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Do you remember what you where looking for when you bought your house?

Do you remember what you where looking for when you bought your house?

Buyer profiles provide insights

The 4 categories of buyers: first-time, move-up, move-on and move-down.

First time buyers are tired of paying rent, want to build some equity and gain some tax advantages. They are most likely to be in their 20s to mid-30s, have no children (or one coming soon) and have cash problems. They’ll likely be seeking a low-interest government loan. And their parents may be involved.

The First time buyers are typically looking for two bedrooms and a balcony or expansion room as well as a distinctive external look (porches, siding, colors). The First time buyer shops both new and resale. This category represents some 41 to 45 percent of all buyers.

Move-up buyers generally are 30-something to mid-40s, they have kids or one is on the way, they are looking for a better district and/or school, want to be closer to work, have some cash, will use conventional financing and want a distinctive look, especially at the entry. The No. 1 reason why this group moves, however, is the desire for more space; they will often want three or four bedrooms plus space to expand.

Move-on buyers generally will be in their mid-40s or older and their children are out of the house. They may have a parent living with them, usually enjoy two good incomes, have extra rooms or other unused space and have a conventional mortgage. And they generally buy within five miles of their current home.

Move-down buyers will sacrifice space for more luxury. They do not have any kids at home. The move-down buyers search for single story, low maintenance and safety. They are well read and informed, influenced by friends and are quality oriented. They probably will stay in the same area.

House layout key to home buyers of recently built and new houses

If we overlay all four of these buyer categories, we get the particular wants of those of all ages and situations who are in the market for newly or recently built homes.

If they are looking for a new house they will also want custom features, energy efficiency, low maintenance, brand names and perfection. They will visit the site several times before buying, and they will bring friends and relatives.

New house buyers and, to a lesser extent, buyers of recently built houses, will trade up more than 50 percent on average, paying 15 to 20 percent more than for a similar resale. The most important factors are floor plan and layout.

Use a mortgage calculator to simulate different mortgage scenarios when you want to buy a house.

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