Give First Timers the Direction They Need

Nervous. Arrogant. Cautious. Excited.
Although these words seem contradictory, they sun=m p today's first time home buyers.
"First time homebuyers are many things at once," explains Paul Gorney, a sales associate in Chicago. "They're scared to pay too much, excited to get a "good deal", and confused because the number of homes and the situations in which sellers are selling, such as short sales and foreclosures.
"First timers need serious guidance," he says. That guidance is especially critical for buyers who are trying to beat the Nov. 30 closing deadline to qualify for the federal first time home buyer tax credit. Here's how to overcome three false assumptions that can derail first timers.
1.The housing market is weak.
First timers have likely read every stitch of the news about how homes are not selling. The trouble is that simply is not true in many entry level markets.
"First time home buyers need to understand the environment they're competing in," says Dana Graham.
2. I need to see all the options.
Many buyers exceed with excessive caution because of the endless inventory and their desire to find the perfect home. That can lead to paralysis by analysis, says Kathleen Alexander, a sales associate with Keller Williams Realty in Boston. Like Graham, Alexander uses facts to get buyers off the fence. "I make sure they're armed with all the data they could possibly desire-which homes have sold in which areas and for how much- and I explain how to interpret the data," she says. "I want them to have a firm grip on the market. That takes away a lot of the hesitancy."
Graham stresses today's interest low rates. "I tell them the rates are as low as the 1950's type rates. "They have nowhere to go but up. If they go to an entire plausible 7.5 percent which is still low-prices would have to still go down another 20% to make up the difference in their monthly payments."
Don't forget about the first time home buyer tax credit deadline. I tell them the tax credit is truely $8,000 they will get back when they file their taxes,: says Sam Seaboard from Remax in Seattle. "If they normally get a refund they'll get an additional $8,000. It is a gift from the government to get them started as home owners."
3. I've Found a Bargain!
It's true that affordability is at record levels today, but many buyers need help putting price into perspective.
"They think they can get a really nice house for $50,000, but the average home in our market is $200,000. They perceive that there are really great deals, which is true. But a lot of the homes are stripped of all their fixtures.
That can be hard for buyers to accept. Show them they really low priced homes so they can see they don't want to do all that work.