*This is a guest post. The opinions expressed are that of the author’s and do not necessarily reflect my own.*
Owning a home is the biggest dream of most people, not only in the US but worldwide. As you can guess, buying a home is not an easy task. It is an individual’s biggest achievement, especially for those who work from 9 to 5.
Despite the economic crunch in the past few years, first-time home buyers continue to enter the market. They are of real interest to real estate agents as they make up a sizable segment of the real estate market.
An expert real estate agent, Judy Crockett, says that’ the first-time homebuyers are young and less experienced. They lack knowledge about the property, loans, mortgages, and other related aspects of buying a home.
While it could be frustrating for some real estate agents, it also poses an opportunity to make easy sales and earn high commissions. If you are a real estate agent, you need to consider certain common characteristics of this demographic to cater to them and convince them to buy their first home from you.
Below are the six major things that you should know about first-time buyers:
1. Demand for Homes
A group of real estate agents says that almost 72 percent of first-time buyers demand a single-unit home, while 8 percent ask for a townhome. Another 8 percent are looking for apartments, while a tiny percentage prefers unconventional homes. Although the demand for unconventional homes is limited, its unique and eco-friendly designs are becoming popular as living spaces decline within cities. The best part about uncommon homes is the experiences they provide. Being a real estate agent, you should know what your client wants to show them their best first house.
2.They Know Less About Loans Programs
As mentioned earlier, buying a home is not an easy job. It requires a lot of investment and planning. Since first-time homeowners are young and inexperienced, they are not familiar with real estate loans. You, as their real estate agent, can suggest home financing options to get them a better deal. There are many loan programs available for first-time buyers- VA Home loans, USDA mortgage, FHA mortgage, conventional mortgage with only 6-8 percent initial payment, or banking credits. The selection depends on the finances and personal preference of a person. A first-time home buyer should collect information about the loan programs available in their locality because every loan program and lender is different. They should also know about the fixed-rate and adjustable-rate, FHA, and VA loans.
3. More Open to Suggestions
First-time home buyers consider their first purchase of a property or land as an investment. They are generally more open to negotiations and take the suggestion of a real estate agent wholeheartedly. A real estate agent should make their first-time clients feel more comfortable by encouraging questions, providing them research material, and giving them suitable home options. The best tactic is to engage them in negotiations and convince them to buy their ideal home from you.
4. Less Information about Real Estate Taxes
Real estate taxes are levied on the total worth of the property. Paying real estate taxes for the property a person owns is a common practice. Most first-time buyers in the USA do not know that they get deductions on the interest of mortgage, deductions on property taxes, and exclusion of capital gains. Being a real estate agent, it is your ethical responsibility to make them aware of these deductions. This will develop a relationship of trust and make the first-time client more comfortable.
5. They Look For Solutions Online
Reaching the first-time homebuyers is easy if you use social media tools. Today, young homeowners are mostly millennials, and they are connected to social media platforms 24/7 through their smart devices. You can increase your visibility by establishing a strong online presence by maintaining your social media pages, developing a dedicated website, and investing in online marketing.
Unsurprisingly, Millennials interested in buying their first home turn to the internet for answers. By building a strong online presence, you can catch the attention of your potential future clients. Additionally, using social media tools makes it easier for people to locate you on Google.
6. They ask too Many Questions
Buying a home for the first time is a nerve-wracking process, especially if a family has a limited budget. The most common observation about first-time homebuyers is that they ask too many questions. This characteristic is not only limited to real estate purchases, but to other transactions such as marketing, carpet cleaning, baby shopping, etc. because Millennials like to be prepared. A successful real estate agent does not get irritated with their questioning and encourages them to ask questions to their satisfaction to build a strong relationship between client and agent.
Buying a home is a big dream for most Americans. Turning this dream into reality requires financial stability and planning. Despite the stagnant economy, first-time homebuyers are increasing day by day and are becoming a big segment of the real estate sector.
If you are running a real estate business and tend to cater to first time buyers, you need to know some of the common characteristics of first-time home buyers. These buyers are usually less experienced and have limited knowledge about buying houses. They ask too many questions, rely on the internet, and expect you to do most of the work. However, you should not get irritated; answer them in an informed way to build a strong client-agent relationship and reap the rewards in the form of high commissions,
Shaheryar provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for Carpet Cleaning Stevenage.