6 Things to Consider Before Working with First-Time Homebuyers

Close-up of real estate agent giving new house keys to first-time homebuyers

First-time homebuyers are a crucial demographic in the North Carolina real estate market and have continued to grow as a niche for real estate professionals across the country. However, there are certain attributes that you should consider before you pursue this young and inexperienced buyer category. Here are six things you should know about first-time homebuyers.

Types of homes they’re seeking

There are certain characteristics of first-time homebuyer properties you should consider before pursuing this real estate 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 programs available to first-time homebuyers

There are numerous loan programs available to 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.

Tax perks available

There are certain perks that are available to first-time homebuyers, such as mortgage interest deductions, property tax deductions, and capital gains exclusion. It’s important to make your first-time buyer clients aware of these deductions, for these will be major selling points, particularly for young homebuyers.

Negotiation flexibility

One of the primary advantages of taking on first-time homebuyer clients is that they’re generally flexible with their real estate 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 strategies

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 begin their home search.

Importance of client education

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-broker relationship. It’s important that you respond with concise and informed answers so that you can ease their stress and earn their trust.

By following these tips, you will hopefully become the go-to real estate broker for any North Carolina first-time homebuyers that come your way.