career may not have a very high salary and could still have personal, student or car loans to pay off. Lenders will want to see a good debt-to-income ratio when providing a mortgage. 


Advantages of Being a Young Homebuyer


Purchasing real estate at a young age has many benefits, including building equity in your home and the potential for its value to appreciate over time. 


The Financial Benefits of Early Homeownership


Real estate is an investment that reliably appreciates over time. Those who buy young can often build more equity over the lifetime of their investment. 


“Every time you wait to buy, there is a gap in pricing,” explains Nikola Cejic, a real estate agent in East Hampton, New York, who purchased his first home while in high school. “Those who wait keep chasing the market and falling behind.” 

Homeowners are eligible for more significant tax advantages than renters. They can often write off home-related expenses, including state and local real estate taxes and home mortgage interest. 


Buying a Home Is a Long-Term Investment 


Real estate is America’s favorite long-term investment, according to Gallup. Compared to stocks or gold, it continues to be the primary way Americans invest. Investing in a home also gives you a tangible asset to pass on to future generations. 

NAR research reveals similar findings in its 2024 Profile of Home Buyers and Sellers:

  • 79% believe a home purchase is a wise investment
  • 39% said buying a home is better than owning stock


Predictable Costs: The Stability of Mortgage Payments


Unlike rent, your mortgage payment will be the same every month for the life of the loan. NAR indicates that 91% of first-time buyers finance their home purchase, and a mortgage is often the most costly payment an owner will make. As a result, many people find value in knowing exactly what they’ll pay every month.


However, some hidden costs of homeownership will continue to rise. These include utilities, property taxes, homeowners insurance and maintenance. Residents of homeowners associations may also see their fees increase over time.


Life Planning


Buying a home is often considered an excellent financial investment, but it’s also an investment in your lifestyle. Many homeowners prefer to own simply because it allows them more control over their residence, from paint and interior design to building a shed in the backyard. A home can also provide a sense of stability for families. 


Potential Drawbacks for Young Homebuyers 


While buying young can have significant financial benefits for those who can afford it, it’s common for young people to experience uncertainty in the future. 


Financial Strain: A Major Hurdle for Young Homebuyers 


It’s very common for young people to experience financial hardship. For those who pursue a degree, the average federal student loan borrower has over $37,000 in debt. On top of that, those who are new to the workforce typically have not reached the salaries of those 10 or more years into their field. 


The upfront costs associated with homebuying, including the down payment and closing costs, are often cited as the most significant barrier to entry. Additionally, being a homeowner means you are on the hook for any maintenance required on the property.

“You have a lot more maintenance to manage, whether that’s hiring someone or doing it yourself,” says Nikki Taylor Friedman, a real estate agent in Huntington, New York, who purchased her first home at age 25. “In addition to the mortgage payment, there are additional costs. You’re going to have to pay for wifi and utilities wherever you live, but when you own you have to pay for the landscaping, painting and staining, if a window breaks – those things are your responsibility.” 


Lifestyle Limitations: The Trade-offs of Early Homeownership


Buying a home ties you more closely to a specific geographic area. If you’re seeking a new job opportunity, relocating may be more challenging as you’ll need to either rent your home or prepare it for sale. 


Uncertainty of the Future


Young people commonly don’t have a clear understanding of what their future holds. 


“If you’re looking to purchase and you’re not sure what your life is going to look like in five years, maybe buying a big single-family home is not the ideal situation for you,” Friedman says. “But there are many ways to look at it. Can you sell and make a profit? We’ll never know what the market will look like five years from now, but we can look at the history of the cycle and determine whether or not this is going to be a good long-term investment for the buyer.” 


Are You Ready to Buy a Home?


Ultimately, whether or not you’re too young to purchase a home has more to do with financial and lifestyle readiness than age alone. 


Financial Stability


Thoroughly evaluate your finances before starting the search. You must understand your income, debt-to-income ratio, credit score and savings if you plan to buy a home. 


“You don’t want to be cash poor and on-paper rich,” Cejic says. “You don’t want to overextend yourself.” He suggests that your fixed monthly expenses should not exceed 33% of your income. This includes the monthly mortgage payment, insurance and property taxes, as well as any outstanding debt, such as student and car loans. Having three to six months of living expenses in savings is also wise. 


