Picky First Time Homebuyers Losing Out on Great Housing Deals? What do you think?
Check out this article....It is apparent that different geographic areas certainly have different demographics. In our area most first time homebuyers still meet the FHA, RD and VA loan limitations with maximum financing and are generally happy to be able to qualify given the current mortgage environment. I do not believe first time homebuyers are not purchasing because they are "Picky" ; but due to the fact that financing is difficult and lender property requirements are stringent.
What do you think? Give me your feedback.
New research suggests that today's first-time home buyers may be passing up great deals because they insist on flawless "move-in ready" houses requiring little or no changes. A survey by Coldwell Banker Real Estate of 300 first-time buyers found that a startling 87% said that "finding a move-in ready home is important" to them. Zillow, a giant Seattle-based online real estate research and data company, suggests that any shift by consumers toward greater attention to home details may be an inevitable byproduct of today's higher downpayment minimums and more stringent loan qualification requirements. According to Zillow researchers, the median downpayment in 11 major metro areas has jumped to 20%, compared with "close to zero" in some of the same areas just five years ago. In other words, first-time buyers today have to put a huge effort into coming up with their downpayment, and they want to make sure that equity investment goes into the house that will need the fewest and least-costly upgrades. Some agents suggest that buyers today tend to be hipper and more sophisticated about home design, furnishings, floor materials, countertops and appliances because they are exposed to far more information on cable TV than earlier generations. Washington Post 3/4/11; Kenneth R. Harney