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First-Time Homebuyers and Sellers Flood the Market

sparkaffinity | August 5, 2021

It’s no secret that 2020 was a crazy year for real estate. Just about every market across the United States saw a huge influx of first-time homebuyers and sellers as a result of record-low mortgage rates and the desire for more space.

Last month (April), we asked our CE Plus members, “Over the past 12 months, approximately what percentage of your clientele have been first-time real estate buyers or sellers?” According to our respondents, approximately one-third of clients are first-time buyers are sellers.

avg % of first-time homebuyers and sellers

If you’re dealing with a similar influx of new buyers and sellers in your clientele, here are some tips to help you provide the best possible service for these newbies.

Here are a few tips for helping first-time homebuyers:

Educating your buyers on the home buying process is key, especially for first-time buyers as they might have some misconceived notions on how buying real estate works (thanks House Hunters). They may not know of the steps that are required of them, like getting pre-approved for a loan for instance. The better you can guide them through the process and make it as seamless as possible, the more likely they will come back to you when it time to sell.
Streamline the offer process so that your buyers are poised to move quickly when they find a home they are interested in. In today’s hot market you have to move quickly, so help them be prepared mentally and have any documents needed at hand.
Urge your buyers to set a spending limit and to stay focused on their long-term financial goals. This will help keep them from overpaying for a home that they ultimately can’t afford.

Here are a few tips for helping first-time home sellers:

Conduct a listing presentation that educates and informs your sellers not only about their home’s value in the current market but about the selling process as a whole. Discuss your role and help them understand what will be expected of them throughout the process.
Help your sellers to examine the current market and understand the reasons for their home valuation. Help them determine if there are ways to optimize their home’s value in order to ensure that they are ready to take maximum advantage of its potential.
Work with your clients to create a long-term plan for their home sale, including how to position it within the market and how to prioritize their negotiation strategy.
Ensure that the home’s condition and marketing collateral are top-notch so that it makes the best possible impression on eager buyers and generates maximum interest.
Help your sellers create a plan for their next step so that they are ready to move forward when buyers are ready to close. In today’s hot market, many sellers may be hamstrung by low inventory and unable to find their own move-up or relocation property.