First time home buyers can be one of the best types of leads for growing your real estate investing business. Selling to first time buyers can often provide the biggest spreads and profits but they can also require a little more nurturing than selling to other investors or move up buyers.
When marketing to first time home buyers for your real estate investing business it is important to recognize that like any other buyers they are looking for deals that are seen to cater especially to them. You have probably seen real estate ads advertising homes ideal for first time home buyers or incentive programs targeting first time home buyers. These properties usually really aren’t different to any others and the deals are the same, just with a different name.
If you plan to work work with more first time home buyers you also need to recognize that their perceptions and priorities are a lot different to other buyers. In contrast to other buyers you deal with when real estate investing 1st time buyers often have the idea that their first home has to be their dream home and everything should be perfect, including the colors of the carpet in every room. Obviously this probably isn’t a reality for most first timers. They need to be educated that while buying a home is better than renting their first home is usually just a stepping stone to help them build equity and get on the property ladder and that cosmetic issues can easily be changed. Also instead of focusing on price, focus on what their payments will be.
You will also probably find that during your everyday real estate investing activities you are approached by many first time home buyers who simply cannot afford or qualify for a home right now. However do not make the mistake of wasting these priceless leads. Take the time to provide a little real estate education and get them on the right path towards home ownership. You will find that the extra time you spend will pay off through extremely loyal customers for life and new invaluable referral sources.