First-time buyers are tough to please

Buyers are fickle. Just ask their agents.

In a mini-survey released last week, 150 Coldwell Banker brokers from across the nation revealed that first-time home buyers say their focus is affordability, but their expectations are unrealistic. 

Move-in-ready conditions weigh heavily when searching for first homes, and as for fixer-upper homes? Most will pass, thank you.

These attitudes may stem from great expectations. For example, 71% of the brokers surveyed noted that first-time home buyers are looking for larger homes than their counterparts were 10 years ago.

"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," explained Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate. "Today, this group has greater home expectations because they have grown up more accustomed to their parents’ lifestyles."

Perhaps, or maybe it's because today's buyers can call the shots.   

-- Lauren Beale

Your thoughts? Comments?

Photo: Steve Yeater / For The Times

Comments

[mike]

SAVING BY TAKING EXCELLENT VACATIONS AND EATING AT HIGH END RESTAURANTS?????

YOU AREN'T CUT OUT FOR HOME OWNERSHIP. YOU SOUND LIKE ONE OF MY TENANTS...

[JayC]

Almost exact same boat as Chris Pepper - wife and I make ~$250K/year, live in apartment on westside, and child is on the way.

The problem isn't that we don't make enough or that our expectations are too high (as realtors might say). I've been living in LA my whole life and I DO know what people who make $250K/yr SHOULD be living in. It may not be Beverly HIlls, but it sure is more than a 1500sq-ft fixer in Sherman Oaks. Sucks not to have any tax breaks, but I'd rather pay $1800/mo to rent a townhouse than pay $5000K/mo to rent money from the bank that owns the house I "bought."

[Common Sense]

Hey "mike" - I'll be happy to look at one of your houses in a few years, when they fall another 50%. I'm sure I'll be able to afford the 20% down payment, because I'll easily have $400K in saving by then.

Hope you enjoy your "homeownership" while it lasts.

[escrow and title]

I know this probably isn't the correct forum - but many seem knowledgable in real estate here. I'm not asking for any legal advice. I am in the process of purchasing a house. I am reviewing the HUD statements and some numbers popped out at me. I see that escrow and title fees are really high compared to the rest of the numbers. we are being charged for loan tie ins, settlement costs, closing costs, sub escrow fees on top of the escrow fees and title fees. Is this normal? Are these people regulated? Where can I find average fees or a mock statement where I can see what should be charged? It seems to me that with this market they would just be glad to get the business... any help or advice would be appreciated. Some numbers - 750k house with over 3000 in buyer side escrow and 1500 in buyer side costs.

[Laker]

Cal wrote: "....I brought my wife to a low-end home that was listed for 500k.
She said no.
I said, what if we could buy this tomorrow for 200k? She said she'd have the bags packed and moved in in no time...."

Do we have the same wife?

==========================
mike,
That post from last week about the investor with 100% financed house was just for the sake of calculating the cost to buy and keep the house.
You can't get 0% financing unless you are VA, Fire department, etc and full doc.
99.9% of the people do not meet this criteria.
Whatever you say about realtors representing the seller is CORRECT. However, if i have a realtor that is representing ME, I want him to work for ME, and for MY interest.
When I'M buying a house, MY interest is to get it for as LOW as possible. If the realtor is not working for MY interest he is indeed a realtard.
Realtors representing buyers should either work for flat fee or work with commission that is inverse to the sales price. That is the more they reduce the price, the more commission they get! and vice versa!!!

[Cal]

Is this the same mike that is subsidizing his renters by 1k a month?

On just capital depreciation alone I think my landlord has lost 100k this last year.

[beson]

"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,"

Cal, I agree with everything you said. The key in that quote is, in the past, these first homes were much more affordable, and you could pay the mortgage and save money at the same time With today's prices, more of the first time buyer's money is going to pay the mortgage and less is available for saving. If you can't save up to make the house livable, why would you spend all your savings and stick yourself with a crappy house for years to come?

[1]

I bring the money, I set the expectations.

[Carrie]

I think it's more that this new generation is a bunch of spoiled kids who've had every whim catered to by mom and dad. I hope they know that they have raised a useless generation, they can't even change a lightbulb let alone tackle fix it issues in a home. What do you really expect when they are allowed to use a calculator on a math quiz?