Home Buying in Portland>Question Details

Beth Silva, Real Estate Pro in Portland, OR

Which is more important to first time buyers- location or affordability?

Asked by Beth Silva, Portland, OR Fri Aug 20, 2010

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It depends on where you are. Here in the Grants Pass area I would say affordability - price is what is driving our market! It is not like in the past where the theme for real estate was "location, location, location". That being said - there are still places certain buyers as first time buyers do not want to go!
0 votes Thank Flag Link Fri Aug 20, 2010
Most wind up with sacrificing the home for location.
0 votes Thank Flag Link Tue Sep 7, 2010
Beth- great discussion question! I'm seeing so many sellers have trouble selling homes right now because they opted for the most affordable homes that were not in the highest demand locations. I always recommend that buyers limit their list of wants to the bare minimum so they can get into the best neighborhood possible. We are seeing how much better close in homes are selling right now versus further from the core of Portland! We've created a fun video on this very topic called "Neighborhood vs. House" ... see web reference.
0 votes Thank Flag Link Tue Sep 7, 2010
I think most first time home buyers focus on price and affordability, unfortunately. With the fall in home prices in the last couple of years it is more important than ever to purchase a home in a great location. The old saying, location, location, location has never been more on point than in today's market.
0 votes Thank Flag Link Sat Sep 4, 2010
Much will depend on the individual buyer(s) wants, needs, lifestyle, finances, etc.; no easy answer.
0 votes Thank Flag Link Mon Aug 23, 2010
For my cyclist clients they will wait for the location. Some of my buyer's balance to two things. Some of my buyer's want particular areas.
0 votes Thank Flag Link Mon Aug 23, 2010
Interesting question...In recent transactions I am finding that my clients who see all their options are wanting the best of both. They want the location and the price and are willing to wait to achieve both.

June Lizotte, Principal Broker
Providing REAL Service
503-310-8032
Web Reference: http://www.junelizotte.com
0 votes Thank Flag Link Fri Aug 20, 2010
I agree with Lana and "pricing, pricing, pricing is the new location, location, location"!
Janeese Jackson, Principal Broker
Real Estate Resource
503-709-0802
jj@janeesejackson.com
Web Reference: http://fabulousportland.com
0 votes Thank Flag Link Fri Aug 20, 2010
Location is always key. However if the only house you can afford in your preferred location is too small to meet your needs and you will out grow it in less than five years, I would suggest you adjust your location. It is very expensive to buy and sell real estate, so you don't want to do it more often than necessary. Always plan at least five years ahead.
0 votes Thank Flag Link Fri Aug 20, 2010
You want to find the most affordable home in the best location possible. To do so you will begin with your lender to determine not only the loan amount you qualify for but also the monthly payment that is affordable within you current and future plans. You now know the price range of the homes you will be able to consider purchasing. From this point in the process there are numerous factors you must decide upon such as size of home, size of yard, age of home, condition of home, condition of neighborhood, trends of a particular neighborhood, schools, traffic, and the list goes on. Your Broker should be able to help you analyze the neighborhood and whether it is improving or devaluing beyond what todays economy has brought upon the market. Location will always be an important consideration. A location with a critical flaw such as a busy/noisy road or sitting beneath Bonneville power lines will always affect the property value. The savings you receive today will be the same dollars you don't receive in the future. I always tell my clients to consider resale value on any home they might consider purchasing. Fatal flaws are hard to overcome. Affordability in any market changes based on the economy, the interest rate, the owner (ie Bank Owned), Seller's reason for selling, and so forth. Give me a call I'd love to help you locate and purchase your first home.
Web Reference: http://www.HowardPage.com
0 votes Thank Flag Link Fri Aug 20, 2010
well that would depend! of course... but the big thing in our inner city, and this is for the consumer as I don't need to tell other agents here, but inner city buyers are all about location. They will try to get as close to the action as their budget will afford.
0 votes Thank Flag Link Fri Aug 20, 2010
Location is the name of real state but for the same schools and near the same area affordability is the only buying option that I would go with, don't buy something to small just because it is in the area you have to have. Plan on staying there 5 years to ride out this slow down. Some smaller homes are selling quickly due to affordabiliy and that is true most of the time even in slow markets. In Portland that can vary quite a bit depending on location. Good luck to you.
Tom Inglesby, Broker
RE/MAX Equity Group
503-319-9035
0 votes Thank Flag Link Fri Aug 20, 2010
Too many variables to answer this question. Different for different buyers and their needs.
0 votes Thank Flag Link Fri Aug 20, 2010
If a buyer can't afford a property within a certain area, then the buyer is left with the property they can afford. But, if given a choice of two properties, both at market value, I would choose the property with the better location, even if the property with the better location is more expensive. Assuming the buyer could afford the better property.
0 votes Thank Flag Link Fri Aug 20, 2010
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