What millennials get wrong about homebuying: A real estate pro weighs in on 5 costly mistakes

Whether you're a millennial aiming to buy your first home or a parent watching your adult child navigate a tough market, you're not imagining it: Homebuying really has gotten harder for younger generations.

Millennials born between the early 1980s and mid 1990s are now 28 to 43 years old — right in their prime homebuying years. Yet progress has stalled. According to recent data from Redfin, millennial homeownership rates have plateaued after more than a decade of steady growth.

While the market is undeniably tougher now, many millennials are unknowingly making mistakes they regret later. We talked to a top-performing realtor for the scoop on millennial homebuying regrets — and the smart moves that pay off.

1. Overpaying on interest rates

One of the most common regrets among millennial homeowners isn't the house they bought. Rather, it's the mortgage rate they accepted.

"Too many buyers get caught up in advertised rates instead of shopping around," says Alexis Scott, a licensed real estate agent leading the Alexis Scott Home Team at Keller Williams Greater Downtown Realty in Tennessee. "I always recommend getting multiple quotes, asking lenders about discount points and exploring loan strategies before locking in. I also advise buyers to negotiate for the sellers to pay a 2/1 buydown instead of just asking for money off the list price. This creates thousands in savings during the first couple of years when the bulk of your payment is going toward interest."

✅ Avoid this regret: Compare offers from at least three lenders, including credit unions and online options, and consider alternative loan strategies like adjustable-rate mortgages, assumable mortgages, portfolio loans, points, 2/1 buydowns and floating rate locks. Overall, don’t assume rates will fall in the future.

2. Going in without enough knowledge about the process

About 15% of millennials regret not knowing more about the homebuying process before they started, according to Real Estate Witch. This is understandable — for most people, buying a home is the largest financial transaction of their lives, yet it's not something most of us learn about in school.

Scott has strong opinions about getting the right help: "Not all realtors are created equally. In fact, I say most are overpaid while the true rockstars are underpaid. Read reviews, ask trusted sources for recommendations and sit down for a buyer consultation before you even start looking at homes."

✅ Avoid this regret: Always interview several local agents, read their reviews online and make sure you find someone who's truly a market expert in your area — not just someone who's available.

3. Rushing into the wrong house

Whether it's a sketchy neighborhood, nightmare neighbors or a fixer-upper that becomes a never-ending construction project, millennials might feel rushed into purchases they regret. The pressure to finally get into the market can lead to compromising on things that really matter over the long term.

Scott's advice: "Do your due diligence. For example, if the school zone matters, check it on a third-party website. If lot size is important, confirm it with the tax assessor's office." Her best advice is to make a clear list of your true "must haves" versus "nice to haves" before you start looking.

✅ Avoid this regret: Verify key details through third-party sources, not just the listing (which can be inaccurate). Drive through neighborhoods at different times of the day or week to get a real feel for where you might be living. If you're eyeing a fixer-upper, get contractor estimates first and budget at least 30% more than quoted.

4. Waiting for the 'perfect' market

"Millennials also tend to wait for perfect market timing," says Scott. But here's the reality: "You can never time both sides perfectly. Either buyers or sellers have leverage, and most people are doing both simultaneously. Instead, focus on whether it's the right time for you. You only lose money if you sell in a down market.”

✅ Avoid this regret: Focus on your personal readiness rather than market conditions. Before buying a home, ensure you have a stable job and clear plans, and prepare to stay in the home for at least five years. Property values can decline in the short term – which means you can lose a lot of money if you need to sell quickly.

5. Getting blindsided by ongoing expenses

Another regret among millennial homebuyers is failing to budget for maintenance and other costs associated with homeownership — things like replacing a water heater, fixing air-conditioning or handling roof repairs.

Scott gets specific: "In my area, an active termite contract runs about $500 annually and can prevent tens of thousands in termite damage. Cleaning your gutters twice a year and adding $15 downspout extensions can protect your foundation from drainage issues that cost tens of thousands to repair."

✅ Avoid this regret: Budget for 1% to 3% of your home's value annually in maintenance costs. On a $400,000 home, that means setting aside $4,000 to $12,000 per year for upkeep, separate from your mortgage, taxes and insurance payments.

Written by Kat Koki