Post on 09-May-2015
Profile of Home Buyers and Sellers
Jessica LautzMay 12, 2011
Home Buyers
Typical buyer:• 39-years-old• $72,200• 58% married• 20% single females• 12% single males• 8% unmarried
couples• 35% have children in
home
Who is buying today?
Who is buying today?
First-time Buyer:
Repeat Buyer:
30-years-old 49-years-old
$59,900 $87,000
48% married 68% married
23% single females
17% single females
15% single males
9% single males
12% unmarried couples
4% unmarried couples
32% have children
37% have children
Why do buyers want to own today?
All Buyers
First-time Buyers
Repeat Buyers
Desire to own a home of my own 31% 53% 10%
Desire for larger home 9 2 15
Change in family situation 8 7 10
Home buyer tax credit 8 13 3
Job-related relocation or move 7 2 12
Affordability of homes 6 8 4Desire to be closer to family/friends/relatives 5 1 10
Desire for a home in a better area 5 2 7
What homes are being sold?
Typical home purchased:• 85% of homes were
previously owned• 77% detached single
family homes• Built in 1990• 1,780 square feet• 3 bedrooms/2 full baths• More than half of homes
purchased were in the suburbs
• Buyers typically moved 12 miles
Location, Location, Location
• Quality of the neighborhood
• Convenient to job• Overall affordability of
homes • Convenient to friends
and family • Quality of the school
district • Convenient to shopping
Expected Tenure in Home
The Search Process
First Step in Buying Process
All Buyer
s
AGE OF HOME BUYER
18-24
25-44
45-64
65 or older
Looked online for properties for sale
36% 34% 40% 36% 21%
Contacted a real estate agent 19 16 16 21 35Looked online for information about the home buying process
11 16 13 8 4
Contacted a bank or mortgage lender
8 11 9 7 4
Drove-by homes/neighborhoods 7 4 5 10 12Talked with a friend or relative about home buying process
7 13 8 4 6
Visited open houses 4 2 2 5 9
Use of Information Sources
Where Buyer Found Their Home
Length of the Search Process
Number of Weeks Searched
Satisfaction With Buying Process
Method of Home Purchase
What do buyers want from real estate professionals?
Benefits Buyers Had When Using an Agent
All Buyers
First-time Buyers
Repeat Buyers
Helped buyer understand the process 66% 80% 53%Pointed out unnoticed features/faults with property 53 55 50Negotiated better sales contract terms 42 43 40Improved buyer's knowledge of search areas 42 41 43Provided a better list of service providers 41 41 42Negotiated a better price 34 34 34
Referrals Matter
• 57% used an agent that was referred to them or they had worked with before
• 87% would refer their agent or work with them again
• 64% of home buyers contacted only 1 agent during their search process
Home Sellers
Typical seller:• 46-years-old• $90,000• 75% married• 16% single females• 6% single males• 3% unmarried
couples• 40% have children in
home• Typically lived in
their home for 8 years
Who is selling today?
Why are sellers moving?
• Home is too small• Job relocation• Want to move closer to
friends or family• Neighborhood has become
less desirable• Change in family situation
(e.g., marriage, birth of a child, divorce)
Trade up or down?
• 55% purchased a more expensive home
• 51% purchased a larger home
• 57% purchased a new home
Satisfaction With Selling Process
Method Used to Sell Home
What do sellers want from their real estate professional?
• Help price home competitively
• Help find a buyer for home
• Help seller market home to potential buyers
• Help sell the home within specific timeframe
Method to Market Home
All Homes
MLS Listing 91%
Yard sign 79
Open house 56
Print newspaper advertisement 28
Real estate magazine 25
Other Web sites with real estate listings 25
Direct mail (flyers, postcards, etc.) 16
Video 12
Social networking Web sites 5
Television 2
Video hosting Web sites (e.g., YouTube, etc.) 2
Referrals Matter
• 64% used an agent that was referred to them or they had worked with before
• 84% would refer their agent or work with them again
• 66% of home sellers contacted only 1 agent during their search process