Buying your first home is an exciting and challenging journey. You may have a lot of questions and expectations about the process, especially when it comes to touring potential properties. As a real estate agent, your role is to guide first-time buyers during home tours and help them make informed and confident decisions. Here are some tips on how to do that effectively.
Before you take your clients to see any homes, make sure you have a clear understanding of their needs, preferences, budget, and timeline. Review the listings you have selected with them and explain why they match their criteria. Provide them with a checklist or a worksheet to help them evaluate each home objectively and compare different features. Also, prepare them for the possibility of encountering multiple offers, bidding wars, or low inventory in the current market.
One of the most important things to do before looking at homes in person, or even online, is to get preapproved with lender if the buyer is obtaining financing. Not only does it save time by only showing the buyer properties they can afford, having a pre-approval letter in hand, will make you prepared to make an offer once you find the property they like. (Also, in an environment, where interest rates have been changing, this can affect the buyers purchasing power, so you’ll want to re-calculate monthly payments as the interest rates change.)
One of the first questions I ask is "what are your must haves" and then we discuss the "can't live withouts" in order to gain understanding of the buyer's perspective. It helps with educating them what is realistic (or not) on their budget and makes sure the search & tours are on point. We want the best fit. We talk about pro's and con's of homes as we tour - having fun ranking "would write an offer now!" to "run away" so that their feedback is in real time. I also give them tour sheets with space to write notes, it's hard to remember all the assets of a home without photos and notes. Most importantly, treat people how you would want to be treated. My first home-buying experience was terrible and I vowed never to do that to anyone!
I also focus on the connection... so they trust me... looking at houses is the fun part... then we start with negotiations... I have already learned what is important to this set of buyers... and for some, theybwill sabotage themselves.... either by asking for too much or not enough... and forgetting to focus on what is important to them... So during the tour, I make a point to learn the most important wants and needs of the buyers, and then I make a point to remind them of this during the negotiations so that I can get them just that...
I advise new buyers to know their numbers! Talk to more than one loan rep, shop the loan and know what you qualify for. It's important you know the difference between what you qualify for and what you can afford. Have your loan rep run real numbers for you, and never get in over your head, stay in budget. No one wants to be house poor! Make sure your loan rep explains all your cost and programs available to you. If you do not have 20% down guess what Mortgage Insurance may be required of you unless you are a VA buyer! What are your closing cost, what is Earnest money, what is inspection costs, what will the appraisal cost, what are closing cost, make sure between your Loan rep and Real Estate Agent you know your NUMBERS!
First and foremost I listen. As a trusted advisor my job is to understand my client's goals and what is important to them, whether they are first time buyers or seasoned investors, and then create a unique strategy that is specifically designed to ensure their success.
During the tour, your main goal is to provide your clients with relevant and accurate information about each home and its neighborhood. Point out the pros and cons of each property, such as the condition, layout, upgrades, amenities, location, and price. Answer their questions honestly and thoroughly, and avoid pressuring them or influencing their opinions. Instead, encourage them to share their thoughts and feelings, and listen to their feedback and concerns. Show them that you are on their side and that you respect their pace and preferences.
All first time home buyers need to evaluate what they can afford as a monthly payment before getting pre-qualified with a lender. Then stay within their budget and not over spend just because they qualify for a higher loan.
It’s really important to listen to your clients feedback when they walk through a property. This can help you get a better feel for their likes and dislikes. I always encourage my clients to tell me the good and bad of each property we look at… That way I can better serve them in finding the home of their dreams. (I let my clients know that I am looking at properties every day, even when they’re not with me. The more I know about what they like, the better chance I have a finding them what they’re looking for.)
During a home tour, the key is to transfer your enthusiasm to first-time home buyers, as it's a significant step in their life journey. Approach the showing with genuine excitement, showing them how this property can become their dream home. Your expertise will guide them through the process, highlighting the property's strengths while expressing any reservations to ensure transparency. Remember, the focus should be on what's best for the client, fostering a friendly atmosphere where they feel supported, not pressured. People appreciate authentic connections, and being a trusted friend on this journey will lead to a successful and satisfying home buying experience.
This is where having an experienced realtor can make a huge difference. I make sure I note the condition and age of the roof, a/c, hot water heater, and any appliances that may be in the home. Buying a home at your budget price does not always mean there is extra cash to fix things that will break or need to be replaced shortly after closing. I also make note of the electrical panel and whether or not it appears the panel has been updated, or in some cases is not insurable. Why? Because at the end of the day when we truly compare properties we can do an apples to apples comparison on whatever homes the client liked and set up expectations on future expenses,
As a first-time buyer, your clients may have a hard time envisioning how a home could suit their lifestyle and needs, or how it could pose problems or risks in the future. As a real estate agent, you can help them see the potential and the pitfalls of each home by using examples, stories, or scenarios. For instance, you can show them how they could use an extra room as a home office, how they could improve the curb appeal with some landscaping, or how they could save on energy bills with some upgrades. On the other hand, you can also warn them about potential issues, such as structural defects, zoning restrictions, or high maintenance costs.
