One of the biggest steps to adulthood is that first time one buys their own home. After living with your parents and then in rentals having to live by the landlord rules that next true step to freedom is purchasing your own home. At the same time it’s a big step in responsibility as now you are solely responsible for payments and upkeep.
We love working with first time homebuyers as they are always excited and fun to work with. We take them step-by-step on the entire process and stay in touch after the sale. But what many people don’t realize is how important first time homebuyers are to the sale of all homes.
There is a market for homes we call ‘first time homebuyer’ or ‘starter homes’. These are smaller, lower entry point homes in any given market. As homeowners outgrow these homes they will find they are now looking for first time homebuyers to purchase their homes so they can move up to a larger home. The people with the larger homes are looking for these ‘moving up’ buyers to purchase their home so they can move to, well you see where this is going. First time homebuyers are the first domino that keeps the real estate market busy.
10 first time homebuyers will purchase 8-9 inhabited homes (a few are vacant for various reasons) on average. Of the sellers who then proceed to purchase new homes you now have about 17 transactions. As those sellers become buyers you go down the line and the original 10 sales become 25 – 30. So on average a first time buyer triggers 3 home sales.
This is why it is important for our economy that lenders work with first time homebuyers and have options available that will work for those with good credit. It’s what keeps the housing market moving forward.
We work with several lenders that have many options for first time homebuyers. No matter where you are in the buying / selling domino chain The Derrick Team is here to help. Give us a call or text 317-563-1110. Or use our handy contact page.