Agent’s Guide to Calming First-Time Home Buyers

Buying a home for the first time can be daunting, especially with how the market has changed over the past few years. Rising interest rates and falling prices can create even more doubt among first-time home buyers.

That doesn’t mean buying a home is a bad idea, but as an agent you’ll want to be prepared to calm down buyers, especially first-time buyers who may have more anxiety about the property. whole process than someone who’s been there. before.

First-time buyers representing about 34% of home buyers in 2022, according to the 2022 Report on generational trends of home buyers and sellers, it’s important to know how to work with first-time buyers and help them with their concerns. There have been additional concerns to address recently with the market experiencing rising mortgage rates, homes that have doubled in value, lots of competition and now frequent price reductions, giving first-time home buyers a added worry about buying their dream home.

The first fears of first-time buyers

High mortgage rates and a slowing market are undoubtedly the biggest concerns for homebuyers right now. This, coupled with rising home prices, has first-time home buyers questioning take the plunge. According to National Association of Realtorsthe average US home price hit $350,000 in January 2022 and 65% of buyers say that’s too high.

In addition to rising rates, first-time home buyers have the normal fears of buying the right property, knowing what they can afford, knowing which lender to choose, and putting down a lot of change. for the first time. Being able to address these concerns will make the difference in a home sale, but also whether a home buyer continues with you as a real estate agent rather than someone else.

How vsa agentlemen help calm down first-youhome buyers ime vsworries during this crazy market?

Realtors need to help first-time buyers see that these concerns are normal and part of the process. Just like when a officers begin, there are many questions and concerns of the unknown. Let’s take a look at these concerns and how you can help calm a first-time buyer who has them.

To begin, let’s discuss high mortgage rates. What first-time home buyers don’t realize is that if you have a lower credit score, the interest rate on your mortgage will be higher. Let’s take an example. If someone had a credit score of 700 to 719 with 20% of the mortgage price to pay upfront, the average rate for a 30-year fixed rate mortgage on May 19 was 5.833%, according to Bankrate. On the other hand, if someone had a credit score of 660 to 679 with the same starting rate of 20%, the average mortgage interest rate was 6.66%. If that same person had a credit score of 800 or higher, they probably could have gotten a mortgage interest rate of around 5.5%. Essentially, a person could pay more in points rather than in interest rates.

Helping a buyer who is unsure what they can afford is simple – ask them to ask their lender for pre-approval. This will help them understand the most affordable price range to start looking for a home. Don’t forget to let your buyer know that it also helps to shorten the closing process, which sellers will appreciate.

This brings us to buyers who need a lender, but don’t know how to find one. You can start by referring a buyer to your preferred lender if you have one, but it’s also important to help them understand what to look for in a lender if they want to look into a few themselves. They want a lender who will offer a lower interest rate and who has a dedicated person to work with to make the process smoother. A dedicated person also helps when it comes to gathering all the labor-intensive paperwork to get a home loan. One tip I always recommend is to ask the lender to give me a timeline on how long it will take them to close assuming the buyer delivers all the items on time.

For buyers who are afraid to deposit such a large amount of money, they don’t necessarily have to. First-time home buyers have a few loan options available to them – FHA loans, USDA loans, VA loans. FHA (Federal Housing Administration) offers loans with as little as 3% of the total cost of the house for down payment. If a buyer wants to buy in a rural area, they can consider a USDA loan. VA loans are an option for veterans, an active duty member, or a veteran’s spouse.

Many first-time buyers, as well as repeat buyers, are afraid of choosing the wrong property. What if a better option arose after I closed? What if I am missing a good property in my search? Have I broadened my search enough? These questions and more swirl around in the minds of buyers when looking for a home. The truth is, we just don’t know, and those questions will never go away, even if they wait a little longer to see what comes to market. Help them by making a checklist of must-haves for their home. If the house ticks all or most of the boxes, it will help it gain some perspective. Remind them that the best time to plant a tree is today.


Buying a home for the first time is not an easy process, especially in this changing real estate market. Understanding what fears often plague first-time homebuyers can help you prepare well and relieve homebuyer pressure and anxiety as much as possible. As the market and economy change, new concerns are added and others disappear, so be sure to stay up to date on your housing market.

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