Understanding Real Estate

Warn Your First-Time Buyers About These Pitfalls

A real estate agent is a valuable resource for every buyer, but this is especially true when the buyer is purchasing his or her first home. If you're a real estate agent, you may wish to specialize in helping first timers. There may be some headaches along the way, but you'll develop a high sense of gratification upon helping those who really need an expert.

Part of the value that you can offer first-time homebuyers is being able to help them navigate the real estate pitfalls that can often affect those in their shoes. With some recommendations and the odd anecdote about challenges that past clients have faced, you'll be able to help your clients successfully buy their first homes. Here are some pitfalls that you'll want to help them avoid.

Being Unclear About What They Want

You may encounter some first-time buyers who know that they want to buy a home, but are unclear about exactly what they want. This type of wishy-washy behavior can be a challenge for you, so it's helpful to impress upon your clients that they need to be clear about what they want to buy. Whether it's a condo, a single-family home, or something in between, your clients need to take as long as they need to really figure out their exact plans.

Being Unaware Of Closing Costs

Another pitfall that many first-time buyers experience is shopping for a house that is at the upper limit of what they can afford. For example, a buyer who gets a mortgage preapproval for $425,000 might look to buy a house for about that amount, but this is often a poor decision. First timers are frequently unaware of the many costs that they must incur during the closing of a real estate deal, including legal fees, taxes, and more. By outlining each of these expenses, your clients will be able to adjust their expectations.

Failing To Be Proactive

While some real estate clients prefer to sit back and let their agent do all the work, it can often be useful for clients to be proactive. This means that they should browse online listings, keep their eyes open for real estate lawn signs, and even talk to people who may be putting their homes on the market. Make sure that your first-time clients know that by being proactive in this regard, they may be able to buy their first home faster than by sitting back and being passive.