I was recently speaking with a young single who is considering buying her first home. She is filled with excitement, anticipation and fear. However, in her heart she knows there is an opportunity presently that has not been available in the last few years and does not want to miss the window. As we are talking I couldn’t help but think, she is me (a few years back) and the market is sooo similar.
I was young, moving up in my career (making a whole $35k) single and trying to determine what was the best move financially for me, “Was there any possibility” When I spoke with family and friends, I heard the same thing over and over, "don’t buy the market is going to go down further", "no way could a condo cost $125k in South Orange County". "Don’t you think you should wait until you’re married?" "What if you meet the man of your dreams, he will think you are to independent" and it went on and on. The only person, who said go for it was my mother, who raised seven kids on her own, never owning a house again after my parents divorce. She quietly would just keep asking "how the house hunt is going"
The market at the time (1995) was filled with uncertainty: there were tons of short sales on the market, Interest Rates were high (8.25%) and the economy was in a scary place. So I began the hunt, first getting pre-approved, looking at the lender like he was crazy when he said I could afford a mortgage that was double my rent; at the time $650 a month for a tiny 1 bedroom apartment in ,.
Working with the lender was a trip in itself, did you ever see the Sex in the City episode when Miranda bought her condo and the lender kept looking at her with a look of horror, said over and over check the SINGLE box, SINGLE box again….. "Are YOU going to be comfortable buying a home on your own, was the consistent question?" Yeap, I had the same guy.
Then I found it, a great condo in Portola Hills, 2 bed/3 bath REO, we put the offer in and wow they came back and said it was mine. I was sooo excited then fear set in “I need to come up with some money”, “How am I a going to be able to do it”. The lender had told me about this program called FHA and I was all in for $7000.00
I will never forget the first night in my new home, friends came over we had the traditional champagne and pizza. Mom and sisters came over the next day and I will never forget my mom’s face as she said, “you did it!” You see that was in Oct 95, my mom passed away in Dec 95. One of things she said to me before her passing was buying that house brought her comfort in knowing I would be secure without you needing a man (sorry boys, no slam, just mom was happy that her little girl did it).
So back to my new client, she is scared, excited and anxious. We have put numerous offers in, but to her dismay we are competing with multiple offers, why because buyers are realizing the window of opportunity is limited, there are only 52 properties in the Saddleback area priced under $200k. Yes, that is right under $200k. ($200k!)
I just keep saying this is such an amazing time, for you to get in! Now remember, I wrote above it was 1995 when I put an offer in for $125k. So in 13 years that window of opportunity has appeared again and ironicly we have FHA again to help.
As we finished up looking today, she turned around and said, wow amazing, It is Possible!
Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Trabuco Canyon, Mission Viejo and Rancho Santa Margarita. Whether she’s helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up into a nice home or use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you’re considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, Its Possible!
The above information is provided as an opinion and is deemed reliable but not guaranteed.
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Kelly Turbeville is a South Orange County, California Real Estate Professional, specializing in helping clients realize their real estate goals with a simple motto - It's Possible!
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My first house was $13,500.00. I sold it a year later for $23,000.00. Times sure have changed. People will be saying the same thing 30 years from now.
Hi Wayne - thanks for the comment, agreed! I sold that condo for $460k, still amazes me, but that is why I love helping people make the move!
Nice post Kelly - we bought our first home in 1970 in Lakewood Ca....not too far from you...we paid a WHOMPING $23K for it and I thought we were making the biggest mistake in our life! We were paying $125 for rent on a larger house than we were buying....now our payments would be $198 and we would have less room. No way could we do this....BEST MISTAKE IN OUR LIFE!
I still live there some 30 plus years later. Its paid for. Guess I like it too much to move. Most of the same people live on the Street. its unusual in most places but very common here to have the same neighbors for 30 plus years.
Kelly I do remember my condo in San Francisco -- I was sooo excited. When I moved in it was just before Thanksgiving - I invited all my friends over -- and found the over didn't work! That is another story! I still own that condo and rent it -- When I bought my condo I was single --It is a great accomplishment -
Sometimes first timers think they know more than the market and after all, their parents have told them that NO ONE pays list...oh yeah...when there are multiple offers they are payng MORE than list..hopefully she is getting automatic e-mails so that she knows the minute something comes on the market and now she knows she has to move quickly and write well....answering the sellers needs for occupancy and price.
Mary - Love that "BEST MISTAKE IN OUR LIFE"
Eric - Wow 30 years that is unusual especially with the same neighbors.
Joan - Awesome!
Sally - She is learning her way and feeling the heat and Ready!
Thanks for the comments!
We bought our first and only home in 1992 for $127k. Your typical three bedroom ranch. Little did I know at the time we were buying at a low in the market. Lucky us. We went through the VA and had to be married before we closed. They gave us a weeks notice. Well 16 years later here we are still enjoying our home! Thanks for the walk down memory lane :o)
Christine - Aren't they nice memories!
Thanks for making me smile. Hadn't thought about the first house in a long time!
Gosh, I love first time buyers! I was one myself about a year ago. Second best thing I have ever done!
Certainly times have changed right? Real estate is full of these cycles.
Thanks
Tom Davis
DE Realtor
Susan - glad to hear you smiled!
Mike - Congrats on the purchasing your first home, but now I have to ask what was the 1st!
Tom - In a way the more things change, the more they are the same!
Thanks for taking the time to read and comment - appreciate it!
Getting engaged (had to put that in there in case she sees this!). We get married Agust 1st. Thanks! Love the "new" house, at least as long as the leaves aren't falling (oak leaves are a pain!)
I remember my first time buying a house. My husband kept on insisting he was too young to own a home... But I insisted and it was the best mistake we ever made together. Now everything is so expensive and I wonder if my kids, will ever be able to afford their own home. The mortgage process is so much harder than it use to be and the price of houses and of apartments, recession and all, is still too high...
Fern Hamberger Broker @ Nestquest Inc. NYC
Congrats Mike on the engagement!
Fern, thanks for the comment, the market certainly has changed but the struggle for first time buyers then and now is pretty similar. I am working with a couple fo clients who are looking at helping their kids get started as there are so many wonderful opportunities.
I bought my first house in 2000 for $25,000. It was a small 1 bed, 600sq ft, it was on a nice piece of land and I bought the piece of land behind my house for $4000. I sold it last year for $45,000.
Penny - Nice return! Thanks for the reading my post and commenting, its appreciated!
Very informative article. Buying a house is a serious decision. It is the largest purchase one has ever made in his life. It is not an easy task to find an ideal place to live. Recently I have come across one interesting service http://climate.fizber.com/ With the help of climate watch homebuyers can check what the climate is like in another town or city before they move there.
That's a great story. My first house was $120,000 Nice yard, two story, newer home, It was an REO so we got a good deal. In the up market it was in the high 4's. Your right I keep telling all my 1st timers now is the time to by.
Hey Joel and Lisa, thanks for the comment and read of my post.