Buy in the best neighborhood you can afford. It’s better to buy a smaller home in a better area than a larger home in a less desirable area, because when the time comes to sell, your home’s value will have increased more than the home in the less desirable neighborhood.

According to National Association of Realtors data on first-time homebuyers:

• 42 percent of home sales over the last twelve years were to first-time homebuyers.
• 70 percent bought a home because they wanted to own real estate and establish a household.
• 75 percent rented an apartment or home prior to buying a home, and 18 percent lived with their parents.
• 52 percent were twentyfour to thirty-five years old and 21 percent were thirty-five to forty-four years old.
• 28 percent plan to live in the home for at least five years.
• 51 percent were married couples, 11 percent unmarried couples, 25 percent were single females, and 11 percent were single males.
• 73 percent used their own savings as down payment, 22 percent received gift funds, 98 percent used a mortgage to finance their home, and 81 percent chose a fixed-rate mortgage.

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