Why Buy Land Now?

As we continue our series about the housing market from a Generation Y perspective, we’ll continue to explore the challenges facing first-time home buyers, and the opportunities.

A Flood of Information

Most people I know have heard reports in many different media outlets about the problems facing current homeowners. However, there are rarely any reports about the benefits of investing in real estate, especially when prices are dropping.

The media has cast a negative light on the real estate industry as a whole, while young clients need to be informed about the positive aspects of homeownership. For example, the first-time homebuyer tax credit is a great deal for young buyers, but few seem to know that it even exists. Providing correct, current information about housing concerns is probably the most important tip I can give anyone trying to sell my generation on real estate. Furthermore, making such information readily available to a digitized generation would be a great step in the right direction.

Technologically Savvy

My generation has internalized the Internet. This internalization has a significant impact on the home-buying process: so far, my entire search has taken place on the web. In my search, I have used just about every website available to buyers. Here’s what I found most useful while perusing different real estate websites: property mapping, photos, and overall ease-of-use. In searching for properties in Chicago, I do not know every single street name or where they are located. Sites that can show me the properties on a map made my search much easier.

And I must admit that, although I may have missed out on some great properties, I rarely found myself giving more than a quick glance to listings without multiple photos. I want to get a sense of what the properties look like so I can decide whether or not to schedule a showing. Finally, websites that list homes need to be simple and well thought out so that first-time buyers can easily and quickly search and find homes without having to jump through hoops to get to the best listings.

Patience IS a Virtue

Be patient in explaining to first-time buyers the process of homeownership and the currently available incentives. More than half of the people I’ve spoken with are unwilling to consider purchasing a home because they’ve heard all about foreclosures and the slumping housing market. This attitude requires REALTORS® to be extremely patient and understanding of these fears while teaching young, first-time buyers about the advantages of owning a home. Being honest and upfront with these clients can also help to gain their trust. Is the current market perfect for every buyer? Of course not. However, for many, there are some truly great opportunities available to those willing to find them.

The new generation of first-time homebuyers is creating a new segment in real estate, and a new type of REALTOR®. Still-falling home prices, an increasing inventory of properties, and government incentives for first-time homebuyers present a great opportunity for young professionals. And that signals opportunity for REALTORS®, especially those who can provide this new segment with the level of technology we have come to expect. The only issue is counteracting the negative skew of the industry presented by major media outlets. Focusing your efforts on a case-by-case basis in order to alleviate the fears of buyers could prove incredibly profitable in the long term.