Focusing on First Time Home Buyers as a Real Estate Agent
With so many people going into real estate, it seems like anyone can get people to buy a house. However, it is not the case. Some people never get to make any sales, and they end up giving up on their dream to become estate agents. Those who do manage to make sales are the ones that concentrate on a niche. One of the best niches in this industry is the first time homebuyers’ niche.
Previously, I wrote a guide to help first time home buyers get started, you might consider reading that too to know the basics of helping first time home buyers find a perfect home. You can read it by clicking here.
Most of these first-time buyers are people who have recently started working. With most of them having huge student loans debts, they will tend to seek something modest. If you manage to reach out to them, you could make quite a number of successful sales.
What You Need
One way of getting through to these buyers is to understand that a majority of them are Millennials. These are young people between 18 and 34 years. Most of them are quite optimistic. In fact, almost 70% of them estimate that they will move into their home within five years. This is significant in a country like UK where there are about 16 million of them. As a result, most of them will likely be on social media. Thus, having a solid social media strategy needs to be at the core of your strategy.
Additionally, you will need to have good communication skills. You need to be able to speak to them in a manner that resonates with them. For instance, if you are beginning your house estate agent career, you may face some difficulties. However, that is your advantage. A more successful estate agent or may seem a bit aloof to first time buyers. Do not try to appear more sophisticated than your clients. It is something that will work out great for you.
Why First Time Home Buyers Are So Valuable
In the past, Millennials have opted to rent houses. However, the increase in demand for rentals has pushed the prices up. Thus, it has made it quite unprofitable for most of them to continue living in rentals. For instance, rental prices have risen by 5% to 7% annually in recent times. Besides that, a first-time buyer is making a purchase due to a genuine need rather than a want. It means that if you can fulfill all their needs in terms of closeness to work, affordability, and other factors, you will make a successful deal.
What You Should Keep In Mind When Dealing With A First Time Buyer
Firstly, some of them do not understand the various incentives that exist for first-time buyers. Do enough research and help them understand that there are a number of programs run by governments to assist people to purchase their first homes. For instance, the Australian government runs such a program. Visit the site and find out the unique qualifications to get these incentives per territory. These programs make it easy for people who desire to own a home to find one with ease. If you take your time to inform the buyers about this program, they will seek your assistance when they decide it is time to purchase a home.
Additionally, ensure that you inform these first-time buyers about the cost of running a home. Make sure they understand there are fees such as maintenance, gas, insurance, and other fees besides mortgage payments. Also, inform them not to spend too much on interior fitting like furniture and lighting. If you fail to do that, they may lose the home, and they may feel duped.
In general, first-time buyers are hungry for information. Any real estate agent that gives these buyers a lot of information is likely to make a sale. They hold small details that seem unimportant to you in high regard. Everything about real estate is new and shiny to them. Make your goal to ensure they make the best choice. If you do guide them well, they are likely to recommend you to their friends.
Additionally, if you give them a lot of information, they are likely to come back to you later. First-time buyers usually purchase a bigger property in about four years after their initial purchase. If you find them home that meets most of their financial goals; you would be their agent of choice in the coming years.
What You Should Avoid With A First Time Buyer
One mistake you may make with a first-time buyer is to assume they already understand the home buying process. Most of them do not have any idea about the process of acquiring a mortgage, closing fees, and other intricacies. Thus, you should keep this in mind as you try to assist them to find their first home.
Never show them too many options. From your huge list, choose homes that meet all or most of their unique needs to show them first. Later on, you can then show them the rest of the homes on the list. You can discover the price range by researching how much money first-time buyers spend on their first home. The information is unique to each region. Thus, you need to conduct a huge amount of research.