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Some Things to Consider When Assisting First Time Home Buyers

September 26, 2012

With 40% of the real estate market composed of first time home buyers, the group has become one of the best niches in real estate.  Many first time buyers were born between 1981 and 2000 as part of the Echo-Boom generation, which is larger than the Baby-Boom generation, and will create a huge surge of starter home sales over the next few years.  Working with a first time home buyer is a smart decision for Real Estate Agents not only because they are about to dominate the market, but also because they typically stay in their homes less time, will buy several properties over their lifetime, and are more loyal clients; thus, creating more potential business over the years.  In order to achieve success with this growing market, there are a few tips to keep in mind.

  • Be active in finding first time homebuyers.  Many Real Estate Agents find first time homebuyers at FTHB seminars hosted by different organizations.  Introduce yourself, leave business cards or flyers, and ask for their information to build a relationship with them.
  • Improve your online presence.  Most first time home buyers will research the process and search for homes online before finding a professional.  It is important to be active with social media, blogging, and videos so that they can find you during their search.
  • Embrace the new buyer and help the client understand the process.  Set the right expectations for them, explain short sales, normal sales, REO, and turn times.
  • Never rush a new home buyer.  Spend whatever time necessary with them to gain their trust and confidence in your knowledge and your ability to guide them through the process.
  • Uncover any issues they have with buying a home that might keep them unsure and address them. It is important to target any issues that might have them on the fence, and ensure them that this is a good time for them to buy. If the issue can be resolved, help them resolve it. If not, stay in contact until they are ready.  It might be tempting to push them towards a purchase, but waiting until they are ready and confident will establish trust and generate future business.
  • Give the client peace of mind.  Help them navigate the market, identify the inventory of homes, research, and point out the pros and cons of properties to make informed decisions.
  • Be committed to the client.  Get them the best value for their investment.  Be loyal and 100% dedicated to them.  First time homebuyers need a lot of attention and reassurance, so be prepared to spend a lot of time with them on their home search and answer questions.
  • Provide them with access to information.  Information and educational efforts are more important when working with first time homebuyers.  They generally need more information about the process, a slower approach, and feedback throughout the process.
  • Develop a folder of information in print form to help them do their research.  This will save time by helping them learn everything they need to know without you having to explain it all.
  • Be sure to have your first time buyers get pre-qualified.
  • Be prepared to show more homes to a first time buyer.  They will be curious and cautious, so be patient in helping them decide on their first purchase. 
  • There are down payment assistant programs available for first time buyers who do not have money from selling a home.  It is crucial that the Real Estate Agent finds the program that best fits the individual buyer.
  • After closing the sale, keep in touch.  Maintaining a relationship, sending them flyers, or staying connected through social media can generate referrals and prevent them from going elsewhere for their next home purchase or sell.

Buying a home is both a huge responsibility and opportunity.  When helping a first time homebuyers, it is vital to guide them as they go through the buying process from financing, appraisals, property rights, offers, negotiating, scheduling, monitoring closing details, and moving.  Remember, a first time homebuyers is going to make several transactions throughout their lifetime.  Following these tips will help you to establish a business relationship that will a lifetime.

One Comment leave one →
  1. Joshua D permalink
    October 22, 2012 8:39 pm

    Has anyone ever worked with a First time homebuyer born in the year 2000?


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