August 2007 , Volume 18 Number 9
Community Paper
copyright ©2007 by Community Publishing, Inc. All rights reserved.


ENDANGERED SPECIES - Part 2 - THE FIRST TIME BUYER
by Mike Derenthal, Derenthal Realty Group and College Park resident

Everyone remembers their first time. The excitement and uncertainties that accompany that first home purchase are unforgettable, and just about everyone has a story to tell. I'll never forget the look of "concern" on my parents' faces when they walked into our first fixer-upper here in College Park ("you paid HOW MUCH for this place?!?!"), or the moment I tried to explain to my wife that a family of raccoons living in the crawlspace shouldn't be all that hard to relocate. It's funny how time and good memories can gloss over a lot of that stuff.

However long ago it was you bought your first house, when you're ready to sell, it can be difficult to recall what is going on in the lives and the minds of a younger generation of homebuyers.

The typical first time buyer here in College Park is in their mid 20's to early 30's. They tend to be young professionals, some married, some not. Most do not yet have children but probably will within the next three to five years. They are looking to spend somewhere between $200k to $400k. They pay attention to schools, but mostly because they've been told they should (the prospect of sending future little ones off to school in the morning is really hard to get your hands around until the time actually draws near). They like porches, brick streets, and wood floors. The internet is not a novel concept to them – merely a part of every day life.

And it is absolutely critical to keep in mind that this generation has spent the past 5 years watching those around them enjoy spectacular returns on real estate investments.
Remember when folks used to purchase a home just to live in it? While previous generations certainly anticipated a long-term gain on their investment, many of today's first time buyers expect positive returns very quickly when it comes to real estate.
These buyers now hear a lot of press to the effect that values are dropping drastically, foreclosure opportunities are picking up, and that some great deals can be had with motivated sellers. But the press often fails to report that this isn't really the case in older, established neighborhoods like College Park. This disconnect can lead to frustration among both buyers and sellers.

As our market has cooled, these buyers are faced with a lot of uncertainty. They are also faced with a larger number of homes on the market than at any other time in history.
So what does all this reveal? It means a considerable gap in perception may exist between some buyers and sellers. Sellers need to see to it that their home is priced appropriately. They need to take all steps to ensure that their home outshines the competition – because there is a lot of it right now. And they may want to consider staging their home in a way that appeals to these first time buyers. We'll discuss some creative ways to do just that in the future.

by: Mike Derenthal, Derenthal Realty, www.DerenthalRealty.com
1520 Edgewater Drive, Suite E, Orlando, FL 32804
407-965-1919

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