First-time Homebuyers: Now vs. Then
By Maureen Griffin, Tara Stark Real Estate Group - Keller Williams Realty
B
ack when many of our parents were first-time
homebuyers, the process was basic for nearly ev-
eryone. Standard down-payment requirements were
usually 20% of the home purchase price and mort-
gage interest rates, get ready for this, were nearly
20%! In fact, in October of 1981, the 30-year fixed
mortgage rate hit an all-time-high of 18.63%. Let’s
look at what the average home prices and monthly
payments were in that same time. According to the
U.S. Census, the average price of a U.S. home in Oc-
tober of 1981 was $82,500. With a 20% down-pay-
ment of $16,500, that left approximately $66,000 to
finance. On a 30-year fixed rate mortgage, with the
rate of 18.63%, the monthly payment would’ve been
$1029 with only principal and interest, meaning no
property taxes or mortgage insurance is included –
WOW!
While the rates and down payment requirements
were historically high in the 80’s, the options in
financing were low. The plethora of loan types we
enjoy today simply didn’t exist. In addition, it was
not standard practice for single working females to
qualify for mortgage loans at that time. Most lenders
liked to see a husband as head-of-household income
earner and if the wife did work, her income was
more of a supplemental bonus rather than counted
as family income. Let’s fast-forward to today.
Convenience. Options. Affordability.
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Those three words are very powerful in today’s
economy, especially in the world of real estate. We
are very blessed in Parker and surrounding coun-
ties, to enjoy a wide-array of options in affordability
for most first-time homebuyers. Latest numbers for
Parker County show new listings up 6.5% over the
same time last year, the average sales price remained
the same at $286,745, properties are sold for 96.2%
of their original list price and days on market (DOM)
is down 9.9%; so properties are moving! Whether
it’s a quaint fixer-upper, a modern townhome, a
historic property in downtown Weatherford or a
move-in ready in highly sought-after Walsh Ranch,
Parker County homebuyers have their pick of the
best available.
Today’s buyers also enjoy options when it comes
to convenience in selection. Our parents never
could’ve imagined a time when people would
start searching for their home on their phone! The
phone? That thing they had hard-wired to the wall
with about 6 feet to venture from, is now our ul-
timate tool of accessibility. In fact, Tara Stark,
founder and owner of Tara Stark Real Estate Group,
says many of her first-time homebuyers make con-
tact after they’ve been online. “Even though most
new clients are referred to us by our clientele, they
have already started their home search in the palm
of their hand. They start out using national apps that
honestly lack accurate local housing data. When
we share our Keller Williams app that has real-time,
location-based data, they’re thrilled to be able to
instantly pull up information on a house they’re
driving by. From our app, they’re able to share with
us which properties they “love” and we get them to
view it promptly. It is such a convenient search and
negotiation tool for our clients to have the Keller
Williams app!”
Easy to Use Apps that Save You Money!
Banker’s hours, professional attire and fingers
crossed – that’s how our parents applied for their
mortgage. Today, we can be cozy on the sofa in
yoga pants and finally apply though a convenient
app with a personalized link just for us; at 9:45pm.
Lauren Glass, Director of Marketing and Operations
for TSREG and a millennial herself, explains her
generation’s expectations. “Our generation grew up
with technology and immediate results as a standard.
We expect to buy something quickly online and get
it the next day. It’s much the same when buying our
first home, the process must be convenient, seam-
less and cost-effective. One of the best money saving
tools we have to offer clients is the ZeroPlus Loan
offered by Keller Mortgage.”
The ZeroPlus Loan (NMLS ID #140234) is ex-
clusive to Keller Williams transactions. Benefits
include:
• Zero Origination Fee
• Zero Processing Fee
• Zero Underwriting Fee
• Low Rates
• $1000 closing credit toward 3 rd party Costs
(Loan amount must be at least $150,000)
• Buyers save Thousands of Dollars
(visit kellermortgage.com for proper disclosures)
Relationships Matter
Buying your first home should be exciting. Of
course, it’s perfectly natural to have moments of
anticipation where clarity on an issue will provide
comfort. Stark reminds us that relationships should