If you have been reading this blog for very long, you already know that I am a huge believer in the starter home.
I think that people should have to work their way up the property ladder, that this is a very honest and reliable way to build equity and future security. I want each of my kids to buy a house as soon as they are able...and I want them to make smart improvements and secure their little piece of the American Dream, no matter what they decide to do, or where they decide to go, they will always have a home.
What I don't recommend:
- Buying more house than you can honestly afford.
- Buying more house than you honestly need.
- Buying a house you don't really want to live in, or in an area that you don't like.
So many people did this in the past few years -- they secured loans that they probably shouldn't have been able to qualify for, and they bought houses just because they could. Although lending has gotten tighter, first-time home-buyers still sometimes have a hard time settling for a Starter Home...
According to a survey completed by Coldwell Banker recently...
First-time home buyers once set out to buy a œstarter home, which refers to an entry-level property that is affordable and often needs some updating. But new buyers are forgoing the œroom for improvement home, and are getting more choosy in their home shopping.
Eighty-seven percent of first-time home buyers said they want to purchase a home that is move-in ready, according to a survey from Coldwell Banker Real Estate, which surveyed 300 first-time home buyers in the last year. First-time home buyers made up half of the market in 2010, according to the National Association of REALTORS.
"There's a real 'aha' moment for sellers revealed by this survey that the condition and quality of their home matters a great deal to first-time home buyers," says Diann Patton, a consumer real estate specialist with Coldwell Banker Real Estate LLC. "On top of that, our agents have reported that on average, first-time home buyers now look at more than 11 homes before making decisions, which is higher than in the past. They can be choosy about what appeals to them and are recognizing the benefits of the low prices and wide selection of homes in many areas."
Location is a key deciding factor when looking for a home: 78 percent of new buyers said the home had to be in an area convenient to shops and services, according to the survey. What's more, three-quarters of buyers said it was important to be near their workplace, and nearly two-thirds said it was important to be close to "highly rated" schools.
Many first-time home buyers said the current real estate market offered them more opportunity than they had expected. For example, half of new buyers said they found a home in a more desirable neighborhood than they expected; 61 percent were able to get the home at a better price; and 40 percent got more space than expected.
...I think this survey reveals great information for both buyers and sellers.
If you have a home that you are thinking of putting on the market in the Denver Metro area, it's important to realize that first-time home-buyers represent a big part of your target market, and it's really difficult for them to see past clutter and outdated furniture. Your house might be beautifully maintained, in a nice neighborhood, and on a great lot, but if you have family photos featuring 80's hair, a plaid couch or a smelly cat, that might be all that these Property Virgins can focus on, and they won't give your place a fair shot.
So, before you list your home, try to look at it from a fresh perspective. Flip through some magazines or browse HGTV.com for some ideas about how you can quickly and easily update your place without spending a ton.
My best tip? Start packing before you put your home on the market. You don't need half of your stuff on a daily basis, and whether you hold a big garage sale or pack it and store it for now, it will help you sell your Denver area house to a first-time home-buyer more quickly and for more money.
If you are thinking about looking for your first-place, or selling the Denver area home that you currently live in, let me know, I am happy to help!
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