With the first-time home buyer’s tax credit in full effect, younger buyers are taking the opportunity to enter the real estate market and the New Jersey real estate market has seen its fair share of first-time buyers enter the playing field recently. Across the state, agents are finding that they must consider the first-time home buyers’ unique needs and adapt to this new type of client. “Those first-time home buyers who’ve entered the housing market- drawn by the perfect storm of historically low interest rates, attractive prices and the $8,000 tax credit- expect much more from their Realtors,” said Dave Liniger, Co-Founder of RE/MAX International. “They want access, they want answers, and they want ongoing communication through text messaging. They just want to know, ‘How fast can I get the information?’ and ‘How available are you?’”
Part of an ‘instant-gratification’ and Internet generation, first-time home buyers are tech savvy and educated and they don’t want to wait for answers. They are confident and eager to become home owners.
“Making a point to notice how certain generations and certain clients like to communicate is vital. You have to adapt, you have to anticipate, and you have to be ok doing business on the phone, through text message, through email, whatever your client wants,” says Anita Jacobus of RE/MAX at Barnegat Bay in Toms River.
First-time home buyers are being drawn to the housing market because of low interest rates, attractive prices, a huge volume of inventory, and the tax credit. Not only do they have options and room to negotiate, but they have $8,000 that they can use to cover closing costs or to just get back come tax time.
“First-time home buyers are a large percentage of our clients right now and we’re having the best spring in three years. They are creating a domino effect in the real estate market, purchasing homes, allowing the sellers of those homes to move up or to downsize if they choose, and are stimulating the furniture and home improvement industry as well,” said Richard Wieland of RE/MAX First Realty in East Brunswick.
To qualify for the $8,000 tax credit, buyers must meet the first-time home buyer criteria and they must be a first-time home buyer. They qualify if they have not owned a principle residence in the last three years and must close on their home purchase before November 30, 2009. As long as they live in the home for three years, they never have to repay the tax credit.