Starter Home vs Forever Home: Which Strategy Makes Sense in Today’s Seattle Market?

When buyers start their home search, one of the biggest questions is whether to buy a starter home now or hold out for a forever home. In a competitive market like the greater Seattle and Snohomish County area, this decision can shape your finances and lifestyle for years. Let’s look at both strategies, along with a middle-ground option that’s gaining traction.

What Defines a Starter Home?

A starter home is usually smaller, more affordable, and not intended to be your “forever” property. In our area, think of a two-bedroom rambler in Mountlake Terrace, a townhome in Everett, or a 1960s split-level in Lynnwood. These homes might not check every box, but they allow buyers to build equity sooner instead of renting.

Pros of Buying a Starter Home Now

• Lower entry price compared to larger homes

• Builds equity that can be used later to “trade up”

• Gets you into the market before prices climb further

• Potential to keep it later as a rental property

Cons to Consider

• You may outgrow it quickly

• Remodeling or updates may be needed

• Costs of selling and moving again in a few years

What Defines a Forever Home?

A forever home is where you can envision living for decades. Think a larger home in Edmonds Bowl with water views, a 4-bedroom craftsman in Mill Creek, or a newer home in Bothell close to top schools. These will be much pricier but designed to serve long-term needs.

Pros of Buying a Forever Home

• Avoid multiple moves and transaction costs

• You can settle into a neighborhood long-term

• Customizations and upgrades pay off when you plan to stay

• Fits your family’s growth and lifestyle goals

Cons to Consider

• Higher upfront costs and larger down payment

• Waiting to save more can mean missing out on appreciation

• Limited inventory at this level in many areas

The “Forever-Starter” Strategy

There’s a hybrid approach that many buyers in Snohomish and North King County are exploring: the forever-starter home. It’s a property that works now but also offers potential to grow into.

For example, a 3-bedroom home in Lynnwood that doesn’t have all of todays updates and upgrades. It’s affordable enough to buy today, and the good bones gives you opportunities for those updates and upgrades over time. This gives you flexibility: live in it now, make those improvements, and build your equity. Then when it’s time to move up, sell or convert it to a rental.

What Works Best in Today’s Market?

• First-time buyers are leaning toward starter homes or forever-starters. With median prices still hovering near $650,000–$700,000 in our area, getting in sooner often beats waiting.

• Buyers with strong incomes and savings may aim straight for a forever home, especially if they know they want to stay put in Edmonds, Mill Creek, or Bothell.

• Move-up buyers often prefer a forever-starter that gives them time to transition and flexibility for resale later.

Final Thoughts

There’s no one-size-fits-all answer. The right choice depends on your finances, family plans, and how long you expect to stay. What’s important is to think strategically, not just emotionally.

As your local Real Estate Agent at CENTURY 21 Real Estate Center, I can help you weigh the pros and cons of each approach, run the numbers for our local market, and even spot properties that could serve as great forever-starter opportunities.