“You’re not going to get the perfect house now. But you’ve got to get in the game.” – Melissa Ryan, Los Angeles Luxury Property Specialist, Coldwell Banker Realty
As modern realtors are all too familiar with, gone are the days of starry-eyed first-time buyers, reasonably priced properties, and casual weekends spent meandering from one charming open house to the next.
In the era of skyrocketing mortgage rates, rising inflation, economic upheaval, market uncertainty, and tight inventory – the search for a brand new home in the 21st Century is less rainbows and butterflies and more Mad Max: Fury Road.
Therefore, this isn’t the how-to guide for the everyday consumer.
For the eager 2:00 am Zillow extraordinaire.
For the hopeless romantic, endless dreamer, eyes-to-the-sky newbie that wants to settle down in four walls of their very own.
This is the book for you – the realty professional on the other end.
Juggling questions for those brand new to the process, for those unaware of their financing options, for those unsure what matters most – size or location…
This is to help you navigate the world of firsts…for them.
How to know what to say, how to answer, what next steps to take behind the scenes, and how to stay sane when the ever changing market wouldn’t dream of doing the same for you.
And don’t worry – it’s a lot, but we’ve got you every step of the way.
In this complete guide, we'll cover:
According to the National Association of Realtors, first-time homebuyers made up 32% of all homebuyers in 2023. This is a leap from 2022’s 26%.
And while still below some of the averages we’ve seen in years past, this dramatic uptick means you should be doing everything in your power to prepare rookie homebuyers for their purchasing journeys ahead.
Want to personalize your approach? We highly recommend it. So here’s additional information to help you understand just who the average first-time buyer is in modern times:
In general, across the buying landscape of 2023, there are fewer married couples purchasing, with only 59% of total buyers landing in this category (the lowest % since 2010).
Demographics on the rise? Single females at 19%.
With the above information, you can begin intentional, targeted searches toward prospective buyers that fall within any of the above categories.
Not sure where to start? Keep on reading for vital information on how to find and market your services to those preparing for their inaugural home search.
We’re not here to sugarcoat it. It’s a highly competitive market right now.
With higher list prices and fewer homes being sold (a nearly 10% drop from 2022), you’ve got to play hardball if you want to find the fresh leads you need to stay afloat.
Safe to say, it’s not enough to simply wait for your phone to ring or wait for your digital inbox to chime. You need to shift your mindset to proactive, outbound marketing in order to win opportunities before they’re even public knowledge.
Beyond the information shared above, there are other segments within your community that may be looking to set their sights on homeownership for the very first time.
There’s significant power in reaching out to individuals who haven’t started their search yet. Maybe home ownership is something that’s always been on the horizon for them but never seemed quite achievable or within reach.
Blame it on the ever-rising mortgage rates or a simple uncertainty if they can afford this next step, but it often pays off to connect with individuals you know are great candidates for first-time homeownership…even if they don’t know it just yet.
And we’re here to help you find them.
The average person sees 10K ads in one day.
So your strategy to send just ONE postcard, make ONE phone call, craft ONE email…it won’t get you the deals you think it will.
To succeed in today’s market, you have to think bigger and do more.
An omnichannel – or multi-channel – approach creates key visibility between yourself and the community you’re looking to serve. Essentially, the more people see you, the more they trust you. It’s an automatic response.
Consider this. Think of United States Presidents and high-ranking political figures in Washington, D.C. How many within the last fifty years had the same last name? From the Kennedys to the Clintons, we trust what we know, what is familiar. We trust what we see, and we ultimately trust what we’ve heard the most about.
How that relates to you? Be visible. Be present.
Show up in email inboxes, mailboxes, and voicemails. You want your prospective clients to feel as if they know you and are comfortable with you. You want to be seen as an expert within your neighborhood.
Show up in community advertisements. Be an outspoken guide in neighborly Facebook groups. Have diverse and varied messaging per channel and communication that is relevant, kind, and personalized.
Sound like a tall order? It is. You don’t get to this finish line with one approach alone. Combine your hyperlocal outreach efforts and you suddenly have a superpower.
