The power of the first-time buyer

This housing market is a tough one for home sellers. Buyers aren’t making offers on properties until their owners drop their asking prices significantly. And even then, buyers are a tough sell: Many are forcing sellers into making serious renovations and repairs before closing.

But there is one group of buyers out there that sellers of moderate- to mid-priced homes should focus on: the first-time buyers.

These buyers are ideal because they’re not saddled with their own home to sell. This means home sellers don’t have to wait for first-time buyers to first unload their own properties, which is often a requirement in transactions between parties who both own homes.

Think the first-time buyer market isn’t a large enough sample? Think again. According to the National Association of Realtors, first-time buyers account for 39 percent of the market today, up from 36 percent one year earlier. The average income of first-time buyer couples is $68,000, while it’s $52,000 for single men and $44,000 for single women.

How do you best appeal to the first-time buyer? According to a broker survey by real estate giant Coldwell Banker, it’s by showing a house that is in move-in condition. First-time buyers, apparently, don’t want to spend time renovating fixer-uppers. The survey said that 81 percent of first-time buyers want a home that is move-in ready, while only 7 percent will settle for a fixer-upper. Other factors: 41 percent of first-time buyers want a home close to their jobs, while 35 percent are making their purchase as an investment.

So if you want an edge in this tough real estate market, fix up your house and shoot for the first-time buyers. They’re the easiest to deal with … you know, if they can get mortgage financing. (But that’s a whole other post!)