First Time Buyers Want Perfect Homes, Not Fixer Uppers
Got a fixer upper you do not want to work on and you thought a first time homebuyer would be interested? Think again.
A study found by Mary Umberger and initiated by Coldwell Banker tells the opposite story. Fixer uppers are so ‘90s. Todays new homebuyers want it all perfect. Just like Mom and Dad’s home. Caulking, replacing carpets, fixing plaster are all skills that new buyers do not want to learn.
And the numbers are not even near a statistical deviation, they are extreme.
In a survey of its brokers, the company found just 7 percent who say they’re encountering novices who are willing to look for fixer-uppers to buy at a lower price and renovate. Instead, 81 percent say their first-time buyers want their houses to be in ship shape from Day One.
This is a noticeable change from just a decade ago, the brokerage said.
“In the past, first-time home buyers were willing to purchase older, more basic houses in an effort to save money and break into home ownership,” said Jim Gillespie, president and CEO of Coldwell Banker Real Estate.
He said these new buyers probably haven’t roughed it before, and they’re not going to start now. “Today, this group has greater home expectations because they have grown up more accustomed to their parents’ lifestyles,” he said. via Mary Umberger at chicagotribune.com.
What this is telling me is that if you are handy and want to make some money, buy the fixer uppers. Invest in them to get them show ready and then market them to first time homebuyers. Right now it will be difficult to sell still as the market has not found the bottom and the first timers have not stormed in.
When the market turns, you will know that you have targeted the right buyers with the right homes.
Real estate agents, my advice to you is not to even take the listing on the starter home fixer upper. If this data is correct, it will be a money sink for you as the odds of the home selling are slim to none.
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Comment by Kiranak on 28 February 2009:
Fixer uppers can be an excellent invenstment for first time home buyers in my opinion. I have had many buyers who saw a fixer upper, understood the potential of equity in the home and decided to buy it. The FHA 203 program is the best option for such a property. Many times, the buyers fail to understand the potential of a fixer upper unfortunately.
Comment by MyHome.ie Editor on 29 July 2009:
I agree with Kiranak; don’t write off fixer uppers! For those that are interested in advice for fixing up your home, MyHome.ie has some great advice articles.
Check it out!
http://www.myhome.ie/residential/advice-centre/1021/improving.asp
Comment by Amy on 29 July 2009:
I am a fist time buyer TRYING to buy a fixer but I can’t get a loan based on the condition of the home! I’ve been approved for the loan, the house was appraised at the amount of the sale, but the house needs a small amount of work before it’s move-in ready. I don’t know what to do!