PROview - December 2008 - (Page 6) Dr. Lawrence Yun, NAR Chief Economist, confirms Johnson’s analysis. “First-time home buyers are more flexible in entering the market because they aren’t concerned about selling an existing home.” Referencing the increase of first-time home buyers reported in the 2008 National Association of REALTORS® Profile of Home Buyers and Sellers, in Dr. Yun’s opinion the higher activity makes sense. “Given low home prices, plentiful supply and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view,” Yun said in a statement about the release of the report. Maurice Franklin, REALTOR® with Bindman Bruzas Realty in St. Petersburg agrees. He specializes in working with first-time home buyers, and he has seen an increased interest in recent months. Most of those who contact him, however, aren’t familiar with the process. First, he says, he educates those who say they want to purchase their first home so that they really understand what lies ahead of them. Franklin describes the process of buying a home as typically being a new territory for first-time home “Given low home prices, plentiful supply and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view.” Dr. Lawrence Yun, NAR Chief Economist A Higher Demand for Specialized Knowledge Working with first-time home buyers requires a lot of specialized knowledge, says Johnson. The first step he took when he learned that the Largo family was looking for their first home? He referred them to the right lender. “I referred them to a lender with whom I have had a long-standing relationship and someone who knows exactly the type of financing my customers would need.” Tieman agrees with having a strong relationship with a knowledgeable lender and recommends being familiar with the various programs they offer. “Many lenders simply do not offer all available programs.” He cautions against relying solely on the knowledge of the person assisting with financing. “REALTORS® interested in serving first-time home buyers must commit to learning all there is to know about financing for this particular target audience.” Johnson says he felt protected as their REALTOR® by knowing the lender would come through with the financing and that the lender would be there at closing, rather than some of the lenders who disappear by the closing date. Johnson also points out that the lender showed the buyers exactly how much they should be looking to spend so that time would not be wasted looking at homes that were not within their budget. “Having a knowledgeable lender allowed the buyers to be pre-approved, thus making their offer stronger.” 6 PINELLAS REALTOR® ORGANIZATION buyers, and he stresses that such customers will need someone to carefully guide them. He makes sure to explain the process to any prospective clients in order to set the right expectations. Learning more about a client’s desires as well as their available resources helps Franklin, he says, be more effective when negotiating on their behalf. “The purchase of a home will more than likely be the most time-consuming task they’ve ever had, and it’s likely the largest investment they may ever make.” Franklin describes his first task of describing the standard process of a real estate transaction. “I strive to give prospective clients a realistic preview of what’s expected from them, and what they can expect from me.” Franklin describes how first-time home buyers generally require more counseling. One thing he quickly points out echoes the words said by Johnson. Before he starts a home search he makes sure they are, as he calls them, “mortgage ready.” After an initial consultation, during which he learns what a prospect is looking for, Franklin refers everyone to a qualified loan officer knowledgeable with firsttime home buyers. “For anyone looking to build a niche market with first-time home buyers, building a strong referral relationship with the right lender should be at the top of the things-to-do list. “The lender you refer business to must not only have advanced knowledge about home financing programs available to first-time December 2008
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