Less expensive = more buyers = quicker sale

In theory it should be easier to sell a smaller inexpensive house BUT what I've found is that smaller homes often have buyers with very limited funds, less experience and more "unexpected" problems.

The price examples given are relative to where you live. In the area where I moved from, a $130,000 house was a nice house. Lower level was $80,000 and below.

I've always thought that mid-level was the easiest to sell. The houses probably have less problems and more desireable neighborhoods, but are more affordable.

Good point: That was another issue that I was considering.

Among people who simply can't qualify for a more expensive home, I can imagine that there is a disproportionately higher number of other unwanted issues as well. Bad credit, and an unstable money situation might be more probable.

Still, "rich" folks are often on surprisingly shaky financial grounds, too....just not *as* often I would think.

We've usually given more price concessions and buyer assistance when we sold our smaller, less expensive homes. We've found in the intermediate to upper range homes, the buyers usually had more funds available. We've lived in areas where starter homes were at a premium and the minute one came on the market it was snapped up. So in that sense I'd say a starter home is easier to sell. I don't know how true that would be if the home was in an area that was flooded with starter homes.

I think that used to be the case in most places.
A well maintained starter home in a decent school district can be a hot commodity.
however now in the age of mega sub-divisions (at least here) where there are more mega builders with hour long info-mercials than there are people (500,000 and it seems like about that many new homes)
previously owned starter homes can't compete even if they are well built well mainted bungalows etc. Not only do people want big, so they can fill it with Wal-Mart trash they are getting very used to the idea of buying a new house everytime. Doesn't matter if its low quality. Its scary.

I bought new - once - it was a starter home. I would never buy new again. At least not the McHouses that are going up around here. It's always so disappointing to see cheap materials in a new subdivision.

Again, I am an oddball and I just love the architecture and the quirks of old houses. And based on my one experience and the many experiences of my parents and friends, new houses also come with a plethora of problems - sometimes new materials are not always the best materials.

I agree too that less expensive homes tend to attract buyers with more "issues." More creative financing. But they will sell faster per the price range. Here you can buy a $250K house with 1900 sq. ft new or a $250K house with 2500 sq. ft. existing home - in the same exact development - I will always choose the bigger one. Most folks don't. There are just so many new homes in our market, it gets hard to compete. I don't know where the people come from to buy all that new construction sometimes.

Well I'm the opposite. I've vowed never to buy anything but new construction. I don't buy million dollar homes and the people just try to fix stuff themselves or cover up wear & tear and don't do a good job. They try to do things to improve the house but their taste is awful. I'd rather have new & clean unused appliances and fixtures. If it were up to me houses would go down in value the minute they're moved into. Just like cars.

OH! and not only that with new construction, while you may have to get the builder out to fix stuff, hopefully minor stuff, you don't get that with a resale and you can move in whenever you want. You don't have to deal with the selling party's dates and requirements and their problems and their emotions. You find the floorplan you like, go pick your colors and upgrades, use the financing company from the builder and get a good deal then sign on the line.

It's just a lot easier and less headaches if you ask me.

New houses don't always come without problems though certainly less often.
A guy at work bought a new house in a subdivision that is apparently in an area with springs or a high water table or poor drainagine or something. Most of the houses are fine but his basement flooded everytime it rained, we're in a drought, it hasn't rained that much. The builder had to come tear up the floor in the finished basement and jackhammer in some sort of tile drain. They wouldn't replace all the walls though and he's worried they'll be mold behind them.
And while I agree with not trusting DIY'ers I have enough bad contractors to know that even professional work is often just bad DIY with a business name. That includes new construction, who knows what those subs are doing half the time.
Mostly though I can't stand new subdivision neighborhoods. small lots, no individuality, no trees, contributing to sprawl and the desctruction of native habitat. What do you do in 5 years when the cheapness starts to show? Buy another new? In a new subdivision that's now miles and miles from away from town because they just keep eating up the land? Thats so...wasteful. Didn't that used to be considered a sin?
And HOA's. I'll never live with one of them. No offense but I call it Steppford Land. Everyone there thinks like and is exactly like everyone else. No diversity.
What gets me is that the common advice is to update your home before you sell. I don't want them to update! i want them to replace the old mechanicals/ roof etc. and let me update. My best scenario would be a well built, well maintained 50 year old home with new roof, heating etc. and an avocado kitchen, old appliances,old carpet etc. I'd replace those things to my taste and not spend money and time replacing the roof and having to live with someone else stupid (JMHO) tile floor and cheapest new carpeting. I think realtors have a hand in this.

We have no new houses at the lower end of our market, so someone needing to spend $200,000 or less will be in small homes here. They sell very quickly, in every area of town in any condition.

Gloria

I guess it depends on where you live. Inexpensive homes less than 100,000 doesn't exist here. All homes and condos start here at 160,ooo and up........
I would think if we had less expensive it would sell quicker than more expensive.

Are people still buying "starter homes"? That's how I bought my first house. Most of the First Time Homebuyers I see these days are going for the McMansions in subdivisions and overburdening themselves with debt.

Hard way to start out a marriage and life, especially if they've been living with parents until they married .....

I think the definition of starter home has changed a lot in the last several years. My daughter and her hubby are dual income no kids and their first home far surpasses what our first home was, but then again together they're making in excess of $160,000 per year. But there are still a lot of people out there that aren't making that kind of money and there is still a good market for starter homes, which in our area would be $100,000 or so.

still hard to believe a home can be purchased for 100k,the area from where we moved, you couldn't buy a headache for 500k...In my new area homes can be bought for 250k, but be prepared for a nightmare, decent homes will cost 350ish

A true starter home here in WNY would be under $100K. People that move here from high cost states are amazed at hom much they can buy, but then are shocked at how high the taxes are for everything.

Just look what you can buy for below $50k in Buffalo, N.Y.

Here is a link that might be useful: RE 4 Sale in Buffalo, N.Y.

Wow! Buffalo! I need to pack my bags and head on up there!

Are those houses in the ghetto? Is Buffalo a depressed area?

Those rough winters sound fun!

In my area, the mid-level houses seem to go fastest.

The really cheap houses are generally 2 bedroom, slab, frame construction and no garage (garage converted to living space) or only one car garage. People are really hesitant to buy these knowing that after the first kid they will grow out of them and have to move out. (maybe people don't buy starter houses these days?) These are always listed in the $200K range and often they do not sell for that.

Sometimes what happens is that these houses do not sell for the price the seller needs so, they sit and sit on the market for a year or so, and end up as rentals. So up to 1/3 of the small houses in one area in my location are rental properties. (wish I would have known that when I moved here and I would have avoided the area)

With the small house, curb appeal means a lot. Although it is easy to fix up a little ranch to look very cute. I would think a tiny house would have to be in impeccable repair in order to get people to overlook the size issue.
I would also think that pricing is very important even more so in a low end market, from what I see here. Although it is easier for buyers to qualify for a small mortgage than a large one. So you will get more lookers.