5 Steps To Entice First-Time Home Buyers
A Federal Tax Credit of $8,000 is helping to nudge some 1st time prospective buyers into taking the leap.
A lived-in, well-maintained, home is easier for buyers to imagine themselves living in than a vacant foreclosure.
First time buyers are skeptical of buying homes that need improvement.
Affordability is the #1 concern for first time home buyers.
81% said move-in condition was very important.
Only 7% of first time home buyers wanted a fixer-upper.
Step #1: Maintain and stage the house. Take care of your house throughout the years you live there. Have nice landscaping. Create emotional warmth in your home. Fresh paint, declutter, remove unpleasant odors, but don’t overimprove.
Step #2: Mention up front that you’ll help pay for closing costs. This could be the extra motivator needed to reel a buyer in. Consider offering to pay down the mortgage rate by paying points for your buyer.
Step #3: Offer a home warranty. First time home buyers are often coming from a rental, and they are used to calling a landlord when there’s a problem. To help them transition more easily to home ownership, provide a warranty that covers major systems when problems arise.
Step #4: Offer mortgage protection. Consider purchasing insurance for your buyer that will cover the cost of the mortgage payment if the buyer loses their job.
Step #5: Don’t snub low offers. Buyers are being extremely aggressive with offers. Create a friendly and honest dialogue regarding the price negotiation. After all, the first offer is not important, only the last offer. It doesn’t cost the seller anything to find out what that final number is, then deciding whether to go through with the deal.