Purchasing your first home in this market isn’t easy, but these determined buyers are up for the challenge. Watch as real estate rookies discover creative pathways to home ownership by following the lead of an agent who is a REALTOR® on First-Time Buyer!
While both first-time home buyers and repeat home buyers share the goal of acquiring a property, their differing experiences, financial situations, goals, market knowledge, and emotional factors contribute to their unique perspectives and needs during the home buying process.
First-time home buyers often have limited funds for a down payment and may require assistance in securing financing. They might not have built up substantial equity from a previous home sale. These buyers may be focused on achieving the milestone of homeownership and establishing a stable living situation. They may prioritize finding an affordable property that meets their immediate needs. They may need to spend more time researching the market and seeking guidance from real estate professionals than repeat buyers who are more familiar with the process. First-time buyers may experience more anxiety and uncertainty during the home buying process due to their lack of experience. The decision to purchase a home is a significant financial commitment, and first-time buyers may feel more pressure to make the right choice.
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Buying a home can be tricky – especially for first timers. These buyers nailed home ownership with help from a REALTOR®. Read their stories.
Find loans and grants available for first-time home buyers so you can finance your mortgage and reduce fees.
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require a password.
First-time buyers made up 32 percent of all home buyers, an increase from 26 percent last year. Seventy-five percent of Younger Millennials and 54 percent of Gen Xers were first-time home buyers. Behind these groups, 44 percent of Older Millennials were also first-time home buyers.
Liberty Street Economics First-Time Buyers Series
In this series of posts, a better measure of first-time buyers is introduced and the dynamics of this group is examined over the past seventeen years. In the next post, the characteristics of first-time buyers is described. The series concludes by examining the sustainability of homeownership for first-time buyers.
In general, you could be considered a first-time home buyer if:
“In addition to rising rates, first-time homebuyers have the normal fears of purchasing the right property, knowing what they can afford, knowing what lender to pick, and putting down a large chunk of change for the first time. Being able to address these concerns will make the difference in a home sale, but also a homebuyer continuing with you as a realtor over someone else.“
“Failure to look at all the details can have first-time homebuyers missing damaged or aging systems,” says Craig McCullough, a real estate agent with The Catalyst Group at Compass in Washington, DC. “A financial and often emotional cost comes when these systems break after closing and the repair or replacement is the burden of the buyers.”
“First-time homebuyer loans are designed to make homeownership accessible to first-time buyers, especially those with lower incomes. They may offer benefits like down payment or closing cost assistance, loan forgiveness, help with lender fees, or deferred payments. Programs are usually offered by your state or locality and may have both income and purchase price restrictions. These loans might not be the right financial choice for every buyer, even if it is your first time purchasing a home.”
This guide covers some of the most advantageous grants, home loans and programs for first-time home buyers.
“Your job as an agent is still to make sure your buyer doesn’t make a big mistake. You still need to follow through on all of the necessary due diligence even though the buyer has been put in a position to make an immediate decision. This is about them, not about you.”
This article shows not only the major steps taken during the home-buying process, but also explains the relationships and experts needed along the way. There is also a handy infographic that outlines the home-buying process from start to finish.
The following eBooks and digital audiobooks are available to NAR members:
