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The New standard for first-time buyers is Move-in ready! While the idea of a starter home has traditionally meant that a property may need a bit of work, a recent survey from Coldwell Banker finds that most first-time buyers aren't looking for those kinds of properties any more.
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That's they way it is in my area. The price difference between "needs TLC" and "former model" isn't worth the effort to fix it up!
the market is too tight - homes almost have to be perfect to sell.............
I agree most first time buyers in my area want move in ready homes and they are also being very picky about upgrades such as windows, HVAC, fixtures. The problem I run into is that they want it for the fixer upper price!
Most of our first time homebuyers want a home to sparkle and dazzle them. We still do get some that want a fixer upper - if priced right.
Well I agree then I don't. Buyers don't want to pay for that premium either. With foreclosures or short sales being lower than regular sellers, you can't really blame them. Buyers want everything PLUS a low low price.
If 87% want move in ready, 13% want a fixer-upper. The key is to know who is standing in front of you.
Some have skills and friends with skills. They enjoy the journey of making a fixer-upper into a move-in ready home.
My own preference is buying a home in good shape that needs my eye for redecorating. To each his poison.
HGTV is giving buyers some unrealistic expectations. From just viewing 3 properties, to granite in all the Kitchens, they make an offer and it is either accepted or they have one counter and as soon as they say yes, we accept the counter, the agent hands them the key. Totally unrealistic but a lot of people think that what they see on TV is the Gospel truth. As long as they don't think that the Realtor will also give them a huge present for their "first home". Guess we just have to re-educate them. Lol
It still is basically price, condition, location. What buyers really want is the most value for their money?
Sorry, sorry, sorry for not responding. I never really thought that this would get this big. I posted it just before I was called out of town for a meeting! I'm BACK! THANKS FOR THE COMMENTS.
This is great info, confirming what we've been experiencing. Investment of time or money in fixing up the fixer-upper makes it appeal to many, many more buyers.
Price is one of biggest moment, here in Toronto, where prices are up sky and crazy for the first time buyers ... True, they ask the most for their money, often they go for new home builders but if they opt for some cute established area they will go for fixer upper if is priced right ...
Very true statement. When you can buy a home that needs very little work for the same money, why not? I would.
There is so much inventory and prices are great, that any buyer has more of a say in what they purchase. I didn't know this new stat though! Thanks for the post!
I'd like to know where I find a turnkey short-sale or REO house for <$130K? That's what I'm getting now and its not out there. Somehow the expectaions have gotten out of whack with the inventory in my area. Having one of those HGTV places is like dreaming- its not gonna happen for the low end buyers. We are getting some realistic buyers who are willing to do landscaping, painting, counters or appliances and I tell them why not? At least you can make it your own and then enjoy what you've created. Turn-key done to someone else's taste is just not happening here and as for the HGTV look, I've seen those cheezy makeovers and the detail and quality of some of those rehabs is very cosmetic and will be short lived..........
With so many houses on the market, first time buyers no longer need to buy a fixer.
When they say fixer upper they ussual mean they want to do a little paint and maybe the floor. Most of these first time buyers are so tight to get in I don't think they have what they need to do the fixing once they are in.
Blame it on HGTV. Granted there are many houses on the market, but I still think that many of today's buyers whether they are first timers or not have somewhat unrealistic expectations. They want an updated house in the best neighborhoods. Unfortunately often times their price range allows them only to buy either a short sale or a foreclosure and those are never in tip top shape or then not in their preferred neighborhoods. This is where our experience and guidance comes into play.
I also find tht first time buyers while enthusiastic about purchasing cannot make their minds up quickly and I have seen them loose on a good purchase where multiple offers came in.
It helps if we show them both fixer uppers and move in in various areas then sit down with them and prioretize, determine what is truly important to them and have them stick to it ( not easy).
Larry, half my buyers last year were first time home buyers. A couple of them had to settle for fixers because it was all they could afford but most of them were able to get a pretty nice home because our market had dropped so significantly.
Larry Bettag
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