First-Time Home Buyer Expectations for 'Move-In' Conditions May Conflict with Their Desire for Affordability
New Coldwell Banker(R) Broker Survey Reveals Possible Disconnect
in First-Time Home Buying Process
PARSIPPANY, N.J.--(Business Wire)--
First-time home buyers are primarily concerned with affordability
when choosing a new home, but their expectations may be too high
relative to their current financial buying power, according to a
recent Coldwell Banker(R) survey conducted among its brokers. 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 home buyers consider move-in conditions to be very
important when searching for homes. In contrast, only 7 percent are
looking to purchase "fixer-upper" homes that they could buy at a lower
price and renovate themselves.
"In the past, first-time home buyers were willing to purchase
older, more basic houses in an effort to save money and break into
homeownership," said Jim Gillespie, president and chief executive
officer, Coldwell Banker Real Estate, LLC. "Today, this group has
greater home expectations because they have grown up more accustomed
to their parents' lifestyles. It is important for first-time
homebuyers to remember that by considering a 'fixer-upper' for their
first home purchase, they can build equity over time and move up and
into their second-stage home that better reflects their expectations."
Survey findings also suggest that first-time home buyers worry
more about credit ratings and approval than they did a decade ago, but
less about down payments. This may be because they have saved money
themselves, or have received additional support from parents to help
their first-time home purchase.
According to 29 percent of brokers surveyed, first-time home
buyers were more concerned with down payments 10 years ago than
anything else, while only 17 percent said this is the biggest concern
in today's market. Meanwhile, survey respondents said that only 4
percent of first-time home buyers were worried about their credit
scores in 1998, while 14 percent said it is more of a concern today.
"Owning a home is a great investment that will provide tax breaks,
financial gains - as well as considerable joy over the years,"
Gillespie said. "First-time home buyers now have higher standards,
placing an increased focus on the financial aspects of home ownership
and at the same time, want a larger home they can live in right away."
Additional key findings from the survey include:
-- 71 percent of brokers noted that first-time home buyers are
looking for larger homes than they were 10 years ago.
-- According to 41 percent of the respondents, proximity to job
is the No. 1 attribute first-time home buyers are looking for
in a home.
-- 35 percent of the survey respondents said "investment" is the
No. 1 reason first-time home buyers are making their purchase.
-- 46 percent of the survey respondents reported that first-time
home buyers look at five to 10 homes, on average, before
making a purchase.
In addition, the survey explored initial reasons that a first-time
home buyer contacts a Realtor in today's market and how that has
shifted from 10 years ago, according to the Coldwell Banker brokers:
-0-
*T
Today's Market 10 Years Ago
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They are ready but want assistance in the
process, including identifying
neighborhoods, negotiating of price and
paperwork 73% 32%
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Because that is what they feel like they
are supposed to do 3% 28%
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To view houses / do walk-throughs 17% 30%
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To help with navigating mortgage issues 1% 4%
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They are not ready but trying to better
understand the process 6% 6%
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*T
Methodology: Coldwell Banker Real Estate LLC conducted an online
survey about the trends real estate professionals are seeing with
first-time home buyers. The survey yielded responses from 150 Coldwell
Banker brokers across the United States.
About Coldwell Banker(R)
Since 1906, the Coldwell Banker(R) organization has been a premier
full-service real estate provider. In 2007, Franchise Times magazine's
prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in
real estate for the eighth straight year and 12th among franchisors in
all industries. The Coldwell Banker System has approximately 3,700
residential real estate offices and nearly 117,000 sales associates in
47 countries and territories. The Coldwell Banker System is a leader
in the industry in residential and commercial real estate, and in
niche markets such as resort, new home and luxury property through its
Coldwell Banker Previews International(R) division. It is a pioneer in
consumer services with its Coldwell Banker Concierge(R) Service
Program and award-winning Web site, www.coldwellbanker.com. Coldwell
Banker Real Estate LLC is a subsidiary of Realogy Corporation, a
global provider of real estate and relocation services. Coldwell
Banker(R) is a registered trademark licensed to Coldwell Banker Real
Estate LLC. Each office is independently owned and operated.
Media Inquiries:
Coldwell Banker Real Estate LLC
David Siroty, 973-407-7199
david.siroty@coldwellbanker.com
or
CooperKatz
Katy Layton, 917-595-3057
klayton@cooperkatz.com
Copyright Business Wire 2008
