Profile of Home Buyer Preferences

NATIONAL ASSOCIATION OF REALTORS® Profile of Buyers’ Home Feature Preferences 2007

2007 OFFICERS President Pat V. Combs, ABR, CRS, GRI, PMN NATIONAL ASSOCIATION President-Elect OF REALTORS® Richard F. Gaylord, CIPS, CRB, CRS, GRI The Voice For Real Estate First Vice President The NATIONAL ASSOCIATION OF REALTORS®, “The Voice for Real Estate,” Charles McMillan, GRI is America’s largest trade association, representing more than 1.3 million Treasurer members, including NAR’s institutes, societies and councils, involved in all Bruce F. Wolf aspects of the real estate industry. NAR membership includes brokers, salespeople, property managers, appraisers, counselors and others engaged Immediate Past President in both residential and commercial real estate. Thomas M. Stevens, CRB, CRS, GRI Vice President & Liaison to The term REALTOR® is a registered collective membership mark that Committees identifies a real estate professional who is a member of the NATIONAL PeggyAnn McConnochie, E-Pro, GRI ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. Vice President & Liaison to Government Affairs Working for America's property owners, the National Association provides a Monty D. Newman, GRI facility for professional development, research and exchange of information Executive Vice President/CEO among its members and to the public and government for the purpose of Dale Stinton, CAE, CPA, CMA, RCE preserving the free enterprise system and the right to own real property.

NATIONAL ASSOCIATION OF REALTORS ® CONTENTS Introduction ................................................................................................... 4 Highlights .........................................................................................................5 Chapter 1: Characteristics of Home Purchased ...........................6 Chapter 2: Searching for a Home ..................................................... 19 Chapter 3: Home Improvement and Remodeling.................... 46 Chapter 4: Home Purchase, Investment, and Financing ...... 56 Methodology .............................................................................................. 65 List of Exhibits ............................................................................................. 66 A u g u s t 2007

2007 PROFILE OF BuyERS’ HOME FEATuRE PREFERENCES INTROduCTION P u R C H A S I N g A H O M E I N v O Lv E S C O u N T L E S S d E C I S I O N S A B O u T F I N A N C I N g options, where to buy, and the specific features and amenities buyers value most in a home. Many of the preferences are related to the buyer’s age and income — younger buyers just purchasing their first home or older buyers looking to trade down perhaps in anticipation of retirement. Other features in a home are embraced by most home buyers of all ages, while still other preferences depend on how long the buyer expects to remain in their home. The desirability of some features is also reflected in the buyer’s choice of a new or previously owned home. Once a home purchase is completed, many buyers invest in their home by upgrading kitchens and bathrooms, replacing appliances or adding landscaping. differences in the types of improvements are evident between those buyers who purchased newer and older homes or those that expect to own their home for a number of years or only a short period of time. Home improvements not only add value to the home that can often be recaptured upon sale, but also enhance the desirability of the home for the new owner. To more accurately assess these variations in preferences for home features and the types of home improvements buyers undertake, the NATIONAL ASSOCIATION OF REALTORS® conducted a survey of home buyers who purchased a home in the period from late 2005 to early 2007. The survey gathered information about those features that buyers considered very important when searching for a home and whether or not these features were present in the home they purchased. The survey also queried recent buyers about the home improvements that they undertook during the first three months following the purchase. The information gathered from this survey confirms many of the observations that real estate professionals make each day when working with home buyers. More importantly, however, the information gleaned from this survey provides insights into the priorities of home buyers. This information can be used by REALTORS® and other real estate professionals to assist home buyers who are searching for a home, including first-time buyers or buyers transitioning to a new location. The analysis in this report will also help home Paul C. Bishop, Ph.D sellers and real estate professionals evaluate the desirability of various Harika “Anna” Barlett Jessica Lautz features when marketing a home for sale.

NatioNal associatioN of RealtoRs ® HigHligHts CHARACTERISTICS OF HOME PURCHASED n The typical home purchased during the survey period was 12 years old, 1,840 square feet in size, and had three bedrooms and two bathrooms. n First-time buyers typically purchased smaller and older homes than repeat buyers and were more likely to purchase a home in an urban/central city area. n More than 80 percent of homes purchased had central air conditioning and garages, and less than half had basements. n More than 90 percent of home buyers were satisfied with the home they purchased, and nearly two-thirds of all buyers were very satisfied. SEARCHING FOR A HOME n Nearly four out of five home buyers worked with a real estate agent to purchase their home. n When searching for a home, the most desired features were central air conditioning, an oversized garage, a walk-in closet, and a backyard or play area. The most desired rooms/spaces were garages, living rooms and laundry rooms. n Repeat buyers placed more importance than first-time buyers on almost all home features. n Home buyers that purchased a home without a desired feature or room would be willing to pay extra for central air conditioning (typically $1,880), two or more full bathrooms (typically $2,040) and hardwood floors (typically $1,900). n Over 90 percent of recent home buyers thought energy efficiency was an important consideration when searching for a home to purchase. n When comparing the home they recently purchased to their ideal or preferred home, most home buyers were satisfied with regard to their home’s age, overall size, size of the kitchen, number of bedrooms and bathrooms, and closet and storage space. HOME IMPROVEMENT AND REMODELING n About six-in-ten recent home buyers took on remodeling or home improvement projects within three months of their home purchase. n The typical buyer spent $4,350 on home improvement projects within the first three months of buying their home. Repeat buyers spent more than first-time buyers. n Nearly half of home buyers remodeled or made improvements to their kitchen, and close to half remodeled or improved a bathroom in the first three months following the home purchase. HOME PURCHASE, INVESTMENT, AND FINANCING n The median home price was $205,000, and over 90 percent of home buyers used a mortgage to finance their home purchase. n Over half of home buyers believe their home has high investment potential. n Older buyers are more optimistic about their home’s investment potential; more than 60 percent of buyers 55 or older rate their home’s investment potential as high.

2007 pRofile of buyeRs’ Home featuRe pRefeReNces cHapteR I cHaRacteRistics of Home puRcHased H o m e b u y e R s va R y i N a g e , fa m i ly c o m p o s i t i o N , H o u s e H o l d i N c o m e , and numerous other individual characteristics. as buyers differ, their home choices, square footage, age of home, and home feature preferences vary. younger, first-time buyers, for example, often reveal much different priorities in their home purchase than older, repeat buyers. chapter 1 addresses many of the differences in home preferences and differences among home buyers. Buyers in the younger age groups tend to purchase progressively larger homes, plateauing at middle age... For three-quarters of first-time buyers, the desire to own a home and establish their own household was the primary motivating factor underlying their home purchase.

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 1-1 SIZE OF HOME PURCHASED SIZE OF HOME PURCHASED The typical recently purchased home (Percentage Distribution) was 1,840 square feet in size. The 35 majority of buyers purchased homes that 31% were between 1,000 and 2,000 square 30 feet while one in 10 purchased a home that was at least 3,000 square feet. 25 23% The typical first-time home buyer purchased a home about 500 square 20 18% feet smaller than the typical repeat buyer, reflecting the much larger share 15 of first-time buyers that purchased 11% homes smaller than 1,500 square feet. 10 New homes are typically bigger than 6% 7% previously owned homes with nearly one 5 3% in five new-home buyers purchasing a 2% home larger than 3,000 square feet. * 0 500 501 to 1,001 to 1,501 to 2,001 to 2,501 to 3,001 to 3,501 to 4,001 sq ft 1,000 1,500 2,000 2,500 3,000 3,500 4,000 sq ft or less sq ft sq ft sq ft sq ft sq ft sq ft sq ft or more * Less than one percent Exhibit 1-2 SIZE OF HOME PURCHASED (Percentage Distribution) Buyers of: All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes 500 sq ft or less * 1% * * * 501 to 1,000 sq ft 6 11 3 2 7 1,001 to 1,500 sq ft 23 35 16 16 26 1,501 to 2,000 sq ft 31 33 29 29 31 2,001 to 2,500 sq ft 18 12 21 20 17 2,501 to 3,000 sq ft 11 5 14 16 9 3,001 to 3,500 sq ft 7 2 10 10 6 3,501 to 4,000 sq ft 3 * 4 5 2 4,001 sq ft or more 2 * 3 3 1 Median size (sq ft) 1,840 1,540 2,040 2,080 1,760 * Less than one percent

2007 PROFILE OF BuyERS’ CHAPTER 1: CHARACTERISTICS OF HOMES PuRCHASEd HOME FEATuRE PREFERENCES SIZE OF HOME BY REGION areas of the country. The typical home population densities in many urbanized Due, in part, to greater availability of purchased in the South was 1,900 areas, more than one in 10 home buyers buildable land and a generally newer square feet, about 100 square feet in the Northeast purchased homes housing stock, homes in the South larger than the typical home purchased smaller than 1,000 square feet. are typically larger than homes in other in other regions. Reflecting higher Exhibit 1-3 SIZE OF HOME PURCHASED, BY REGION (Percentage Distribution) All HoMes iN tHe: siNgle-fAMily HoMes iN tHe: All Homes Northeast Midwest south West Northeast Midwest south West 500 sq ft or less * 1% * * * * * * * 501 to 1,000 sq ft 6 10 6 4 8 6 6 3 3 1,001 to 1,500 sq ft 23 22 25 20 27 21 21 17 22 1,501 to 2,000 sq ft 31 29 33 32 27 27 34 32 28 2,001 to 2,500 sq ft 18 17 18 18 18 17 18 19 22 2,501 to 3,000 sq ft 11 12 10 12 9 15 12 13 11 3,001 to 3,500 sq ft 7 8 5 8 7 10 6 9 8 3,501 to 4,000 sq ft 3 2 2 4 3 2 2 5 3 4,001 sq ft or more 2 1 1 2 3 1 2 2 3 Median size (sq ft) 1,840 1,800 1,790 1,900 1,790 1,930 1,850 1,970 1,940 * Less than one percent The typical first-time buyer purchased a home about 500 square feet smaller than the typical repeat buyer...

NATIONAL ASSOCIATION OF REALTORS ® SIZE AND AGE OF HOME in size. Homes built most recently are feet. Less than 5 percent of recently Homes have become progressively typically greater than 2,000 square feet purchased homes built in the last 20 larger over the past 50 years. The typical in size. Fourteen percent of recently years were smaller than 1,000 square recently purchased home built at least purchased homes built before the mid- feet. 50 years ago was 1,580 square feet 1950s were smaller than 1,000 square Exhibit 1-4 SIZE OF HOME PURCHASED, BY AGE OF HOME (Percentage Distribution) Age of HoMe All Homes one year or less 2 to years to 10 years 11 to 20 years 21 to 0 years 1 to 0 years 1 or more years 500 sq ft or less * * * * * * * 1% 501 to 1,000 6 2 3 1 5 8 10 13 sq ft 1,001 to 1,500 23 15 22 17 24 34 29 30 sq ft 1,501 to 2,000 31 30 25 31 33 28 33 34 sq ft 2,001 to 2,500 18 19 24 24 18 14 17 11 sq ft 2,501 to 3,000 11 16 9 16 8 9 6 6 sq ft 3,001 to 3,500 7 10 10 7 7 3 2 4 sq ft 3,501 to 4,000 3 5 6 2 2 1 2 * sq ft 4,001 sq ft or 2 3 1 3 1 2 * * more Median size 1,840 2,100 2,010 2,030 1,810 1,640 1,670 1,580 (sq ft) * Less than one percent

10 2007 PROFILE OF BuyERS’ CHAPTER 1: CHARACTERISTICS OF HOMES PuRCHASEd HOME FEATuRE PREFERENCES Exhibit 1-5 SIZE OF HOME PURCHASED BY SIZE OF HOME PURCHASED, BY HOUSEHOLD COMPOSITION HOUSEHOLD COMPOSITION (Percentage Distribution) Married couple households typically HouseHold CoMPositioN purchase larger homes (2,020 square All single single Married unmarried Buyers Male female Couple Couple other feet) than other buyers. Unmarried 500 sq ft or less * 1% * * 1% * couples frequently purchase homes 501 to 1,000 sq ft 6 10 13 3 10 10 somewhat smaller (1,720 square feet), 1,001 to 1,500 sq ft 23 31 35 18 25 30 followed by single males (1,600 square 1,501 to 2,000 sq ft 31 39 33 29 31 30 feet) and single females (1,530 square 2,001 to 2,500 sq ft 18 10 10 21 19 20 feet). 2,501 to 3,000 sq ft 11 5 4 14 9 * 3,001 to 3,500 sq ft 7 2 3 9 3 3 3,501 to 4,000 sq ft 3 * * 4 1 7 4,001 sq ft or more 2 * 1 2 1 * Median size (sq ft) 1,840 1,600 1,530 2,020 1,720 1,670 * Less than one percent Married couple households typically purchase larger homes (2,020 square feet) than other buyers.

