If you’re a first-time home buyer, like 42% of home buyers last Spring, chances are it won’t be a simple task (unless you utilize the services of extremely skilled agents, like those on the Chernov Team). Given the high prices (which are partially a function of a low supply of homes for sale and a high demand for the homes that are on sale), it makes sense that getting your dream home will be difficult to say the least; chances are you will be competing against another would-be purchaser.
As noted above, 42% of home buyers last spring were first-time buyers. Of note, about 25% of those buyers (or 10.5% of all home buyers) spend over a year looking for their dream home (this is in stark contrast to 11% of first-time home buyers, or roughly 4% of all home buyers 2 years ago who spent over a year finding the right home). Further, approximately 33% of first-time home buyers (or 14% of all home buyers) took over 6 months to find their dream home (in contrast to 18% of first-time buyers, or around 8% of all buyers 2 years ago who spent over 6 months finding the right home). It is unclear how many of these first-time buyers were assisted by experts in the field, but the number is rightfully concerning.
As you might imagine, first-time home buyers are motivated by a number of factors; a major factor is staring a family. As such, it’s possible that the numbers quoted above reflect a desire to find the perfect home to start their new family (as opposed to reflecting some inherent instability in the housing market). Under that paradigm, it makes sense that nearly half of the first-time buyers surveyed indicated that they were looking for homes in smaller towns, roughly one-third indicated they were looking for homes in the suburbs, and roughly 15% indicated they wanted to stay in the city.
Given that this generation of home buyer does not have the same savings to rely on when finding a home (this is not an article on the crippling debt associated with student loans, but it would be foolish to omit any mention of that when discussing the difference in finances between generations), it is advisable to make lowball offers on homes that have been on the market for an extended period of time. The rationale for this is pretty straightforward; if a house is priced properly in the current market (which favors sellers), it will sell quickly. Therefore, if a house hasn’t sold quickly, it is priced too high – meaning your lowball offer has a legitimate chance of grabbing the seller’s attention. This is even more true when considering that most people who are selling their homes are also looking for new homes; they would like the influx of cash sooner, rather than later – having a house on the market for an extended period of time is not good for them either.
At the Chernov Team we understand that knowledge is power, and knowledge of the climate for first-time buyers is powerful knowledge indeed. While it is difficult to navigate the complexities of a seller’s market as a first-time buyer, having skilled agents on your side can make the process significantly easier. The agents at the Chernov Team are among the best in the industry; setting the bar higher is an everyday motto. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.