Home must require little or no updates and be a ‘great deal.’ Price discounts expected.
Are you kidding me or what?!!
Ahem. No. That’s the current market reality. A recent survey of 300 first-time-homebuyers found that an amazing 87% said that “finding a move-in ready home is important.”
Gone are the days where at starter-home level homebuyers are willing to factor into their offer price some fix-up and/or remodeling of a home.
Don’t believe me? Well, here are a few of the ‘No, this home won’t work’ reasons recently cited by buyers who are walking out of well-priced homes because of relatively minor imperfections:
- Kitchen appliances are not all manufactured by the same vendor
- Kitchen doesn’t have granite counter-tops
- Carpet is the wrong color
- Wall color is wrong, e.g., white instead of a more trendy color.
Recent statistics indicate that nationally, buyers paid an average of 4% less than the the asking price. Obviously in today’s environment, room for negotiation on minor points exists and opens the door for buyers to be ‘picky.’
A couple of reasons are cited for this buyer attitude. Lenders now require more money for down-payments leaving little cash free for first-time homebuyers to ‘fix-up’ a home. In addition, the awareness-bar has been raised by cable shows such as HGTV that educate buyers regarding home design and presentation details. Young buyers are more ‘savy’ about buying a home.
… Which some say may be fostering a lack of reality. In five years this window of purchase-opportunity will be long gone and home values are predicted to be much higher than today.