It's funny how much we want to be like the crowd and if we do something that is slightly different, we tend to be quick to get back in line with what the rest of the world is doing. While you may not think that, studies have shown that people to go against the grain are more likely to try and turn and do what everyone else is doing rather than to stand out. But how does that factor in when it comes to homebuying? Are you doing it right? Is there a wrong way?
If you're like many homeowners you don't want to take too many chances but you know that applying for a home loan and purchasing a property is a big step and does involve some sort of risk. If you're like many of today's homebuyers, especially first-time homebuyers, you may be entering into the real estate market with a lot of debt including student loans, credit cards or other types of loans. You may have been working to improve your credit score, increase your income and lower your debt, like many home buyers.
Many of today's homeowners are taking advantage of the low interest rates and easier loan qualifications. Homeowners are putting between 6% and 15% down as a first-time homebuyer. On average, first-time homebuyers purchase about a 1600 ft.² home between $170,000 and $220,000. Repeat buyers are buying over 2000 square-foot homes starting at about $250,000.
Many home buyers are going with an FHA or VA backed loans that allow for either low or no downpayments. Homebuyers are using their own savings, gifts from friends or family or cosigning with relatives. Repeat buyers are using the proceeds from the sale of their home to make a down payment on the next.
The majority of new homebuyers are married but there are numerous singles making that first step into homeownership. On average, buyers spend between eight and 10 weeks researching home loans, neighborhoods, school districts and the general area before they actually buy or make an offer on a home. The Internet is the top place to look for homes and most people are using their phone or tablet to research and then decide who to call.
Most first-time homebuyers are purchasing detached single-family homes built over the last 10 to 15 years. The start off with three bedrooms and two bathrooms on average in a local suburb or subdivision. First-time homebuyers typically like to be anywhere from 10 to 20 miles from their job.
So how do you compare to today's average home buyer? It's okay to go against the grain and step out to find something that you really are looking for at a price point that works with your budget. Because I work with homebuyers on a daily basis I know the nuances, negotiating strategies and secrets to finding and purchasing the ideal home.