Pensacola's Real Estate Blog: First time home buyer want vs need....

Thursday, April 5, 2012

First time home buyer want vs need....

The first-time home buyer's wants vs. needs list is a tricky, or maybe I should say sticky, topic. After years of working with first-time home buyers, I have found that most seem to want to find their "forever home", you know, the one they will be raising their 2.5 children in, and then retire in, and so on. Is this really realistic in today's society? I mean, statistics show the average family moves every three to five years. Yes, I know there is someone reading this right now that is saying, "well, we have lived in our home for the past 20 years."The question is, is that the norm? And the answer is no! "So, what is the big deal Skip? I mean, what do you care if the first-time buyer buys a house that they can 'grow into'?" Well, let's just say our first-time buyers buy that big home the can "grow into"--is it going to be more or less expensive to heat and cool? Or let's talk taxes--are they going to be more or less? We could go on, but you get the point. If they buy a home that is going to fit them for the next few years, they most likely will have a lower initial purchase price and a newer home (with less maintenance) that will fit their budget. With the current market the way it is, they will also be taking advantage of historically low interest rates, coupled with competitive home prices. These two factors put together should, in a few years, equal a nice profit for them to apply to their next home.