First-time homebuyers becoming first-time home sellers

Among Gen Z sellers, 35% said they bought too soon, while 40% admitted they didn’t consider long-term lifestyle needs. Millennials were more focused on financial miscalculations — 37% underestimated maintenance costs, and 31% failed to account for inflation and interest rates. The instability of remote work also played a role, affecting 29% of Gen Z and 23% of Millennials.

Fernando Chavarria, a Keller Williams Realtor operating in Atlanta who spoke to HousingWire, said he agrees with the Opendoor findings. “It’s 100% true. Because of inflation and the cost of everything going up, some of these repairs can be thousands and thousands of dollars more than they used to be, and people are not prepared for them,” Chavarria said. “Then I think what’s happening is a lot of people want to buy a house, but because of the high rates and everything just costing more, they’re kind of maxing out what they can purchase.

“Somebody who has a budget of $3,500 a month, they’re kind of seeing what is available in that range, and they pick the best house around that monthly payment, right? Whatever that looks like, they’re kind of maxing out with the debt-to-income ratio. They’re getting a loan. They’re not leaving a lot of room for repairs or just having savings and things like that. A lot of these folks are buying because they have kids, and they have to be in a certain school district. There’s a lot of stress that they’re experiencing just over the how expensive it all is,” Chavarria said.

The decline of the “forever home”

Traditionally, homeownership has been associated with permanence, but that mindset is changing. Opendoor found that 68% of first-time sellers no longer see a “forever home” as realistic, and 81% are selling properties they once expected to own indefinitely.

Despite an increase in how long homeowners are staying in their properties — about 2.3 years longer than a decade ago, due to high prices and limited inventory — many are shifting their focus to flexibility. Among Gen Z and Millennials, nearly 40% see their next home primarily as an investment rather than a long-term residence. In contrast, Gen X (44%) and Baby Boomers (40%) remain committed to the idea of a forever home.

Delaying the next purchase, setting priorities

With affordability concerns looming, many first-time sellers are hesitant to re-enter the market. The survey found that 64% of sellers are delaying their next purchase, instead opting to rent, move in with family or wait for better conditions.

Baby Boomers expressed the most uncertainty, with 21% unsure of their next move, seven times the rate of Gen Z (3%). While 40% of Gen Z and 38% of Millennials plan to buy immediately, others are choosing to wait for improved market conditions (20%) or rent before purchasing again (20%).

Chavarria said he doesn’t see home prices lowering any time soon but laid out a few ways that affordability could still be improved.

“I do think the price of a mortgage should go down,” he said. “It could be something like having a special loan with a lower rate for those buyers. They do have grants. Grants can throw something like $25,000 at a house. That helps when you’re purchasing but doesn’t really help on your month-to-month.

“Rates are around 7%, 6.5% for some folks, especially if they have good credit and income and everything. There should be something that says, ‘You’re buying your first house, and because it’s your very first house, that can be 4% or 4.5%. Or, if you make under this amount of money, if you there’s an income limit, then you’ll get a lower rate.”

The selling process itself has proven to be a challenge, with 77% of first-time sellers admitting they were unprepared. The primary difficulty cited was the effort required — 63% were surprised by the demands of staging, showings and repairs, while 37% were caught off guard by the emotional toll.

Control and convenience have become key priorities for sellers, with 87% expressing a desire to customize the process to fit their needs. This sentiment is particularly strong among younger generations, with nearly 90% of Gen Z, Millennials, and Gen X seeking more control, compared to 73% of Baby Boomers.

Motivations for selling vary by generation. Gen Z is primarily driven by lifestyle changes (30%), while Millennials cite major life transitions such as job relocations or family growth (30%). Financial factors, including mortgage rates and home equity, are the main drivers for around one-third of Gen X and Baby Boomers.

Convenience over profit

Selling a home remains an emotionally draining experience, with 75% of respondents reporting feelings of anxiety and exhaustion. Baby Boomers were the least affected, at 61%, while nearly 80% of younger generations reported similar stress levels.

This emotional burden has shifted priorities, with many sellers valuing convenience over maximizing their sale price. More than 65% of first-time sellers said they would accept 20% less for their home to avoid the stress of staging, repairs and negotiations. With the average U.S. home price at $419,200, that means sellers would forgo about $83,840 for a smoother process.

Baby Boomers were the least willing to trade profit for convenience, with only 38% open to the idea, compared to 66% of Gen Z, 74% of Millennials, and 68% of Gen X.

For many, selling a home is more than a financial decision — 65% view it as a major life milestone. As the real estate market continues to evolve, sellers are prioritizing flexibility, efficiency and peace of mind over long-held traditions of homeownership.

“The average price in Atlanta now is between $400,000 and $425,000,” Chavarria added. “Even with those prices, if you have a lower rate for those folks, it just makes it easier to buy and sell, even if the house is more expensive. I don’t think giving people money to purchase is a good idea, because you’re just kind of letting them into purchasing, but then they’re still having to have the high monthly payments every month.”