What does 'First Time Buyer' mean when buying a property?
Find out what First Time Buyer means when you are buying a property. 'What does First Time Buyer mean?' plus over 150 other property related terms and jargon in plain English
First Time Buyer
A buyer who has nothing to sell because this is their first property purchase is a "First Time Buyer". It's worth letting any estate agent know if this is your situation because you will be much more attractive to many vendors.
Your advantage is that, should you make an offer, the vendor is only reliant on you, your mortgage lender (if you need a mortgage) and your solicitor to get the sale through. If you have something to sell, even if an offer has been agreed on it, there is still twice as much to go wrong and the vendor you want to purchase from knows absolutely nothing about the stability of your buyer.
"First Time Buyers" should not be confused with "chain free buyers". Chain Free Buyers also have nothing to sell but it does not mean they do not own any properties.
Someone who owns a flat, for example, but is looking to upsize to a house may decide to rent out their flat rather than sell it. They are therefore a chain free buyer but not a first time buyer.
To find out more about different types of buyers and how you can be the type every buyer wants pick up a copy of my ebook How to Really Buy a Property.
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Search Results for 'first time buyer' in
How to Really Buy a Property
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"... disastrous, first step.
Once you know that it is property you want to buy then understanding the theory of the process and marrying it with the reality are essential, whether you are a first time buyer simply looking for a home or an investor building up a portfolio.
The most common theme..."
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Chapter 4:
Understanding the Property Market
"... is a trap here that no end of first time buyers fall into. They go out looking in November just to see what is around and get an idea of prices. They decide to wait until the New Year to see more choice. In the New Year prices are rising. Everything they view is worse than what they looked at before Christmas but costs more. They keep looking and prices keep rising. They decide to wait for prices to fall which then starts to happen in the Summer. Now there is nothing to choose from and what is available, even at lower prices is still more expensive than what they saw before Christmas. They wait until Autumn but prices then start to rise again and although they may make offers, they base these on the Summer market and they are outbid by other buyers. Before they know it they have been looking for a year and spent thousands more pounds in rent. A £200,000 property now costs £220,000. All told the year has easily cost them over £30,000 in rent and lost capital gain. Defiantly some change areas and start the whole cycle all over..."
Chapter 5:
Is the Property Market Overvalued?
"... time buyers and amateur investors tend to have a habit of modelling the property market in no end of ways. They look at what the average buyer is borrowing or how much of their disposable income they are using or basically search down any data that will support their argument that the market will crash violently and they will be able to buy a two bedroomed property in EC1 for £50,000...."
Chapter 7:
Why Buy in a Falling Market?
"... seen in earlier chapters, local markets fall and rise all the time in a way that can be out of sync with country wide trends.
- Why 'first time buyers' buy -
While most of the population is obsessed about buying in a rising market there is a large section that simply want a place to live...."
"... those who have retired or where children have grown up and flown the nest, permanently!
Many belong to a sector where time is more important than profit (as with the first time buyers mentioned above).
Those that have retired are a good example. After years working in a major town or city a..."
Chapter 9:
Getting on the Property Ladder
"... Buying a Property -
Almost everything you read will tell you that in order to buy your first place you will need a cash deposit of between 5 and 10%. As such many first time buyers wait and save while pouring money down the drain in rent. There are three ways round this:
Buy in a new..."
Chapter 10:
Working with Estate Agents
"... potential buyer who takes the view that every estate agent is below them will often have the most stressful experience. The majority are also first time buyers or amateur investors. Almost anyone who is well on their way to building a property portfolio will treat agents with respect and interest. These people realise the agent can be a solid mine of local knowledge, a person continuously in touch with the ever changing world of property finances and an excellent contact for the..."
"... knows it all. The latter will often end up on an endless and fruitless search.
Don't think because you are a first time buyer or are looking to spend half a million pounds you are God's gift to Estate Agents.
- Being Prepared for Your Property Search -
You will gain a huge amount of..."
Chapter 12:
Choosing a Conveyancer or Solicitor
"... you are offered.
On a final note be prepared for the fact that not every solicitor will actually want your work. The most successful firms can pick and choose. Some decide, for example, not to handle leasehold work, others not to deal with first time buyers, and so on.
Flowchart for..."
Chapter 14:
Viewing Properties and Making Offers
"... an AIP is also a useful exercise in helping you consider your budget carefully. Not every lender will offer you three and a half times your salary (something that many first time buyers assume) as a mortgage. You will also start to get a feel of the various restrictions that certain mortgage products have. Some, for example, do not allow you to buy in blocks more than four stories high, others will only loan on properties with more than two bedrooms, and so..."
"... both on their details and when they speak to you, in other words they generally assume you know them.
The most frequently used are:
first time buyer
Chain Free and Vacant Possession
Tenanted
Cash Purchasers Only
Repossession
Leasehold
Share of Freehold
Freehold
- First Time..."
"... Time Buyer
Chain Free and Vacant Possession
Tenanted
Cash Purchasers Only
Repossession
Leasehold
Share of Freehold
Freehold
- first time buyer -
Originally this term arose to mean exactly what it said, "A buyer who has nothing to sell because this is their first purchase". Over..."
"...
In recent years it has become increasingly popular for home owners to sell and move into rented accommodation before they start looking for something to buy. Many have realised the cost of renting is often outweighed by the lower offers that are accepted by vendors from first time buyers.
..."
Chapter 18:
The Balance of Power
"... view the property.
Simon was a first time buyer and knew his strong bargaining position. Over a four day period he negotiated through the agent and eventually achieved an agreement at over 10% below the asking price – exceptional for the market place at the time.
The chain moved..."
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