Lifestyle Considerations


Consider your lifestyle and what you want in a home before starting your search. This includes factors such as location, home type and the number of bedrooms and bathrooms. It also means evaluating whether or not you’re prepared to take on the financial responsibility of homeownership and property maintenance. 


If you are in a relationship, you and your partner must discuss your needs and wants and your long-term financial and lifestyle goals. 


Speak with the Experts

Purchasing a home is a significant financial decision. Consider speaking with a financial advisor or lender to determine if you’re ready to buy. Familiarize yourself with the steps involved in getting a mortgage. Consult local builders, real estate agents, and trusted friends and family who’ve recently purchased property in the same area. 


Don’t Feel Pressure to Buy 

There is often external pressure to purchase a home. Sometimes, this comes from family members, but it can also come from peers. You must feel confident in your decision to buy a house. If the desire mostly comes from a need to impress others, it’s worth it to reconsider. 


Alternatives to Homeownership


If you cannot afford the purchase price of a single-family home, or it’s simply not the right time, there are alternatives.


  • Living with family: If you have a family member you can live with, doing so can help you save money to purchase a home in the future. 
  • Renting: Renting is an excellent option if you aren’t ready for homeownership or want to live a more urban lifestyle. 
  • Multi-family residences: If you can’t afford a single-family home, consider purchasing a condominium or townhome. 
  • Buy with a friend: Cejic says, “If you and your best friend have been renting together, why not go in on a home together and put it in an LLC or a trust? It will build equity for you both, then later down the line you can sell and purchase on your own.” 


A rent-to-own property is an alternative that buyers will likely not be able to find in today’s housing market. Rent-to-own refers to a legal arrangement where a tenant pays rent to a landlord and can purchase the property later. “Sellers aren’t looking for that option right now,” Friedman says. “They don’t have to rent because they can find a buyer who could buy flat out.” 


The Bottom Line: When Do People Buy a House?


Ultimately, the decision to buy a home has less to do with age and more to do with your circumstances and financial goals. While the dream of homeownership can be enticing, it’s crucial to weigh the pros and cons carefully. You must understand the financial implications, lifestyle considerations, and potential challenges to help you make an informed decision.



Source: Homes.com



Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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3 Reasons To Buy a Home Before Spring

By Dusty Rhodes • January 27, 2025
Let’s face it — buying a home can feel like a challenge with today’s mortgage rates. You might even be thinking, “Should I just wait until spring when more homes hit the market and rates might be lower?” But here’s the thing, no one knows for sure where mortgage rates will go from here, and waiting could mean facing more competition, higher prices, and a lot more stress. What if buying now — before the spring rush — might actually give you the upper hand? Here are three reasons why that just might be the case. 1. Less Competition from Other Buyers The winter months tend to be quieter in the real estate market. Fewer people are actively looking for homes, which means you’ll likely face less competition when you make an offer. This makes the process feel less rushed and less stressful. According to the National Association of Realtors (NAR), homes sit on the market longer in winter compared to spring and summer ( see graph below ): 

