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Here's a fun fact that even some real estate professionals might not know: First-time buyers aren't necessarily buying a home for the first time.
That's one tidbit of information served up in the latest consumer guide from the National Association of REALTORS®. The Q&A-style document is geared at first-time buyers, a category, NAR notes, that can include individuals who have owned a home, just not in the past several years, or who previously bought a home with a spouse but are now making a purchase on their own.
First-time buyers may qualify for down payment or closing cost assistance, grants, penalty-free IRA withdrawals and other benefits — but not every program defines a "first-time" buyer the same way. As an agent, even if you don't know the ins and outs of each program, understanding the basics can help you point your buyers toward resources they may be eligible for.
NAR advises first-timers to seek out the help of a real estate professional (naturally), but reminds consumers to do their homework before deciding on an agent. Specifically, NAR says buyers should ask prospective agents a set of 10 questions to make sure they are a good fit and have the expertise to oversee a successful transaction.
Now that buyer agreements are mandatory across the U.S. — but unfamiliar to many buyers, particularly first-timers — be prepared to answer questions about the terms and purpose of the agreement, what's negotiable, and rules around compensation (because NAR has a consumer guide all about negotiating buyer agreements too). In its latest guide for first-time buyers, NAR explicitly tells consumers, "You should feel empowered to advocate for the agreement that meets your needs."
Less experienced buyers are likely to have a lot of questions about financing, and you might be one of the first people they turn to — especially since NAR suggests that first-time buyers discuss financing options with their agent.
NAR has been churning out a series of consumer guides since the summer, covering topics related to the commissions litigation and settlement as well as general advice for buyers and sellers.
CEO Nykia Wright promoted the guides during a presentation to NAR's board of directors on Nov. 11, stating that the DOJ had been "implicitly indicting us for not educating the consumers," and imploring members to "continue to hand out those guides."
The full set can be found at NAR Settlement: Get the Facts.