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uying a first home is a rite of passage for many Americans, but it's becoming increasingly challenging. The median age for first-time buyers has risen to 38, up from 31 a decade ago, due to factors like student loan debt, inflation, high interest rates, and limited inventory. In some areas, climate challenges are adding to the stress.
For example, in South Florida, getting a house with adequate hurricane protection can be difficult for first-time buyers who are price-limited. A recent listing sold to first-time buyers who appreciated the home's impact-resistant windows and new roof, but others may not be so lucky. Roof age is a major issue, as insurance can be tough to get if the roof is over 20 years old.
A Harris poll found that 61% of renters don't expect to become homeowners, and those who do manage to buy a home often have little left for furnishings or renovations. Despite the challenges, there are resources available to ease the process, including online apps and mobile tools that enable buyers to research properties, apply for mortgages, and track transactions.
However, despite these advancements, first-time buyers still need guidance through the complex process of property comparisons, price fluctuations, inspection issues, and emotional negotiations. That's where you come in – as a real estate agent who can provide expert advice and support.
The National Association of REALTORS has been showcasing your work through its streaming series "First-Time Buyer," which educates consumers on the home-buying process. Season 5 launched in January, featuring eight new episodes set in New York and Connecticut.
As you navigate the changing landscape of residential real estate, remember to walk first-time buyers through your services upfront and specify how much you charge. Before showing properties, get a signed written buyer agreement. If sellers won't pay for your services, consider factoring the fee into their offer price or seeking concessions to cover expenses.
Most buyers still want to work with an agent, and 86% of home purchases were made through one in 2024. Your knowledge, problem-solving ability, and handholding are valued, especially by first-time buyers.
When showing units in communities with a homeowners association (HOA), help inexperienced buyer clients understand the associated fees and what they cover. Fees vary widely, and it's essential to read through HOA board meeting minutes for a history of work completed and future expenses. If buyers have specific questions, recommend seeking guidance from an attorney or financial adviser.
