Do First Time Home Buyers Pay Too Much?

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.