Tackling the Top 3 Hurdles with First Time Buyers

There are tons of hurdles in a real estate transaction that present themselves between your first time buyers and yourself.  These top 3 hurdles seem to create the most resistance.  However, they can be combated with the right amount of skill and adequate explanation.  A little patience doesn’t hurt either.

The first major hurdle is buyer ignorance.  A first time buyer often doesn’t realize just how much they don’t know.  This usually results in unrealistic price expectations, obnoxious lowball offers, mismanaged assumptions on how the buying process works, and inability to fully realize the fast moving world of offers, counter offers and multiple offers.  This is alleviated by explaining to your buyer in detail how the process works, so they understand everything from the initial offer to the inspection to closing.  Educated buyers always make strong offers, with fewer contingencies.  Work on getting your first time buyer up to speed with lessons in the field.  Some stubborn buyers may need to lose a house or two before they understand how the game is played.  Above all, before you get into the car with them, have them pre-qualified by (ideally) a lender of your own choosing.  This narrows in a budget and eliminates time wasted at higher price points.  Some markets’ offerings vary drastically when you go up in increments of $10k.

Indecisiveness is the next biggest hurdle with a first time buyer.  Sure they can find as many houses as they can imagine, and set up as many showings as they can handle, but committing to one?  That usually takes some time to come to terms with.  As long as you’ve identified what you truly want, and you’ve seen more than three or four of what the neighborhood has to offer, you should be able to know the perfect property once you’ve seen it.  Timing is important, but a house that checks off all your boxes and offers little to no compromises should be pounced on.  The rest can follow.

The third hurdle is one that is not always present, but when it is it can be the most frustrating.  A lot of first time buyers consult their parents during the process.  They ask for advice and guidance through the many steps of buying a home.  Sometimes these parents are overcritical of the house you show, and may immediately write off certain elements about it.  Other times they can be over protective of their children and steer them away from a particular property. Always resist the urge to argue.  That can lead to unnecessary strife between you and your clients.  Instead thank the parents when they offer good insight, agree with them when they bring up sound points and gently correct them if they say something misleading.  Parents can quickly become your best ally when you handle their criticism correctly.  Your buyer’s relationship with their parents will play a huge part in all of this.  If they get along just fine and know when to say no to their advice you may never need to get into it at all.

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