Homeownership has always been a dream of every American family. However, the housing crisis has created challenges for first-time homebuyers, mostly millennials, who now face higher interest rates, rising home prices, tighter lending standards, and more competition from investors. As a result, 78% of homeowners are over 65 years old.
Buying a house is a big decision and can be stressful. Not only does it require a huge investment but also a lot of time and effort. First-time homebuyers are often priced out of the market because they don’t qualify for conventional loans or lack sufficient down payment funds.
However, there are several ways to attract first-time home buyers.
1. Offer Incentives
Everyone loves a good deal. So, you can attract first-time homebuyers with incentives, like free mortgage insurance or a lower down payment. Sometimes, you can recommend some down payment assistance programs to help them borrow money for their first home purchase.
2. Help Prospects Navigate the Lending
First-time homebuyers are intimidated by the lending process. To attract them, meet with them and give them as much information as possible about lending, including what to expect. Set up virtual meetings to walk them through such details and then provide a list of tips to help them improve their credit score.
Once they are confident enough to meet up with a lender, help them get in touch with someone in your industry contacts and recommend a trustworthy partner who will have their best interest in mind. Also, guide them on conducting a home search and approaching home sellers.
It is important not to push first-time buyers too hard, or you might lose them. Every home buyer desires an optimal customer experience. As such, do not come off as too aggressive with the sole purpose of closing the deal. Instead, pull them by providing a seamless and positive experience with every interaction with your brand.
3. Create Webinars and Seminars for Prospects
Education marketing is one of the most effective marketing strategies to attract first-time home buyers. 56% of marketers who use content marketing find it effective. Prepare a free seminar where you answer their questions about purchasing a home. Explain terms like asking price,
closing costs, and affordability. This informational seminar will help build your credibility in the real estate market. The prospects will consider you an authority, especially if you answer their questions in a simple language that they can understand.
The industry jargon may work against you, as the prospects will feel that the seminar was for you rather than for them. And you will not be able to convince them otherwise. Also, include other real estate agents from relevant departments in the seminar. This way, they will help you answer the questions within their departments.
Also, offer professional advice on the home buying process to earn the potential buyers’ trust instead of overly selling your company. Your goal for the seminar is to equip first-time homebuyers to decide to buy their first home.
Since first-time home buyers will not always have mastered the nuances of the housing market, ensure you constantly reassure them that things will eventually work out. For example, you should reassure them that every home issue, like renovation, will be resolved until they are contented.
4. Throw a Housewarming Event
Since the homeowner will invite their friends to the event, you can turn them into new clients. A new house is enough to make people envious, especially if they plan on owning theirs. You can leverage this feeling by throwing housewarming parties for your clients.
You can also use digital signage and display a 3D image of the house where the event is. Alternatively, you can use digital screens to display visuals of open houses or complexes. Such eye candy can push them toward making a buying decision. You can offer food and prizes for a specific number of people, and the homeowner will produce the guest lists.
You may have a gift card or anything else where the guests can write their contact information to maximize lead generation and increase your lead database. However, if you do not follow up on those leads, your efforts toward throwing an epic housewarming party will go to waste.
5. Be Available
Since most first-time buyers are from the younger generations, like millennials, they always expect swift responses and interaction when they reach out to you. As a result, you need to be equipped with a system that will help you engage with them quickly across different channels like email, texts, or social media.
In addition, use video to send prospective buyers informational content through personalized messages. This is a great way to reach and attract millennial homebuyers.
What Are You Waiting For?
With these effective ways to attract first-time homebuyers, what is stopping you from implementing some or all of them? New home buyers are still entering the market regardless of the increased loan rates. They aim to achieve that American dream of owning a home. If
first-time homebuyers are satisfied with your realtor services, you will greatly benefit from their testimonials, referrals, and positive reviews.
You will have opened a new client base you hadn’t served earlier. Therefore, it is important to focus on customer experience to attract first-time home buyers.