Home > Blogs > Mark Organek > Monopolyman Blog

First Time Homebuyers: "Please handle with care!"

By Mark Organek

Services for Real Estate Pros with And the United States of America AZ SA543893000

March 26, 2008 04:15 AM

We as an industry need to show care and concern to protect the First Time Homebuyers!

fragile

When I ask a first time homebuyer, "What made you decide to purchase a home, now?" They usually respond:

"Well, the market has come down so much that I figured that this would be a great time to buy!"

Thank goodness I was able to get to them first before someone sacrificed them to an overpriced listing.

We've got to realize that we've got to protect this new wave of buyers from becoming cannon fodder for overpriced sellers. We have to spend time educating them on several issues:

A home is not a "great deal" just because it is $50,000 less than comparable properties. Those comparables might be overpriced by $70,000. What do the fundamentals say about the price?
Buying a foreclosure isn't a sure thing. How many compaints do we see in blogs about the unreasonableness in pricing from some lender owned properties?
Short sales aren't a deal just because it's a short sale.
The reason you may be getting a "great deal" is due to the seller or agent or any professional party having knowledge about adverse factors affecting property value. They will leave this up to your agent to find.
Just because we can get sellers to pay closing costs and prepaids doesn't mean the buyer is not paying for it at the end of the day. Don't let lenders jack those up.

The time to buy has NEVER been better! Especially with more restrictions to lending due to occur. Let's just show these buyers that we will protect them and provide them with sound value analysis, not just a number based upon other listings.

When confronted with statements from buyers, that you have a fiduciary responsibility to, ask, "WHY?" they feel the way that they do. Otherwise, your assumption may cost you a relationship if you skimmed over or completely missed an important discussion point.

If we blow it on this wave of FTHB's and allow sellers to dump overpriced inventory on them, the next wave will be even slower to come to the market. We will probably hear the crickets chirping in neighborhoods.

Let's not make them the sacrificial lambs! Let's take care of them as professionals.

Re-Blog

Comments(21)

Comment

Show All Comments

Sort:

Sharona Hannuka

Du Rite Realty, Co. - Whitestone, NY

Dear Mark,

I love what you wrote. What you can do is to make a flyer and mail it out. you will have customers.

Yours truly

Sharona

Du Rite Realty.

Mar 26, 2008 04:24 AM

Jessica Bigger

Bigger Communications - Reston, VA

Freelance Real Estate Business Writer

Mark good points! I wrote a blog recently about educating first time home buyers on the upfront costs of buying a home and being in a financially secure position (ie being financially responsible) to buy. So finding your blog was perfect timing.

Mar 26, 2008 04:25 AM

The Entire Team of Price & Company Professionals

Price & Company Realty - Myrtle Beach, SC

First Time Home Buyers, especially, need patience and guidance in purchasing a home - the biggest investment they can make. Not everyone understands this, however... I just read a blog where the agent called his own FTHB clients "Young... In Love... and DUMB!!".

Mar 26, 2008 04:27 AM

Royal Goodman

Royalty Home Solutions - Madera, CA

"We Treat You Like a King"

Mark. Great posts. FTHB are very important to the future economy as well. Thanks, Royal..

Mar 26, 2008 04:33 AM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

Bob- You are correct on the disclose, disclose, disclose. If we, as professionals educate them properly then we can ultimately hold them accountable for their own decisions. If not, and I see this more than I don't, we can't leave them holding the bag.

Sharona - Thank you for the great idea. I will make sure to get this done and out there.

Jessica - That's great that so many of us are doing what we can to protect them. Thank you for the comment.

Christopher - Patience is definitely needed. I've been telling all my clients to, "Be careful! If you get into trouble, I can assure you I will never make your mortgage payment." Take your time to learn and make the best decision.

Royal - They are very important as the represent the majority of the "possible" buyers. If we blow it on the first round and let them soak up overpriced homes, our industry will lose a tremendous amount of credibility. The best solution: Go get these buyers before some unprofessional, uneducated and unscrupulous agent does.

