A new online resource for first-time homebuyers

The millennial generation of first-time homeowners now represents 38% of the real estate market. But, most of these buyers don’t know where to start when it comes to purchasing their first home. This generation is so used to doing business online and now a new online resource, balsa, is here to help. We sat down with the owner, Ruffin Mitchener to find out the concept behind the company.

HOW DID BALSA GET STARTED?

“How much do you pay in property taxes each year?” “How much do I need to save for a down-payment?” These are just examples of the many questions I received, and continue to receive, from friends after buying my first home, an apartment in Santa Monica, CA. Surprised by these questions, I began to realize the startling lack of resources available for young people today on this incredibly impactful subject. And, I have to admit, even though I grew up in a real estate family, I was just as clueless before becoming a first-time homeowner myself.

Jumping into the buying process blind, I was very fortunate to receive thoughtful guidance from both my mom, a Realtor® for over 30 years, and local representation. I realize, however, that not everyone has access to advice from similar leading industry professionals. And even though I had great advice, I still wish I had gone into the process with a better overall understanding of the homeownership journey. The purchase process moves extremely FAST, especially in a market like today, so more knowledge would have allowed me to make quick and confident decisions throughout.

From my reflections on my first-time homeowner journey, I decided to launch balsa, where we are working to build the go-to online resource promoting equal access to real estate education so that everyone has a fair chance at generational wealth.

WE HAVE BEEN READING SO MUCH ABOUT MILLENNIALS BUYING HOMES RECENTLY, IS THIS AN AUDIENCE YOU ARE TRYING TO REACH?

Yes! Similar to my personal experience, buying a home feels especially daunting and overwhelming for this generation of future homeowners. And there’s a good reason for that. Our research shows that millennials are burdened financially unlike any generation before. From student debt to rising real estate prices, higher rent to incomes, recession impacts, and more. On top of that, financial literacy as it relates to homeownership is poor. Studies show that only 17% of renters know the minimum downpayment required, and only 19% feel confident about the mortgage process.

WHAT SERVICES DOES BALSA OFFER?

Through financial education, balsa can help renters better understand the different avenues to owning from low down-payment programs to first-time homebuyer grants and more. Our current services include informational articles, first-time buyer success stories, and bite-size education shared via social media channels. In the future, we hope to provide real estate professionals with the resources necessary to educate and connect with this future generation of clients.

WHAT IS THE BIGGEST PIECE OF ADVICE YOU CAN GIVE TO A FIRST-TIME HOMEBUYER?

For current renters, even if buying a home feels far away, it’s always smart to set a down-payment savings goal now! With real estate prices on the rise, it can take years to save enough in some markets. To set a simple goal, take a look online at the prices of starter homes in your area. Do a simple calculation of 25% of that purchase price. This captures 20% for a future down-payment and an extra 5% for miscellaneous upfront closing costs. Do keep in mind, however, that although 20% is widely believed to be the standard down-payment, on average first-time buyers put down just 6% of the purchase price. You can even speak to a local lender to get a better idea of what loan products you might qualify for now or in the future.

Mitchener also raises a great point about schools not teaching about mortgages and other financial education. “We are coached through everything else in our lives, but when it comes to making one of life’s first and biggest financial decisions, suddenly, it’s every man for themselves,” she says. To learn more about this great resource, visit the website here, and don’t forget to add yourself to the email list. It’s never too early to start preparing for your first home purchase.

A NOTE FROM RUFFIN MITCHENER, THE CREATOR AND FOUNDER OF BALSA ON HOME:

I am starting balsa as a means to share not only my unique access to a network of industry experts, but also the stories of other first-time homeowners. Our goal is to inspire hope in those of you who have unfairly written yourselves off. As well as, provide readers with lifestyle and décor tips that will be sure to reignite your enthusiasm on the subject of all things home.