Alternative Buying Strategies That Are Helping First-Time Buyers Break Into the Richmond Real Estate Market

Are rising home prices, high interest rates, or just a general sense of uncertainty making you feel like you're not ready to buy a home?

You’re not alone—and you’re not out of options.

According to the 2025 NextGen Homebuyer Report, nearly 60% of Gen Z and Millennial buyers still believe that owning a home is possible. But with only 19% believing now is a good time to buy, many are turning to creative strategies to make homeownership a reality.

At Don Reid Properties, we’re seeing firsthand how buyers across Richmond, Chesterfield, Henrico, and the surrounding areas are using smart, flexible approaches to enter the market—without overextending themselves financially.

Here are four of the most popular buying strategies we’re seeing from younger buyers in 2025—and how to know if one might work for you.

1. Buying a Fixer-Upper

Used by: 42% of surveyed buyers
Best for: Handy or budget-conscious buyers who want more space for less
Not ideal for: Those who need move-in-ready or have tight renovation budgets

If you’re willing to roll up your sleeves, buying a fixer-upper can open the door to neighborhoods and square footage that might otherwise be out of reach.

In the Richmond real estate market, many fixer-uppers sell for 10–30% less than comparable move-in-ready homes.

Pros:
✔ Lower purchase price
✔ Build equity faster
✔ Customize the space to fit your style

Cons:
✘ Renovation costs can add up
✘ May require permits and delays
✘ Limited financing options

Pro Tip: Ask us about renovation loan programs like FHA 203(k) or HomeStyle loans—these roll the renovation costs right into your mortgage.

➡️ Looking for homes with potential? We’ll help you spot smart opportunities others might miss.

2. Co-Buying with Friends or Family

Considered by: 32% of Gen Z buyers
Best for: Trusted relationships with shared goals
Not ideal for: Buyers with unclear expectations or legal concerns

Co-buying is becoming a major trend, especially among first-time homebuyers looking to pool resources and share costs.

From siblings buying their first home together to close friends becoming real estate partners, it’s a growing way to afford more space or better locations.

Pros:
✔ Shared down payment & mortgage
✔ Bigger buying power
✔ Built-in support system

Cons:
✘ Requires clear financial/legal agreements
✘ Potential for relationship tension
✘ Need an exit plan in case one party wants to sell

Pro Tip: Always work with a real estate attorney to draft a co-ownership agreement—we can recommend trusted professionals to guide you through the process.

➡️ Thinking about co-buying? Schedule a consultation and let’s talk about what to plan for upfront.

3. House Hacking (a.k.a. Renting Out Part of Your Home)

Used by: Nearly 19% of buyers
Best for: Buyers comfortable managing tenants or short-term rentals
Not ideal for: Buyers who want full privacy or a single-use property

Want your home to help pay for itself? That’s the idea behind house hacking—where you rent out a portion of your property to offset your mortgage.

From duplexes and basement rentals to Airbnb-ready units, more buyers are treating real estate like a financial tool.

Pros:
✔ Extra monthly income
✔ Helps cover mortgage costs
✔ Long-term investment potential

Cons:
✘ Local rental laws may limit use
✘ Extra responsibility as a landlord
✘ Insurance and tax implications

Pro Tip: Not all cities or neighborhoods in the Richmond area allow short-term rentals. We’ll help you navigate local zoning laws and find house-hack-friendly homes.

➡️ Let us help you find properties with income potential—ask about our house hacking property list!

4. Relocating to a More Affordable Area

Considered by: 47% of buyers
Best for: Remote workers or flexible buyers
Not ideal for: Those tied to specific locations or schools

With the rise of remote work, many buyers are choosing to leave high-cost markets for more affordable areas—and building wealth faster as a result.

In Greater Richmond and surrounding suburbs, we’re seeing increased interest from out-of-state and local buyers alike.

Pros:
✔ Lower home prices and taxes
✔ More space for your dollar
✔ Opportunity to grow equity in emerging markets

Cons:
✘ May involve job or lifestyle changes
✘ Slower appreciation in rural areas
✘ Travel distance from family or city hubs

Pro Tip: Ask us about hidden gem communities with high growth potential near Richmond—many offer great value and lifestyle.

➡️ Considering a move? Let’s explore locations that match your budget and goals.

Final Thoughts: The Dream Is Still Possible—Just Different

If you’re feeling unsure about the traditional path to homeownership, remember: You don’t have to go it alone. At Don Reid Properties, we’re here to help you find a strategy that fits your situation—not someone else’s.

Whether you’re interested in fixer-uppers, house hacking, co-buying, or relocating to a more affordable area, our expert team is ready to guide you every step of the way.

💬 Ready to talk through your options?

Book a free consultation with Don Reid Properties today.
📅 Schedule Now

Or call/text us at 📱 (804) 929-4475 to get started.