6 MIN READ
This trend has been hotly debated as the rise of the millennial homebuyer has spurred some interesting opinions.
Conversations in recent years have resulted in many Agents believing the millennial generation is the first group to break the status quo of home ownership. Are you a real estate agent that feels as though first-time homebuyers are not worthwhile?
In this blogpost, we get into whether or not first-time homebuyers are an asset to your real estate career.
The Myth About First Time Homebuyers
We hear a lot about the millennial generation’s struggle to enter the workforce.
As a result, the assumption has been that millennials will put off purchasing a home later than previous generations have.
The media’s coverage on millennials doesn’t help. Many real estate professionals believe that there will be a delay for this generation to begin purchasing property. We’ve been told that the market is simply too expensive for first-time homebuyers.
Past research conducted by Zillow shows us that this assumption is incorrect.
In fact, a news release published by NAR® states otherwise.
The Truth About this Lucrative Group
Based on a Zillow study, 53% of all sales in 2016 were to first-time buyers.
The study finds that the average buyer is 36 years old, with half of the buyers identifying as millenials.
Zillow’s study found that today’s borrowers are spending an average of 15% of their income on their mortgage, compared to the 30% that they spent during the 1980s.
So, despite what we’ve heard about first-time buyers putting off home ownership, the truth is that first-time home sales are increasing. Millennials, therefore, make up a significant portion of those buyers.
Why Are First time Buyers so Worthwhile for Agents
Agents find value in loyal, repeat clients. These clients come to you naturally because they’re satisfied with their experience in the past. You don’t have to chase them through cold calls or prospecting, because when you keep in touch regularly, they come back to you when it’s time to list or buy another home.
When you secure the business of a first-time homebuyer, you’re connecting with them at the beginning of a potential lifelong relationship. When you provide excellent service and keep in touch after the close, these first-time homebuyers will become valued repeat clients down the road.
There’s another powerful reason why first-time buyers are especially important for Agents. They have the power to vastly expand your network!
Family and friends are highly important to younger first-time homebuyers. If your buyer shows up at a meeting with family or friends, this is a priceless opportunity for lifelong business.
When you make a positive impression on the family and friends of your first-time homebuyer, you are building your database and potentially setting yourself up for additional referral business.
How to Capitalize on this Group
Understanding the value of first-time home buyers is the first step. Knowing how to capture more quality leads from this demographic is step two.
Zillow’s research also found that 32% of the buyers found their agent through a personal referral. Regularly keeping in touch with all your past clients with your monthly e-Newsletter and keep in touch phone calls are key. Asking for referrals will also help you stay top of mind with past clients. This reinforces that yours is the name that comes to mind when there’s an agent recommendation inquiry.
Additionally, 28% of first time homebuyers found their agent online. It’s obvious that a web presence is crucial for a real estate agent. Give first-time homebuyers the right impression by maintaining a professional, mobile-friendly Agent website. Blogging on a regular basis is also a powerful way to boost SEO. Since many prospects are using their mobile phones or tablets to search, it’s imperative that your website displays properly on all devices.
The process of purchasing a home can seem daunting to someone who has never done it before. Try hosting a first-time homebuyer information seminar in neighborhoods with many rental properties. You can answer questions, offer information, explain the process, and collect contact information from attendees. Seminars like this establish you as an expert on all things home-ownership related and help you build your contact list.
It’s time to shift our thinking about first-time homebuyers and realize that this niche demographic is growing every year.
First-time buyers are a lucrative group for real estate agents to pursue because they can lead to many years of repeat business and valuable real estate referrals.
IXACT Contact real estate CRM is the tool that will help you secure more first-time homebuyer business. The system comes pre-loaded with a Monthly e-newsletter, drip email campaigns (including one specifically for renters considering purchasing their first home) and a mobile-friendly Agent website.
Sign up for your 5 week FREE trial of IXACT Contact now and start making more home ownership dreams come true!