Share this article!

First-Time Homebuyer’s Guide

Buying a home for the first time can be difficult. After all, there are numerous steps, tasks, and requirements, and you may be concerned about making a costly error. However, first-time homebuyers benefit from some special incentives designed to encourage new entrants into the real estate market.

To help you get the most out of your purchase, here’s a rundown of what you should think about before you buy and what to expect from the buying process itself, as well as tips to make life easier after you buy your first home.

Qualifications Of First-Time Buyers

Who is a first-time home buyer? A first-time homebuyer is defined by the United States Department of Housing and Urban Development (HUD) as someone who meets any of the following criteria:

  • A person who has not owned a primary residence for three years. If you’ve previously owned a home but your spouse hasn’t, you can buy a home together as first-time homebuyers.
  • A single parent who previously owned a home with a former spouse.
  • A displaced housewife who has only lived in one house with her spouse.
  • A person who has only owned a primary residence that has not been permanently affixed to a permanent foundation in accordance with applicable regulations.
  • A person who has only owned a property that was not in compliance with state, local, or model building codes—and that cannot be brought into compliance for less than the cost of constructing a permanent structure.
     

That broad definition may make it easier for you to qualify as a first-time buyer and reap some of the benefits that come with buying a home for the first time.

Benefits Of Being A First-Time Home Buyer

As strange as it may seem, there are some advantages to not having previously purchased a home. The government provides programmes to help people get on the property ladder, such as tax breaks, federally backed loans, and programmes to reduce down payment requirements.

Even clients who are not first-time buyers may be eligible for government programmes. According to the US Department of Housing and Urban Development, a person is considered a first-time buyer if they have not owned a home in the previous three years.

Single parents and those who previously owned a home with a partner are also eligible. Displaced homemakers who owned with a partner or spouse, as well as people who own property that isn’t permanent or doesn’t meet code requirements, may be eligible.

As a real estate agent, you should be fully aware of who is eligible for what programmes and the benefits they provide.

The job of an agent extends beyond simply showing homes; you should also provide buyers with a thorough understanding of how to maximise their home purchase.

Finding A Realtor As A First-Time Home Buyer

You’re finally ready to begin looking for your ideal first home. But first, you’ll need to find a real estate agent to help you with your search and the buying process.

Where do you begin? Is there a proper time to seek assistance? Are there any specific questions you should ask to determine whether or not an agent is a good fit? These are all legitimate concerns for any first-time homebuyer, and understanding how the process works can help you avoid costly mistakes when purchasing your first home. Continue reading to learn everything you need to know.

Buyer’s Agents

Before you begin your home search, you should be familiar with some basic terminology. To begin, there is a distinction between a real estate agent and a Realtor. A Realtor is simply a real estate agent who is also a member of the National Association of Realtors.

Booking.com

The term is capitalised because the term is trademarked. Regardless of the terminology, both agents and Realtors are licenced real estate professionals who are trained and qualified to assist people in the purchase and sale of homes.

Both can also act as a listing agent, representing the seller and the listing that is for sale, or as a buyer’s agent, representing the homebuyer in real estate transactions. Your buyer’s agent will assist you in navigating local listings, locating those that best meet your needs and scheduling viewings. If you want to make an offer, they will help you with that as well as all the negotiations and paperwork.

Who Is Responsible For Paying Real Estate Commissions?

Some homebuyers are tempted to forego hiring an agent in order to save money. However, real estate commissions are typically paid by the seller — for both their own agent and the buyer’s agent.

The typical fee is 6% of the sale price, split equally between both agents. So, if you buy an Rs.40,00,000 home, your agent and the seller’s agent will each receive Rs.1,20,000, or 3%. The cost is deducted from the seller’s proceeds.

When Should I Contact A Realtor?

The best time to contact an agent is determined by your familiarity with the real estate process. “For first-time homebuyers, the best time to contact a Realtor would be after obtaining a preapproval letter,” says Jana Edmond-Hill, an agent with LPT Realty in Tampa Bay, Florida. “However, if a potential buyer is unsure where to begin, it doesn’t hurt to contact prior to that. A Realtor can also assist with the preapproval process.”

A pre-approval letter, in which a mortgage lender gives you a preliminary “yes” for your financing, reassures both agents and sellers that you’re a serious buyer who can secure the financing needed to close the deal. It also gives you a good idea of how much you can borrow and, as a result, a precise budget to stick to.

 

Reset password

Enter your email address and we will send you a link to change your password.

Get started with your account

to save your favorite homes and more

Sign up with email

Get started with your account

to save your favorite homes and more

By clicking the «SIGN UP» button you agree to the Terms of Use and Privacy Policy

Create an agent account

Manage your listings, profile and more

By clicking the «SIGN UP» button you agree to the Terms of Use and Privacy Policy

Create an agent account

Manage your listings, profile and more

Sign up with email