Still not sold on the benefits of outbound marketing? Here are a few useful stats to sway your positioning:
Successful on their own…imagine if more realtors found first-time homebuyers with a blend of these dynamic approaches, combining multiple avenues in order to reach more people, and provide more support.
That sounds like great lead generation to us.
As you send your personalized outreaches, you need to make sure you’re also spending time to build a credible reputation for yourself.
If you’re handing out business cards and the listed URL leads to a defunct website, that’s not really putting your best foot forward. You often only get one shot to impress potential clients, so one wrong move and you could instantly lose a sale.
Real estate is a relationship business. And the first step to building a relationship is presenting yourself authentically. (Plus, it doesn't hurt to shine a spotlight on the realty expert that you are).
Now is not the time to shy away from presenting yourself as successful or downplaying your wins. If you won’t brag about yourself – who will?
Looking for more ways to cement your credibility and win homebuyer leads? Read our how-to guide for marketing in real estate business.
Finding targeted segments of interested homebuyers is endlessly simple with lead generation software like PropertyRadar.
You can search for clients proactively, easily creating your own personalized lead lists for groups that share core similarities (like the groups prime for first-time purchasing that we discussed above).
PropertyRadar taps into public records data, providing you with rich, hyperlocal data on over 150 million properties and over 250 million people. That’s a lot of potential first-time homebuyer leads.
A few more reasons why it’s the perfect tool to find your next buyer?
Looking for more reasons to give PropertyRadar a shot to find your next first-time homebuyers? Read our ten reasons why PropertyRadar needs to be your next real estate tool.
Now that we’ve covered who first-time homebuyers are and how to find them…let’s take a look at the buying process from start to finish.
We get it. Every journey into first-time homeownership is going to look a little different. People (and the housing market) are unpredictable.
But we’re committed to giving you the outline you need to get started.
Before you can shop for properties with first-time homebuyers, they need to know how much they can afford.
And while some first-time homebuyers may believe this simply means a budget for monthly payments or a number in the sand they believe they can afford – you know better. They need to be pre-approved. This ensures they can properly finance a property based on their unique circumstances (savings, income, credit scores, etc.)
So, what options are out there for first-time homebuyers? Turns out there are a lot.
Here are a few of the most common mortgage types, first-time homebuyers may qualify for.
Looking for more mortgage options and information? Check out our comprehensive mortgage guide.
The world may seem like an oyster to your average first-time homebuyer…but you know better.
Understanding the wants and needs of your buyers is vital to finding the right house for them. And while that list may be on the longer side for buyers who haven’t yet had to compromise on such a large purchase, it’s up to you to hear which is most important to them, their lifestyle, and their budget.
For example, we know that feature fads may come and go, paint can be replaced, and curb appeal can be corrected. However, location can’t be shifted, school districts cannot be altered, and you can’t change your neighbors (no matter how much you want to).
However, it’s vital to remember your job isn’t to be the pessimistic realist. Remember, this is a first-time journey for your new homebuyer. If it’s an unpleasant experience, what’s stopping them from going elsewhere? Be pragmatic but optimistic. If one thing isn’t possible, show them what is.
Have personalized, empathetic, and kind conversations. Ask questions. Understand the “whys” behind their preferences. Show them you’re on their side. Root for them.
If you’re looking for more tips on messaging to win over your buyers, we recommend the T.O.R.N. method, rooted in relevant, neighborly, and targeted messaging.
There’s no magic number for how many houses should be seen before an offer or how many offers equal a sale.
However, according to the National Association of Realtors, 2023 homebuyers typically searched for ten weeks, viewing an average of 7 homes and looking at four online. As this timeline is unchanged from 2022, you should expect a relatively similar duration in finding your new buyers their next property.
Want to make those viewings count? Here are a few tips to delight your buyers:
Have we said it’s a competitive market enough yet? We’ll say it again. It’s tough out there.
So, if your buyers find the right home, in the right neighborhood, at the right price? Go all in.
While we know things like 20% down and cash offers can strongly motivate sellers, these things aren’t always possible for first-time homebuyers.
So, how do you get creative? Easy. Work with what you have.
Ready to rock the process for first-time homebuyers? PropertyRadar is here to help.
Get started now with a free PropertyRadar trial and uncover your next homebuyer prospects today.