Data has shown that over the last ten years, the average age of first time homebuyers has risen by 8 years. The average age now is 33. Why does this matter to agents? Because agents need to be aware of what today's first time buyers look like in order to best serve their future clients.
As first time homebuyers begin searching for homes at a later stage in life, an agent's job shifts ever so slightly. Fewer condos, apartments, and small spaces in urban areas are investments now. The small space era is for renting according to many now, and a first time homebuyer these days wants a single family home in a suburban area with a yard and a good school district. These can be hard to find, and even harder to qualify for. Regardless if your client wants to purchase a beautiful new condo with all the amenities or a home to raise a family in - getting the skinny on their needs is where to begin.
Stats
First time homebuyers in 2021 are up against and taking on more before buying a home:
- career pressure/drive
- lack of affordable housing
- higher student-loans
- joining finances with a significant other/marriage/children later in life
- living with roommates longer
- focusing on travel/lifestyle
- idealizing small spaces in urban areas
This all equates to the average age of buyers going up. What these factors also all point to is what many of today's buyers value. That is; financial freedom, time, education, careers. Buying a home doesn't exactly add up to financial freedom, and it's why many people are choosing to rent later and later in life than before.
Additionally, all first time buyers have one thing in common - they're beginners in this real estate process. This means they need their agents to guide them. Today's first time homebuyer are more tech-savvy and motivated than ever. They've looked at zillow and redfin and have seen homes out there on the market. Now, it's time for their agent to step in and start filling in the gaps.
Working with First Time Buyers
When working with first time homebuyers, agents need to be aware of what is going to excite them and what they prioritize. Agents can skip a lot of wasted time previewing and showing homes that won't interest buyers by knowing what their clients want. Filling in the gaps like we discussed above is a great place to start. What do they want and what do they absolutely not want? Be aware of what they've already seen online.
Working the new homebuyers can be a joy to agents as they get to assist in a big life milestone and help clients make some of their most important memories. This can however, also require a bit of hand holding. New homebuyers have never been through the process of purchasing a home before and will have to both learn and adjust their expectations.
Start with expectations and a desired outcome and work down from there. What are the non-negotiables? What makes these homebuyers want to fly the proverbial nest? Have them list some aspects that make them anxious about this next leap. All of these answers can help agents really find a home that is best fit for these fledgling buyers.
There are different types of first time buyers. Nervous ones, excited ones, and mixes of the two. Some might have a lot of questions and some may not ask any. Be mindful of both of these scenarios and be sure to educate clients either way so there aren't any needless mixups. Be up to date on the market and the areas that clients are looking for and get ahead of as much as possible.
Making It Happen
Between all the different parties involved in closing a deal when it comes to first time homebuyers - some compromise is going to be necessary. This can be hard for clients, especially while purchasing their first home. Why? Because a first home purchase tends to be idealized and dreamed about. Coming to terms with the reality of homeownership can be difficult.
Be sure to talk to clients about closing costs, repairs, and expectations of the housing market ahead of time. This will mitigate as many hiccups as possible. Stay on the lookout for the goldilocks homes that are just right and keep an eye out for those key features like open floor plans and walkability that are so hot right now.
While the average age for buyers is rising and rising - the age really doesn't matter for us, agents. What matters is meeting clients where they are, drawing on knowledge, and servicing homeowner hopefuls the best an agent possibly can.
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