NATIONAL ASSOCIATION OF REALTORS ® 11 Exhibit 1-6 CHARACTERISTICS OF HOME CHARACTERISTICS OF HOMES PURCHASED PURCHASED Buyers of: While the typical home purchased All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes was 1,840 square feet and 12 years old, size of home (median sq ft) 1,840 1,540 2,040 2,080 1,760 first-time buyers bought homes that were Age of home (median years) 12 23 9 1 24 smaller and older than homes purchased 1 year or less 28% 19% 33% 96% 2% by repeat buyers. First-time buyers are 2 to 5 years 10 7 11 4 12 somewhat more likely than repeat buyers 6 to 10 years 10 9 11 N/A 15 to purchase a one-level home. Among all 11 to 20 years 12 11 13 N/A 17 recent buyers, the typical home had three 21 to 30 years 12 14 11 N/A 17 bedrooms and two baths. Repeat buyers 31 to 50 years 12 14 11 N/A 17 and those who purchased new homes 51 or more years 15 24 10 N/A 20 more frequently reported having homes Levels (median) 2 1 2 2 2 with half baths. The majority of recent One 47% 51% 45% 45% 48% buyers reported their home had at least two 44 40 47 49 42 one fireplace. three or more 9 10 8 6 9 Bedrooms (median) 3 3 3 3 3 Less than half of home buyers One 2% 3% 1% 1% 2% purchased a home with a basement. two 16 22 13 14 17 Among those who had basements, most three 48 56 44 40 51 were unfinished. Central air conditioning Four 26 15 33 33 23 and garages were present in more than Five or more 8 4 10 11 6 80 percent of homes purchased. Full bathrooms (median) 2 2 2 2 2 One 24% 38% 15% 6% 31% two 58 55 60 65 56 three or more 18 6 24 30 13 Half bathrooms (median) 0 0 1 1 0 None 51% 59% 47% 47% 53% One 46 39 50 51 44 two or more 3 * 1 * * Fireplaces (median) 1 1 1 1 1 None 36% 48% 29% 31% 38% One 57 47 62 62 54 two 6 3 7 5 6 three or more 2 1 2 1 2 Central air conditioning 83% 76% 87% 94% 79% garage 82% 73% 88% 93% 78% Basement 41% 42% 41% 29% 46% Finished 14 13 15 9 16 Partially finished 9 10 9 3 12 unfinished 18 20 17 17 19 Previously owned 71% 80% 66% * 100% * Less than one percent

12 2007 PROFILE OF BuyERS’ CHAPTER 1: CHARACTERISTICS OF HOMES PuRCHASEd HOME FEATuRE PREFERENCES Exhibit 1-7 CHARACTERISTICS OF HOME CHARACTERISTICS OF HOMES PURCHASED, BY AGE OF HOME BUYER BY AGE OF HOME BUYER Age of HoMe Buyer Most preferences of home buyers All or Buyers 1-2 2- - - - - older vary in a consistent manner with their size of home (median sq ft) 1,840 1,450 1,710 2,000 1,970 1,880 1,890 1,620 age. Buyers in the younger age groups Age of home (median years) 12 25 18 11 11 8 10 9 tend to purchase progressively larger 1 year or less 28% 13% 23% 30% 28% 37% 34% 33% homes, plateauing at middle age followed 2 to 5 years 10 9 10 9 11 9 8 13 by the purchase of smaller homes 6 to 10 years 10 13 10 12 11 8 10 9 among older age groups. Additionally, 11 to 20 years 12 8 10 12 11 14 24 22 older buyers more frequently buy newer 21 to 30 years 12 15 15 11 13 9 8 11 homes. Thirteen percent of home buyers 31 to 50 years 12 13 12 12 15 10 11 13 aged 18 to 24 purchased a home that 51 or more years 15 28 20 15 12 12 4 * was less than a year old, while more than Levels (median) 2 2 2 2 2 1 1 1 one-third of buyers 55 or older bought a One 47% 46% 49% 33% 46% 56% 66% 80% home that was less than a year old. two 44 44 43 57 42 37 29 18 The majority of home buyers 54 years three or more 9 10 8 10 12 7 4 2 Bedrooms (median) 3 3 3 3 3 3 3 3 old or younger purchase homes with at One 2% 3% 3% 2% 1% 1% 3% 7% least two levels while older buyers more two 16 30 17 11 13 18 23 35 frequently purchase a single-level home. three 48 50 52 40 48 50 51 44 The age of buyers has little influence on Four 26 11 21 36 30 25 18 11 the number of bedrooms or bathrooms Five or more 8 7 6 11 8 6 5 2 in a home. Home buyers who are aged Full bathrooms (median) 2 2 2 2 2 2 2 2 18 to 24 were less likely to purchase a One 24% 46% 31% 20% 22% 17% 14% 11% home with a fireplace compared to older two 58 52 56 56 57 62 67 77 buyers. three or more 18 3 13 24 21 21 19 11 Half bathrooms 0 0 0 1 0 0 0 0 None 51% 57% 54% 44% 50% 54% 56% 70% One 46 40 44 53 46 44 41 30 two or more 3 3 1 3 4 2 3 * Fireplaces (median) 1 0 1 1 1 1 1 1 None 36% 60% 42% 32% 32% 34% 25% 43% One 57 36 53 59 59 60 65 54 two 6 2 4 7 7 5 10 4 three or more 2 2 1 2 2 2 * * Central air conditioning 83% 74% 81% 82% 82% 87% 91% 98% garage 82% 64% 77% 87% 86% 86% 90% 80% Basement 41% 41% 45% 44% 44% 35% 33% 30% Finished 14 6 14 15 16 13 13 4 Partially finished 9 5 12 9 10 8 5 16 unfinished 18 30 19 21 18 14 15 10 Previously owned 71% 85% 76% 71% 69% 64% 65% 63% * Less than one percent

NATIONAL ASSOCIATION OF REALTORS ® 1 Exhibit 1-8 TYPE OF HOME PURCHASED TYPE OF HOME PURCHASED Eighty-two percent of home buyers (Percentage Distribution) Buyers of: reported purchasing a detached All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes single-family home. First-time buyers Detached single-family 82% 78% 85% 81% 83% more frequently purchase condos home or townhouses than repeat buyers. townhouse/row house 7 8 6 7 6 Repeat buyers and those who purchase Apartment/condo in 5 8 3 5 5 previously owned homes are more likely building with 5 or more units to buy a detached single family home. Duplex/apartment/con- 5 5 4 5 5 do in 2 to 4 unit building Exhibit 1-9 TYPE OF HOME PURCHASED TYPE OF HOME PURCHASED, BY REGION BY REGION (Percentage Distribution) Like square footage, the type of home HoMes iN tHe: purchased varies by region. Due to All Homes Northeast Midwest south West factors such as the characteristics of the Detached single-family home 82% 75% 82% 86% 81% existing stock of homes and population townhouse/row house 7 10 5 6 7 density, those who purchase homes in Apartment/condo in building 5 7 4 3 6 with 5 or more units the Northeast are more likely to report Duplex/apartment/condo in 2 5 6 8 3 4 buying a townhouse or row house (10 to 4 unit building percent) than buyers in other regions. Home buyers in the South are more likely than buyers in other regions to purchase detached single-family homes (86 percent).

1 2007 PROFILE OF BuyERS’ CHAPTER 1: CHARACTERISTICS OF HOMES PuRCHASEd HOME FEATuRE PREFERENCES Exhibit 1-10 TYPE OF HOME PURCHASED TYPE OF HOME PURCHASED, BY AGE OF HOME BUYER AND AGE OF BUYER (Percentage Distribution) Age of HoMe Buyer Compared with their older counterparts, younger home buyers less All or Buyers 1-2 2- - - - - older frequently purchase a detached single- Detached single- 82% 72% 82% 87% 85% 81% 79% 60% family home. Among the younger age family home cohorts, the percent that purchase a townhouse/row 7 13 7 5 7 7 6 15 detached single-family home rises along house Apartment/condo 5 6 7 4 3 3 6 5 with age, but declines among buyers 55 in building with 5 and older. Home buyers 75 or older are or more units more likely than others to purchase a Duplex/apart- 5 8 4 3 4 7 6 16 ment/condo in 2 home in a duplex/apartment/condo in a to 4 unit building 2 to 4 unit building (16 percent). Buyers 18 to 24 years old and those 75 or older more often purchase a townhouse or row house (13 percent and 15 percent, respectively) than other age groups. Exhibit 1-11 TYPE OF HOME PURCHASED TYPE OF HOME PURCHASED, BY HOUSEHOLD COMPOSITION BY HOUSEHOLD COMPOSITION (Percentage Distribution) HouseHold CoMPositioN While 82 percent of all buyers purchased a detached single-family single single Married unmarried All Buyers Male female Couple Couple other home, there is considerable variation Detached single-family 82% 64% 66% 89% 84% 68% across households of different types. home More than one-in-five single males townhouse/row house 7 13 14 4 6 14 purchased a condo and more than Apartment/condo in 5 11 9 3 5 5 building with 5 or more one in 10 purchased a townhouse or units row house. Fourteen percent of single Duplex/apartment/ 5 10 8 3 4 11 females purchased a townhouse or row condo in 2 to 4 unit building house and 17 percent of single females bought a condo. Nearly 90 percent of married couples and 84 percent of unmarried couples purchased detached single-family homes.

NATIONAL ASSOCIATION OF REALTORS ® 1 Exhibit 1-12 LOCATION OF HOMES LOCATION OF HOMES PURCHASED PURCHASED (Percentage Distribution) The majority of buyers purchase homes located in suburban areas (53 percent). One in five buyers bought Resort/Recreation area Rural area 1% homes in a small town, 15 percent in 10% urban/central cities and 10 percent in rural areas. A small percentage of buyers Urban/ bought homes in resort/recreation areas. Central city Sixty percent of buyers who 15% purchased new homes did so in suburban areas compared with 50 percent who purchased previously owned homes. First-time home buyers are more likely to purchase a home in an urban/central city than repeat buyers. Suburb/ Small town Subdivision 20% 53% Exhibit 1-13 LOCATION OF HOMES PURCHASED (Percentage Distribution) Buyers of: All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes suburb/subdivision 53% 51% 54% 60% 50% small town 20 20 20 18 21 urban/Central city 15 20 13 12 17 Rural area 10 10 11 9 11 Resort/Recreation area 1 1 2 2 1

1 2007 PROFILE OF BuyERS’ CHAPTER 1: CHARACTERISTICS OF HOMES PuRCHASEd HOME FEATuRE PREFERENCES Exhibit 1-14 LOCATION ACROSS REGIONS LOCATION OF HOMES PURCHASED, BY REGION Many factors influence the location (Percentage Distribution) HoMes iN tHe: choice of home buyers, including the All Homes Northeast Midwest south West location of employment and the level of urbanization in a region. Those who suburb/subdivision 53% 44% 51% 58% 49% purchase homes in the Northeast are small town 20 30 21 17 18 urban/Central city 15 13 19 12 21 less likely to buy in suburban areas Rural area 10 12 9 11 9 and more likely to buy in small towns, Resort/Recreation area 2 1 * 2 3 compared to buyers in other regions. In * Less than one percent contrast, buyers in the West are more likely than other buyers to purchase a home in urban areas. Those who purchase homes in the South are more likely to buy a home in suburban areas and less likely to purchase in urban areas or small towns. Exhibit 1-15 LOCATION OF HOME LOCATION OF HOMES PURCHASED, BY AGE OF HOME BUYER PURCHASED BY AGE OF BUYER (Percentage Distribution) Age influences the location choice Age of HoMe Buyer of home buyers, as well. Generation All or Buyers 1-2 2- - - - - older Y home buyers (under 25) and buyers suburb/ 53% 49% 54% 57% 53% 49% 48% 39% 55 or older are less likely to purchase a subdivision home in suburban areas than other age small town 20 25 17 17 24 24 28 28 groups. urban/Central city 15 19 19 15 12 14 10 17 Rural area 10 7 10 11 11 9 10 15 Resort/ 2 * * * 1 5 4 2 Recreation area * Less than one percent

NATIONAL ASSOCIATION OF REALTORS ® 1 Exhibit 1-16 DISTANCE FROM PREVIOUS DISTANCE FROM PREVIOUS RESIDENCE RESIDENCE (Percentage Distribution) The typical home buyer moved 15 More than miles from their previous residence. Over 1,000 miles 10% one-quarter of home buyers purchased 501 to 5 or less miles a home that was less than five miles from 1,000 miles 26% 6% their previous residence. Seventy-one 101 to percent of buyers purchased a home 500 miles that was within 50 miles of their previous 9% residence. 51 to 100 miles 5% 6 to 21 to 10 miles 50 miles 17% 11% 16 to 11 to 15 miles 20 miles 10% 7% The typical home buyer moved 15 miles from their previous residence.

