In the Market: On emojis, contingencies, and millennial dreams
This feature is a real estate news and information roundup from a millennial’s point of view. When a young professional moves from Indianapolis (median home price $125K) to San Francisco (median price $1 million), you can expect an adventure. Nneka Madus, an analyst in Bank of the West’s Mortgage Division, did just that and has plenty to share in her quest to own a home in San Francisco.Buyer’s remorse — from the new shoes you just bought to the steak that isn’t settling so well in your stomach. These are relatively minor issues, but what happens when you purchase a home? For example, you’ve made a down payment on a home only to find your own Niagara Falls in the kitchen every time the shower runs upstairs. Hopefully, you have some contingencies in place to protect you from purchasing a home with expensive repairs. Hal Bundrick explains in this NerdWallet article how contingencies may help protect all buyers, not just first-time homebuyers. If something does go awry, contingencies may be your best friend because they give you an out. For fun, can you translate this sample letter to a potential borrower written by a Minnesota real estate agent entirely in emojis? I’m an emoji queen and it was pretty tough for me; try it for yourself! If you get stumped, HousingWire’s Brena Swanson has the answers. The mortgage process can seem overwhelming, especially as a first-time home buyer — particularly the amount of documentation and paperwork you’ll be given. The good news is that the Consumer Financial Protection Bureau is requiring banks to give you more time to review loan documents. Daniel Goldstein of MarketWatch discusses some of the changes that will affect borrowers. What type of housing do millennials prefer? Condo? Townhome? Single-family home? I would venture a guess that most millennials would prefer to live in a condo or townhome; simply because of the low maintenance aspect. If you guessed condo, we would both be wrong. In Brena Swanson’s Housing Wire article, 25- to 35-year-old homeowners are more likely to reside in a single-family home, based on Fannie Mae research. I may be biased toward a condo because of the cities that I’ve lived in. Outside of Indianapolis, I’ve lived in Chicago and San Francisco, where condo and townhome living is the norm. Considering that most millennials reside outside of major metropolitan areas, it makes sense that many want a single-family home. I still want a townhome.