Mar 26, 2008 04:45 AM

Joe Adams

Major Mortgage USA/Branch Manager - Montrose, CO

FTHB are the bread and butter of most professionals business.... respect them, nuture them help them and give them all the information they need to make the decision for themselves and you will have a client for life (just stay in touch with them)

Mar 26, 2008 05:22 AM

Doreen McPherson

Homesmart ~ Scottsdale ~ Tempe - Tempe, AZ

Phoenix Arizona Real Estate ~

Hi Mark, Let's try to get together some day in the near future... Looks like we may think alike.

Mar 26, 2008 05:24 AM

Cheryl Frei - Realtor® & e-Pro Certified Realtor®

Elite Realty - Absarokee, Montana and Billings, Montana - Absarokee, MT

Mark - You're so smart! You're doing it right! Keep up the excellence work! You're very rare agent.

Mar 26, 2008 05:53 AM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

Doreen - I look forward to it. You've kept me aware of news through articles I never would have read on my own. We've got to get to the consumers before the uncaring agents do.

Cheryl - You're so kind! There is so much that I get out of AR on a daily basis. I am actually changing my schedule to go out and get 10 business cards because of a post I read. If it works, I get to comment on a post with a proven answer. If it doesn't, at least I'll have been out there, focused on success.

Mar 26, 2008 06:01 AM

Mesa, Arizona Real Estate Mesa Arizona Realtor

Homes Arizona Real Estate LLC - Mesa, AZ

AzLadyInRed

Mark, what a well written post! You sound very mature for your young-looking photo.......and helping the first time home buyer is very special!!!

Mar 26, 2008 04:44 PM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

Teri, thank you for the nice words. Thank goodness for today's technology that can show me as thoroughly rested.

I'm really concerned about what I have been seening in the tax records regarding overpayment for homes. If you compare a bond money purchase to a non-bond money purchase, the loss in value is 2 to 4 times greater on the bond money. Too many agents are letting clients focus on the "free" money just to close a sale. We can't let the FTHB's get slaughtered by lazy agents. We've got to get to them first.

Mar 27, 2008 05:40 AM

-- Casey Brischle

Columbia Bank - Spokane, WA

Spokane Home Loan Mortgage Professional

Putting the client number 1. Great post. you will be sure to attract many referrals with this approach. thanks for the post!

Mar 27, 2008 05:53 AM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

Casey - I'm glad you stopped by and made a comment. I have some contacts from Spokane and will look forward to making an introduction to you if they need anything. I will be doing a mortgage strategy session with some folks that just purchased a second home last year. We may be discussing them purchasing another property either in AZ or WA. I'll keep you posted.

Mar 27, 2008 06:16 AM

Virginia Hepp - Mesquite NV REALTOR

Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV

Mesquite NV Homes and Neighborhoods - Search MLS

Mark - I have a weak spot for first time home buyers. I get the best deal that I can for them and explain everything that I am doing. I want their first purchase to be done correctly and they appreciate it.

Mar 27, 2008 04:07 PM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

Virginia - That's the way the Rainers seem to do it. Unfortunately, many FTHB programs will go away if the buyers aren't taken care of. Without them, who will be left to buy?

Mar 27, 2008 04:23 PM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

Virginia - That's the way the Rainers seem to do it. Unfortunately, many FTHB programs will go away if the buyers aren't taken care of. Without them, who will be left to buy?

Mar 27, 2008 04:23 PM

Virginia Hepp - Mesquite NV REALTOR

Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV

Mesquite NV Homes and Neighborhoods - Search MLS

Ummm....second home buyers who pay cash?

Mar 27, 2008 04:31 PM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

Yes Virginia, thank you for pointing that out! In our market, it would take about 60,000 buyers to soak up inventory since we don't know how many sellers are sitting on the sidelines. Why don't you round up some of the Mesquite and St. George folk and bring em on over?

Mar 27, 2008 06:57 PM

Virginia Hepp - Mesquite NV REALTOR

Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV

Mesquite NV Homes and Neighborhoods - Search MLS

No, Mark, I don't like road trips - why don't you move here and lower my stress level a little?

Mar 28, 2008 04:48 AM

Mark Organek

And the United States of America - Mesa, AZ

It's not a game, it's your life.

I really liked Mesquite the last time I was there. I had lunch there on the way to St. George. Can't move though I love AZ too much.

Mar 29, 2008 04:11 AM