Homebuyers approach starter homes trying to balance a set of must-haves and budget limitations.
Setting appropriate expectations can keep a recent college grad, a professional with a new job, engaged or newly married couples and other first-time buyers from being disappointed when homes on their list don’t look like what they see on HGTV, Pinterest, Houzz or in design magazines.
“The tough thing is you easily fall into this keeping up with the Joneses and comparison shopping,” said Todd Bannister, a real estate agent with Harry Norman, Realtors Buckhead Office. “I think a lot of folks jump into it with this big want list of amazing features, but you’ve got to take a step back and crawl before you walk.”
These do’s and don’ts can help first-time buyers this spring and summer.
Don’t despair if it’s not your dream home.
An early decision in the homebuying process is ITP (inside the perimeter) or OTP (outside the perimeter). Buyers who don’t want to give up the intown location often have to sacrifice space and fancier features. It takes the right balance of finding a neighborhood or city you want and a home that is structurally sound, even if the look isn’t completely your style. Some buyers realize they can make later changes such as replacing cabinets and countertops, Bannister said.
By looking OTP, new or renovated homes with granite countertops and stainless steel appliances are available in starting price ranges in the high $100,000s and up. Smith Douglas Communities, which has new single-family homes and townhomes in Cherokee, Forsyth, Paulding, Gwinnett, Henry and Hall counties, offers granite kitchen countertops as standard features in most of its neighborhoods.
In kitchens, granite countertops have become the new laminate in new homes, said Michael Rosenberg, chief operating officer for Acadia Homes & Neighborhoods. A starter home also could have luxury vinyl plank flooring, which has the look of hardwoods, but keeps the cost down. In master bathrooms, Rosenberg said homes often will have cultured marble countertops with vinyl floors, while granite countertops and tile floors tend to still be reserved for homes over $250,000.
Acadia, which has new homes starting in the $190,000s in Fairburn and Braselton, and builds throughout metro Atlanta, has created new floor plans after researching what buyers want in starter homes. Its most popular layouts offer a guest bedroom and full bath – but not the master suite – on the main level, Rosenberg said.
Do take a chance on a different location.
If your heart is set on a neighborhood in its prime, you may already be priced out of that market. But shift the search to the north, south, east or west, and starter homes may fit your budget. You may have to consider another county if home prices in one county are too steep and if you’re looking at a location, such as west Cobb County, that borders another county, such as Paulding, said Jim Bellinger, CEO of Smith Douglas Communities.
If Buckhead neighborhoods such as Peachtree Park or Garden Hills are at the top of your list but too expensive, consider Brookhaven. If Brookhaven, which has surged in popularity, is outside your maximum price, look at Chamblee. If Decatur’s Oakhurst neighborhood is where you ultimately want to be but is beyond your current budget, look to Kirkwood, Bannister said. Some up-and-coming neighborhoods also could offer a small starter home on a big lot. That way, buyers could make small updates now and add on by expanding the back or popping the top, without having to move when they need space.
Don’t be afraid to get your hands dirty.
You can make a home your perfect house, but it may require some work, either now or later. If the kitchen isn’t what you wanted, follow other first-time buyers who have tackled small changes such as refacing the cabinets or replacing the old faucet and hardware. You can remodel later, once you have saved up for the project or researched how to do it yourself.
Hardwood floors can be refinished for a fraction of the cost of replacing them, said Jill Cobb of MODA Floors & Interiors. Often, if a buyer is going to put sweat equity into a starter home, one of the easiest things to do is to repaint the cabinets, said J. David Di Cristina with Timberland Cabinets. Sometimes his company will build new doors for the existing cabinets, which will update the look of the kitchen.
Some first-time homebuyers find it tough to have a vision of what can be done to an outdated home, Bannister said. It may appear to be an overwhelming amount of work or too expensive for some buyers. But if a buyer falls in love with a home that doesn’t have granite or stainless steel appliances and plans to update, a good starting point is finding a property that is well-maintained, even if outdated, said Rob Owen, senior vice president and manager of the Harry Norman, Realtors, Buckhead North office, which has a team of real estate agents called the Millennial Group to serve the younger market.
An older home also might have cabinets that are solid but just need new doors or hardware. For example, Di Cristina said he recently visited a new home where the cabinets, made of cheap particleboard, were coming off the walls because of the weight of the dishes.
Often buyers will be surprised to find no blinds when moving into their new starter home. The least expensive option is metal blinds, Cobb said, followed by faux wood blinds, real wood blinds, roller shades and shutters. Most window treatments will need to be custom made since window sizes vary.
Do look for ways to save
Some new home builders offer incentives, such as providing money toward a down payment, closing costs or upgrading standard features, and some will make changes to the property, such as expanding the patio. Builders also might be working with lenders who can help buyers receive grant money and other financial assistance.
Contests are another way to save on the home purchase or for items that you may need to purchase, such as blinds or a lawn mower. One contest is the "Choose 100% HARDIE Sweepstakes," where you can win $2,500 in gift certificates each week to The Home Depot, Williams-Sonoma, Amazon and Bed Bath & Beyond. To enter, visit model homes by participating builders in the Atlanta area: Acadia Homes & Neighborhoods, Ashton Woods, KM Homes, Core Homebuilders, Brock Built, Kolter Homes and Traton Homes. The contest runs through Aug. 21. For more information, visit choosehardie-atlanta.jameshardie.com.
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