First-Time Buyer? Here’s How to Compete in Today’s Market
Practical advice for Minnesota buyers navigating higher rates, low inventory, & seasonal opportunities
Buying your first home is one of life’s biggest milestones. And in today’s real estate market, it takes a little extra preparation and patience. Between higher mortgage rates, limited inventory, and a market that’s still finding its balance, first-time buyers in Minnesota are having to think strategically.
The good news? With the right mindset and a few insider moves, you can absolutely stand out and succeed. Here’s how to do it.
1. Start with a Strong Financial Foundation
Before you dive into listings, take time to understand your numbers. A mortgage pre-approval is your ticket to being taken seriously by sellers and agents. It also gives you a realistic picture of what you can afford so you can shop with confidence.
Don’t be afraid to explore a few different lenders or loan options. A slight difference in interest rate or closing cost can make a big impact over time.
2. Work with a Local Lender and Agent
Real estate is hyper-local. What’s happening in Lakeville might look completely different from Prior Lake or Minneapolis. A local lender understands area-specific programs, and a local agent knows how to read the market data, write strong offers, and spot homes that fit your lifestyle and budget.
Having a connected agent on your side can even mean getting early access to listings before they hit the broader market. I love working with clients on the south side of the Twin Cities metro… and I have connections here that agents in other parts of town may not.
3. Be Flexible (But Clear on Priorities)
It’s easy to fall in love with your dream home online, but flexibility is your best asset in this market. Make a list of your “must-haves” and “nice-to-haves.”
If you find a home that checks the important boxes—neighborhood, structure, layout—but needs a few cosmetic updates, it might be worth a closer look. A little vision (and some paint) can go a long way.
4. Watch for Seasonal Opportunities
Many buyers assume spring and summer are the only good times to buy. But in Minnesota, fall and winter can be surprisingly strategic. Fewer buyers means less competition. Sellers who keep their homes on the market through the colder months are often motivated and more open to negotiation.
Plus, moving during the off-season means you’ll have more time to settle in before the busy months hit again.
Builders across the Twin Cities are often looking to “offload” inventory in December. I had first-time home buyers scored an incredible deal on a new construction home thanks to builder incentives and their need to sell inventory. Keep an eye on national builders in the upcoming months!
5. Explore First-Time Buyer and Down Payment Assistance Programs
Minnesota offers several helpful programs for new buyers, many of which go underused. Depending on your income and situation, you may qualify for down payment or closing cost assistance.
Ask your agent or lender about options through Minnesota Housing or local county programs. Even a few thousand dollars can make a real difference when you’re starting out.
6. Be Ready to Move Quickly (But Stay Grounded)
Homes that are well-priced still move fast. Once you’ve done the prep work—pre-approval, agent relationship, and priorities list—you’ll be ready to act confidently when a great home hits the market.
But remember: don’t rush into an offer that doesn’t feel right. A home is one of the biggest investments you’ll make, and the right one will come along.
7. Lean on Expert Guidance
Your real estate agent isn’t just here to unlock doors. They’re your strategist, advocate, and sounding board throughout the process. From understanding inspection reports to negotiating with sellers, having someone who’s been through it hundreds of times helps you stay calm and confident.
Final Thoughts
The path to homeownership looks a little different for everyone, but with preparation, flexibility, and the right support team, first-time buyers can absolutely thrive in today’s market.
If you’re ready to take that next step, let’s connect. I’d love to walk you through the process, help you explore your options, and make sure you’re set up for success when the right home comes along.
Let’s go!