18 2007 Profile of Buyers’ cHaPter 1: cHaracteristics of Homes PurcHased Home feature Preferences Exhibit 1-17 DISTANCE OF MOVE AND AGE DISTANCE FROM PREVIOUS RESIDENCE, OF BUYER BY AGE OF HOME BUYER Older home buyers more often move (Percentage Distribution) Age of Home Buyer a greater distance from their previous All 75 or residence than younger buyers. A Buyers 18-24 25-34 35-44 45-54 55-64 65-74 older number of factors, including job-related 5 or less miles 26% 20% 25% 31% 25% 25% 22% 18% relocation and retirement, account for this 6 to 10 miles 17 26 22 17 15 12 10 13 dynamic. Younger home buyers moved 11 to 15 miles 10 17 12 8 8 6 6 9 a median of 12 miles from their previous 16 to 20 miles 7 12 9 7 6 4 5 4 residence, while one in five buyers in 21 to 50 miles 11 13 12 10 11 12 8 7 this group stayed within 5 miles. For 51 to 100 miles 5 5 3 5 4 7 4 7 the typical buyer between the ages of 101 to 500 miles 9 4 7 8 11 13 15 11 55 and 64, the distance moved more 501 to 6 3 3 6 6 9 19 13 1,000 miles than doubled to a median of 26 miles. More than 10 2 7 8 14 11 11 18 Similarly, the median distance nearly 1,000 miles doubled again, to 48 miles, for buyers Median (miles) 15 12 12 13 18 26 48 47 between 65 and 74 years old. Buyers 75 or older were just as likely to move more than 1,000 miles as they were to move within five miles of their previous residence. Exhibit 1-18 SATISFACTION WITH HOME PURCHASED (Percentage Distribution) SATISFACTION WITH HOME Very PURCHASED Somewhat dissatisfied Overall, most home buyers are happy dissatisfied 1% 4% Very satisfied with the home they purchased; nearly 63% two-thirds of buyers are very satisfied. Just 1 percent of home buyers are Somewhat very dissatisfied with the home they satisfied 32% purchased.

national association of realtors ® 19 cHaPter 2 searcHinG for a Home W H e n s e a r c H i n G f o r a H o m e , B u y e r s H av e m a n y o P t i o n s t o consider. However, even among those options and features that buyers consider very important, compromises and trade-offs sometimes have to be made. chapter 2 describes home features considered important during the search process, the presence of those desired features in the homes purchased and, in those cases where the home lacked particular features, buyers’ willingness to pay extra for them. Repeat buyers placed more importance than first- time buyers on almost all home features examined, with the exception of proximity to work and a backyard or play area. For three-quarters of first-time buyers, the desire to own a home and establish their own household was the primary motivating factor underlying their home purchase.

20 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES Exhibit 2-1 USE OF INTERNET USE OF INTERNET TO SEARCH FOR HOMES Four out of five home buyers used (Percentage Distribution) the Internet in their home search. Nearly Occasionally 60 percent of recent home buyers Frequently 22% 58% reported they used the Internet frequently; 22 percent reported they used it occasionally. Not Used 21% Exhibit 2-2 METHOD OF PURCHASE METHOD OF HOME PURCHASE When purchasing a home, buyers (Percentage Distribution) Buyers of: have many options, one of which All first-time repeat New Previously includes working with an agent. Nearly Buyers Buyers Buyers Homes owned Homes four out of five buyers surveyed worked Real estate 79% 82% 78% 53% 90% with a real estate agent (79 percent), agent/broker a number consistent with other recent Directly from builder 13 8 16 44 * surveys of home buyers. The percentage Directly from 3 5 2 1 4 previous owner who of first-time buyers who purchased their knew homes with the assistance of an agent Directly from 3 3 3 * 4 was higher than among repeat home previous owner whom did not know buyers. As expected, this percentage Foreclosure or * * * * * is also much higher among buyers of trustee sale previously owned homes (90 percent) Other 1 1 1 2 1 compared to buyers of new homes (53 * Less than one percent percent).

NATIONAL ASSOCIATION OF REALTORS ® 21 DESIRED HOME FEATURES home buyers. An oversized (two-or- by at least half of recent home buyers. The most desired home feature was more car) garage, a walk-in closet in the One-third of buyers wanted to purchase central air conditioning, ranked “very master bedroom, and a backyard or play a newer home less than 10 years old. important” by nearly three quarters of area were also rated as “very important” Exhibit 2-3 MOST DESIRED HOME FEATURES (Percent of Respondents Ranking “Very Important”) 80 74% 70 60 57% 53% 50% 50 46% 40% 40 36% 36% 36% 33% 30 20 10 0 Central Garage Walk-in Backyard/ Cable/Satellite High-speed Separate shower Patio Fencing Home less air conditioning (2 or more closet in play area TV-ready Internet access enclosure in than 10 spaces) master bedroom master/main bath years old Four out of five home buyers used the Internet in their home search.

22 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES DESIRED FEATURES OF FIRST- a backyard or play area. The features homes were also more likely than buyers TIME AND REPEAT BUYERS repeat buyers were much more likely to of previously owned homes to consider Repeat buyers placed more desire than the first-time buyers included most home features, including many importance than first-time buyers on oversized garages, a walk-in-closet in the luxury items, to be very important. almost all home features examined, with master bedroom and a separate shower the exception of proximity to work and in the master bathroom. Buyers of new Exhibit 2-4 BUYERS WHO THOUGHT FINDING A HOME WITH A PARTICULAR FEATURE WAS “VERY IMPORTANT” (Percent of Respondents Ranking “Very Important”) Buyers of: All Buyers first-time Buyers repeat Buyers New Homes Previously owned Homes structural Characteristics Home less than 10 years old 33% 25% 38% 68% 20% single level home 28 18 33 35 25 One or more fireplaces 21 15 25 25 20 9-foot (or greater) ceilings 18 13 21 31 13 Fully or partially finished basement 14 13 14 11 15 usable/easily accessible attic 11 8 13 15 10 Extra-wide doorways 8 6 9 14 6 Cathedral ceilings 7 5 9 11 6 Home more than 100 years old 4 4 4 5 4 skylights 4 4 4 6 3 Bay windows 4 4 4 8 2 Handicap accessible (ramp, no steps, etc.) 3 2 4 5 3 systems Central air conditioning 74% 68% 78% 88% 69% Cable/satellite tV-ready 46 41 48 64 38 High-speed Internet access 40 34 43 55 34 Air filtration system 16 18 15 27 12 Monitored security system 13 11 15 25 9 Water treatment/filtration system 13 13 13 20 11 Central vacuum 4 4 4 5 3 Intercom system 2 2 2 4 2

NATIONAL ASSOCIATION OF REALTORS ® 2 Buyers of: All Buyers first-time Buyers repeat Buyers New Homes Previously owned Homes Interior Design Features Walk-in closet in master bedroom 53% 38% 61% 78% 42% separate shower enclosure in master/main bath 36 24 43 57 28 Eat-in kitchen 31 22 36 43 26 Hardwood floors 28 22 31 38 24 High-end kitchen appliances 24 17 28 41 18 granite (or similar) countertops 23 15 28 41 16 Kitchen island 21 14 25 36 15 Whirlpool bath 13 10 15 23 9 sitting area in master bedroom 12 10 14 21 9 Wet/dry bar 4 3 4 6 3 Exterior Features garage (2 or more spaces) 57% 41% 65% 73% 50% Backyard/play area 50 54 48 44 53 Patio 36 28 41 47 32 Fencing 36 34 37 35 37 Porch 32 31 33 39 30 Lawn sprinkler system 21 12 26 33 16 Deck 21 17 23 22 20 Reserved parking 16 16 16 15 17 In-ground pool 7 4 8 8 6 tennis court 1 2 1 2 1 Natural Features Flat lot 29% 23% 32% 36% 26% Professional landscaping 18 10 22 32 12 Wooded lot/many trees 12 8 14 12 12 Open lot/few trees 12 10 13 17 10 Water view 6 4 8 9 5 Waterfront property 5 4 6 6 5 sloping lot 3 2 4 4 3 Neighborhood Features Close to work 31% 36% 28% 28% 32% sidewalks 26 22 27 36 22 Near shopping 25 23 26 33 22 Near restaurants, entertainment areas 21 21 21 26 19 Near schools 20 21 20 23 19 Near park or playground 14 15 13 18 12 Near cultural activities, museums, theaters 11 12 10 13 10 Cul-de-sac lot 10 6 12 16 8 Near public transportation 10 10 9 13 8 Corner lot 6 5 6 10 4 On or near golf course 3 1 4 6 2

2 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES REGIONAL AND LOCATIONAL in the West. Buyers in the South also mostly based on the neighborhood DIFFERENCES IN place higher importance on newly built features. Those who purchased a PREFERENCES homes, porches, single-level homes home in an urban area had a higher- The importance buyers place on and monitored security systems. Buyers than-average preference for being near particular home features varies by region. in the West have a higher-than-average public transportation, reserved parking, For example, while buyers in all regions preference for lawn sprinkler systems, and proximity to work. Suburban home rated central air conditioning as one of fencing, patios, and oversized garages. buyers indicated a higher preference the top two most important features, it Fully or partially finished basements are for oversized garages, walk-in closets, was very important to over 90 percent more important in the Midwest, and and new homes. Buyers in rural areas of buyers in the South and over 80 reserved parking in the Northeast. are more likely than average to prefer percent in the Midwest, compared to 41 Buyers’ preferences also differ by wooded lots and a water treatment or percent in the Northeast, and 59 percent the location of the home purchased, filtration system. Exhibit 2-5 BUYERS WHO THOUGHT FINDING A HOME WITH A PARTICULAR FEATURE WAS “VERY IMPORTANT”, BY REGION (Percent of Respondents Ranking “Very Important”) Buyers of HoMes iN tHe: All Buyers Northeast Midwest south West structural Characteristics Home less than 10 years old 33% 15% 27% 42% 38% single level home 28 17 20 36 30 One or more fireplaces 21 21 20 22 21 9-foot (or greater) ceilings 18 12 14 21 20 Fully or partially finished basement 14 17 27 9 6 usable/easily accessible attic 11 8 7 17 6 Extra-wide doorways 8 3 7 11 8 Cathedral ceilings 7 6 6 8 9 Home more than 100 years old 4 4 3 4 5 skylights 4 3 3 4 5 Bay windows 4 3 3 4 5 Handicap accessible (ramp, no steps, etc.) 3 2 4 4 3 systems Central air conditioning 74% 41% 81% 91% 59% Cable/satellite tV-ready 46 36 41 53 44 High-speed Internet access 40 29 34 44 46 Air filtration system 16 7 13 21 16 Monitored security system 13 5 8 21 11 Water treatment/filtration system 13 9 13 14 16 Central vacuum 4 2 3 5 4 Intercom system 2 1 3 3 1

NATIONAL ASSOCIATION OF REALTORS ® 2 Buyers of HoMes iN tHe: * Less than one percent All Buyers Northeast Midwest south West Interior Design Features Walk-in closet in master bedroom 53% 31% 45% 66% 51% separate shower enclosure in master/main bath 36 21 28 46 37 Eat-in kitchen 31 30 31 34 25 Hardwood floors 28 29 25 31 25 High-end kitchen appliances 24 16 19 29 28 granite (or similar) countertops 23 14 16 28 31 Kitchen island 21 14 20 23 23 Whirlpool bath 13 5 12 18 11 sitting area in master bedroom 12 6 9 17 12 Wet/dry bar 4 2 3 4 4 Exterior Features garage (2 or more spaces) 57% 37% 61% 58% 66% Backyard/play area 50 53 49 50 51 Patio 36 18 28 43 47 Fencing 36 16 23 43 53 Porch 32 21 27 40 31 Lawn sprinkler system 21 4 9 24 41 Deck 21 21 25 20 17 Reserved parking 16 21 15 14 18 In-ground pool 7 5 1 10 8 tennis court 1 * 1 2 2 Natural Features Flat lot 29% 25% 21% 33% 33% Professional landscaping 18 9 15 21 21 Wooded lot/many trees 12 10 13 15 7 Open lot/few trees 12 10 12 14 10 Water view 6 4 5 8 6 Waterfront property 5 4 5 6 5 sloping lot 3 1 4 3 4 Neighborhood Features Close to work 31% 29% 33% 31% 30% sidewalks 26 16 26 26 32 Near shopping 25 18 23 28 26 Near restaurants, entertainment areas 21 14 19 25 21 Near schools 20 13 20 21 23 Near park or playground 14 10 14 12 20 Near cultural activities, museums, theaters 11 9 11 12 10 Cul-de-sac lot 10 5 6 13 12 Near public transportation 10 13 9 8 11 Corner lot 6 3 3 7 8 On or near golf course 3 1 2 3 5