Buying and Selling a House at the Same Time: Where to Begin

By Dusty Rhodes • January 13, 2025
Buying a new home while selling your current one is a balancing act. Here are some practical tips to help you succeed as both a buyer and seller. Buying a new home at the same time as you’re selling your old home is all about timing — and some luck, of course. And while you can’t control everything that happens during the complicated buying and selling process, there are some things you can do to set yourself up for smooth closings — maybe even on the same day! Consider this key information on how to buy and sell a house at the same time. Evaluate the local housing market The state of the real estate market in your area is often the biggest factor in timing your home purchase and sale correctly. Knowing what kind of market you’re in is important whether you’re just moving across town, or if you’re moving across the country. If you’re selling in one market and buying in another, you’ll need to factor that into your timing. The length of time it takes to buy and sell can vary dramatically depending on the local real estate scene. What is a buyers market? In a buyers market, there are more homes available than people looking to buy. In a buyers market, you’ll likely have an easier time finding your new home than you will selling your old home. Sellers may be willing to accept a contingent offer, which means you agree to purchase their home contingent on selling yours first — more on that later. What is a sellers market? In a sellers market, there are more buyers in the marketplace than there are homes available. In a sellers market, your current home will likely sell more quickly than you’ll be able to find a new home. Consider asking your buyers to do a rent-back after closing to allow you time to find your new place. If you’re in a... What to do Buyers market Make an offer with a sale contingency Buyers market Request an extended closing Sellers market Make an offer with a settlement contingency Sellers market Ask for a rent-back agreement Choose an experienced real estate agent Buying and selling at the same time can be complicated and at times overwhelming, so it’s helpful to have a pro by your side. An experienced local agent will not only be able to help you determine the market value of your home, but they’ll be able to talk you through timing, strategy, and negotiation. An agent can guide you to a listing price In addition to answering questions about process and helping you negotiate, one of the most important roles your agent plays is to help you find the perfect listing price — one that will help you sell on your desired timeline and for enough money to help you take that next step. They’ll use their local market expertise and comparables to inform the price. Remember to interview Don’t just go with the very first real estate agent that comes your way. Especially when you’re buying and selling at the same time, it’s important to give your business to a true professional, one who can really help you make smart decisions. And, if you’re buying and selling in the same market, consider using the same agent for both transactions to help streamline communication. Understand your finances After you’ve chosen an agent and gotten a feel for your local market, it’s time to know your numbers. Reach out to both your mortgage lender and your financial planner to see what’s feasible based on your financial situation. The amount of liquid cash, the amount of equity in your home, and the loan products you qualify for can all factor into which path you take. Determine your home’s likely resale value Part of researching your equity is knowing how much your house will reasonably sell for in the current market. Consider completing a pre-inspection so you know how much work needs to go into your house before selling, or the types of concessions you’ll have to make to a buyer to cover those repairs. Know how much equity you have in your home If you’re selling a house with a mortgage, do some initial research to find out how much equity you have — meaning the amount left over when you take the current market value of your home and deduct what’s remaining on your mortgage. Also, consider if you’d be able to purchase without tapping into that equity. Remember, the equity you have in your home won’t be accessible until after the sale closes. Buying a house before selling If you choose to buy a second home before selling your current home, here are some ways to make it happen: Make an offer with a sale contingency: In this scenario, you’ll focus on finding a new home before you list the old one. Once you find a house you love, you’ll submit your offer with a sale and settlement contingency, which means you’ll buy the home only if you can successfully sell your existing home. Typically, the sellers of the home you’re buying are still allowed to seek other offers. Contingencies typically work best in buyers markets, when the seller is less likely to get another offer. Request an extended closing: If you’re confident that your existing home will sell in a short period of time, you can request to extend the closing date of your new home, past the standard 30-45 days. This will give you enough time to sell your current home and use your home equity to buy another house. Just like with contingent offers, you’re more likely to have success with this strategy in a buyers market. Purchase with savings: If you’re in the financial position to do so, the simplest route is to use your savings to pay your new down payment, then sell your old home after the dust settles. Keep in mind that you’ll also need money to cover closing costs, inspections, and moving expenses. Purchase with a HELOC: A HELOC, or home equity line of credit, allows you to borrow against the equity in your current home. If you qualify, you could use a HELOC to access money for your down payment, then pay it off when your home sells. Purchase with a bridge loan: A bridge loan is a short-term loan offered by a bank to cover your down payment, just until your sales close. Make sure to talk to your banker about this option early in the process, because not all banks offer this product and it can be hard to qualify. Rent out your first home: If you don’t need the money from your first home to make your down payment on the new home, you could always find renters for your old home, which would allow you to cover the mortgage costs while delaying the need to sell at the same time as you’re buying. Pros of buying before selling You have somewhere to move right away . You only have to move once, which allows you to save money on storage units or temporary housing costs. You’re less pressured to make quick buying decisions, as you can always stay in your current home a little longer if you don’t find a property you love. Cons of buying before selling You may feel rushed to sell, which may lead you to take a lower offer than you would otherwise. Contingent offers are less competitive, especially in fast-paced markets. You may not have enough cash to make a competitive offer if your money is tied up in your current home. If you decide to rent out your current home, being a landlord isn’t always a walk in the park. And, when you do decide to sell, it can be a challenge to sell while tenants are living in the home. Selling a house before buying If you’ve decided to sell your current home first, here are some steps you can take to make the process a bit smoother. Make an offer with a settlement contingency : In this case, you’ll list your house first, then once you have an offer in hand (but before closing), you start looking for your new digs. When you find a house you love, you’ll submit an offer with a settlement contingency, which means you’ll buy the home contingent on the sale of your existing home closing. This works best in a seller’s market, where you can expect to receive offers on your existing home fairly quickly. Find a temporary rental to live in: Yes, you’ll have to move twice, but sometimes closing one sale before starting another one can be the least stressful option, as it takes the pressure off the timing and gives you the time to find a home you really love. Sign a rent-back: A rent-back provision is when you go through with the sale of the home, with the agreement that you can rent the home back from the new owners (and keep living in your home) for one or more days. This option can give you more time to shop for your new home, while still giving you access to the money from your sale. Keep in mind that this option works best in a sellers market, where buyers have to be more flexible with contract terms in order to get the home they want. Pros of selling before buying You know exactly how much equity you’ll have available to put toward your new home. You can easily roll your existing equity into the new purchase. It can be less stressful to close the book on one chapter before focusing on your next move. Cons of selling before buying You’ll likely have to find a temporary living situation. Storage and double moving costs can add up.

