First-Time Homebuyer Guide To Royal Oak

Thinking about buying your first home in Royal Oak? You are not alone. The city’s walkable downtown, tree-lined streets, and mix of condos and classic single-family homes make it a favorite for new buyers. In this guide, you will learn what to expect from the local market, how to budget, which inspections matter most, and how the offer-to-close timeline works in Oakland County. Let’s dive in.

Why Royal Oak works for first-time buyers

Royal Oak offers a mix of lifestyle and convenience that is hard to find in many suburbs. You will see strong demand in areas near downtown restaurants, shops, and transit, as well as near major employers like the Beaumont Hospital corridor. Smaller-lot single-family homes and condos close to amenities are often the most competitive, and well-priced, updated homes near downtown can draw multiple offers at times.

What you will find on the market

Single-family homes make up much of Royal Oak’s owner-occupied housing. Expect bungalows, Craftsman and Foursquare styles, plus mid-20th-century Colonial and Cape Cod homes. Many sit on smaller urban lots, with larger lots in limited pockets.

You will also find a healthy mix of condos and townhomes, especially downtown and along transit and commercial corridors. Some buildings are newer infill, while others are converted historic properties. Duplexes and small multi-family buildings are present near downtown and major corridors. New construction exists mostly as infill or townhome and condo projects rather than large single-family subdivisions.

Condition and maintenance expectations

Because many homes were built before 1950, plan for age-related upgrades over time. Common items include older plumbing, knob-and-tube or undersized electrical service, aging roofs, and older HVAC systems. As in many Midwest communities, moisture management matters, so pay attention to basement condition and drainage.

Budget the full monthly cost

Buying smart starts with a clear budget. Beyond your mortgage principal and interest, factor in:

• Property taxes based on local millage and Michigan’s taxable value rules. Check estimated taxes with Oakland County and the City of Royal Oak before you offer.
• HOA or condo fees for townhomes and condos, which affect monthly costs and reserve funding.
• Insurance premiums that may be higher for older homes or those with older roofs or wiring.
• Utilities, routine upkeep, and potential upgrades common to older construction.
• Closing costs that typically run about 2 to 5 percent of the purchase price, depending on loan type and negotiated credits.

Set aside funds for your earnest money deposit as well. Many buyers in similar markets put down roughly 1 to 3 percent of the purchase price, held in escrow and credited at closing under the purchase agreement.

Get pre-approved and choose your financing

A strong pre-approval helps your offer stand out and keeps your timeline on track. Pre-approval is different from pre-qualification. It involves full documentation and makes you more competitive with sellers.

Common first-time buyer options include:

• Conventional loans with down payments as low as 3 to 5 percent for qualified buyers.
• FHA loans with a 3.5 percent minimum down payment, plus mortgage insurance.
• VA loans with zero down for eligible veterans and service members. USDA programs offer zero down in qualifying rural areas, so check eligibility if you are looking beyond denser suburbs.
• State programs through the Michigan State Housing Development Authority that may include reduced-rate loans and down payment assistance based on income and purchase limits.

Local lenders who know Oakland County norms can help you set realistic timelines for appraisal and underwriting.

How offers and contingencies work

From accepted offer to closing, plan on 3 to 8 weeks. Shorter closings, around 21 to 30 days, are possible with a prepared lender and motivated seller. Longer timelines happen if underwriting needs more documentation.

You will likely include several contingencies:

• Financing contingency. Commonly 21 to 30 days, protecting you until the lender issues a commitment.
• Home inspection contingency. Often 5 to 10 business days, though in hot spots near downtown buyers sometimes shorten to 3 to 5 days.
• Appraisal contingency. Appraisals are usually scheduled within 1 to 2 weeks after contract. Allow 7 to 21 days for completion and any negotiations.
• Title review and survey. Title work starts after the contract is signed, and unresolved issues can delay closing.

Clear financing, realistic dates, and focused contingencies help your offer compete on desirable homes.

Inspections to prioritize in Royal Oak

A general home inspection is your foundation. It covers structure, roof, HVAC, plumbing, electrical, and visible moisture or foundation concerns. Given local housing age and Michigan guidance, many first-time buyers also consider:

• Radon testing, because elevated radon potential exists in many parts of the state.
• Lead-based paint awareness for homes built before 1978.
• Sewer lateral camera inspections, especially in older neighborhoods, to check for root intrusion or damage.
• Pest or termite inspections for wood-frame homes.
• Specialist follow-ups for chimneys, roofs, or HVAC if your inspector flags concerns.

If issues arise, you can negotiate repairs, credits, or price adjustments, or walk away within your contingency period.

From appraisal to closing

If the appraisal comes in below your contract price, you can try to renegotiate with the seller, bring additional cash, or a combination of both. Some loan types also require certain repairs before closing.

Your title company will run a title search, and most buyers purchase owner’s title insurance for protection against undisclosed claims. You will also need homeowner’s insurance in place before closing. The federal rule requires your Closing Disclosure at least three business days before consummation, which affects scheduling and final figures. On closing day, you will sign loan documents, pay your down payment and closing costs, and the deed will be recorded.

Neighborhood due diligence in Royal Oak

A little homework goes a long way. Consider the following as you compare homes and neighborhoods:

• Schools and district boundaries vary near some borders, so verify with official school maps or the county assessor.
• Parking, zoning, and rental rules can affect daily life and investment plans. Check the City of Royal Oak’s current ordinances, including any rules on short-term rentals or accessory units.
• Flooding and basements are common topics in Michigan. Look for sump pumps, drainage, and any floodplain information.
• Historic districts may require approvals for exterior changes, so confirm before planning renovations.
• Commute, transit, and walkability are key in Royal Oak. Proximity to downtown, major expressways, and bus or rail corridors can shape your daily routine and resale appeal.
• Resale considerations often favor walkability and access to amenities. Balance needed updates with neighborhood comparables.

Step-by-step first-time buyer checklist

Use this quick action plan to stay on track:

1. Get pre-approved and set a full budget that includes taxes, insurance, HOA fees, and maintenance.
2. Define your must-haves: walkability, commute, and home type. Rank neighborhoods.
3. Watch listings and tour with a local expert who knows Royal Oak’s housing stock.
4. When ready to offer, review contingencies and timelines that match your goals.
5. Submit earnest money and begin your inspection window quickly.
6. Order a general inspection, plus radon and sewer scope if warranted. Add specialists as needed.
7. Coordinate appraisal with your lender and stay on top of documentation requests.
8. Order title work and shop for homeowner’s insurance early.
9. Review your Closing Disclosure at least three business days before closing. Confirm wired funds for closing.
10. Close, record, and celebrate. Keep your warranties and settlement records in a safe place.

How The Madelon Collective can help

Buying your first home in Royal Oak should feel clear and manageable. Our team pairs neighborhood-level guidance with a calm, step-by-step process, from pre-approval strategy to inspection negotiations and closing logistics. If you want a local, boutique experience backed by brokerage-scale resources, connect with Madelon P. Ward to start your search with confidence.

FAQs

What makes Royal Oak a good first-home market?

• A walkable downtown, diverse housing types from condos to classic bungalows, and proximity to major corridors and employers create strong lifestyle value for new buyers.

How long does it take to close on a home in Royal Oak?

• Most buyers close within 3 to 8 weeks, depending on lender readiness, inspection and appraisal timing, and how contingencies are resolved.

Which inspections are most important for older Royal Oak homes?

• A general home inspection, radon test, and sewer lateral camera inspection are common, with pest checks and specialist reviews as needed.

How much should I budget for closing costs and earnest money?

• Closing costs are often 2 to 5 percent of the purchase price. Earnest money is commonly 1 to 3 percent, credited at closing based on the purchase agreement.

What first-time buyer loan options should I consider?

• Conventional loans with 3 to 5 percent down, FHA at 3.5 percent down, VA for eligible veterans, and MSHDA programs that may include down payment assistance.

Do I need a real estate attorney to buy in Michigan?

• Michigan does not require an attorney for typical residential closings. Many buyers use a title company or settlement agent, and consult an attorney for complex issues.