Young home buyers are wise. I am encouraged about our future because I have worked with young people buying homes. All three couples that I worked with are hard working and using good common sense. They are looking at the following things:
1. Their budget and not going “house poor”
2. Deals – 2 bought foreclosures, 1 bought an estate sale
3. Fix-up – All three were willing to jump in and repair
4. Location – Each purchased in areas close for commute and good potential future equity growth
5. Asked for help from friends, family and pros
The first young newlywed couple set up a long term rental situation with their parents. The parents purchased a HUD foreclosure and the adult children helped make repairs and set up a lease purchase plan between them.
The second couple purchased an estate sale. The house was cosmetically challenged because a lifetime smoker stained the sheetrock walls with cigarette smoke. They jumped in and worked on the house before they moved in. Yet, another wise move. I will never forget the first home that Dee and I purchased in Franklin, TN. We put the bed under the dining room chandelier because I was “working” on the hardwood floors in the bedrooms. “Piece of cake”, “It’ll be done in a week” For the next few months I woke up in the morning and hit my head on the glass pieces of the dining room fixture. Dee would glare from under the covers each time.
The third couple purchased a one level ranch that was smaller than most all the rest in the neighborhood. They had the luxury of having a parent who is a professional handyman. They actually moved some doors and walls to make good floor plan changes. I am looking forward to seeing what they have accomplished.
I am encouraged that our young people are making good decisions. I am happy to serve them and give them some pointers from my perspective as Realtor. After all, they may be calling me soon and asking for help in selling their house. I want them in the best possible position to gain from their investment. I am glad that young home buyers are wise.
Chattanooga TN Home BuyersWhat are home buyers in Chattanooga TN looking for? Home shoppers I am serving have unique stories. There are similar themes across the board. The buyer clients are looking for the following:
1. Saving time – less commute, more family time
2. Preserve capital – Conservative purchase, not “house poor”
3. Newer and updated – (One exception category)
Saving Time – Several clients bought to cut the drive time. The primary motivation is not to cut the car gas bill. It was to have more time at home. Patterns of school and work shift with age. Time is the most precious commodity to many. Amenities and square footage are starting to diminish. Location to work, and community amenities is gaining momentum. One North Shore is a perfect example of this.
Preserving Capital – Chattanooga real estate from 1990-2006 (for the most part) performed a steady 3%-4% value increase year to year. The last 7 years proved that is not always the case. Real estate buyers want a “good deal”. Even young buyers are being careful not to max out their loan capability. My experience is that Chattanooga home buyers are thinking about paying loans quicker and paying more cash down. Several buyers paid all cash for smaller homes to be debt free.
Newer and Updated – Strong buyers want to purchase new or already updated decors. The one exception to this is younger purchasers. I served three first time home buyers that purchased distressed properties and spent significant sweat equity and remodel money. All three bought to live as owners. All three bought well under retail value and made wise purchases.
My experience and market analysis shows that if you are a patient Chattanooga, TN home buyer, then you can do well, especially if you are looking at $325,000 and above.
If you are a Chattanooga, TN house seller, in a property older than 6-8 years old, please consider paint, carpet and a few cosmetic upgrades. You will be much better positioned for today’s buyer.
What are home buyers in Chattanooga TN looking for? My buyers are looking to save time, money and weekends free of home makeovers.
1. Construction matters: Types of homes have much different costs to build and the value is not reflected equally by sales prices. One example I always give my first time buyers is a one level home that has 2,000 square feet costs much more than a two story 2,000 square foot home. The 2 story 2,000 square foot house has only a 1,000 square foot foundation and 1,000 square foot roof. The one level that is 2,000 square feet has 2,000 square feet of roof and foundation costs. Regardless of the style of home, I want my buyers obtaining a good value. After all, I want to help them sell when they are ready, so having equity is a strong plus.
2. Architecture matters: When you are young the multi-level with master upstairs and basement on a hill is a great way to maximize room for money. When you go to sell the property just realize you are limiting your buying audience to the same type of buyer and not the boomer post knee surgery buyer with loads of cash. The split-foyer design is very efficient for a buyer, but not the most desirable or valuable for the seller.
3. Location matters: Think about and drive your commute from where you are considering your purchase. How much of your precious time do you really want to spend in your car? Generally I am selling homes to 4th and 5th home buyers that are ready to spend more to shave cumulative hours from the road to be closer to their family and friends.
4. Nature matters: In a word “water”. I am not talking running water versus out house. I am talking water from the roof, drainage fields, underground springs, basement water proofing, landscaping issues, etc. In east Tennessee, we get a decent rainfall annually and the hilly terrain and varied soil types take a toll on unsuspecting home owners. Buyers with me today went into a beautiful home that just did not pass the “marble test”. The marble test in my mind is if we put a marble on a hard wood floor without a push, does it roll. If it does then the water may be compressing the soil in certain places and the foundation may be sinking in certain areas. We do not have sink holes like Florida or the pan clay like Texas, but we certainly see crawl space foundations moving where water has compressed the ground over years.
5. Inspection matters: Tennessee law requires ALL residential sellers to disclose known defects. Problems with a property that are not disclosed or known by the seller, can be discovered by your inspectors. A good written agreement should allow for all types of inspections prior to purchase. Recently I helped a young couple place a contract on a home. The house had a fairly strong cat odor. We explored possible solutions prior to inspection. Once the carpet was peeled back, we found that the urine was not just in one or two spots in the middle of the floor, it was in multiple corners of rooms. The urine had soaked into the supporting wall timbers and joists and to truly mitigate the issue by replacing the wood instead of encapsulation was estimated at $6,000. The seller not wanting to make up the difference we decided to back out of the deal at no expense to the buyer.
6. Ownership matters: True “ownership” is not having a mortgage. Your money is your business, but in the last 6 years I have seen the reality of people thinking their deed gives them rights beyond the lender’s. If you have mortgaged your property, remember you are being a steward of the bank’s property. If you are not “feeling” that, try missing 4 payments. Keep some cash reserves for maintenance and payment emergencies. ALL properties, even new homes require money for maintenance and repair. New homes may require window coverings, sometimes shower and towel rods, additional landscaping, etc. Slightly used homes may require repairs not covered by home warranties.
7. Evaluation of value matters: Do not get caught in the $ per square footage trap. They are good for “rules of thumb” but, A. Not all homes were created equal, B. Deferred maintenance is very expensive, C. Location, location, location
There are so many more than these 7 things for home buyers to consider. Take your time, be patient, realize that emotions do play a big part in choosing home. That is great! You should be “emotional” when considering a huge investment that will be your “Home” and where you choose to live life. Enjoy buying your new home!