2 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES AGE DIFFERENCES IN as very important; a backyard or play are cable or satellite TV ready, equipped PREFERENCES area, and proximity to work and schools with a lawn sprinkler system, and on a Home feature preferences also vary were less often considered important. flat lot. Buyers 65 or older are more likely by age of the home buyer. For example, Buyers over 44 years old have a greater to prefer sidewalks and an air filtration among older buyers, features such as preference for single-level homes than system, and less likely to prefer fencing a walk-in-closet in the master bedroom the younger buyers. Buyers aged 55 or and porches. and a separate shower enclosure in older are more interested in homes that the master bath are more often viewed Exhibit 2-6 HOME SEARCHERS WHO THOUGHT FINDING A HOME WITH A PARTICULAR FEATURE WAS “VERY IMPORTANT”, BY AGE (Percent of Respondents Ranking “Very Important”) Age of HoMe Buyer All Buyers 1-2 2- - - - - or older structural Characteristics Home less than 10 years old 33% 22% 29% 31% 40% 39% 37% 43% single level home 28 8 13 19 35 52 56 74 One or more fireplaces 21 17 16 24 28 18 20 14 9-foot (or greater) ceilings 18 8 16 20 20 20 13 17 Fully or partially finished basement 14 4 14 17 15 11 8 8 usable/easily accessible attic 11 8 8 11 13 15 11 20 Extra-wide doorways 8 6 4 9 10 10 16 16 Cathedral ceilings 7 3 5 9 7 9 7 6 Home more than 100 years old 4 5 5 4 3 5 3 4 skylights 4 2 2 5 3 6 4 9 Bay windows 4 4 3 5 2 5 5 4 Handicap accessible (ramp, no steps, etc.) 3 1 1 2 4 5 9 19 systems Central air conditioning 74% 63% 71% 74% 73% 80% 82% 75% Cable/satellite tV-ready 46 36 42 46 41 57 50 56 High-speed Internet access 40 35 40 41 38 46 36 33 Air filtration system 16 15 14 15 14 20 20 29 Monitored security system 13 6 12 10 15 19 20 18 Water treatment/filtration system 13 13 11 14 16 11 17 8 Central vacuum 4 2 3 5 3 3 4 4 Intercom system 2 2 2 3 2 2 1 2

NATIONAL ASSOCIATION OF REALTORS ® 2 Age of HoMe Buyer * Less than one percent All Buyers 1-2 2- - - - - or older Interior Design Features Walk-in closet in master bedroom 53% 35% 44% 57% 53% 62% 58% 71% separate shower enclosure in master/main bath 36 20 26 38 37 47 59 55 Eat-in kitchen 31 12 24 33 35 35 44 43 Hardwood floors 28 13 26 33 31 27 24 22 High-end kitchen appliances 24 15 17 27 26 27 33 34 granite (or similar) countertops 23 11 17 28 26 26 24 27 Kitchen island 21 15 15 26 23 18 32 18 Whirlpool bath 13 8 12 16 13 14 12 12 sitting area in master bedroom 12 6 7 13 15 17 16 22 Wet/dry bar 4 5 2 5 4 2 3 * Exterior Features garage (2 or more spaces) 57% 28% 50% 61% 61% 62% 63% 56% Backyard/play area 50 53 60 59 45 35 14 17 Patio 36 22 29 38 42 42 42 34 Fencing 36 32 36 37 38 36 30 28 Porch 32 32 29 32 36 35 28 22 Lawn sprinkler system 21 6 15 20 23 28 31 29 Deck 21 20 19 19 21 24 19 20 Reserved parking 16 13 17 15 17 19 14 13 In-ground pool 7 6 3 11 7 8 5 9 tennis court 1 1 1 2 1 1 1 2 Natural Features Flat lot 29% 25% 19% 32% 29% 35% 39% 62% Professional landscaping 18 11 11 18 19 26 28 28 Wooded lot/many trees 12 8 9 12 17 14 6 10 Open lot/few trees 12 8 8 11 14 14 18 24 Water view 6 6 4 5 8 9 7 9 Waterfront property 5 5 4 5 6 7 4 8 sloping lot 3 1 1 3 4 4 7 4 Neighborhood Features Close to work 31% 38% 36% 36% 33% 19% 10% 4% sidewalks 26 19 26 24 25 25 32 44 Near shopping 25 21 20 25 27 25 34 41 Near restaurants, entertainment areas 21 18 21 21 20 17 26 25 Near schools 20 21 21 30 16 6 9 10 Near park or playground 14 13 17 17 10 7 12 13 Near cultural activities, museums, theaters 11 11 11 12 9 8 15 8 Cul-de-sac lot 10 6 5 16 11 9 8 8 Near public transportation 10 4 9 9 9 7 18 20 Corner lot 6 5 4 5 7 4 11 6 On or near golf course 3 2 1 4 3 5 7 4

2 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES PRESENCE OF DESIRED readiness, high speed Internet access, most of their preferred features, including FEATURES IN THE HOME central air conditioning, oversized many luxury items. Compared to first- PURCHASED garage, and neighborhood features, time buyers, they compromised most on Home buyers rate many features such as proximity to schools, a park or neighborhood features, such as proximity as important when searching for a playground, and shopping. Among the to work, a park or playground, and public home, but they sometimes need to desired features least likely to be present transportation. Buyers of new homes make compromises when purchasing in the home purchased were an intercom more often made compromises on their home. Among recent home system, a water treatment or filtration neighborhood features such as proximity buyers that considered each of the system, handicap accessibility features, to cultural activities. features examined as somewhat or and extra-wide doorways. Repeat buyers very important, the homes purchased are more likely to purchase a home with most likely included cable or satellite TV Exhibit 2-7 BUYERS THAT PURCHASED A HOME WITH THE FEATURES CONSIDERED IMPORTANT (Among Respondents Ranking Each Feature “Very Important” or “Somewhat Important”) Buyers of: All Buyers first-time Buyers repeat Buyers New Homes Previously owned Homes structural Characteristics 9-foot (or greater) ceilings 71% 72% 70% 76% 67% One or more fireplaces 65 58 68 71 62 Home less than 10 years old 57 56 58 73 45 single level home 55 58 54 60 53 Cathedral ceilings 54 46 57 58 52 Fully or partially finished basement 50 54 48 41 53 usable/easily accessible attic 50 49 51 48 50 Bay windows 44 38 47 51 39 Extra-wide doorways 38 37 39 41 36 skylights 33 32 34 27 37 Handicap accessible (ramp, no steps, etc.) 23 21 24 26 21 Home more than 100 years old 22 24 21 15 24 systems Cable/satellite tV-ready 75% 76% 74% 76% 74% Central air conditioning 71 72 70 76 69 High-speed Internet access 66 65 67 68 65 Monitored security system 43 37 45 47 39 Air filtration system 37 44 34 44 33 Water treatment/filtration system 29 32 28 22 33 Intercom system 26 22 28 23 28 Central vacuum 23 20 25 24 22

NATIONAL ASSOCIATION OF REALTORS ® 2 Buyers of: All Buyers first-time Buyers repeat Buyers New Homes Previously owned Homes Interior Design Features Walk-in closet in master bedroom 63% 54% 68% 78% 56% Eat-in kitchen 62 57 65 66 61 separate shower enclosure in master/main bath 60 47 65 72 53 Hardwood floors 50 48 52 52 50 Kitchen island 47 34 52 56 42 sitting area in master bedroom 44 36 47 49 41 High-end kitchen appliances 44 38 46 58 36 Whirlpool bath 42 26 49 53 35 granite (or similar) countertops 38 29 43 56 28 Wet/dry bar 30 22 35 31 31 Exterior Features Backyard/play area 69% 69% 70% 64% 71% garage (2 or more spaces) 65 59 67 71 62 Patio 62 60 63 61 63 Porch 58 57 59 58 58 Fencing 56 56 55 48 58 Reserved parking 54 60 51 48 57 Lawn sprinkler system 49 37 54 52 47 Deck 45 41 46 36 48 In-ground pool 37 34 38 31 39 tennis court 27 26 28 38 22 Natural Features Flat lot 64% 64% 64% 62% 65% Open lot/few trees 62 63 62 60 63 Professional landscaping 50 48 51 53 49 sloping lot 44 40 46 43 45 Wooded lot/many trees 40 39 40 28 44 Water view 24 22 24 28 21 Waterfront property 16 17 16 18 15 Neighborhood Features Near schools 70% 74% 67% 69% 70% Near shopping 64 68 62 61 65 Near park or playground 64 69 61 65 63 Near restaurants, entertainment areas 63 67 61 59 65 sidewalks 61 65 60 67 58 Close to work 59 64 57 54 62 Near cultural activities, museums, theaters 52 55 50 46 55 Near public transportation 51 56 48 42 55 On or near golf course 40 33 42 39 41 Corner lot 35 35 36 39 33 Cul-de-sac lot 34 32 35 33 34

0 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES REGIONAL DIFFERENCES IN filtration system, an intercom system, and the national average were lawn sprinkler FEATURES PRESENT IN THE homes more than 100 years old in the systems, fencing, patios, and new HOME PURCHASED Midwest; a tennis court, being near or on homes in the Northeast; lawn sprinkler The likelihood that a preferred feature a golf course, porches, and a monitored systems, fencing, and monitored security is present in the home purchased varies security system in the South; and lawn systems in the Midwest; proximity to by region. Desired features much more sprinkler systems and fencing in the public transportation, fully or partially likely to be present by region included West. finished basements, and intercom intercom systems, hardwood floors, bay Among the desired features, the ones systems in the South; and useable/ windows, skylights, proximity to public much less likely to be present in homes accessible attics, wooded lots/trees, and transportation and reserved parking purchased in each region compared to whirlpool baths in the West. in the Northeast; a water treatment or Exhibit 2-8 BUYERS THAT PURCHASED A HOME WITH THE FEATURES CONSIDERED IMPORTANT, BY REGION (Among Respondents Ranking Each Feature “Very Important” or “Somewhat Important”) Buyers of HoMes iN tHe: All Buyers Northeast Midwest south West structural Characteristics 9-foot (or greater) ceilings 71% 63% 73% 72% 69% One or more fireplaces 65 63 64 66 63 Home less than 10 years old 57 45 59 60 56 single level home 55 55 55 56 55 Cathedral ceilings 54 61 59 53 50 Fully or partially finished basement 50 53 56 44 42 usable/easily accessible attic 50 54 44 54 34 Bay windows 44 52 42 46 37 Extra-wide doorways 38 32 41 40 34 skylights 33 41 34 30 34 Handicap accessible (ramp, no steps, etc.) 23 28 25 21 24 Home more than 100 years old 22 21 30 22 15 systems Cable/satellite tV-ready 75% 80% 75% 73% 73% Central air conditioning 71 56 78 74 64 High-speed Internet access 66 67 67 65 67 Monitored security system 43 38 33 48 36 Air filtration system 37 34 42 36 37 Water treatment/filtration system 29 33 43 23 24 Intercom system 26 59 35 19 21 Central vacuum 23 13 24 24 27

NATIONAL ASSOCIATION OF REALTORS ® 1 Buyers of HoMes iN tHe: * Less than one percent All Buyers Northeast Midwest south West Interior Design Features Walk-in closet in master bedroom 63% 54% 59% 69% 60% Eat-in kitchen 62 63 66 62 57 separate shower enclosure in master/main bath 60 56 54 63 61 Hardwood floors 50 65 54 46 43 Kitchen island 47 44 49 46 46 sitting area in master bedroom 44 41 43 45 42 High-end kitchen appliances 44 41 44 44 45 Whirlpool bath 42 30 44 47 32 granite (or similar) countertops 38 32 37 38 44 Wet/dry bar 30 28 33 31 29 Exterior Features Backyard/play area 69% 74% 74% 67% 67% garage (2 or more spaces) 65 57 68 64 68 Patio 62 49 61 65 65 Porch 58 51 57 63 53 Fencing 56 38 49 57 66 Reserved parking 54 61 54 51 54 Lawn sprinkler system 49 32 35 46 64 Deck 45 47 53 41 38 In-ground pool 37 38 30 39 34 tennis court 27 * 18 39 22 Natural Features Flat lot 64% 65% 67% 60% 68% Open lot/few trees 62 68 62 60 61 Professional landscaping 50 45 52 51 51 sloping lot 44 47 49 42 39 Wooded lot/many trees 40 45 39 43 26 Water view 24 19 28 24 21 Waterfront property 16 8 16 21 9 Neighborhood Features Near schools 70% 66% 74% 68% 70% Near shopping 64 65 68 63 62 Near park or playground 64 63 69 58 67 Near restaurants, entertainment areas 63 67 69 61 59 sidewalks 61 59 65 57 65 Close to work 59 62 66 56 58 Near cultural activities, museums, theaters 52 58 59 50 46 Near public transportation 51 61 54 43 50 On or near golf course 40 16 39 46 37 Corner lot 35 30 38 36 35 Cul-de-sac lot 34 28 30 36 34

2 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES PRESENCE OF DESIRED of the buyer increases, the likelihood 65 or older purchased a single-level FEATURES IN HOMES AND AGE of compromises increases, particularly home, and an even smaller percentage OF BUYER among those aged 65 and over, and purchased a home near cultural activities, Recent home buyers aged 25 to 44 especially on neighborhood features. For despite ranking these features as often purchased a home with most of example, less than 50 percent of buyers important. the features they desired. As the age Exhibit 2-9 BUYERS THAT PURCHASED A HOME WITH THE FEATURES CONSIDERED IMPORTANT, BY AGE (Among Respondents Ranking Each Feature “Very Important” or “Somewhat Important”) Age of HoMe Buyer All Buyers 18-24 25-34 35-44 45-54 55-64 65-74 75 or older structural Characteristics 9-foot (or greater) ceilings 71% 67% 77% 72% 70% 68% 63% 41% One or more fireplaces 65 44 68 69 64 62 64 53 Home less than 10 years old 57 57 64 60 56 57 46 31 single level home 55 48 65 58 51 58 50 43 Cathedral ceilings 54 29 55 61 54 55 53 54 Fully or partially finished basement 50 44 60 48 49 43 48 42 usable/easily accessible attic 50 45 56 51 49 48 41 33 Bay windows 44 20 47 47 44 49 35 27 Extra-wide doorways 38 27 45 48 34 33 44 9 skylights 33 28 31 35 36 39 21 47 Handicap accessible (ramp, no steps, etc.) 23 17 22 27 23 19 29 15 Home more than 100 years old 22 20 24 29 12 19 20 * systems Cable/satellite tV-ready 75% 69% 85% 78% 68% 73% 66% 44% Central air conditioning 71 70 78 72 68 71 63 43 High-speed Internet access 66 64 73 68 61 67 61 32 Monitored security system 43 26 45 43 39 51 41 13 Air filtration system 37 47 46 37 31 36 29 29 Water treatment/filtration system 29 35 36 31 24 22 20 21 Intercom system 26 20 29 26 28 30 23 * Central vacuum 23 20 28 28 19 22 19 11

