The real estate market can be intimidating for even the most seasoned participants, which is why we know that tested tips for first-time homebuyers can help make the experience a success. So, we gathered the best advice and ideas from Dickson Realty's agents to find out the smartest way to buy a house. From their first-time home buyer stories, we learned five key things that all successful first-time homebuyers know when buying a house.
If you're experiencing uncertainty about the home-buying process or if purchasing your first home is feeling like an uphill battle, keep reading to learn these essential tips from real estate professionals. Think of the five insights below as your roadmap to confidently navigate the market and make the dream of homeownership a reality.
Tips for First-Time Homebuyers: What Successful New Homebuyers Have in Common
While every homebuyer's journey is unique, many successful first-time buyers share similar strategies and approaches that help them achieve their goals. Here are some of the key qualities and actions that contributed to their success:
1. They Stay Informed About the Market
Successful first-time buyers take the time to understand local housing trends, prices, and interest rates. This knowledge helps them decide when and where to buy.
"I have seen a large change in first-time buyers since I became a realtor in 2001," said Kari Breuer, a Dickson Realty broker. "The biggest change is that they are much more knowledgeable about the real estate market. They still need us to open doors for them, but they already know what is available and what they want before they start the process with the realtor."
Staying informed isn't as simple as looking at listings online—although that's certainly a part of it. It requires following the market over time, paying attention to price fluctuations, and understanding how factors like interest rates or new housing developments affect what's available.
"It's always fun working with first-time buyers because they are usually motivated to learn the ins and outs of the process and are excited when they get the keys to their first home," Breuer said.
Buyers can make smarter, more informed decisions by working closely with their agent, who can offer timely updates on market shifts.
"Most of my clients have received advice from their families, friends, and co-workers, but ultimately, they rely on my knowledge and expertise in real estate to guide them in purchasing their first home," said Amy Phillips, another Dickson Realty agent.
2. They Complete the Pre-Approval Process
Getting pre-approved for a mortgage is an important step that helps homebuyers establish a clear budget and shows sellers they are serious, especially in competitive markets. Pre-approval can also strengthen buyers’ negotiating position, as sellers will be more confident in closing the deal.
"Most first-time homebuyers come to me not knowing what they can afford," Phillips said. "Once I have them talk to a lender and get pre-approved, we can sit down and discuss the reality of the costs incurred."
This process allows new home buyers to set realistic financial expectations before they start house hunting, saving time and frustration.
"Many first-time buyers are savvy enough to start with getting prequalified for a loan, which is the best first step," Breuer said. "It helps them set correct expectations about what they can afford."
Pre-approval also helps buyers avoid disappointment by narrowing their search to homes within their budget. Buyers can avoid falling in love with properties outside their price range by focusing only on homes they can afford. Additionally, pre-approval prepares buyers for the full financial scope of homeownership, including costs like taxes, insurance, and maintenance.
3. They Set Realistic Expectations
Successful homebuyers quickly learn to balance their wish lists with practical considerations. It's easy to get carried away dreaming of a perfect home, but first-time buyers often need to compromise on some features to stay within their budget or find a home in a desirable location.
"The success of my clients often comes from setting realistic expectations and understanding what features they are willing to compromise on." Phillips said.
Identifying must-have features and knowing where to compromise is critical in a tight market. Common areas for compromise include location, square footage, and cosmetic features. For instance, a home might need some updates, but it can still be an excellent investment if it's in the right neighborhood and offers the right amount of space. Real estate agents can help buyers identify which compromises are worth making while keeping their long-term goals in mind.
4. They Leverage First-Time Homebuyer Programs
Many buyers take advantage of programs designed for first-time homebuyers, such as down payment assistance and favorable loan terms. These resources can make all the difference for those entering the market.
"Not all first-time buyers are aware of the loan incentives available to them, which is why it's important to work with a good lender," Breuer said.
State and federal programs often offer lower down payments, reduced interest rates, and even grants for first-time buyers. These programs can help buyers stretch their budget further and secure a home that might otherwise be out of reach. Real estate agents and lenders can guide buyers toward the right programs for their specific needs.
Check out Dickson Realty's Step-By-Step Guide to Buying Your First Home to learn more about different programs that may make homeownership more attainable.
5. They Work with a Buyers Agent
Having an experienced real estate agent by your side is one of the most important elements of a successful home-buying journey. Real estate agents help navigate everything from identifying the right property to securing the best deal.
"The success of my clients as first-time homebuyers hinged upon establishing a relationship with them and working together as a team," Phillips said. "Educating them, getting them pre-approved, and walking through each step of the transaction together were all vital parts of the process."
Real estate agents offer more than access to listings. They provide valuable market insight, negotiation skills, and support. They can help buyers avoid common pitfalls and ensure the transaction goes smoothly, from making an offer to closing the deal. For first-time buyers, having this kind of guidance can be the key to a successful and rewarding home purchase.
Get More Advice for First-Time Home Buyers: Your First Home is Within Reach
While home-buying may seem overwhelming, preparation, patience, and working with trusted professionals can make it achievable. First-time buyers can navigate the market and achieve their dream of homeownership by staying informed, setting realistic expectations, and leveraging the right resources.
