First Time Home Buyers – Low Hanging Fruit for the Right Agent

The other day I was listening to a local agent complaining about how quiet the office was – nobody was coming in. "It's to be expected", he said, "Everyone is going through the same thing;."

It frustrates me that people are content to sit and wait for business to come to them. This complacent attitude only translates into missed opportunities.

One of the prime opportunities in our current market is the first time home buyer. This is a cross-section of the real estate market that is ripe for the picking. While seasoned buyers were cashing in during the boom, first timers could barely make the down payment. Now with low interest rates, cheap house prices, plenty of inventory, and government incentives, first time investors are back in the game again.

The trouble is, they've been scared off into sitting on the sidelines by the barrage of economic horror stories in the media. The smart realtor will take this opportunity to educate the public. You've got time on your hand, use it to your advantage. Spread the word and hold free lectures about buying a home. Outline the steps involved in a home purchase and explain the legal terminology.

Do some number crunching that demonstrates to renters how much house they could get for the same payment. Post current mortgage rates by all major banks. Open their eyes to the different ways they could subsidize their mortgage by renting out rooms in their own home.

Outline the process for obtaining financing and what new buyers can do to maximize their success with lending institutions. Describe how they can obtain credit checks and what information they should have before applying for a mortgage, so they go in confident and prepared.

Explain the different FHA and government-sponsored programs that are available for first time homebuyers. A prime example is the $7,500 interest free loan they can receive from the federal government.

Eligibility requirements include:

- Home must be the first for both spouses (rental properties and vacation homes don't count).

- The home purchase must be between April 9, 2008 and July 1, 2009.

- Income should not be greater than $75,000 (single) or $150,000 (married)

Once they qualify, the new buyers get a refundable tax credit that basically wipes out $7,500 of the taxes they pay for that year. The catch is that the money has to be paid back at a rate of $500 per year at tax time – with no interest.

Up until now, you've been dealing with a cross-section of the market that has heard nothing but negative information about the housing market; it's your job to turn that around. You may be pleasantly surprised with the results.