NATIONAL ASSOCIATION OF REALTORS ® * Less than one percent Age of HoMe Buyer All Buyers 18-24 25-34 35-44 45-54 55-64 65-74 75 or older Interior Design Features Walk-in closet in master bedroom 63% 50% 63% 69% 62% 66% 62% 55% Eat-in kitchen 62 40 68 66 63 62 50 53 separate shower enclosure in master/main bath 60 39 58 66 59 64 57 45 Hardwood floors 50 41 55 51 52 53 37 32 Kitchen island 47 27 44 54 47 46 47 33 sitting area in master bedroom 44 30 44 41 46 50 42 36 High-end kitchen appliances 44 28 47 45 42 46 43 31 Whirlpool bath 42 15 41 46 43 47 42 25 granite (or similar) countertops 38 18 35 43 36 45 44 27 Wet/dry bar 30 24 24 39 37 26 33 33 Exterior Features Backyard/play area 69% 70% 74% 72% 67% 68% 51% 41% garage (2 or more spaces) 65 44 65 70 68 67 57 49 Patio 62 61 64 64 62 61 60 44 Porch 58 58 60 62 62 57 47 38 Fencing 56 58 59 56 56 53 53 33 Reserved parking 54 61 59 54 53 58 45 26 Lawn sprinkler system 49 50 44 48 56 55 53 38 Deck 45 40 49 42 49 43 38 28 In-ground pool 37 35 33 36 35 40 80 29 tennis court 27 20 22 26 32 67 * * Natural Features Flat lot 64% 63% 69% 68% 63% 62% 56% 45% Open lot/few trees 62 66 67 65 63 60 55 54 Professional landscaping 50 51 45 54 52 56 49 38 sloping lot 44 44 43 39 58 45 50 9 Wooded lot/many trees 40 35 38 40 43 45 33 24 Water view 24 20 22 24 27 20 21 14 Waterfront property 16 20 19 15 13 14 16 13 Neighborhood Features Near schools 70% 66% 77% 70% 67% 56% 45% 30% Near shopping 64 75 71 67 62 56 58 37 Near park or playground 64 65 69 68 64 58 44 24 Near restaurants, entertainment areas 63 65 71 64 62 60 55 32 sidewalks 61 47 69 65 57 55 61 38 Close to work 59 67 65 59 57 55 37 20 Near cultural activities, museums, theaters 52 56 55 52 53 56 44 27 Near public transportation 51 47 57 59 48 45 45 27 On or near golf course 40 33 30 43 40 49 47 29 Corner lot 35 35 39 32 36 33 38 25 Cul-de-sac lot 34 33 36 36 30 32 31 25

2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES FEATuRES PREFERENCES Exhibit 2-10 BUYERS’ WILLINGNESS TO PAY HOME BUYERS WILLING TO PAY MORE FOR DESIRED FEATURES FOR DESIRED HOME FEATURES (Percent of Respondents Among Buyers Who Bought Home Without Feature, and Median Amount to Pay) Home buyers that purchased a Median aMount Willing to Pay home without desired features value for feature some of those features so much that Among All Home Among those Among those they reported being willing to pay more Buyers Whose Whose Percent Willing to Home Price Home Price for a home if that feature was present. Willing to Pay for the is Below is Above Pay More feature Median Median The most frequently reported features structural Characteristics for which buyers would be willing to pay One or more fireplaces 46% $1,220 $1,110 $1,370 more included central air conditioning, Fully or partially finished basement 38 2,970 2,610 3,860 walk-in closets, hardwood floors, high- Home less than 10 years old 38 3,800 3,170 4,580 end kitchen appliances, oversized usable/easily accessible attic 34 1,030 920 1,210 garages, and patios. The least frequently skylights 29 980 880 1,140 mentioned features for which buyers 9-foot (or greater) ceilings 28 1,580 1,270 1,960 would pay extra included homes more Bay windows 26 900 820 1,020 than 100 years old, a tennis court, a Cathedral ceilings 24 1,540 1,300 1,880 sloping lot, being on or near golf course, Extra-wide doorways 22 880 860 920 and handicap accessibility. single level home 21 2,510 2,110 3,020 Handicap accessible (ramp, no steps, etc.) 11 1,090 960 1,250 Home buyers that purchased a home Home more than 100 years old 6 2,520 2,470 2,700 without a valued feature were willing to systems pay the most for a waterfront property, Central air conditioning 65% $1,880 $1,670 $2,270 typically an extra $4,760; new homes, Water treatment/filtration system 37 830 760 890 typically an extra $3,800; and a fully Cable/satellite tV-ready 36 680 650 700 or partially finished basement, typically High-speed Internet access 34 630 640 630 an extra $2,970. Among buyers that Air filtration system 32 910 830 1,020 purchased homes below and above the Monitored security system 32 830 790 890 median price, the rank ordering of the Central vacuum 18 850 850 870 features for which they were willing to Intercom system 12 720 740 700 pay extra changed little. However, there Interior Design Features are significant differences in the amounts Walk-in closet in master bedroom 60% $870 $770 $1,160 Hardwood floors 57 1,900 1,680 2,280 that buyers would typically pay for some High-end kitchen appliances 56 1,660 1,440 1,970 of the features. For example, buyers of granite (or similar) countertops 56 1,670 1,460 1,960 homes below and above the median separate shower enclosure in master/ 47 1,040 930 1,320 price were willing to pay the most for a main bath waterfront property; but the typical extra Kitchen island 46 940 850 1,210 amount was $3,360 among those with Eat-in kitchen 42 1,290 1,080 1,520 homes priced below the median, and Whirlpool bath 40 860 820 910 $8,240 among those with homes priced sitting area in master bedroom 29 880 790 990 Wet/dry bar 19 820 750 890

NATIONAL ASSOCIATION OF REALTORS ® above the median. For a cul-de-sac Median aMount Willing to Pay for feature lot, and proximity to shopping or public Among All transportation, those buyers with above Home Among those Among those Buyers Whose Whose median priced homes were willing to Percent Willing to Home Price Home Price Willing to Pay for the is Below is Above pay almost twice as much as those with Pay More feature Median Median homes below the median price. For Exterior Features features such as a central vacuum, high- garage (2 or more spaces) 56% $2,120 $1,800 $2,840 speed Internet access, and an intercom Patio 54 1,340 1,020 1,700 system, there was not much difference Fencing 51 1,500 1,300 1,730 Porch 48 1,420 1,280 1,570 in the extra amount these two groups of Deck 46 1,480 1,150 1,940 buyer were willing to pay. Backyard/play area 42 1,700 1,520 1,990 Lawn sprinkler system 36 1,010 870 1,250 In-ground pool 24 2,780 2,050 4,190 Reserved parking 12 970 890 1,210 tennis court 7 1,250 900 1,580 Natural Features Professional landscaping 38% $1,530 $1,160 $1,890 Flat lot 29 1,710 1,430 2,000 Water view 26 2,780 2,190 3,810 Waterfront property 25 4,760 3,360 8,240 Wooded lot/many trees 25 1,560 1,460 1,670 Open lot/few trees 14 1,210 1,080 1,320 sloping lot 8 1,090 990 1,180 Neighborhood Features Close to work 35% $1,970 $1,570 $2,640 Near restaurants, entertainment areas 31 1,320 1,010 1,620 Near shopping 31 1,440 1,010 1,820 sidewalks 27 1,170 910 1,480 Cul-de-sac lot 25 1,830 1,290 2,360 Near cultural activities, museums, theaters 22 1,210 950 1,530 Near schools 20 1,580 1,240 1,990 Near park or playground 19 1,140 870 1,500 Corner lot 16 1,610 1,220 2,020 Near public transportation 12 1,280 900 1,580 On or near golf course 11 1,950 1,560 2,630

2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES Exhibit 2-11 ROOM PREFERENCES BUYERS WHO THOUGHT FINDING A HOME WITH Nearly all homes include at least one PARTICULAR ROOMS WAS “VERY IMPORTANT” (Percent of Respondents Ranking “Very Important”) room or area for a bedroom, a kitchen, and a bathroom. However, almost all Buyers of: buyers search for a home with more than All first-time repeat New Previously just these three rooms or spaces, and Buyers Buyers Buyers Homes owned Homes consider many other areas of the home garage 75% 64% 81% 88% 70% Living room 68 70 66 67 68 important. The most desired space or Laundry room 64 56 69 79 58 room that was rated “very important” 2 or more full bathrooms 61 47 68 76 54 by three quarters of home buyers was Dining room 55 53 57 63 53 a garage, followed by a living room, Family room 52 44 56 64 47 a laundry room, and two or more full Bedroom on main level 46 36 52 54 43 bathrooms. Repeat buyers placed higher Den or study 30 20 36 44 24 importance than first-time buyers on Basement 29 29 29 23 31 almost all room types, with the exception utility/mud room 26 17 31 35 22 of a living room. Among first-time buyers, 4 or more bedrooms 24 15 30 34 21 a living room was rated most important. Attic 24 20 25 28 22 Similarly, new-home buyers rated nearly Home office 20 13 24 28 17 all rooms more important than the buyers sun room 7 4 8 10 5 of previously owned homes, with the Media room 6 5 6 10 4 exception of a basement and a living Exercise room 5 4 5 7 4 room. In-law suite 4 3 4 6 3

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 2-12 REGIONAL DIFFERENCES IN BUYERS WHO THOUGHT FINDING A HOME WITH ROOM PREFERENCES PARTICULAR ROOMS WAS “VERY IMPORTANT”, BY REGION The importance of particular rooms (Percent of Respondents Ranking “Very Important”) or spaces in a home also varies by HoMes iN tHe: region. Home buyers in the Northeast All Homes Northeast Midwest south West placed lower-than-average importance garage 75% 64% 81% 74% 80% on most room types with the exception Living room 68 72 68 65 69 of basements and living rooms. Buyers Laundry room 64 47 64 70 66 in the Midwest had a stronger desire for 2 or more full bathrooms 61 40 54 70 65 a basement and a garage than buyers in Dining room 55 55 51 58 56 other regions. Buyers in the South were Family room 52 42 54 55 52 more likely to consider two or more full Bedroom on main level 46 27 43 55 47 bathrooms, an attic, a bedroom on the Den or study 30 26 25 33 33 main level, a laundry room, and a utility/ Basement 29 48 58 13 12 mud room to be important. For those in utility/mud room 26 16 28 32 20 the West, a garage, a home office, four 4 or more bedrooms 24 19 19 27 29 or more bedrooms, and two or more Attic 24 23 21 32 8 bathrooms were more important than for Home office 20 16 18 20 25 buyers elsewhere. sun room 7 8 7 7 4 Buyers in suburban areas reported Media room 6 3 4 7 7 a stronger desire for larger homes — a Exercise room 5 4 5 5 5 family room, two or more full bathrooms, In-law suite 4 2 2 5 6 four or more bedrooms, a den or study, a dining room, a garage, and a laundry room; and buyers in rural areas had a higher preference for a bedroom on the main level and a sun room.

