Real Estate Survival Guide with Terry Story
Business:Investing
Steve kicks off Real Estate Round-Up with a study which shows that first-time home buyers tend to, on average, pay about $2,200 more for their homes than regular, non-first-time home buyers. Terry says this is because first-time home buyers generally purchase lower-priced starter homes, which is a really aggressive market compared to larger homes.
First-time home buyers are competing against investors and other first-time home buyers and have likely lost out on a few previous bids. Since they are eager to close a deal, they tend to pay a little bit more than seasoned buyers who might sit back a little and wait it out. First-time buyers typically focus on the positives, don’t really concentrate on or even evaluate the negatives, and often let their emotions get the better of them. Fortunately, though, paying a few thousand more doesn’t really matter in the long run.
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