Working with first-time homebuyers can be both exciting and challenging. On the one hand, you are typically working with enthusiastic (albeit nervous) clients. On the other hand, there is a decent amount of real estate education that you will need to convey in the process. Today, let’s explore a few top tips for working with first-time homebuyers.
Assess The Homebuyers Current Position
First-time homebuyers come in all shapes, sizes, and backgrounds. During your initial consultations, it’s best to assess the current position of the homebuyers. This includes budget requirements and their experience (or lack thereof) in the real estate market. Doing this ensures that you can make a comprehensive plan going forward to best serve their needs.
Define Wants vs. Needs
Some clients might need a little help with this. Defining wants vs. needs is challenging. Your clients may have dreams that overstep their current constraints and purchasing ability. By defining wants and needs, you can best serve first-time buyers, planning for long-term success over short-term satisfaction.
Manage Expectations
Working with first-time homebuyers comes with a decent amount of expectation management. This includes the above-mentioned defining of wants vs. needs, but you’ll also want to manage their budgetary expectations. First-time buyers typically only have the pricing knowledge found on apps like Zillow, if that. That backyard pool, lakeside home, or city skyline view might not be in their budget at the moment – and that’s okay!
Let them know that you will find a home that works within their budget, fits their needs, and tries to check off most of their wants.
Review Financial Options
There are many ways to buy or rent a home. First-time homebuyers might not be aware of all the options available to them. This applies to mortgages, loans, down payments, and other costs, such as hiring an inspector, closing costs, taxes, HOA fees, etc. All clients should be aware of all the costs going forward so that they (and you) can plan accordingly.
List Incentives and Programs for First-Time Homebuyers
There are also incentives and other programs for first-time homebuyers that you should pass on to your clients. For example, there are many national first-time homebuyer loans that might make sense for your clients. These include the:
- – Conventional Mortage – best for lower down payments and limited mortgage insurance premiums
- – FHA Loans – best for those with lower credit scores and lower down payments
- – VA Loans – best to those serving or who have served in the military
- – USDA Loans – best for lower down payments on rural and suburban properties
Massachusetts also has its own share of first-time buyer programs. These are:
- – MassHousing Mortgage – best for a low down payment and low mortgage insurance
- – Purchase and Renovation Loan – best for properties that require home improvements
- – Operation Welcome Home – best for military personnel and veterans
- – Workforce Advantage Mortage – best for down payment assistance
- – Down Payment Assistance – also, down payment assistance
The financial education website, Nerdwallet offers a more comprehensive breakdown of these assistance programs. So be sure to check it out!
Establish Trust
One of the most important aspects of real estate is establishing a trusting relationship with your clients, especially first-time homebuyers. As first-time buyers, potential clients might be a little hesitant about, well, anything. Follow your principles and prioritize honesty – you’ll be sure to gain their trust and confidence.
Always Lead With Patience and Kindness
It almost goes without saying that you should lead all communications with kindness. Now, this doesn’t mean that you shouldn’t be direct. In fact, being direct with first-time homebuyers is kindness in itself. But keep in mind that you have to stay patient. First-time homebuyers are probably nervous and they may have a lot of questions and hesitation. By gently guiding them through the process, you can establish a trusting, positive relationship that leads to sales and loyal clients.
Categorised in: Real Estate Tips