2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES Exhibit 2-13 AGE DIFFERENCES IN ROOM BUYERS WHO THOUGHT FINDING A HOME WITH PREFERENCES PARTICULAR ROOMS WAS “VERY IMPORTANT”, BY AGE Buyers in different age groups have (Percent of Respondents Ranking “Very Important”) different room preferences, reflecting to Age of HoMe Buyer some degree lifestyle differences. Older All or buyers expressed stronger preferences Buyers 1-2 2- - - - - older for bedrooms on the main level, a den garage % % 1% % % % 2% % or study, a laundry room, a garage, living room 0 and a utility/mud room. Younger buyers laundry room were more likely to desire four or more 2 or more full 1 1 bathrooms bedrooms, and a basement. Buyers dining room 0 1 1 between ages 35 and 54 expressed a family room 2 0 1 higher preference for a home office. Bedroom on 0 2 2 0 main level den or study 0 12 21 Basement 2 2 1 1 2 1 1 utility/mud room 2 1 22 2 2 0 2 2 or more 2 1 21 2 1 1 bedrooms Attic 2 2 22 2 2 2 20 22 Home office 20 1 1 22 2 1 1 1 sun room 11 Media room 2 * exercise room in-law suite 1 2 * Less than one percent

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 2-14 HOME BUYERS WHO BUYERS THAT PURCHASED A HOME WITH PARTICULAR PURCHASED A HOME WITH ROOMS CONSIDERED IMPORTANT DESIRED ROOMS (Among Respondents Ranking Each Room Type “Very Important” or “Somewhat Important”) While home buyers consider many Buyers of: rooms or spaces to be important, they All first-time repeat New Previously sometimes make compromises when Buyers Buyers Buyers Homes owned Homes purchasing their home. Among buyers Living room 75% 78% 74% 76% 75% who considered each type of room garage 71 68 72 78 68 somewhat or very important when Dining room 70 66 72 76 68 searching for a home, the rooms most Laundry room 68 67 69 76 65 likely to be present in the homes actually 2 or more full bathrooms 67 60 71 77 63 purchased were a living room, a garage, Attic 67 65 67 65 67 a dining room, a laundry room, two or Bedroom on main level 65 69 64 65 66 more full bathrooms, and an attic. Repeat Basement 65 66 64 55 68 buyers are more likely than first-time Family room 64 59 66 68 62 buyers to purchase a home with their 4 or more bedrooms 58 40 65 64 55 preferred rooms, particularly homes with Home office 49 44 51 49 49 four or more bedrooms, two or more full utility/mud room 47 42 49 53 44 bathrooms, and a den or a study. Buyers Den or study 46 39 50 48 46 of new homes also purchased homes sun room 30 29 31 28 32 with most of the rooms they desired, In-law suite 27 25 28 29 26 compared to the buyers of previously Exercise room 23 18 25 22 23 owned homes. Among the most desired Media room 21 16 24 28 16 rooms, buyers of new homes were more likely than buyers of previously owned homes to purchase a home that included two or more bathrooms, four or more bedrooms, a media room, a dining room, a laundry room, a garage, and less likely to include a basement.

0 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES Exhibit 2-15 REGIONAL DIFFERENCES IN BUYERS THAT PURCHASED A HOME WITH PARTICULAR PURCHASES OF HOMES WITH ROOMS CONSIDERED IMPORTANT, BY REGION DESIRED ROOMS (Among Respondents Ranking Each Room Type “Very Important” or “Somewhat Important”) There are also regional differences in the likelihood that the homes purchased Buyers of HoMes iN tHe: included the rooms buyers considered All Buyers Northeast Midwest south West important. Homes purchased in the Living room 75% 80% 79% 72% 73% Northeast were more likely to include garage 71 68 78 67 71 four or more bedrooms, a basement, an Dining room 70 70 72 70 68 exercise room, and an in-law suit; and Laundry room 68 61 74 69 68 less likely to include a media room, two 2 or more full bathrooms 67 60 65 70 68 or more full bathrooms, and a laundry Attic 67 67 70 68 53 room. Homes purchased in the Midwest Bedroom on main level 65 64 65 68 62 were more likely to have a basement, a Basement 65 75 75 45 49 garage, a family room, and an exercise Family room 64 61 70 62 62 room. The desired rooms least likely 4 or more bedrooms 58 68 53 59 54 to be present in the South were a Home office 49 50 53 49 45 basement, and in the West a basement, utility/mud room 47 45 50 48 40 an attic, and a sun room. Den or study 46 47 52 46 43 sun room 30 36 35 29 17 In-law suite 27 36 26 28 24 Exercise room 23 33 31 18 17 Media room 21 10 22 23 22

NATIONAL ASSOCIATION OF REALTORS ® 1 Exhibit 2-16 AGE DIFFERENCES IN BUYERS THAT PURCHASED A HOME WITH PARTICULAR PURCHASES OF HOME WITH ROOMS CONSIDERED IMPORTANT, BY AGE PARTICULAR ROOMS (Among Respondents Ranking Each Room Type “Very Important” or “Somewhat Important”) Recent home buyers aged 25 to 44 years old, and to a lesser extent those Age of HoMe Buyer aged 45 to 64 were more likely than All or other age categories to purchase a home Buyers 1-2 2- - - - - older with most of the rooms they desired. Living room 75% 70% 82% 78% 75% 70% 63% 58% Those buyers younger than 25, and older garage 71 61 74 74 71 71 62 55 than 64 made the biggest compromises Dining room 70 63 72 73 72 70 65 47 about their room preferences. As the age Laundry room 68 57 75 74 65 64 62 51 of the buyers increases, the rooms they 2 or more full 67 53 69 72 66 69 66 58 bathrooms are most likely to forgo included a living Attic 67 59 74 68 66 65 57 50 room, a garage, a laundry room, an attic, Bedroom on 65 61 75 65 65 66 61 49 a family room, and a home office. main level Basement 65 61 69 65 64 63 59 67 Family room 64 64 66 70 63 59 55 48 4 or more 58 36 50 68 57 60 57 50 bedrooms Home office 49 55 53 49 47 47 38 43 utility/mud 47 47 46 52 40 53 44 47 room Den or study 46 46 43 50 50 48 45 30 sun room 30 23 25 30 36 35 39 31 In-law suite 27 13 33 30 20 28 33 * Exercise room 23 15 23 20 25 29 29 25 Media room 21 33 14 25 25 22 10 * * Less than one percent

2 2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES Exhibit 2-17 BUYERS’ WILLINGNESS TO PAY HOME BUYERS WILLING TO PAY MORE FOR FOR DESIRED ROOMS DESIRED ROOMS Home buyers, who recently (Percent of Respondents Among Buyers Who Bought Home Without the Room, and Median Amount to Pay) purchased a home lacking a room or space they desired, valued some of Median aMount Willing to Pay for rooMs those rooms so much that they would Among those Among All Home Whose Home Among those be willing to pay more for a home with Percent Willing Buyers Willing to Price is Below Whose Home Price to Pay More Pay for the room Median is Above Median the missing room or space. The most garage 72% $2,680 $2,330 $3,720 frequently reported rooms or spaces 2 or more full 63 2,040 1,700 2,530 for which buyers were willing to pay an bathrooms extra amount included a garage, two Laundry room 60 1,410 1,070 1,780 or more full bathrooms, and a laundry Dining room 48 1,460 1,210 1,900 room. Recent buyers whose homes did Living room 47 1,700 1,360 2,270 not have a particular room they valued Family room 42 1,690 1,450 2,220 were willing to pay the most for a garage, Den or study 39 1,460 1,060 1,850 typically an extra $2,680; followed by utility/mud room 37 1,100 960 1,280 four or more bedrooms, typically an Home office 34 1,510 1,240 1,920 extra $2,360; and a basement, typically Basement 33 2,310 1,950 2,910 an extra $2,310. Among buyers who 4 or more 31 2,360 2,040 2,770 bedrooms purchased homes that were priced sun room 31 1,600 1,440 1,750 below and above the median price, the Attic 31 1,300 1,130 1,440 rank ordering of desired rooms for which Bedroom on 29 1,810 1,540 1,980 they were willing to pay extra was mostly main level similar. The most prominent exceptions Exercise room 23 1,240 970 1,460 were for an in-law suite and a living room, Media room 21 1,930 1,480 2,240 which those who purchased homes In-law suite 15 1,900 1,370 2,330 priced above the median rank-ordered much higher, and were willing to pay much higher additional amounts. Those who purchased homes priced below the median rank-ordered sun rooms much higher, but were typically willing to pay a lower amount. The biggest difference between the amounts these two groups of buyers were willing to pay was for a den or a study — those buyers with homes priced above the median would pay 75 percent more than buyers with homes priced below the median.

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 2-18 IMPORTANCE OF A HOME’S IMPORTANCE OF HOME’S ENERGY EFFICIENCY ENERGY EFFICIENCY (Percentage Distribution) Nearly half of recent home buyers Buyers of: (46 percent) reported a home’s energy All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes efficiency was “very important” as they Very important 46% 41% 50% 65% 39% searched for a home, and an additional somewhat important 46 49 44 31 52 46 percent reported it was “somewhat Not important 8 10 6 4 9 important.” A home’s energy efficiency was more important among repeat home buyers than first-time buyers, and for those who purchased new homes compared to those who bought previously owned homes. Exhibit 2-19 IMPORTANCE OF ENERGY IMPORTANCE OF HOME’S ENERGY EFFICIENCY, EFFICIENCY FOR DIFFERENT BY AGE OF HOME BUYER AGE GROUPS (Percentage Distribution) The importance placed on a home’s Age of HoMe Buyer energy efficiency also differed by the All or Buyers 1-2 2- - - - - older buyers’ age. The percentage of those Very important 46% 32% 38% 42% 55% 57% 56% 63% who rated energy efficiency as “very somewhat 46 48 53 51 41 39 37 31 important” increased from 32 percent important among those aged 18 to 24 to 63 Not important 8 20 10 7 5 3 7 6 percent among those 75 or older. Exhibit 2-20 IMPORTANCE OF ENERGY IMPORTANCE OF HOME’S ENERGY EFFICIENCY, EFFICIENCY FOR HOMES OF BY AGE OF HOME PURCHASED DIFFERENT AGES (Percentage Distribution) Energy efficiency was considered Age of HoMe more important by new-home buyers 2 to to 11 to 21 to 1 to 1 or All 1 year 10 20 0 0 more than by buyers of previously owned Homes or less years years years years years years homes. Among the buyers of homes one Very important 46% 65% 49% 47% 37% 37% 36% 32% year old or newer, 65 percent reported somewhat 46 32 44 45 55 53 55 56 energy efficiency was “very important”. important Not important 8 3 7 8 9 10 9 12 This percentage steadily declined as the age of the home increased. Only 32 percent of those who purchased homes 51 years or older rated energy efficiency as “very important”.

2007 PROFILE OF BuyERS’ CHAPTER 2: SEARCHINg FOR A HOME HOME FEATuRE PREFERENCES COMPARING BUYERS’ IDEAL storage space in an ideal home. Among with more bedrooms, and one quarter HOME WITH THE HOME all buyers, 40 percent would have a home with more bathrooms. Repeat PURCHASED preferred more closets and nearly 60 home buyers were more likely than Most buyers were satisfied with the percent a larger kitchen. One-third of the first-time buyers, and new-home homes they purchased with regard to all buyers indicated that their ideal or buyers were more likely than buyers age, size, number of bedrooms and preferred home would be larger; one of previously owned homes to have bathrooms, closet and storage space, quarter reported they would prefer a purchased a home closer to their ideal or and size of the kitchen. However, nearly newer home, over one-quarter a home preferred home. half of new-home buyers desired more Exhibit 2-21 HOME BUYER’S IDEAL OR PREFERRED HOME COMPARED WITH THE HOME PURCHASED (Percentage Distribution) Buyers of: * Less than one percent All Buyers first-time Buyers repeat Buyers New Homes Previously owned Homes Home buyer’s ideal home is: Newer 25% 32% 22% 10% 31% Older 6 8 6 1 8 Neither, satisfied with home purchase 68 61 73 89 60 Home buyer’s ideal home is: Larger 32% 41% 27% 29% 33% smaller 9 9 9 8 10 Neither, satisfied with home purchase 58 50 63 63 56 Home buyer’s ideal home has: More bedrooms 27% 37% 21% 19% 30% Fewer bedrooms 1 1 2 2 1 Neither, satisfied with home purchase 72 62 78 79 69 Home buyer’s ideal home has: More bathrooms 25% 35% 20% 13% 30% Fewer bathrooms 1 * 1 2 1 Neither, satisfied with home purchase 74 65 79 85 69 Home buyer’s ideal home has: More closets 40% 50% 34% 31% 44% Fewer closets * * * * * Neither, satisfied with home purchase 60 50 66 69 56 Home buyer’s ideal home has: More storage 49% 53% 46% 49% 49% Less storage * * * * * Neither, satisfied with home purchase 51 46 54 50 51 Home buyer’s ideal home has: Larger kitchen 39% 50% 33% 27% 44% smaller kitchen * * * * * Neither, satisfied with home purchase 61 50 66 73 56

NATIONAL ASSOCIATION OF REALTORS ® AGE DIFFERENCES IN particularly in terms of the number of of buyers aged 18 to 34 preferred COMPARING BUYERS’ IDEAL bedrooms and bathrooms, and the size a home with more bedrooms, this HOME WITH THE HOME and age of the home. While about 40 percentage dropped to slightly over 10 PURCHASED percent of home buyers aged 18 to percent among buyers 55 or older. The The gap between the home 34 reported preferring a larger home, preference that changed little by age purchased and the ideal home varied this percentage dropped to less than was for more storage space, which was according to age group. As the age one-quarter among buyers aged 55 or desired by nearly half of home buyers in of home buyers increases, the home older. Similarly, while about 40 percent most age categories. purchase is closer to the ideal home, Exhibit 2-22 HOME BUYER’S IDEAL OR PREFERRED HOME COMPARED WITH THE HOME PURCHASED, BY AGE (Percentage Distribution) Age of HoMe Buyer * Less than one percent All Buyers 1-2 2- - - - - or older Home buyer’s ideal home is: Newer 25% 39% 29% 23% 27% 17% 20% 20% Older 6 5 7 8 7 5 5 6 Neither, satisfied with home purchase 68 56 64 70 66 78 75 73 Home buyer’s ideal home is: Larger 32% 39% 41% 33% 29% 21% 25% 18% smaller 9 14 9 7 13 9 7 6 Neither, satisfied with home purchase 58 47 50 60 59 71 68 76 Home buyer’s ideal home has: More bedrooms 27% 39% 39% 27% 21% 12% 11% 5% Fewer bedrooms 1 1 1 1 2 2 1 * Neither, satisfied with home purchase 72 60 60 72 76 85 88 95 Home buyer’s ideal home has: More bathrooms 25% 37% 32% 27% 23% 16% 9% 7% Fewer bathrooms 1 * * 1 2 1 * 2 Neither, satisfied with home purchase 74 63 67 73 75 83 91 90 Home buyer’s ideal home has: More closets 40% 42% 45% 38% 44% 33% 31% 24% Fewer closets * * * * * * * * Neither, satisfied with home purchase 60 58 54 61 56 67 69 76 Home buyer’s ideal home has: More storage 49% 58% 51% 49% 52% 42% 35% 48% Less storage * 1 * * * * * * Neither, satisfied with home purchase 51 41 49 51 48 58 65 52 Home buyer’s ideal home has: Larger kitchen 39% 60% 45% 38% 41% 30% 19% 29% smaller kitchen * * * * * * * * Neither, satisfied with home purchase 61 40 55 62 59 69 81 71

46 2007 profIle of buyers’ home feature preferences chapter 3 home Improvement and remodelIng H o m e I m p r o v e m e n t a n d r e m o d e l I n g p r o j e c t s a r e u n d e r ta k e n b y many home buyers to make their home feel like their own. nearly 60 percent of home buyers took on remodeling projects within three months of moving into their new home. many of the projects and the expenditures are influenced by the age of the home and the expected length of tenure in the home purchased. chapter 3 describes the type of remodeling and home improvement projects buyers embarked on within three months of purchase, the amount spent on these projects and how remodeling was financed. Fifty-nine percent of home buyers took on home improvement projects within three months of purchasing their home. For three-quarters of first-time buyers, the desire to own a home and establish their own household was the primary motivating factor underlying their home purchase.

