Millennials might have a reputation of crazy twenty-thirty somethings, not quite ready to settle down with a house and mortgage because they would rather see the world and enjoy life.

But, according to a report AlphaBeta commissioned by Afterpay, millennials make up 44% of Australia’s workforce. Ready or not, as the spending power shifts away from the Gen X, the millennial boom is coming to real estate.

Whether you count yourself in that demographic or are just a first-time homebuyer. There are some topics in the buying process that are essential to know before taking the plunge.

We’ve compiled a list of the eight most important things that everyone new to the housing market needs to know. Look them over and keep them in mind as you start your housing search. You only buy your first home once, so let us help you make it count.

1. Get friendly with your local real estate agent

Real estate agents often get a bad rap as swindlers who want a quick sale so that they can pocket a fat commission. Yes, there are agents who are transactional but there are also professionals out there who are willing to assist a new buyer with truthful advice.

Your first time in the real estate market can get confusing. There’s lots of price negotiation and large sums of money are often involved. There is no reason to add on the stress of having to navigate through the transaction alone, especially if you are unsure about how the property market operates.

Just keep one thing in mind, if the agent you are getting chummy with is the selling agent, they have the sellers best interest at heart not yours.

2. Do your budget

Your budget is the first thing that you need to look at when getting ready to buy a home.

After all, it determines which properties you see and you don’t want to find yourself in a situation where you miss out on the perfect house because you’re not sure how much you can spend. Or, worse yet, find yourself falling in love with a dream home you can’t afford.

Budgeting is the way to make sure that you only look at houses that you can feasibly and comfortably. Doing so will help you save time and help you get into your new property much faster.

Sit down and budget your income versus expenses. Try to settle on two amounts: One figure that shows the amount you’d be comfortable spending monthly and another that shows your absolute maximum. You can use a budget calculator to help, if necessary.

3. Focus on what’s important

We all have a wish list for our future dream homes. Whether it’s one with a open plan kitchen or fabulous outdoor pool setup, odds are you know what you want and exactly how it should look. We’re happy to tell you that can take some your wish list with you when looking at properties, just not all of it.

When it comes to looking at real estate and especially when you are looking at entry level homes, prioritization is key. You may not get every item on your list, but if you narrow it down to the features you absolutely need, you’ll likely end up happy with the result.

So, make two lists. One with items that are absolutely necessary like the number of – bedrooms and bathrooms in a home – and another for nonessential items that would make you happy to have in a home.

Focus on finding properties that check off all of the items on your first list and think of items on the second list as added benefits.

4. Focus on Location

As for what should top your wish list, location is absolutely key. If you think about it, it is the one feature of your new home that absolutely will not change. Since you’re unable to alter it in any way, take the time to make sure that it will suit your needs for many years to come.

Before putting an offer in on a property, do your homework. Map out how long it will take you to get to work or school. Check the proximity to all essential spots like supermarkets and medical clinics. Make sure you’re happy with the number of cafes in the area, so that you don’t have to drive too far for your Sunday breakfast.

5. Focus on the bigger picture

When you get to start attending open homes as part of your property selection, it’s exciting and overwhelming. You’ll be seeing a lot of houses rather quickly. Sometimes it can be hard to separate one property from the other and to pick out the features you like the most.

In an effort to keep everything straight, many first-time buyers have a tendency to identify properties by focusing on the small details – a wallpapered dining room or some vinyl flooring in the kitchen. But, continually focusing on the small details can hurt in the long run, if you decide not to move forward on a house because of them.

Instead, every once in a while, try to force yourself to take a step back and look at the bigger picture. Is the house structurally sound? Does it require any monumental repairs? As long as those things are okay, small details like wallpaper can be fixed later down the road.

6. Make your first offer, reasonable

Real estate is one of the few areas where sale price is still up for negotiation. Unfortunately, this means that many people, especially those like first-time homebuyers who may be working on a lower budget, go in to the buying process with the mindset that they can try and score a deal on their new property.

However, by doing so you may actually be setting yourself up for disappointment. If there’s another offer on the table, submitting an offer that is far below the sale price will almost certainly put you out of the running. Even if there is no other competition for the property, a super low offer may insult the sellers and they could decide to reject it as a result.

When you’re thinking of what price you’d like to put forward, ask yourself how you would feel if you received the same. If you would turn your nose up at an identical offering, consider going in a little higher.  

This particular piece of advice comes with one caveat. If you absolutely love the property, go in with your best foot forward. However, if you feel lukewarm about the house, feel free to try and score a deal.

7. Order a property Inspection

It’s true, building inspections are optional, some people choose to skip them to avoid paying the upfront costs. However, especially when it’s a free-standing house, we do not recommend skipping them. In fact, we suggest you gather as much inspection information as possible.

This is because inspections can often reveal hidden issues like expensive repairs. Plus, since buyers are still able to walk away from the transaction during their inspection time-frame, if you find that the repairs are too much to handle, you will be able to move on to another home that better suits your needs.

However, if you opt out of your inspections, you are essentially agreeing to take the home in its current condition, whatever that may be. If you happen to find a major issue later down the road, it will be your responsibility. Whenever possible, get the information upfront.

8. Be respectful while negotiating

Before you’re under contract and headed to settlement, every decision becomes a negotiation – who will shoulder the cost of repairs, what items will get left behind, even when settlement will be. The best thing that you can do in these situations is to work at keeping a level head.

It can be easy to get over invested in getting your way, particularly when making a decision that you are truly passionate about. But, remember that successful negotiations work on a system of give-and-take.

Stand your ground when you believe that you have a cause and try to do so in a polite and respectful manner. However, don’t underestimate the power of striking a compromise or ever conceding on issues that aren’t so important to you.

You never know when that act of good will may be returned by the sellers.

Millennials, what questions do you have about the housing market? Do you have questions about your borrowing capacity? Book your free consultation with an expert here.

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This article via Freshome does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.