REAL LIFE FIRST TIME HOME BUYERS VS REALITY TV FIRST TIME HOME BUYERS

First time home buyers are individuals who have either never purchased real estate before or individuals who have not owned real estate in the last three years. These buyers often have questions about every step of the process and rely on real estate professionals to help them sort through all that comes with buying a home.

The process is time-consuming, involves much paperwork and information sharing, and is often misrepresented.

It amazes me how misleading reality tv shows cam be when they depict the real estate transaction.  These shows don’t capture the true process of buying and selling homes. For instance, during an inspection, there could be a number of issues like structural problems or faulty appliances. The inspection can be one of the mentally discouraging parts of the transaction for the client, especially if they’re first-time buyers. Though agents understand that problems sometimes arise during inspection, the process can prove stressful for buyers since they’re likely not aware.

Understand that in a 30 min reality show, they only want to highlight the highs and lows of buying a home—after all, they need their ratings—but there are many in between moments that are just as important to the whole of the transaction. Leaving out those key details—like talking buyers through their questions and helping them find the resources they need—distorts the process for viewers.

Real estate transactions are complex and require collaboration among licensed professionals to find the perfect home for the buyer.

If a home is in a neighborhood with a homeowners association (HOA), the agent needs to understand that particular HOA’s rules and requirements to ensure the buyer can get approved. Credit is another factor we speak with buyers about. During the buying process, inform buyers that their credit is monitored by their lender. They should avoid negative actions like increasing debt or cosigning for a family member.

When working with first time buyers, we make sure they understand everything. We make sure to walk them through every aspect of the transaction from start to finish. Make sure any barriers to the close of the transaction are handled before they become a problem. The general process looks a little like this:

Let first time buyers know that they should consider the process in this order:

1. Get pre-approved by a mortgage lender first, that way they know their buying power
2. Work toward understanding the financial obligations associated with homeownership, which goes far beyond the transaction itself
3. Go see homes that fit their needs and their financial window

Once we have an accepted offer, we have a template with action items and important dates for reference. For example, we provide the escrow deposit due date, along with inspection period expiration and closing date.

During the buying process, make sure everything’s set so that something doesn’t come along last minute to ruin the deal. Clients should be reminded not to add more debt to their credit profile after the closing when buying with financing. Co-signing for relatives or friends can negatively impact credit scores, potentially disqualifying potential buyers due to small hiccups.

We truly enjoy working with first time buyers and helping individuals achieve their real estate goals. Homeownership is achieved through a balance of professional experience, connections, and a desire to help others achieve their goals.