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First-time home buyers who
want affordable homes may want to take a hard look at fixer-uppers,
smaller homes and cheaper commutes to work to save on the costs of
buying and owning a home.
Real estate brokers say many
home buyers expect more than they can afford in a home and once they
start pounding the pavement for housing their disconnect could be
discouraging.
In an online survey of 150 of its brokers, Coldwell Banker discovered some disturbing trends among first-time home buyers.
While nearly half of the
Coldwell Banker brokers surveyed said affordability was the No. 1
concern for first time buyers, 81 percent of those buyers also consider
move-in conditions to be very important when searching for homes. Only 7
percent are considering fixer-upper homes.
The real estate company
suggests more buyers should examine the fixer-upper option -- among
others -- to get the affordability they seek.
"In the past, first-time home
buyers were willing to purchase older, more basic houses in an effort to
save money and break into homeownership," said Jim Gillespie, president
and chief executive officer, Coldwell Banker Real Estate, LLC.
"It is important for
first-time homebuyers to remember that by considering a fixer-upper for
their first home purchase, they can build equity over time and later
move up and into their second-stage home that better reflects their
expectations," he added.
Buyers looking for
affordability who go with the fixer-upper option should get the home
professionally inspected to determine what fixing up is necessary, and
certainly not bite off more than they can chew. Even homes that need a
basic face lift -- paint, carpeting, landscaping, window treatments and
other cosmetic touches -- can come with big savings. Homes that may
require professional upgrades cost even less, but the buyer has to weigh
the discounted price against the cost of the improvement.
Coldwell's study also found some disconnect between affordability desires and what buyers want in home size and its location.
The vast majority of
first-time buyers, 71 percent, were looking for larger homes than they
were 10 years ago, brokers reported, but bigger isn't better when it
comes to price. A smaller single-family home or a condo or townhome can
be cheaper by virtue of the smaller footprint and square footage. The
smaller cost on a smaller home also could come with affordability
Forty-one percent of brokers
also said, for their buyers, proximity to their workplace was numero uno
when it came to considerations made when looking for a home. Higher
gasoline prices have made the job center location factor even more
crucial, however, in most metros, a home's proximity to employment
centers comes with an added cost. Homes nearer job centers cost more
because of the added value of reduced transportation costs and time
(which is money) spent commuting.
However, buyers can enjoy the
best of both worlds if they purchase a cheaper home away from job
centers, but in a transit oriented development (TOD) or other distant
community that offers low-cost public transit to work. Carpooling, trip
sharing and car sharing communities boost the idea of affordable
housing.
Coldwell Banker also said 46
percent of the survey respondents reported that first-time home buyers
look at five to 10 homes, on average, before making a purchase.
The
message is simple here. Spend more time looking at more homes for sale.
Instead of five to 10, make it 10 to 20. Take the time to find
affordability. Discounts were more likely available from homes that had
been on the market for 90 days or more; homes for sale that were owned
by long-time owners; homes for sale from flipping investors down on
their luck; and properties owned by we-want-to-sell-real-estate banks
who now know what it means to be careful what you wish for.
While nearly half of the
Coldwell Banker brokers surveyed said affordability was the No. 1
concern for first time buyers, 81 percent of those buyers also consider
move-in conditions to be very important when searching for homes. Only 7
percent are considering fixer-upper homes.
However, buyers can enjoy the
best of both worlds if they purchase a cheaper home away from job
centers, but in a transit oriented development (TOD) or other distant
community that offers low-cost public transit to work. Carpooling, trip
sharing and car sharing communities boost the idea of affordable
housing.
Coldwell Banker also said 46
percent of the survey respondents reported that first-time home buyers
look at five to 10 homes, on average, before making a purchase.
The message is simple here.
Spend more time looking at more homes for sale. Instead of five to 10,
make it 10 to 20. Take the time to find affordability. Discounts were
more likely available from homes that had been on the market for 90 days
or more; homes for sale that were owned by long-time owners; homes for
sale from flipping investors down on their luck; and properties owned by
we-want-to-sell-real-estate banks who now know what it means to be
careful what you wish for.
The real estate company
suggests more buyers should examine the fixer-upper option -- among
others -- to get the affordability they seek.
"In the past, first-time home
buyers were willing to purchase older, more basic houses in an effort to
save money and break into homeownership," said Jim Gillespie, president
and chief executive officer, Coldwell Banker Real Estate, LLC.
"It is important for
first-time homebuyers to remember that by considering a fixer-upper for
their first home purchase, they can build equity over time and later
move up and into their second-stage home that better reflects their
expectations," he added.
Buyers looking for
affordability who go with the fixer-upper option should get the home
professionally inspected to determine what fixing up is necessary, and
certainly not bite off more than they can chew. Even homes that need a
basic face lift -- paint, carpeting, landscaping, window treatments and
other cosmetic touches -- can come with big savings. Homes that may
require professional upgrades cost even less, but the buyer has to weigh
the discounted price against the cost of the improvement.
Coldwell's study also found some disconnect between affordability desires and what buyers want in home size and its location.
The vast majority of
first-time buyers, 71 percent, were looking for larger homes than they
were 10 years ago, brokers reported, but bigger isn't better when it
comes to price. A smaller single-family home or a condo or townhome can
be cheaper by virtue of the smaller footprint and square footage. The
smaller cost on a smaller home also could come with affordability
Forty-one percent of brokers
also said, for their buyers, proximity to their workplace was numero uno
when it came to considerations made when looking for a home. Higher
gasoline prices have made the job center location factor even more
crucial, however, in most metros, a home's proximity to employment
centers comes with an added cost. Homes nearer job centers cost more
because of the added value of reduced transportation costs and time
(which is money) spent commuting.
Contact Us
AURUM ESTATES
#1-2, Opp. Uniworld Gardens,
Adjoining indian oil petrol pump,
Sohna Road Gurgaon
(Haryana) 122018
Tel: +91 124 3295123
Mob: +91 9999997969
Fax: +91 124 2217833
Email: info@aurumestates.com
website http://aurumestates.com
AURUM ESTATES
#1-2, Opp. Uniworld Gardens,
Adjoining indian oil petrol pump,
Sohna Road Gurgaon
(Haryana) 122018
Tel: +91 124 3295123
Mob: +91 9999997969
Fax: +91 124 2217833
Email: info@aurumestates.com
website http://aurumestates.com