Should you close vents in unused rooms?

By Dusty Rhodes • December 9, 2024
When it comes to saving energy and cutting heating or cooling costs, many homeowners think closing vents in unused rooms is a smart move. However, doing so can lead to bigger system problems and a rise in energy bills. This seemingly logical practice to close vents in rooms not in use can backfire, leading to energy inefficiency, higher bills, and even damage your heating, ventilation and air conditioning (HVAC) system. Our HVAC experts reveal why you shouldn’t close vents in unused rooms – and what you should be doing instead. By knowing how to run and clean your HVAC system , you'll manage your home's climate efficiently. Should you close vents in unused rooms? In short, no. Your HVAC system is designed to distribute air evenly throughout your home and closing vents in unused rooms disrupts this balance, and could cause a number of potential problems. Andrew Hulsebos, lead service director at HVAC experts Reiner , has been in the industry for 15 years. He explains, 'When you close vents in unused rooms, airflow becomes unbalanced which creates additional pressure in the duct work. 'Most HVAC systems are designed to heat or cool the entire home, so blocking off sections can force the system to work harder to maintain the overall temperature, often making it less efficient, rather than more. This extra strain can lead to higher energy consumption, increased wear and tear on the system, and potentially even reduce its lifespan.' Though several issues can occur, Josh Mitchell, HVAC technician and founder of Air Conditioner Lab , explains the most common: Increased pressure in the ductwork : Closing vents can raise pressure in the system by as much as 20%, which strains your HVAC system. Duct leaks are already a common problem, with studies showing that as much as 30% of conditioned air can be lost through leaks. So, raising pressure makes leaks and energy waste worse. Reduced system efficiency : HVAC systems need balanced airflow to function at their best. When that balance is disrupted, the blower has to work harder to maintain temperatures, which means the system runs longer, uses more energy, and costs more to operate. This can reduce efficiency by up to 15%, increasing your monthly energy bill. Increased wear and tear: If your HVAC system consistently has to push against higher pressure, it’s more likely to wear out sooner. Over time, this means repairs – in the long run, it can even shorten the system’s lifespan. Mitchell adds, 'Overall, you can see why closing vents in unused rooms can create more issues than it solves.' Rather than closing vents, focus on optimizing your HVAC system for efficiency. There are several ways to do this, including using vent deflectors, changing your filters regularly, using air purifiers, improving your insulation, installing smart thermostats, and opting for a zoned heating system. Head of Solved, Punteha van Terheyden ran her heating on a constant temperature for months and saved hundreds in energy bills . 1. Use vent deflectors Vent deflectors are a good way to affect the airflow in your home without closing any vents. Mitchell says, 'Vent deflectors are a simple and budget-friendly option that maintains system balance, helping to divert air away from unused areas or into areas that need more warmth or cooling.' Mitchell recommends the Thermwell HD5 Heat and Air Deflector, available from Amazon , which comes in packs of four. 2. Change filters often Changing air filters regularly can greatly improve your system's effectiveness. Adam Ross, owner of Florida-based HVAC experts Aircon Repair , says, 'It is crucial for homeowners to change their air filters every 90 days to improve flow and avoid contaminants in the air. 'People often don't realize that clean filters help you save money by preventing your AC system from getting overworked, which leads to higher energy consumption. It also prevents overheating or freezing – and costly, unnecessary repairs.' Though options will depend on your specific air conditioning system, Ross recommends this Filterbuy MERV Air Filter from Amazon , which is compatible with several common models including Trane Perfect Fit, and American Standard. 3. Add air purifiers Having one of the best air purifiers can further enhance a filtration system's work around your home. Ross says, 'While air filters help a lot in filtering unwanted contaminants, it may not be enough. This is the reason why we recommend using an air purifier to further remove dust and debris, which reduces the strain on your system, allowing it to function more efficiently. 