Think about how much your life has transformed from January 1st of this year to today. For some, 2020 brought major changes in work life with offices closing and employees shifting to home offices. Others took advantage of the situation, moving back in with family to save a little extra. No matter your specific circumstances, it’s clear that 2020 has been full of challenges—and this is especially true for first-time homebuyers.

Buying your first home is already a daunting task, and the current world climate has made it even more complicated. While the home buying process itself has remained the same, those searching for a new home must navigate social distancing protocols, fluctuating markets, and evolving regulations before they can even think about signing on the dotted line.

If you’re ready to move out of your apartment and into your first home, or you’re simply looking for a more permanent living space, here are four key factors to keep in mind when navigating the home buying process in 2025:

Virtual Tours: The Future of Home Buying in 2025

House tours have always been a pivotal part of the home buying process. A beautifully staged home and a persuasive realtor can help even the most uncertain buyer envision the space as their own. For many buyers, home tours play a major role in the decision-making process, alongside the confidence of a reliable home inspection.

But what happens when an in-person tour isn’t possible? To overcome this challenge, many realtors have embraced virtual home tour technology, offering buyers a new way to explore homes from the comfort of their own space.

3D virtual tours elevate the online home-buying experience, offering a much more immersive view compared to static photos. These tours let prospective buyers explore every corner of a home, viewing how each room flows into the next and helping them feel like they're walking through the property in real time. Virtual tours also make it possible for first-time homebuyers to consider properties that are far from their location, which they might have otherwise missed.

However, there are a few important considerations for first-time buyers when it comes to virtual tours. It’s a good idea to ask your realtor about any specific odors, loud noises, or other sensory experiences that might not be conveyed online. These elements can make a significant impact on your decision but don’t translate well over a screen. Additionally, make sure to explore the neighborhood virtually as well, to ensure the surrounding area fits your lifestyle needs.

By considering these factors, you can get a more well-rounded view of your potential new home—even when you can’t be there in person.

Home Size: Choosing the Right Space for Your Future

The events of the past year have likely altered not only how you search for homes, but also what you prioritize in a new property. With shelter-in-place orders and social distancing measures, many new homeowners are seeking different types of features to make life during—and after—the pandemic more comfortable.

Remote work has made dedicated home office spaces a necessity, and homes with spacious outdoor areas, from cozy screened-in decks to expansive patios, are more in-demand than ever. Additionally, properties with rooms designed for specific purposes, like a media room or wine cellar, have also gained popularity in recent months.

When shopping for a home, it’s important to think about both your current needs and those you may have in the future. While a larger home might come with a higher price tag, it could ultimately save you time, money, and effort if you can avoid needing to move again in just a few years. To ensure you don’t overextend yourself financially, it’s wise to calculate how much home you can afford in your current financial situation. By using these resources, you can find the right balance between upgrading your living space and protecting your savings.

Competitive Markets: Navigating the Heat of Homebuying

If you’ve already started your home search, you’re probably familiar with the frustration of losing out on your top choice to someone who made a better offer. While high-demand markets like New York City and San Francisco often make headlines, even smaller suburban neighborhoods are seeing a surge in interest as people leave the high costs and crowded living spaces of city life behind.

With the increase in demand, homes are selling faster, and the number of offers on each property is growing. The best way to handle a competitive housing market is to stay adaptable and open-minded. Embrace the idea that opportunities may come and go, and don’t get discouraged if your search extends into the weeks or months ahead.

To make sure you don’t miss out on any opportunities, be prepared. First-time homebuyers who have their financial documents, paycheck statements, and other necessary personal information ready to go are more likely to act quickly and stay competitive in a fast-moving market.

Savings and Stability: Preparing Financially for Homeownership

Ask any financial advisor, and they'll emphasize the importance of having a solid savings foundation. However, in light of the challenges presented by 2020, the value of a well-funded savings account has become even more evident. Depending on the stability of your income, experts often suggest keeping enough savings to cover at least six months of living expenses to cushion against unforeseen circumstances.

Before purchasing your first home, it’s crucial to assess your savings. While not having a large amount saved up doesn't automatically disqualify you from buying a house, it will leave you more vulnerable to unexpected costs—whether it's closing expenses or surprise repairs like an HVAC replacement.

Similarly, having a stable income is vital. A steady paycheck makes it easier to manage your monthly mortgage payments and ensures you’re in a strong position when applying for a loan. Inconsistent employment could not only impact your mortgage eligibility but also the size and terms of the loan you receive. A reliable income is a key indicator that you’re financially ready for homeownership, and this habit of financial stability will continue to benefit you long beyond 2020.