Marketing Homes for First Time Buyers: Find Out If They’re Ready to Own a Home First

Real estate talk in recent months has focused on foreclosures, short sales and first-time buyers.

Agents have been actively seeking out first-time buyers because of the $8,000 tax credit they can receive if they contract by April 30 and close on their purchase by the end of June.

But of course, getting the credit shouldn’t be the deciding factor. And, call me an old-fashioned jerk, but no one should encourage a first-time buyer to jump in unless he’s really ready to own a home. Some people just aren’t.

As a former real estate agent, I understand about earning a commission, but I have to believe that most of us don’t want to encourage anyone to make a move that is detrimental to them. As Jim Rohn would say, “Some ways of making money cost too much.” And knowing that you have done wrong is too expensive.

So what questions should a real estate agent use to help first-time buyers decide if now is the time to buy?

First, the question all buyers should ask themselves: “How long do I plan to stay in this community?” No one should buy if they know they want to move in a year or two.

But back to first time buyers… Before you make the decision to own a home, you should ask yourself these questions:

• Am I ready to settle down and stay in a house for the indefinite future?
• Am I ready to take responsibility for home maintenance?
• If they have been living in an apartment, am I ready to take care of a garden?
• Can I comfortably afford a house payment every month?
• Do I have enough reserve for the initial payment?
• Does that leave me any reserves for repairs or maintenance?
• Tired of worrying about rising rental rates?
• Am I tired of worrying about “my” house selling and having to move?
• Am I sick of a landlord telling me what I can and can’t do in my own home?

You can include these questions in an information packet designed especially for first-time buyers.

Along with the questions, include information on how to meet with lenders and get pre-approved for a loan, how to prioritize and communicate your wants and needs to your real estate agent, and important things to consider before choosing a home.

The information pack, if offered on your website, can be a good “bait piece” to entice first-time buyers to contact you and give you their name and address, or email address.

You can then submit additional information to help them make an informed decision. And of course, since you are willing to help without pushing them to buy, the first wise decision will be to choose you as their guide in the search for a house.