Opportunities Abound For First-time Home Buyers
By Adoro Piccinni of The ADCO Group
Treasurer, Building Industry Association of Southeastern Michigan
Buying a first home is unlike other purchases. It’s larger, longer-lasting, more mportant and usually our most valuable investment. It also blends taste, image, geography and security into one transaction.
Those are not reasons to back away from this rite of passage, of course. In a sense, it's not totally unfamiliar ground. A similar process of research, evaluation and consultation applies to selecting a college, vehicle, stocks or deciding about other major financial commitments. In each case, smart consumers consider value, reputation and suitability.
Right now in Southeastern Michigan, market factors smooth the launch pad to home ownership. Recent graduates, newlyweds, young professionals and renters outgrowing cramped apartments can benefit from low mortgage rates, wide availability of new homes and condominiums and price incentives to turn shoppers into owners. By achieving a piece of the American Dream, buyers also earn significant tax breaks and the likelihood of long-term value gain.
Gaining the security and stability of buying a newly built starter home doesn’t mean compromising on space, location or amenities.
To stimulate sales, many builders include free upgrades such as cherry cabinets, stainless steel appliances and granite counters. Other companies offer an allowance that lets buyers choose from a list of custom touches. Negotiating power also can extend to closing-cost breaks and financing arrangements.
Economists and industry analysts say they can't imagine a better environment for buyers. In this market, the real risk is not buying a first home—it’s in waiting to make a purchase.