The First Time Homebuyer "No Show"

Luke Constantino| August 11 2009

Anyone in this business can tell you this is a frequent occurrence, especially in this first time home buyer's market. Dealing with a majority of people who are looking for the perfect first home can be confusing to them and for the Realtor. The first time homebuyer tax credit deadline is December 1st. I myself am experiencing a lot of people running around like the sky is falling. What do you do? How can you effectively deal with these people? Here are some tips to change a no show into a close.

Be thorough: When you speak to a buyer, make sure you have in depth information on that first time buyer. Remember, they called you for information, and a good conversation will be an exchange of this. It will lower the possibility of this person being a no show at any appointment you get them. Screen them first, making sure they are pre approved, not pre qualified for a loan, know the amount it's for and always have a buyer's information sheet ready.

Invite them to meet you in your office: Having a buyer screened over the phone is one thing, inviting them to your office? Gold. This will give them and you a chance to meet and go over exactly what they are looking for in a first time home. I myself get a better feeling for what a buyer wants and what they need in meeting them. Body language can tell you a lot more than a voice over the phone, plus it shows a seriousness when a buyer is willing to do this purchase as professionally as possible. So keep some good cookies, coffee and cream ready!

Do a buyers CMA: "What the hell is that?" It's kind of like the reverse of a seller's CMA (Comparative Market Analysis) but a little different. Your first time homebuyer is not too experienced in prices in the area they want to buy, so you educate them, letting them always know you will get them either the lowest price or the best deal. Show them what has successfully sold in the area they are looking in, what's under contract, what's currently on the market and what failed to sell. This will give the buyer a good sense of market value and will bring you one step closer to getting them what they want at a good price.

I know this is a very challenging market and a lot of people are afraid to commit, but being in this business for as long as I have gives me a 6th sense. I know, along with everything written above, who will buy. I know myself, I'd rather get the listing and work with the seller, but there are two sides to this coin: if you never work with the buyer you're only half as good as you think you are. What also helps is putting yourself in the first time homebuyer's shoes. This is complicated and confusing to them, help them!

Homebuyer's Welcome!

Luke Constantino has been a realtor for over 12 years and is currently employed by Remax @ The Slope in NYC. He has also been quoted in the April 08' issue of "Time Out New York" magazine on "How to be the perfect candidate - Tips for renters" along with many other publications.