Saturday, September 25, 2010

Why Your First Home Should Be Your Starter Home

Elizabeth's Home Buying / Selling Blog

By Elizabeth Weintraub, Home Buying / Selling Guide, Friday September 24, 2010

When I was growing up in the 1950s, people didn't buy their dream home as a first home. In fact, many people, my parents included, put sweat equity into their homes. My parents bought our first home in 1955 for $9,000. They got a break on the price in return for painting the interior and installing trimwork.

A recent story in the San Francisco Chronicle refers to a survey completed by Coldwell Banker Real Estate Brokerage. Its brokers said home affordability was the chief concern among today's home buyers, yet 81% of first-time home buyers expected to buy a home in move-in condition. Only 7% were willing to buy a fixer upper.
Over the years, we've evolved into an instant gratification society. Few people seem to want to pay the price by starting out small and working their way up. But wanting it all right now is, in part, to blame for the current housing crisis. I would like to hope that we learn by our mistakes and are not bound to repeat the past. Living within your means is a good place to start.