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 3-1 HOME IMPROVEMENT UNDERTOOK HOME IMPROVEMENT PROJECTS PROJECTS WITHIN 3 MONTHS OF HOME PURCHASE The majority of home buyers want (Percentage of Respondents) to make their home their own with their Who undertakes Home improvement Projects? own remodeling and decorating touches. Fifty-nine percent of home buyers took All Buyers 59% on home improvement projects within First-time Buyers 57% Repeat Buyers 59 three months of purchasing their home. Buyers of New Homes 42 Home buyers who purchased previously Buyers of Previously Owned Homes 65 owned homes were more likely to report Age of Home undertaking home improvement projects One year or less 42% (65 percent) compared with those who 2 to 5 years 50 purchased new homes (42 percent). 6 to 10 years 57 11 to 20 years 64 21 to 30 years 71 31 to 50 years 72 51 or more years 73 Expected Length of tenure in Home Purchased One year or less 57% 2 to 5 years 59 6 to 10 years 61 11 to 15 years 57 16 or more years 57

2007 PROFILE OF BuyERS’ CHAPTER 3: HOME IMPROvEMENT ANd REMOdELINg HOME FEATuRE PREFERENCES Exhibit 3-2 HOME IMPROVEMENTS AND UNDERTOOK HOME IMPROVEMENT PROJECT WITHIN 3 THE AGE OF THE HOME MONTHS OF HOME PURCHASE, BY AGE OF HOME Not surprisingly, buyers of older (Percent of Respondents) homes more often take on various home 80 improvement and remodeling projects. 72% 73% 71% Forty-two percent of home buyers 70 who moved into a home that was 64% less than a year old undertook home 60 57% improvement projects compared to 73 50% percent of buyers who purchased a 50 home over 50 years old. 42% 40 30 20 10 0 One year 2 to 5 6 to 10 11 to 20 21 to 30 31 to 50 51 or more or less years years years years years years AGE OF HOME Exhibit 3-3 AMOUNT SPENT ON HOME AMOUNT SPENT ON HOME IMPROVEMENT PROJECTS IMPROVEMENT PROJECTS (Percentage Distribution) Prior to making a home purchase, Buyers of: buyers often plan to make various home All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes improvements once the purchase is $1,000 or less 19% 28% 14% 17% 19% completed. The typical buyer spent $1,001 to $5,000 37 42 34 35 38 $4,350 on home improvement projects $5,001 to $10,000 23 19 24 24 22 within the first three months of their $10,001 to $25,000 13 8 16 13 13 home purchase. Repeat buyers typically $25,001 to $50,000 5 2 7 6 5 spend more than first-time home buyers More than $50,000 3 * 4 5 2 ($5,330 compared to $3,070). Twenty- Median $4,350 $3,070 $5,330 $4,770 $4,270 eight percent of first-time buyers spent * Less than one percent less than $1,000 on home improvement projects. Buyers who purchased new homes typically spend slightly more than those who purchased previously owned homes.

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 3-4 HOME IMPROVEMENT AMOUNT SPENT ON HOME IMPROVEMENT PROJECTS, SPENDING AND EXPECTED BY EXPECTED LENGTH OF TENURE IN HOME PURCHASED LENGTH OF TENURE (Percentage Distribution) Home buyers who plan to stay in exPeCted leNgtH of teNure iN HoMe PurCHAsed their home for one year or less spent All one year 2 to to 10 11 to 1 1 or more Buyers or less years years years years the most money on home improvement $1,000 or less 19% 15% 22% 15% 9% 19% projects within the first three months $1,001 to $5,000 37 31 39 39 40 33 ($5,830). This suggests that many of $5,001 to $10,000 23 23 22 24 36 20 these buyers are investing money in $10,001 to $25,000 13 15 10 14 6 18 home improvement projects and plan to $25,001 to $50,000 5 15 5 4 9 6 re-sell the home. For buyers who plan More than $50,000 3 * 2 5 1 4 to live in their home more than one year, Median $4,350 $5,830 $3,840 $4,600 $5,260 $4,690 the amount spent immediately on home * Less than one percent improvement projects typically increases with the expected tenure in the home. HOME IMPROVEMENT projects, especially in older homes, are spending for the typical buyer varied SPENDING BY AGE OF HOME ultimately quite costly, although they between $3,700 and $5,000 across As the age of the home increases, many not be completed within three homes of different vintages. more buyers report that they undertake months of purchase. However, during the some type of home improvements. Many first three months, home improvement Exhibit 3-5 AMOUNT SPENT ON HOME IMPROVEMENT PROJECTS, BY AGE OF HOME (Percentage Distribution) Age of HoMe All one year 2 to to 10 years 11 to 20 21 to 0 1 to 0 1 or more Homes or less years years years years years $1,000 or less 19% 17% 14% 18% 18% 22% 18% 23% $1,001 to $5,000 37 37 43 38 32 35 37 40 $5,001 to $10,000 23 23 25 25 28 19 26 16 $10,001 to $25,000 13 13 13 11 14 15 14 13 $25,001 to $50,000 5 6 5 6 5 6 4 5 More than $50,000 3 5 * 3 3 3 1 3 Median $4,350 $4,600 $4,380 $4,420 $5,050 $4,220 $4,400 $3,730 * Less than one percent

0 2007 PROFILE OF BuyERS’ CHAPTER 3: HOME IMPROvEMENT ANd REMOdELINg HOME FEATuRE PREFERENCES Exhibit 3-6 TYPES OF HOME HOME IMPROVEMENTS UNDERTAKEN WITHIN 3 MONTHS IMPROVEMENTS OF PURCHASE Nearly half of all home buyers (Percent of Respondents) Buyers of: remodeled or otherwise made rooms where improvements All first-time repeat New Previously improvements to the kitchen within three were undertaken Buyers Buyers Buyers Homes owned Homes months of their home purchase. Forty- Kitchen 47% 52% 44% 32% 51% five percent remodeled or improved a Bathroom(s) 45 52 42 28 49 bathroom and 43 percent remodeled a Bedroom(s) 43 49 39 31 46 bedroom. Thirty-nine percent of home Living room 31 38 28 20 34 buyers replaced appliances and 39 Family room 22 20 24 18 24 percent replaced or upgraded lighting. garage 18 14 20 28 16 The priorities of remodeling were similar Home office 14 12 15 12 14 among first-time buyers, repeat buyers, Basement 13 14 12 9 14 and those who purchased previously Attic 5 5 5 5 5 owned residences. Home buyers who Dining room 3 3 3 2 3 purchased new homes, however, Laundry room 1 1 2 1 1 remodeled garages as frequently as Other 26 19 29 36 23 bathrooms and were most likely to None 6 4 7 7 5 undertake landscaping improvements Features added or replaced within the first three months of their home Appliances 39% 41% 38% 29% 42% purchase. Lighting 39 40 39 27 42 Floor coverings 36 37 35 14 41 Landscaping 35 32 36 51 30 Additional storage 15 9 17 22 13 Windows 12 12 13 14 12 Fencing 12 8 14 17 11 Monitored security system 10 7 11 16 8 Patio 8 4 11 17 6 Roof 6 6 6 1 7 Deck 6 3 7 8 6 siding or exterior finishes 6 4 7 3 6 Central air conditioning 6 5 6 3 6 Porch 4 4 4 4 4 Central heating 3 3 3 * 4 Doors 2 3 2 3 2 Electrical upgrades 2 2 2 * 2 Pool 2 * 2 3 1 Driveway 1 * 1 2 1 Other 15 14 15 15 14 None 8 9 8 9 8 * Less than one percent

NATIONAL ASSOCIATION OF REALTORS ® 1 Exhibit 3-7 HOME IMPROVEMENTS BY AGE HOME IMPROVEMENTS UNDERTAKEN WITHIN 3 MONTHS OF HOME OF PURCHASE, BY AGE OF HOME In many cases, the frequency (Percent of Respondents) of various remodeling and home Age of HoMe improvements is related to age of the rooms where one 2 to to 11 to 21 to 1 to 1 or improvements were All year 10 20 0 0 more home. For example, 53 percent of home undertaken Homes or less years years years years years years buyers who purchased a home over Kitchen 47% 29% 37% 50% 54% 52% 55% 53% 50 years old remodeled their kitchen Bathroom(s) 45 28 39 46 47 53 50 51 compared to 29 percent of buyers Bedroom(s) 43 31 39 52 39 48 45 48 who purchased a home less than one Living room 31 19 29 37 31 32 34 40 Family room 22 18 17 31 32 22 26 16 year old. Garages are the one area that garage 18 28 25 19 19 18 14 9 buyers of newer homes are more likely to Home office 14 11 19 15 18 11 14 12 remodel soon after purchase compared Basement 13 7 11 10 13 8 17 23 with buyers of older homes. Additionally, Attic 5 5 3 4 5 4 2 9 home buyers who purchased newer Dining room 3 2 2 3 5 1 2 6 homes are more likely to invest in Laundry room 1 1 4 1 2 1 1 1 landscaping and additional storage than Other 26 36 36 27 18 22 24 21 those who purchased older homes. None 6 8 8 6 5 3 5 4 Features added or replaced Appliances 39% 27% 24% 43% 53% 45% 36% 47% Lighting 39 27 34 34 46 44 42 48 Floor coverings 36 13 27 40 45 38 44 46 Landscaping 35 53 31 33 32 30 29 29 Additional storage 15 22 29 15 14 10 9 9 Windows 12 13 6 10 13 13 12 16 Fencing 12 18 12 16 7 11 9 10 Monitored security system 10 15 10 13 9 8 6 7 Patio 8 18 9 7 8 7 6 2 Roof 6 1 1 7 6 5 8 13 Deck 6 8 6 9 7 4 6 3 siding or exterior finishes 6 4 4 6 4 10 6 7 Central air conditioning 6 2 3 3 8 12 6 6 Porch 4 4 2 2 2 6 3 4 Central heating 3 * 2 1 4 6 4 3 Doors 2 4 3 1 2 1 2 2 Electrical upgrades 2 * 2 1 1 * 3 5 Pool 2 4 4 2 2 * * 1 Driveway 1 1 2 1 1 1 * 1 Other 15 15 19 18 12 15 12 15 None 8 10 10 7 7 8 10 8 * Less than one percent

