How do you address common fears of first-time home buyers?

FOMO is quite common among First time Home Buyers. To combat FOMO, it's important to do your research and find a home that meets your needs and budget. Buyers should also be patient and don't feel like they have to buy a home right away.

I have had too many indecisive buyers miss out, and now interest rates have gone up and they feel they did miss out. If you love a place, and it will be your home you must still have realistic expectations, and don't expect to get everything on your bucket list. You can add and change things later..

I generally try to approach this fear in a buyer depending on their personal situation. Fro example, if the buyer is in a relationship, or married, I use the example that they "knew" this was the perfect person for them. For buyers who are single, I try to find another life example to help them get over the fear of missing out on something better.

I’ve watched buyers try to FOMO both into, and out of, plenty of both great and poor real estate deals over the years. This is a difficult thing to train a buyer without an agent, because FOMO disappears with experience and access. For my clients, they have the ability to leverage my knowledge… an agent that gets feet-in-the-door of every home listed for the past decade is going to know the can’t-miss home from the please-skip. I have had to beg buyers not to buy a home, promising them that if they trust me, they’ll get a much better home, and I’ve had to insist that they seriously consider homes that on first-pass, didn’t seem to be the right fit. The only way to avoid FOMO is experience.

In the current market, everyone is paying more than the asking price. This leads to the fear that the home will drop in value. I use the long-term history of the housing market to allay this concern, explaining that homes will go up in value over time.

In my experience I prepare my buyers to negotiate. The Seller is not always going to accept your first offer. Be prepared and don't be afraid to negotiate on the price, closing costs, or other terms of sale.

This is a big one, how does a buyer avoid overpaying? First, an overpayment on a home is not a static thing. Two different families will find different value to them home based on needs assessments and financial situation. The first thing a person should do is seek an agent. Sit down with the agent and have them do a full needs assessment for your family. This way you can create a priority list that can be flexible on value. Second thing is to link up with a loan officer that can zero in on the “perfect” payment for you. Housing is never about how much you can afford, it’s how much you should allocate. Once you have your sliding scale priority list and a sliding scale payment comfort zone you are ready to create a purchase strategy.

One of the first things I do with a first-time buyer is to review a budget with them. I also present them with estimated costs for inspections, etc. My lender works with my buyers to give them fair estimates of closing costs. We speak about these as we move forward with looking at homes.

This is rarely something I have come across but when I have I explain that purchasing real estate is one of the best ways to build wealth and security.

Luckily in the U.S., for the most part, purchasing a home doesn’t require a long term commitment from a buyer. Massive housing shortages in the U.S. have driven rental prices sky high in counties across the nation. The key to successful home investments is understanding how long you’ll want to stay and how much equity/resale net proceeds you’ll need when you walk away. Truth is, as long as you can make it to year 5, you’re probably safe to either: resell at positive value, or to rent out the home and have your tenant pay off your mortgage for you. The 30 year commitment is only a burden when you didn’t have a clear strategy for picking your home, and you wound up in a property that won’t perform a planned exit strategy.

From the moment we sit down for our first meeting, through the purchase of the home, and after closing, I am a resource for my buyers who are concerned with the unknown. Education is the key to helping buyers cope with these concerns, and I am constantly there for my buyers.

As a former professor, I love educating people. In particular, I enjoy helping first time buyers understand the entire buying process. If they know all steps, people involved, potential pitfalls, costs and timelines - they will be more prepared. I find the more I can educate them, the more comfortable they feel and less scared they are of the unknown.

The unknown is easily nullified by an attentive and experienced real estate agent who: 1. creates a sliding scale priority list for the homes that you plan to see (so you find the best functional home for you) 2. Gets you a consultation with loan officers to find your sweet spot for monthly expenses (so you have a comfortable monthly payment) 3. Finds out the timeline that you plan to occupy or hold. (So they can find homes that will perform accordingly) 4. Understands your level of mechanical skill, or financial ability to leverage professionals (to make sure you don’t get in over your head with a fixer) 5. Helps you shop for the best rate/fees on your loan, Title, Insurance, and holds your hand through everything else

Buying a home can be a daunting task, but it can also be an incredibly rewarding experience. By addressing your fears and doing your research, you can increase your chances of success.

I’m my experience like the quote says and educated consumer is my best buyer I encourage them to take the 8 hour course for First Time Home Buyers there they can learn ask questions and when they come to you to be prequalify they have gain some knowledge on what to expect then you can finish guiding them and assisting them in such an important journey ??

Presenting options with both Pros and Cons and presenting solutions to objections, makes Realtor sound like self interested salespersons and more experts providing solutions