Behind the excitement of first-time homebuyers is a good amount of nerves and anxiety.  As a real estate agent, do you have the skills to best serve these nervous buyers?  Let's take a look at some examples of how you can help these homebuyers make it to the finish line.

Homebuyers rely on their real estate agents to take control of situations that might otherwise spin out of control.

• Be realistic
• Be empathic
• Be reassuring
• Be the voice of reason
  
  

Tell Me More About Your Concerns 

Quickly build trust by asking what concerns your clients have, not if they have them.  Maybe they don’t want a repeat of a bad home buying experience from the past, or their friends may have warned them about their stormy bidding war experience.  Whatever the concern, reassure them by providing solutions to ease their fears.

“I want to get the house inspected so we don’t end up with a long list of unexpected issues after we move in.”

• Negative past experiences
• Foreign topics (ex. septic system)
• New to homebuying
• Experiences shared by friends

By listening to their concerns early in your relationship, you get a better understanding of their mindset and how you can steer them away from their anxieties.

Unrealistic Thinking

First-time home buyers feel unprepared as they face the unknown.  Help them think more realistically about what lies ahead by sharing your experiences with first-time buyers.  

The better you understand where homebuyers are coming from and empathize with them, the more likely they are to think rationally as they face new buying decisions.

The importance of talking to a lender is unfamiliar to many first-time homebuyers.  They may not understand the difference between getting pre-approved for a home loan vs. getting pre-qualified.  They may want to start looking at houses before they even talk to a lender.  Explain how getting pre-approved provides more leverage in a competitive housing market.  It's more likely they'll want to get pre-approved knowing it will increase the chances of the seller accepting their offer.

Someone who has only lived in a skyscraper, but wants to move to a rural area, might be unrealistic about what it takes to maintain the property.  For example, if the inspector reports a problem with the septic tank, it's going to be a foreign topic to this homebuyer.  Have the inspector explain the septic system, or do it yourself, to help this homebuyer determine if it's realistic to buy rural property.

Rejected Offers

First-time homebuyers don’t expect to get caught up in a bidding war or have their offer rejected.  Share examples of how you’ve handled these scenarios before they happen and you’ll stave off homebuyer disappointment.  Consider the following homebuyers who have been told ahead of time what can happen with offers:

If you told them from the beginning that sellers often favor all-cash offers, they won’t be surprised when their mortgage-based offer gets rejected.

When their offer gets accepted but the appraisal is $10K over their offer, they won’t be surprised to learn they have to come up with cash to cover the difference or their offer might be rejected.

By educating them early in the home buying process, homebuyers can overcome their panic and fear and avoid making poor buying decisions when their offer gets rejected.

Unreasonable

Oftentimes, you won’t know you’re dealing with an unreasonable client until you start looking at houses with them.  Your client needs to get everything on their list of wants, despite telling them they might have to compromise.  Before you know it, you’ve looked at 100 homes and they’re still not happy.  "No pool, no thanks."  Help them see the potential in homes by offering solutions that will make them think more realistically.  

Problem:  can’t find a home with a pool in their price range.

“The yard is big enough to add a pool.  If we offer $20K below asking and it’s accepted, you’ll have enough money left in your budget to install a pool.”

Conclusion

Many first-time homebuyers are anxious about making the biggest purchase of their lifetime.  Reassure them that feeling nervous is normal and most first-time homebuyers experience it.  As a real estate professional, you can be the voice of reason, making the process of buying a home seamless.  Create a great experience for your first-time homebuyer and you could end up with a lifelong client!