First-time homebuyers may often chafe at the notion of a starter home. The term may be considered a bit negative and limiting, but the wisdom behind it makes good sense and not just for young people just starting out on their first home. Homes that have traditionally been thought of as starter homes are not only for certain segments of the population. These affordable homes can be right for almost anyone.
Smaller Prices Mean Smaller Footprints
When a home is smaller, the benefits go beyond the purchase price. Homes are usually evaluated and valued on, among other things, square footage. Other things are also based on square footage. Property taxes are lower in smaller homes and so are homeowners' insurance premiums. The savings don't stop there, though, because smaller homes can be cheaper to heat and cool. Along with a lower purchase price comes lower mortgage payments and that extra money can turn into savings to save for a future larger home. You could also expand the living space in the starter home by adding on an addition with your savings.
Smaller Homes Are Very Marketable
Bigger is not always the right fit and many people seek out smaller homes for a variety of reasons. That means you won't have much trouble selling a starter home when the time comes. Starter homes are perfect for empty nesters, retired people, young couples, and others who want to downsize and simplify their lives. An investment in a starter home now means a faster sale later.
Smaller Homes Hold a Steady Value
Generally, the smaller the home the fewer fluctuations you will find in the value. The reason for the stability has to do with a smaller margin of volatility (or, not as much room for gaining or losing value). The real estate market can be moody but small homes can lend buyers a bit of security in market value.
Smaller Homes Are Abundant
As you begin to search for a starter home of your own, you might be surprised at the wide array of choices in almost every neighborhood. As long as you are willing to do some work on the home, you can find an affordable home on a street of overpriced and overlarge properties. To help you in your search, talk to a real estate agent about your needs and let them lead you to the starter home that is just perfect for you.
For more information about starter homes, such as single-family homes, contact a real estate service.