Everyone works with different clients that have different needs. Seasoned investors tend to be the easiest when they are picking up their third or fourth rental property. First time buyers however, prove to be more of an obstacle. Here are some simple ways to assess the top three hurdles and fears that a first time buyer brings to the table.
The main issue a first time buyer will bring to you is their inexperience. They have obviously never been through the process before, so they underestimate how much is involved in the transaction from start to finish. They usually think they know more than they do, which leads to unrealistic expectations. Sometimes they misinterpret the climate of the market they enter. This results in lowball offers, lost time dragging their feet, and not knowing what to bring to a multiple offer situation. To combat this ignorance simply educate your buyers. Make sure they understand what is expected of them, what parts of the transaction they will have to provide information for, and make sure they have already talked to a lender and are prequalified. This helps to keep them inside their price range. If they start looking at homes above their price range, they may begin to become unhappy with what is available to them. If they are ever stubborn with putting in an offer, either in a timely fashion or at the right price, let them lose out on one or two homes. This presents a learning experience for a first time buyer to get their head in the game.
Another huge problem that plagues a first time buyer is indecisiveness. This is understandable when they first start looking and tour their first few homes. You’re expected to make a decision where you will live for the next decade or longer in less than an hour. They will hesitate and they will second guess themselves. Make sure you sit down with them and hammer out their criteria. Avoid any home that doesn’t convey their top three must have traits. Assure them that they don’t have to compromise on those items. Once they’ve seen a few homes, and up to ten listings online they will have a good idea about what they want. This will lead them to know with certainty when they step into the home they want to buy.
The last hurdle may or may not present itself in your journey to find them a home. The parents of first time buyers will try to inject themselves into the deal and dissuade the buyers from homes, simply based on their own preferences. They will be critical of homes you show without knowing the market conditions or what the true value of the home is. They obviously have not been looking at listings everyday like you, so you need to delicately correct them when they give untrue opinions as fact. These parents can quickly get on your side if you educate them like you have your first time buyers. Once people learn the truth of the situations they will be much more willing to accept your counsel.
Blue Olive Properties handles Highlands Ranch property management throughout all of Highlands Ranch. Please call 303-683-2526 for a free consultation.
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