A federal tax credit of up to $8,000 is nudging many Americans into buying a home for the first time, good news for those trying to sell one.
Selling a home in today's market isn't easy but it can be done, especially with a home selling team as dedicated as mine. To get a first time home buyer to submit an offer on your home it must stand out from the competition, including homes in your area for sale and also in neighboring cities with similar pricing. One thing going for a seller is that a home buyer will have an easier time picturing themselves in a well maintained lived in home than a vacant fixer upper foreclosure. New buyers are skeptical to buy a home that needs a lot of work. Sellers certainly don't need to remodel their kitchen but they should make sure their home shows well. The number one concern of first time home buyers is affordability. Only 7% said first-time buyers were looking to purchase fixer-upper homes that they could buy on the cheap and renovate.
Assuming you've priced the home correctly, here are five ways to lure a first-time buyer:
1) Maintain and stage: A home that has been lived in and taken care of will be much more appealing than a vacant foreclosure. If someone is living there the landscaping will be alive and the home will have a warm feeling.A fresh coat of paint, decluttering and the removal of unpleasant odors can go a long way to making a good first impression. Be careful to not over renovate and lose money in your investments. Some fixes are just not worth it.
2) Mention up front that you'll help pay closing costs: Generally, there's a good chance they'll ask for closing cost help anyway, but it might pay off to be proactive and offer it at the beginning.
3) Offer a home warranty: First-time buyers are often coming from a rental, and they are used to calling a landlord when there's a problem. To help them more easily transition into homeownership, provide them a warranty that covers major systems when problems arise.
4) Offer mortgage protection: The plan will make several months of mortgage payments in the event that the buyer becomes unemployed.
5) Don't snub low offers: Buyers know prices are falling and thus are trying to get your price lower than listed. If they come with an extremely low offer don't blow it off, think about where they are coming from and counter it. A low offer is better than no offer at all. Maybe through negotiations the price can come back up.
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