Should You Buy A Starter Home? [Buy Your First Knoxville Home]
Knoxville first-time buyers are among the largest group of home buyers. Unlike first-time buyers in the past, many first-time buyers are buying later in life.
With the average age of first-time buyers being 32, according to the National Association of Realtors, the housing needs of many Knoxville first-time buyers are very different than what they were in years past. First-time buyers are waiting until later in life to buy homes when they’re more established in their careers and more settled in their lives.
Many buyers think about buying a “starter” home when they buy their first Knoxville home. In this post, we’ll take a closer look at what a starter home is and if it is the right purchase for you.
First: What Is A Starter Home?
A starter home is a decent sized home or condo that meets the house needs of first-time buyers. This historically has been a very popular housing option for first-time buyers. Oftentimes, when first-time buyers think about buying their first home, they have moderate income and don’t need a ton of space. Thus, the coining of the term “starter home.”
For Baby Boomers, starter homes were very popular. Baby Boomers would buy “starter homes” then move onto a larger home as their families grew and their income increased. In the years that followed, many generations have done the same thing.
But with many first-time buyers part of the Millennial generation, buying their first home has been delayed for many reasons, including high student loan debt and a tough economy. But now as the economy has improved, many first-time buyers are hitting the market.
Pros Of A Starter Home
There are many benefits to buying a starter home as your first Knoxville home. Here are just a few of the benefits.
First, getting into a starter home allows you to enjoy some of the benefits of owning a home without the huge price tag that can come with buying a larger home. For a homeowner that wants to build some equity in a home and enjoy the tax benefits, a starter home allows you to become a homeowner for less of a price.
A starter home can also benefit you if you want to buy a home that’s not so huge to maintain. For many first-time buyers, they don’t want to deal with having such a large home from the beginning. They want a home to grow into for a couple of years before moving into a different home.
Cons Of A Starter Home
A starter home isn’t for everyone. Depending on where you are in your life, a starter home may not be the right fit for you. If you’re going to outgrow a home in within a few years, you may want to consider buying a home that will fit you more in the coming years.
Buying a starter home to only move later can cost you. You’ll want to think about if the cost will be worth it to you. You’ll have to think about paying closing costs, moving costs, and realtor fees when you think about selling a home.
A Final Word Of Advice
Finally, when it comes to buying your first Knoxville home, it’s always best to buy the home that’s going to meet your needs in the coming years. You want to buy a home that will at a minimum meet your needs for at least a few years in order to recoup some of your initial investment in a home.
Still, with that being said, you don’t have over buy a home. If it’s just you, it may not be wise to buy a 3 bedroom home, unless you absolutely want to. Just be sure that you buy a home that you’ll want to take care of and maintain.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first-time buyers, you may not be sure where to start. If there is anything we can do to help you in your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.