I have been looking at the prices of homes in the local market and am seeing the opportunity to get first time home buyers into homes. There are loan programs out there still that help first time buyers get loans. FHA has a good loan that requires only 3% down. There is a Rural Development loan program that will loan 100% of the purchase price. And conventional financing is still a good option for people who have managed to save some money, get gifts, or inheritances.
I have reposted the article that I just read about the increasing percentage of homes that are being sold to first time buyers.
I love working with first time buyers. It really allows me to educate and guide people through a process that they have not yet seen. There is a lot more work involved with a first time buyer, but I have become personal friends with everyone I have ever helped as a first time buyer.
Buying one’s first home is kind of like having a child in a way, and I get to be the cool Uncle.
Quoted from http://www.crs.com/Community?comments=901:
Sales To First-Time Homebuyers Rise: NAR
First-time homebuyers are making up a larger share of the buying market due to low home prices, abundant supply and affordable interest rates, according to new research by NAR. The 2008 National Association of REALTORS® Profile of Home Buyers and Sellers finds that the number of first-time home buyers rose to 41 percent this year, up from 39 percent in 2007, and 36 percent in 2006.
“Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent data show a stronger uptrend in first-time buyers who are helping to reduce excess inventory,” says NAR chief economist Lawrence Yun.
The study shows the median age of first-time buyers was 30, down from 31 in 2007, and the median income was $60,600. The typical first-time home buyer purchased a home for $165,000 and plans to stay in it for 10 years, up from seven years in 2007.
The median age of home sellers was 47, and the median income was $91,000. Three-fourths were married couples who had lived in their homes for six years and were moving a median distance of 19 miles. Their home was on the market an average of eight weeks.
Eighty-one percent of home buyers and sellers used a real estate agent. Nine out of 10 would definitely or probably reuse their agent or recommend them to others. These results are consistent with 2007 findings. Mon, Nov 10, 2008