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Becky Scherzer, Keller Williams Realty STLPhone: (314) 677-6180
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The Pros and Cons of Buying a Starter Home

by Becky Scherzer 06/06/2021


Photo by Scott Webb from Pexels

Potential new homebuyers have the choice of buying a starter home or a forever home. The details mean something different to everybody, but a starter home is usually regarded as a short-term living situation if you can’t afford your dream home yet. Some choose to wait until they can afford their forever home—the home they imagine living in for the rest of their lives. How do you know which option is best for you? Here we’ve put together some pros and cons of buying a starter home so you can contemplate the choice.

Pros of Buying a Starter Home

Affordable - Price is among the most common reasons new homebuyers go with a starter home. These homes are lower priced, which allows you to purchase right away instead of saving up for a much more expensive home. Depending on the area a starter home might have lower property taxes.

Lower Commitment - The whole idea of a starter home is to only live in it temporarily, which takes some of the pressure out of the decision for first-time homebuyers. Homeownership is a big change from renting and it can be a hard change. A starter home can provide a sense of ease—after all, you can always move somewhere else in a few years. That’s the whole idea!

Potential Future Investment - If you buy a starter home, you can keep it as an investment property even after you move out into a larger forever home. You can rent out the property to generate extra side income and potentially help the home appreciate in value.

Cons of Buying a Starter Home

Smaller - Starter homes are smaller than forever homes. This is related to the lower price, but also the idea that the homeowner might just be starting a new life. Maybe you don’t have any kids but are planning on it far enough in the future that you don’t need multiple bedrooms. Maybe you are buying a home to share with housemates for a shorter time due to work opportunities. Whatever the reasons may be, the smaller size of a starter home will make it difficult to grow your family or for situations where you might need more space down the road.

More Work - Starter homes are often older and in need of some maintenance. This also contributes to a lower price. You might find that buying a starter home also means buying a lot of home improvement projects. This can be expensive, time-consuming and stressful for new homebuyers. It’s important to get an inspection before making the purchase so that you can identify any serious maintenance red flags.

Hard to Sell - Some starter homes can be a challenge to sell when you’re ready to move. Whether it’s because of the condition of the home or because it’s in a less than desirable location, there’s a chance it might take some effort (and some money put into improvements) to sell.

If you’re not sure about whether to go for a starter home or wait for a forever home, consider your future and priorities. You can’t plan for everything, but the more you look ahead the better decisions you can make for your first home.

About the Author
Author

Becky Scherzer

Welcome! Looking to buy or sell real estate in the St. Louis area, don’t look any further than Becky Scherzer and Scherzer Real Estate for all of your needs! My family and I have lived in the St. Louis area for more than 50 years, so I know the St. Louis area! In addition, I am a full-time agent with the #1 real estate office in the St. Louis area and the #1 real estate company in the country! My mission is to create a much different brand of real estate services, one that exceeds expectations, delivers results and exceptional service at a level never seen before in the industry. When you choose me to represent you in selling your home or buying a new home, I will work with you to an extent unmatched by any other Realtor. I invest a great deal of time, energy and money to ensure not only the highest sales price possible for your home or finding your new dream home, but that the process, your experience, is as smooth and stress-free as possible. I am fortunate to have the support of a group of highly trained professionals to assist me in ensuring a seamless, efficient and straightforward path to your success. I will continuously evolve to meet the challenges of our very dynamic, ever-changing market conditions. What will never change is my commitment to provide my clients the level of expertise and innovation they deserve. Getting great advice on selling your home or buying a new home is simple, JUST ASK me!