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nexperienced buyers often have numerous questions about financing, buyer agreements, resources for first-timers, and more. Real estate agents need to be equipped with the answers to these queries. A recent consumer guide from the National Association of Realtors (NAR) highlights a lesser-known fact: first-time buyers may not necessarily be buying a home for the first time. The NAR defines first-time buyers as individuals who have owned a home in the past, but not recently, or those who previously bought a home with a spouse and are now purchasing solo.

    Understanding this definition is crucial because it affects eligibility for down payment or closing cost assistance, grants, penalty-free IRA withdrawals, and other benefits. However, each program defines "first-time" buyers differently. Agents can help by pointing their clients toward resources they may be eligible for, even if they're not familiar with the intricacies of each program.

    When working with first-timers, NAR advises them to seek out a real estate professional's expertise but also reminds consumers to do their homework before choosing an agent. Buyers should ask prospective agents a set of questions to ensure they have the necessary skills and knowledge for a successful transaction.

    With buyer agreements now mandatory across the US, agents need to be prepared to answer questions about the terms, purpose, and negotiability of these agreements. NAR's consumer guide emphasizes that buyers should feel empowered to advocate for an agreement that meets their needs.

    Agents may also need to wear multiple hats, including lender, as less experienced buyers often have many financing-related questions. Being knowledgeable about conventional mortgages, federal programs (such as FHA, VA, and USDA loans), and grants provided by state, local, or nonprofit organizations can help agents support their clients throughout the homebuying process.

    In addition to financing options, concessions can help reduce costs for buyers. Agents should be prepared to discuss different types of concessions and their role in the negotiation process. NAR also suggests that agents refer first-time buyers to homeownership education and counseling services, such as HUD-certified housing counselors, to help them plan for hidden costs of homeownership.

    NAR has been releasing a series of consumer guides since the summer, covering topics like commissions litigation and settlement, as well as general advice for buyers and sellers. These guides aim to educate consumers and can be found at NAR Settlement: Get the Facts.