5 First Time Homebuyer Mistakes and How to Avoid Them

We’ve all seen it before: a client who’s so excited about buying his or her first home that they’re making classic mistakes.

As a Realtor®, it’s your job to help them do the right thing. The good news? You can do that while building their loyalty and earning their respect – and it’s probably easier than you think.

First, let’s cover the newbie mistakes:

First Time Homebuyer Mistakes

• Buying too much house. Actually, it’s not really too much house; it’s buying more than they can afford afford (just because they’re approved for a certain loan amount doesn’t mean they can really afford it). Your clients need a serious budget before they can start serious house shopping.
• Forgetting about additional fees. Many first-time homebuyers don’t think about HOA fees, utility costs that go up over time (especially when appliances get old) and maintenance costs.
• Ignoring the need for a home inspection. We all know that big things that go unchecked will seriously affect the value of a home—like mold in the crawl space—but many first-time homebuyers might assume everything is as it seems. Unless your buyer is a licensed contractor, insist they hire a licensed home inspector to look at the systems of the property.
• Believing that foreclosures are always the best deal. Yes, they’re sometimes less expensive to purchase; at the same time, renovations and unexpected repairs can cost far more than the home itself. Since most foreclosures are sold “as is” this is critical to remember.
• Rushing. Sure, it’s exciting – but it’s unequivocally one of the worst things to rush into.

You’re an experienced Realtor®. You already know all of this, so what does it mean for you?

Positioning Yourself to Do Business

Many agents don’t go out of the way to educate their clients. That’s where you can really set yourself apart. Let’s face it: people have a desire to do business with smart, caring people. (As an aside, that’s part of what makes Benchmark Realty special.)

We recommend building an information packet that covers all five of these mistakes. People love a take-away! Make sure it’s branded by putting your logo and contact information on the top of each page. Include:

• A budget worksheet
• A worksheet that includes possible additional expenses
• An information sheet on home inspections with at least 5 local inspectors’ contact information
• An information sheet on foreclosures
• A step-by-step guide that illustrates the whole process for first-time homebuyers

Naturally, branding is incredibly important. Your logo, Facebook URL and Twitter handle need dedicated space, as do your web address, phone number and email address. (Don’t forget that the company name and phone number must appear in all advertising.)

Making Sure You Have an Edge

At Benchmark Realty, it’s our mission to make sure our agents have the tools they need to build successful real estate careers. We embrace the Total Freedom concept and give our agents 100 percent commission from day one.

If you’d like to talk about becoming a Benchmark Realty agent, call us at (615)371-1544 or fill out the form below. We’ll set up a meeting so you can discover how you can take control of your real estate career with Benchmark Realty.