Navigating the needs of the first-time homebuyer

The first-time homebuyer is a crucial demographic in the real estate market. They represent a wave of new energy and potential long-term clients. But understanding their unique needs is key to building trust. Weichert® will help you delve into the persona of the first-time homebuyer, equipping you with strategies and tactics to build lasting relationships that lead to sales both now and in the future.

The Home Buyers and Sellers Generational Trends* report found that:

• 32% of buyers are first-time buyers (up 6% from last year).
• Younger millennials (ages 25 to 33) are first-time buyers, with an increase from 70% to 75% over the past year.
• 44% of older millennials (ages 34 to 43) and 24% of Generation X (ages 44 to 58) are first-time buyers.

*Source: National Association of REALTORS® Home Buyers and Sellers Generational Trends Report.

In addition to these statistics, Opendoor reports some interesting co-buying facts about first-time homebuyers:†

• 61% purchased a home with a spouse or partner.
• 23% purchased on their own.
• 16% purchased with parents.

†Source: Opendoor 2024 First-Time Homebuyer Report.

Digging deeper  into the persona of a first-time homebuyer

Who are they? What do they seek? What do they struggle with? First-time homebuyers typically crave the freedom and stability that homeownership offers. Yet, they’re likely overwhelmed by the process and economics of buying their first home. They’re also likely frustrated by the ultra-competitive market, having witnessed bidding wars and sale prices going way over asking. Understanding their persona offers you great insight into their wants and needs. 

A first-time homebuyer may be:

• Emotionally invested. Buying a home is a life-changing decision, and first-time homebuyers are typically emotionally ready to make their move. They yearn for a space that reflects their personality and future aspirations, such as building a family. Staying in tune with these emotional drivers puts you in a better position to build a valued relationship.
• Overwhelmed by information overload. They’re bombarded with online resources and conflicting advice. A trusted resource like you can help them navigate the complexities of the market.
• Stressed and time crunched. First-time buyers rely on online tools for research and communication; it’s just faster for them. Be flexible in your communication options and stay true to a streamlined process that respects their busy schedules. Even if you’re personally not a fan of direct messaging (DM) on social channels, push yourself to flex to their style.
• Financially savvy and budget conscious. Down payments, closing costs, and ongoing maintenance can be daunting unknowns. They prioritize affordability and may be open to alternative financing options. Encourage a mortgage pre-approval and guide them to a mortgage partner who can help them on which strategies make the most sense based on their personal scenario.
• Relying on their circle of influence. As a first-time homebuyer, they may seek recommendations from friends, family, or online reviews when choosing a real estate broker or agent. Keep your online presence strong and continue to foster positive client experiences, especially within the local community. 

Now that you have a better sense of the first-time homebuyer persona, let’s explore some strategic tactics to connect and convert:

• Host first-time homebuyer workshops. Offer free workshops on the homebuying process, financing options, and navigating the market. This establishes you as a valuable resource and builds trust.
• Partner with lenders and financial experts. Form relationships with lenders who specialize in first-time homebuyers. This one-stop-shop approach provides a seamless experience for your clients.
• Conduct buyer consultation meetings. Just like you would sit down with a seller to review your services and value, have a similar consultation with your buyers.
• Leverage online reviews. Encourage satisfied clients to leave positive online reviews. Testimonials from other first-time homebuyers significantly impact your credibility and attract new leads.
• Engage on social media. Use platforms like Instagram and Facebook to share local housing insights, neighborhood stories, and engaging visuals.
• Be patient and understanding. Recognize that the buying process can be lengthy for first timers. Be their advocate throughout the entire process, offering support and guidance every step of the way.
• Celebrate milestones. Acknowledge and celebrate important milestones like pre-approval, placing an offer, and finally closing on the deal.

Your journey with your clients doesn’t end with the closing. Here’s how to maintain a lasting relationship with first-time homebuyers:

• Stay connected. Periodically check in with past clients, send them market updates, offer resources for homeownership, and conduct pop-bys.
• Be a reliable referral network. Become a trusted resource for referrals when they need recommendations for contractors, home improvement specialists, or other services.
• Offer networking events. Host or attend social events that cater to first-time homeowners. For example, they may be looking for a great daycare center for their young children or a reliable dog walker for their beloved pooch. Making these connections positions you as a long-term partner, not just focused on the transaction at hand.

By understanding the first-time homebuyer’s persona and fostering trust-based relationships, you can become their go-to resource. Weichert has the tools and resources that you need to support your efforts with this critical market segment. Reach out to us for more information that can help you succeed in these competitive times.