This is why it’s so important for buyers to work with the agents who really know the area where they are buying. not only can they point out specifics about the property, and what to look out for, they can also provide information about the neighborhood, schools and general surroundings.
If my client likes a home and is considering making an offer, I make sure to run comps specific to that area. I also run sinkhole activity reports and look for ANY open permits. My client deserves to be fully informed prior to purchase.
When we talk about owning a home, we emphasize all the positives while focusing on the peace of mind that comes with making a smart choice. Selecting a home that suits your budget is crucial for your future happiness. It's no walk in the park to struggle with mortgage payments or face repairs you can't afford. It's about looking at the bigger picture and making a wise decision for your future comfort. Do you enjoy traveling? How about dinners out? Don't stretch your budget too far and start talking about making sacrifices in the things you love to do to afford a specific home. The home-buying process is exciting, but the reality of the financial commitment can quickly set in after closing day.
After the tour, your clients may feel overwhelmed or confused by the amount of information and options they have seen. To help them process and narrow down their choices, follow up with them as soon as possible. Send them a summary of the homes they have toured, along with some photos and videos. Ask them to rate each home on a scale of 1 to 10, and to list their likes and dislikes. Also, ask them if they have any questions or concerns, or if they need more information or advice. Based on their feedback, you can suggest the next steps, such as making an offer, requesting a home inspection, or scheduling another tour.
I always do a recap at the end of each day we look at houses by rating the homes: best to worst and “why?” This helps both the agent and the buyer gain clarity on what buyer wants. Sometimes buyers feel bad when I show them a home that they really don’t like… they feel bad, like they’re wasting my time. When in reality, it’s a good thing!By crossing certain homes off their list, we can also cross off similar homes to that, narrowing down our search to exactly what they want.
First, I stay out of the way. I let them tour the house their way. I am there for questions. Other than that, I stay silent. (Sooo hard.) Once outside and out of the earshot of any seller mics, I ask them questions. I fill out a form based on their answers. This helps them (and me) remember that house when we look at many. I also note their "body comments." Faces tell you lots. Often I know whether they liked or hated the house as they walk out the door. And I know when they have fallen in love.
One of the most important aspects of guiding first-time buyers during home tours is to educate and empower them. As a real estate agent, you have the knowledge and experience to help them navigate the complex and competitive housing market. However, you also want to make sure that they feel confident and comfortable with their own decisions. Therefore, you should provide them with relevant and reliable resources, such as market reports, buyer guides, or mortgage calculators. You should also explain the legal and financial aspects of buying a home, such as the contract, the closing costs, or the contingencies. By doing so, you will help them become more informed and prepared buyers who can achieve their homeownership goals.
When working with first time home buyers I thoroughly explain the different segments of our state purchase agreement. Any fill in the blank areas need to be fully understood by the buyer (deadlines, dollar amounts, contingencies, etc). I want my first time buyers to feel they had a well-informed purchase process that left no stone unturned. This often involves a lengthy consultation with the buyer prior to making an offer where I describe in detail the different sections of the agreement and feel out how they want to complete the form when it’s time. The buyer should be making these informed decisions rather than the agent deciding it for them.
On my first visit with a home buyer, we sit down and discuss the whole process and I give them a “Buyers Guide” to take home. The buyers guide gives them a wealth of information , thanks to look for, timelines, and websites where they can access additional information.
When I take a first time buyer to look at a home, I always ask them what room in your current home is your favorite? Once they tell me, I take them on a tour of the model that I think they would like.
I ask them to tell me what they want. In addition I want them to share with me how they see themselves in 5-10 years in this home and this neighborhood.
Have patience. The buying process can be overwhelming to some clients because unlike an excellent realtor, your clients don’t look at properties on a daily basis. So it’s very important to be kind and considerate while having patience. Your client may ask you the same question 20 times 20 different ways. It’s important to answer them and reiterate that you are a professional and won’t guide them in the wrong direction. Give some grace when they may mot understand what you have already explained several times before.
When I work with First time Homebuyers and we're on our first showing, I've previously went through explaining the home buying process. We've discussed the pros and if cons of the area, so they can be confident and focus on the home features. I like to closely observe their emotions as we tour each space, so I can better understand and guide them to finding their perfect home.