First Time Home Buyers Want More

Fixer uppers may hold a lot of promise, but first time homebuyers aren't biting. In fact, they want the whole kit and caboodle-a house like their parents' at a price they can afford. According to a recent Coldwell Banker® Survey, first-time homebuyers are primarily concerned with affordability when choosing a new home, but their expectations may be too high relative to their current financial buying power. While nearly half of the Coldwell Banker broker respondents reported that affordability was the No. 1 concern for this group, 81 percent said today's first-time homebuyers consider move-in conditions to be very important when searching for homes. In contrast, only 7 percent are looking to buy fixer-upper homes at a lower price [than good condition homes] and renovate themselves. "In the past, first-time homebuyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership," says Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. "Today, this group has greater home expectations because they've grown up more accustomed to their parents' lifestyles. It's important to remember that by considering a 'fixer-upper' for their first home purchase, they can build equity over time and move up and into a second-stage home that better reflects their expectations."

Steve Murray, Publisher Tracey Velt, Editor REAL Trends, Inc.