'Some air purifiers – such as the REME HALO Whole Home In-Duct Air Purifier – also contain UV light that significantly improves air quality indoors by reducing bacteria, viruses, odors and mold spores in the air and on surfaces. It saves a lot of money, not only by reducing energy consumption but also keeping you and your family in good health.' Check out our expert guide on what to look for in an air purifier . 4. Improve insulation Keeping your home air tight ensures conditioned air does not escape, and prevents unfiltered air from entering. Failing to do so is a common heating mistake that increases energy bills . Ross says, 'Air leaks increase workload on your heating and cooling systems so it is important to seal even the tiniest cracks. Leaks around windows, doors, ducts, and attics allow warm or cool air to escape, causing HVAC systems to work harder to maintain a stable temperature – this increases energy consumption and utility bills. 'Products like caulk, weather stripping, and foam can seal these gaps, boosting HVAC efficiency, reducing energy costs, and extending the lifespan of your HVAC system.' Ross recommends Touch ‘n Seal Gun Foam II Sealant, available from Amazon . He adds, 'It's a high-performance sealant that's got residential fire blocking approval.' Learn more about the areas of your home pros say you should always insulate . 5. Go Smart Smart vent systems are a great option if you're looking for more control of your home's heating. Mitchell says, 'These programmable vents are a more advanced solution for controlling airflow. Products like Flair Smart Vents, available from Amazon , allow you to adjust airflow in each room based on temperature sensors. Since they’re designed with HVAC systems in mind, they automatically adjust to prevent pressure buildup, which makes them a safer option than manually closing vents.' Ross says, 'Imagine coming home to an already cooled home after a long hot day! Many of these systems can be controlled through your smartphone, which transports control of your whole AC system into your hands.' Ross recommends the Amazon Smart Thermostat , which can be controlled remotely in several ways, including via Alexa or your Ring doorbell. Ecobee Smart Thermostats are also highly popular with our experts thanks to their reliability and slick tech. 6. Zone heating systems If there's one situation where closing vents is recommended by our experts, it's where a zoned heating system is installed. Mitchell says, 'Zoned HVAC systems are designed specifically to heat and cool areas independently, using dampers that regulate airflow. In these setups, closing vents in unused rooms is actually part of how the system is supposed to operate. 'If you’re considering room-by-room temperature control, zoning can be a worthwhile investment. It lets you control temperatures in different rooms or 'zones' without creating the pressure issues that come with closing vents in standard setups. This can be especially helpful for large or multi-story homes where different areas often need different temperatures.' The Keen Home Smart Vent Pro is a popular zoned heating system with our experts. Controlled via an app, this is one of the more affordable systems on the market that allows for room-by-room temperature control. Check out our guide for more ways to improve ventilation in your home and watch out for these common household items that are polluting your air . FAQs Does partially closing vents save energy? Partially closing vents disrupts airflow and creates unnecessary pressure in your HVAC system. It’s best to leave vents fully open and explore alternative solutions, like programmable thermostats or zoning systems, for better energy management. It's a good a time as ever to check if your home is showing signs it needs vapor barriers installed . What are signs of HVAC pressure imbalance? Signs include uneven temperatures, loud airflow noises, or a system that cycles on and off frequently. Addressing these issues quickly can prevent further damage and improve your HVAC system's performance. Do vent covers help save energy? Magnetic vent covers can help temporarily redirect airflow but won’t address the root cause of inefficiency. For long-term energy savings, consider upgrading your HVAC system or improving insulation in your home. So there you have it – HVAC pros reveal you should not be closing vents in unused rooms unless you have a zoned temperature system and shared what to do instead. Closing vents in unused rooms may seem like a quick fix, but it’s more likely to harm your HVAC system and increase energy costs. By focusing on smarter solutions, you can save money while maintaining comfort and efficiency throughout your home.
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