First-time homebuyers are a crucial demographic in the real estate market and have continued to grow as a niche for real estate professionals. However, there are certain attributes of this demographic that you should consider before you pursue this buyer category.
Judy Crockett, real estate agent and certified residential specialist states that “working with first-time buyers is challenging primarily because the buyers are typically younger, inexperienced, and overwhelmed by the logistics of purchasing a new home.” Read on for 6 things you should know about first-time homebuyers.
Homes
There are certain characteristics of first-time homebuyer properties you should consider before pursuing this niche. For example, approximately 73% of first-time buyers are looking for a single-family home, while 9% are seeking a townhome, 8% are seeking a condo and the remaining buyers are looking for unconventional homes.
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Loans
There are numerous loan programs available for first-time homebuyers, which means you should familiarize yourself with the ones that are available in your area. Make sure you’re familiar with fixed-rate and adjustable-rate, VA loans, and FHA loans because it’s likely that your client is unfamiliar with these programs.
Taxes
There are certain perks that are available for first-time homebuyers, such as mortgage interest deductions, property tax deductions, and capital gains exclusion. It’s important to make your client aware of these deductions, for these will be major selling points, particularly for young buyers.
Check out our continuing education course, Real Estate Taxes, to learn how to educate your clients about real estate taxes.
Negotiations
One of the primary advantages of taking on first-time homebuyer clients is that they’re generally flexible with their negotiations. First-time buyers tend to view their initial property purchase as an investment, so as long as you help them feel comfortable throughout their homebuying experience, they’re more likely to be open to your suggestions.
Marketing
There are numerous marketing strategies that can be effective with first-time homebuyers, particularly online. A website focused on the first-time buyer is a great tool that can draw visitors and future clients in the niche. Utilizing social media and content marketing will make you easier to find on Google, which is likely where this buyer will their home search. For further help on marketing tools, enroll in our niche marketing course.
Questions
Though buying a home for the first time is an exciting experience, it can also be incredibly nerve-wracking. The first-time homebuyer will generally ask a lot of questions, particularly at the beginning of the client-agent relationship. It’s important that you respond with concise and informed answers so that you can ease their stress and earn their trust.
