Are you working with First Time Homebuyers? Or are you missing a niche market? Well, if you aren't working with First Time Homebuyers, you may want to reconsider your marketing strategy.
According to the National Association of REALTORS first time homebuyers made up 39% of the homebuyers in the market. 12% of these buyers were born in other countries. In a 12 year period of time this statistic has averaged 42%. Over 3/4 of these homebuyers are living in apartments or renting single family homes. 52% of them are 24-35 years old, Generation X.
The real estate sources these homebuyers used are:
87% started on the Internet
49% used newspaper ads
44% used open houses
30% used books or magazines
29% purchased a home they found on the internet
56% took a virtual tour
9% used TV
How they found their agent:
54% got referrals from family or friends
32% interviewed 2 to 3 agents before choosing one
9% found their agent online
1% found their agent in a newspaper ad or in a magazine
So, First Time Homebuyers Comprise 40% of the homebuyers in the market. Today, real estate networking and internet presence is key in finding your first time homebuyers.
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We have a great FTHB program for the finance. We are canvassing the largest apartment complexes and doing free 90-minute seminars in conjunction with a "realtor of the month". It is working quite well for us, and the "newbies" aren't suffering from the woes of the market of the last few years....
Jim, WOW! Great job! The seminars sound super! We are hearing more and more stories about the favorable financing programs available to FTHB. The last 4 buyers I have worked with, have been FTHB. And the loans have been so much easier to process than they were in prior years. I remember 12 years ago it was truly a nightmare to jump through all the hoops and to find a home that would even qualify for the programs. It was awful! That has all changed today! Keep up the good work!
We have a mortgage broker who has zero money down with 6% assistance in this market, can you believe this.
The columbus dispatch did an article on First time home buyers. And what a wonderful time it is to buy. I think education is always the best way to contact them!
John, Zero money down today? And 6% buyer assistance? I haven't seen the zero down anywhere, anymore! That's incredible! What a great tool for you, to help your first time buyers! Best wishes!
There's alot of good information available today for First Time Homebuyers. I agree that education and knowledge is power to these buyers!
I have always preferred working with FTB's, they truly seem to appreciate you more, and they always have friends doing the same thing....(birds of a feather flock together)... So typically they can be the best source for a referral.... and since they usually sell their first home faster than the move up buyer... you may have a pipe line of listings and buyers sitting waiting for you, provided you treat them right and create a raving fan, and most importantly follow up FREQUENTLY so they dont forget who you are!
good post...it is a great time for first time buyers...prices are great with lots of good deals out there.
Michael, I agree it is a great time to buy! Prices on some homes are down to more realistic levels again and interest are still historically low.
Robert, I agree with you about the first time buyers. If you take the time to educate them to the homebuying process, properly, and allow them to buy when they're ready to buy, you're right...they are so appreciative. I have noticed this with the past several first time buyers I have worked with. And follow up is sooo important!
Sandy, The first time home buyer is the one who will give you the feeling of greatest accomplishment. Nice post!
It's a Good Life!
Fran
Sandy,
We have several now.....trying to get them off the fence.....all believe that the "deal" is there if they wait long enough....
Hi Dan, Here in Brevard County for me, first time homebuyers are the bulk of my customers. They are taking advantage of some of the great first time homebuyer programs available right now. You know, if they wait too long interest rates will start going up, and that "deal" will not be so attractive anymore. Best of luck to you with your buyers.
Hey Fran, I agree with you that the first time homebuyer is the most appreciative of all of our customers. That's why I love doing business with them! Thanks for the nice comment. Have a great day and best wishes to you!
Most of my business is 1st timers, lately they are also great for referrals because they no other first time buyers.