THINGS YOU SHOULD KNOW ABOUT FIRST-TIME HOMEBUYERS
First-time homebuyers are an important demographic for real estate professionals. As a whole, this group is often easily overwhelmed by the homebuying process simply because they lack experience and understanding.
If you plan to target this demographic, there are several things you should know to make dealing with them easier. Keep reading to find out six things you need to know about first-time homebuyers.
1. THE HOME
First-time home buyers are usually looking for single-family homes as they are often young, newly married, about to be married and raising or ready to begin raising a family. A smaller percentage of first-time homebuyers look for townhouses, condos, and unconventional homes.
There are several loan programs that target first-time homebuyers, and you should familiarize yourself with them if you plan to target this demographic. VA loans, FHA loans, and fixed-rate/adjustable-rate loans are all terms you should know because it’s likely your first-time homebuyer clients won’t know them and will look to you for guidance.
3. TAX DEDUCTIONS
If you’re dealing with young homebuyers, it’s likely they won’t know about the tax breaks they qualify for as first-time homebuyers. It’s your job to inform them of mortgage interest deductions, property tax deductions, and capital gains exclusions, as they could be great selling points for young buyers.
One of the biggest advantages of working with first-time homebuyers is that they are usually flexible in their negotiations. They view their purchase as an investment, so if you do what you can to make them feel comfortable and confident throughout the home buying process, they’ll likely be open to your suggestions.
5. MARKETING STRATEGY
The Internet makes it extremely easy to market to specific groups. For example, a website devoted specifically to first-time homebuyers is extremely attractive and will bring in plenty of new clients in this niche. Utilizing social media and content marketing to present yourself as an authority in the real estate industry will also help first-time homebuyers feel confident in their decision to work with you.
6. ANSWERING QUESTIONS
As exciting as buying their first home can be, first-time homebuyers will undoubtedly have a lot of reservations and questions. It’s up to you to answer their questions with informed, concise responses that put their minds at ease.
First-time homebuyers are an important demographic in the real estate industry, but this niche needs special handling. If you plan to take on first-time homebuyers as clients, make sure you familiarize yourself with the six points above.