PROview - December 2008 - (Page 5) A Forgotten, Even Ignored, Group of Buyers Having worked with first-time homebuyers for the vast majority of his twenty-one years in the REALTOR® profession, Duke Tieman of Bruce Taylor Realty in Clearwater has seen the interest in serving this niche market sway up and down through the years. “Only a couple of years ago most wouldn’t look at firsttime home buyers.” Tieman mentions that now when the insanity period, as he calls the recent years of the housing boom, has ended, REALTORS® look for new customers. When asked for a few reasons first-time home buyers make great customers, Tieman points out that they are more likely to retain a REALTOR®, typically more loyal than the standard buyer, and, as an extra caveat, more likely to send referrals. “There’s a common misconception that working with first-time home buyers is a time-consuming proposition yet without significant financial rewards.” While he acknowledges that it takes quite a bit of time to work with this special group of home buyers, he points to the current economy as a reason why the niche is worth considering. “Typically either interest rates or prices are low. In our current market we’re seeing both at low levels and that makes a home purchase even more attractive to those buying their first home.” A Growing Trend in the Midst of a Tighter Credit Market The increase of interest among first-time home buyers may seem surprising to some as we continue to weather one of the worst financial crises we’ve ever seen. Each day, media outlets announce yet another lender in trouble while reports about the ever-increasing frequency of foreclosures dominate our airwaves and newspapers. It’s easy to understand why some home buyers would be discouraged with the outlook of purchasing a home. In light of constant, negative media reports about home financing being at a stand-still, it may seem that the chances for firsttime home buyers to obtain loans are non-existent. The good news is that efforts are under way to help. “Pinellas County is about to receive significant funds that primarily are meant to assist first-time homebuyers.” Based in Tampa, Karen Jackson Sims is the Field Office Director for HUD’s Tampa Field Office and her twelve-county service area includes Pinellas County. During a recent interview she said that HUD received a housing plan submitted by Pinellas County in early December and if approved, funds are expected to be put to work by early 2009. “We strongly encourage REALTORS® to learn about the PINELLAS REALTOR® ORGANIZATION upcoming programs while we wait for the money to be disbursed.” The proposal is a component of the Neighborhood Stabilization Program recently enacted by Congress. Anthony Jones, Director of the Pinellas County Community Development Department, describes the $1,000,000 requested as primarily aimed at supporting down payment and closing cost assistance. Agreeing with Jackson Sims, Jones adds that REALTORS® will play an essential role in the implementation of the programs that are supported by HUD. “Once funds are made available REALTORS® are needed to spread the information through their spheres of influence in order to really make the programs successful.” Both Jones and Jackson Sims point out that an FHA mortgage presents the best tool available to a firsttime home buyer. Both also suggest that the road to a local housing industry recovery likely will be paved by an increase in homes purchased by new homeowners. PRO is currently working with Jackson Sims’s office to set up a full-day education seminar aimed at educating REALTORS® on how to assist first-time buyers. Stay tuned for information in PROView Weekly, the association’s newsletter. Another source of valuable information is the VA Regional Loan Center of the Department of Veterans Affairs, which is located in St. Petersburg. Make sure to include learning about various VA loan programs as part of your research as a customer who served in the armed forces may qualify for a VA loan. For more information about VA’s home loan program, visit www. homeloans.va.gov. FHA Loan and No Home to Sell Makes for a Clear Advantage Last month, Rob Johnson of The Simms Team at Re/Max Metro in downtown St. Petersburg helped a family of four finalize the purchase of a four bedroom/ two bathroom home in Largo. The family Johnson assisted had rented a home for several years and they were ready to enter the market. Rob mentions that working with first-time home buyers allows for a lot more freedom, given that they don’t have a property to sell. “A common hurdle these days is having a home that needs to be sold before a new one can be purchased. With first-time home buyers that’s a nonissue.” Rather than worry about when their house would sell, Johnson says they were instead able to concentrate on finding his customers their perfect new home. December 2008 5 http://www.homeloans.va.gov http://www.homeloans.va.gov
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