2 2007 PROFILE OF BuyERS’ CHAPTER 3: HOME IMPROvEMENT ANd REMOdELINg HOME FEATuRE PREFERENCES Exhibit 3-8 HOME IMPROVEMENTS AND HOME IMPROVEMENTS UNDERTAKEN WITHIN 3 MONTHS EXPECTED LENGTH OF TENURE OF PURCHASE, BY EXPECTED LENGTH OF TENURE IN HOME Owners who expect to stay in their (Percent of Respondents) exPeCted leNgtH of teNure iN HoMe PurCHAsed home for one year or less are most rooms where improve- All one year 2 to to 10 11 to 1 1 or more likely to report remodeling kitchens (64 ments were undertaken Buyers or less years years years years percent), living rooms (45 percent) and Kitchen 47% 64% 53% 50% 46% 41% family rooms (45 percent). Additionally, Bathroom(s) 45 27 51 45 40 41 home buyers who expect to own their Bedroom(s) 43 36 52 42 29 39 home for one year or less are most likely Living room 31 45 34 30 25 30 to invest in appliances (54 percent), Family room 22 45 25 25 23 20 lighting (46 percent), and floor coverings garage 18 9 19 19 11 22 (46 percent). This pattern of remodeling Home office 14 * 15 14 14 13 and home improvements suggests these Basement 13 27 12 12 11 16 owners are focusing their expenditures Attic 5 * 5 4 5 5 on those areas where improvements and Dining room 3 18 3 3 4 4 renovations will add the highest value. Laundry room 1 * 1 2 3 1 Among home buyers who plan to own Other 26 27 19 28 34 28 their home for 16 years or more, investing None 6 * 5 4 12 6 in new appliances (42 percent), and Features added or replaced remodeling kitchens (41 percent) and Appliances 39% 54% 37% 44% 31% 42% bathrooms (41 percent) are the most Lighting 39 46 42 42 35 37 frequent home improvements reported. Floor coverings 36 46 34 41 30 35 Landscaping 35 23 34 39 33 34 Additional storage 15 8 16 15 16 13 Windows 12 38 10 13 6 16 Fencing 12 8 10 14 16 12 Monitored security system 10 8 8 9 13 12 Patio 8 23 5 10 8 8 Roof 6 15 4 4 4 8 Deck 6 8 6 8 4 6 siding or exterior finishes 6 38 5 5 8 6 Central air conditioning 6 8 5 5 4 6 Porch 4 * 4 3 * 6 Central heating 3 8 2 3 3 6 Doors 2 * 1 3 3 2 Electrical upgrades 2 * 2 1 1 2 Pool 2 8 1 2 4 1 Driveway 1 * 1 * 4 1 Other 15 15 14 15 18 15 None 8 8 10 4 5 8 * Less than one percent

NATIONAL ASSOCIATION OF REALTORS ® HOW REMODELING WAS used savings to finance remodeling primary residence to pay for home FINANCED projects within the first three months of improvement projects in the first three The most frequently cited way to their home purchase. Nearly one-quarter months. First-time home buyers were finance a home improvement project was of repeat buyers, as well as one-in-five more likely than repeat buyers to report savings. Sixty-eight percent of all buyers buyers who purchased new homes used using a gift from a friend or relative to pay and 75 percent of first-time home buyers funds from the sale of their previous for home improvements. Exhibit 3-9 HOW REMODELING WAS FINANCED (Percent of Respondents) Buyers of: All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes savings 68% 75% 64% 64% 69% Proceeds from sale of primary residence 17 2 24 20 16 Loan from financial instutition other than a mortgage 6 8 4 6 6 gift from friend or relative 5 11 2 2 6 sale of personal property 4 2 5 5 4 Equity from primary residence buyer continues to own (e.g. cash-out refi- 4 1 5 6 4 nance, second mortgage, home equity loan, or home equity line of credit) Cash 4 6 3 3 4 Credit card(s) 3 4 3 2 3 sale of stocks or bonds 3 2 3 3 3 Proceeds from sale of real estate other than primary residence 3 1 4 3 2 Loan from friend or relative 2 5 1 1 3 401k/pension fund including loan 2 1 3 3 2 Inheritance 2 2 2 1 2 Individual Retirement Account (IRA) 1 * 1 2 1 Investment property sales 1 * 1 1 1 (1031 exchange) Life insurance * * * * * Other 4 6 2 3 4 * Less than one percent

2007 PROFILE OF BuyERS’ CHAPTER 3: HOME IMPROvEMENT ANd REMOdELINg HOME FEATuRE PREFERENCES FINANCING HOME household income of buyers increases, other income groups, home buyers who IMPROVEMENTS AND however, the percentage of home buyers had an annual household income of less HOUSEHOLD INCOME using the proceeds from the sale of a than $75,000 are more likely to report Regardless of household income, primary residence for home improvement using a gift from a friend or relative to pay most home buyers rely on savings to projects also increases. Compared with for home improvement costs. finance home improvements. As the Exhibit 3-10 HOW REMODELING WAS FINANCED, BY HOUSEHOLD INCOME (Percent of Respondents) HouseHold iNCoMe (200) All less than $,000 to $,000 to $100,000 to $10,000 or Buyers $,000 $, $, $1, more savings 68% 66% 68% 65% 67% 75% Proceeds from sale of primary residence 17 13 13 18 25 17 Loan from financial instutition other than a mortgage 6 7 6 6 8 2 gift from friend or relative 5 8 8 4 4 1 sale of personal property 4 5 4 4 5 5 Equity from primary residence buyer continues to own (e.g. 4 1 4 6 4 6 cash-out refinance, second mortgage, home equity loan, or home equity line of credit) Cash 4 4 4 4 4 4 Credit card(s) 3 3 4 2 2 2 sale of stocks or bonds 3 1 1 3 5 3 Proceeds from sale of real estate other than primary 3 3 3 3 1 2 residence Loan from friend or relative 2 4 3 1 * * 401k/pension fund including loan 2 1 2 3 1 5 Inheritance 2 6 1 * 3 * Individual Retirement Account (IRA) 1 1 1 * 1 * Investment property sales (1031 exchange) 1 2 * 1 1 2 Life insurance * * * * * * Other 4 3 5 3 3 * * Less than one percent

NATIONAL ASSOCIATION OF REALTORS ® FINANCING SOURCES AND to finance the expenses such as the percent of home buyers who spent less COST OF IMPROVEMENTS proceeds from the sale of a primary than $1,000 on home improvements As the cost of remodeling and home residence or a loan from a financial relied on savings compared to 55 improvements increases, home buyers institution other than a mortgage, in percent of homeowners who spent are more likely to use several sources addition to savings. Seventy-three between $25,000 and $50,000. Exhibit 3-11 HOW REMODELING WAS FINANCED, BY REMODELING COST (Percent of Respondents) Cost of reModeliNg All $1,000 $1,001 to $,001 to $10,001 to $2,001 to More than Buyers or less $,000 $10,000 $2,000 $0,000 $0,000 savings 68% 73% 71% 64% 61% 55% 69% Proceeds from sale of primary residence 17 4 13 20 27 34 42 Loan from financial instutition other than a mortgage 6 3 4 7 7 12 14 gift from friend or relative 5 5 6 5 5 3 5 sale of personal property 4 * 2 4 11 12 21 Equity from primary residence buyer continues to own (e.g. 4 2 2 4 9 7 14 cash-out refinance, second mortgage, home equity loan, or home equity line of credit) Cash 4 9 4 2 1 5 * Credit card(s) 3 2 4 3 2 1 * sale of stocks or bonds 3 1 1 4 4 5 14 Proceeds from sale of real estate other than primary 3 1 3 3 5 1 5 residence Loan from friend or relative 2 3 1 4 3 * 2 401k/pension fund including loan 2 1 2 4 2 1 * Inheritance 2 1 * 3 2 4 7 Individual Retirement Account (IRA) 1 * 1 * 3 * * Investment property sales (1031 exchange) 1 * 1 1 1 4 * Life insurance * * * 1 * * * Other 4 6 4 2 4 3 2 * Less than one percent

56 2007 proFIle oF Buyers’ home Feature preFerences chapter 4 home purchase, Investment, and FInancIng I n t h e s a m e way t h at a g e , h o u s e h o l d I n c o m e , a n d o t h e r c h a r a c t e r I s t I c s influence the features of the home a person buys, they also shape the options available to buyers within a particular price range, their home financing alternatives and investment potential. chapter 4 addresses the variation in home purchase price, the percentage of buyers with home mortgages, and the perception that buyers have of the investment potential of their homes. Home buyers who purchased a home with the expectation of staying in that home for a number of years are the most optimistic about their home’s investment potential. For three-quarters of first-time buyers, the desire to own a home and establish their own household was the primary motivating factor underlying their home purchase.

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 4-1 PURCHASE PRICE OF HOMES PURCHASE PRICE OF HOME (Percentage Distribution) Buyers of: The median price paid by home All first-time repeat New Previously buyers over the period from late 2005 Buyers Buyers Buyers Homes owned Homes to early 2007 was $205,000. First- Less than $75,000 5% 9% 3% 1% 6% time buyers typically purchased less $75,000 to $99,999 6 10 3 1 8 expensive homes than repeat buyers, $100,000 to $124,999 8 14 5 4 10 and new-home buyers typically paid $125,000 to $149,999 11 15 9 10 11 higher prices for their homes than buyers $150,000 to $174,999 10 13 9 11 10 of previously owned homes. $175,000 to $199,999 8 9 7 8 8 $200,000 to $249,999 13 11 14 14 12 $250,000 to $299,999 10 7 11 11 9 $300,000 to $349,999 7 5 9 10 6 $350,000 to $399,999 5 3 6 6 5 $400,000 to $499,999 6 2 9 10 5 $500,000 or more 10 3 14 15 9 Median $205,000 $154,000 $249,200 $255,400 $188,500 PURCHASE PRICE OF HOMES of home buyers increases, and most purchased by buyers aged 55 to 64. For BY AGE likely also their incomes, the price paid home buyers aged 65 years or older, the Home buyers’ age often influences for the typical home they choose also purchase price of their home is typically the preferred size, location, and most increases. The median price of the home less than that of younger buyers, which desired characteristics of a home, and purchased by buyers aged 18 to 24 was reflects factors such as downsizing or thus the purchase price. As the age $129,300, rising to $228,500 for homes relocation tied to retirement. Exhibit 4-2 PURCHASE PRICE OF HOME, BY AGE Age of HoMe Buyer (Percentage Distribution) All Buyers 1-2 2- - - - - or older Less than $75,000 5% 14% 5% 4% 4% 4% 3% 5% $75,000 to $99,999 6 21 6 5 4 6 3 5 $100,000 to $124,999 8 13 11 6 10 6 4 11 $125,000 to $149,999 11 14 13 9 10 10 10 11 $150,000 to $174,999 10 7 10 9 10 10 16 11 $175,000 to $199,999 8 7 10 9 6 7 10 7 $200,000 to $249,999 13 13 13 9 14 14 13 25 $250,000 to $299,999 10 2 10 12 10 8 8 5 $300,000 to $349,999 7 3 7 7 6 10 13 5 $350,000 to $399,999 5 1 5 7 4 5 8 2 $400,000 to $499,999 6 1 4 8 7 8 10 5 $500,000 or more 10 4 6 15 16 12 3 9 Median $205,000 $129,300 $184,000 $240,000 $225,000 $228,500 $208,800 $196,700

2007 PROFILE OF BuyERS’ CHAPTER 4: HOME PuRCHASE, INvESTMENT, ANd FINANCINg HOME FEATuRE PREFERENCES PURCHASE PRICE OF HOMES related to household income. The typical less than $35,000 was $122,800 and for RELATIVE TO INCOME price of homes purchased by buyers those with incomes of $150,000 or more The price paid for a home is directly with annual household incomes (2006) of it was $474,000. Exhibit 4-3 PURCHASE PRICE OF HOME, BY HOUSEHOLD INCOME (Percentage Distribution) HouseHold iNCoMe (200) less than $,000 to $,000 to $100,000 to $10,000 All Buyers $,000 $, $, $1, or more Less than $75,000 5% 21% 5% 1% 2% 1% $75,000 to $99,999 6 15 9 3 1 1 $100,000 to $124,999 8 15 15 4 1 1 $125,000 to $149,999 11 13 17 9 5 1 $150,000 to $174,999 10 10 14 12 5 2 $175,000 to $199,999 8 8 9 12 7 1 $200,000 to $249,999 13 9 13 17 14 4 $250,000 to $299,999 10 5 6 13 16 9 $300,000 to $349,999 7 2 5 10 12 10 $350,000 to $399,999 5 1 2 7 11 8 $400,000 to $499,999 6 1 3 7 12 15 $500,000 or more 10 1 3 5 14 46 Median $205,000 $122,800 $156,900 $225,000 $295,000 $474,000

NATIONAL ASSOCIATION OF REALTORS ® BUYERS WHO FINANCED THEIR purchase. Slightly more first-time buyers purchased new homes, 10 percent did HOME PURCHASE financed their home than repeat buyers. not use a mortgage to finance their home Most home buyers (92 percent) Among repeat buyers and those who purchase. used a mortgage to finance their home Exhibit 4-4 BUYERS WHO FINANCED THEIR HOME PURCHASE (Percentage Distribution) 100 97% 94% 92% 90% 90% 90 80 70 60 50 40 30 20 10% 10% 10 8% 6% 3% 0 All Buyers First-time Buyers Repeat Buyers New Homes Previously Owned Homes BUYERS OF: Have a mortgage Does not have a mortgage

0 2007 PROFILE OF BuyERS’ CHAPTER 4: HOME PuRCHASE, INvESTMENT ANd FINANCINg HOME FEATuRE PREFERENCES FINANCING THE HOME income and the amount of equity of home buyers aged 18 to 24 have a PURCHASE BY AGE OF BUYER accumulated through previous ownership mortgage compared to 61 percent of The age of home buyers is correlated of homes tend to be greater among buyers aged 65 to 74 and 58 percent of with the use of mortgages to finance older age groups. Ninety-nine percent home buyers 75 or older. their homes, largely because household Exhibit 4-5 BUYERS WHO FINANCED THEIR HOME PURCHASE, BY AGE (Percentage Distribution) 100 99% 98% 98% 92% 93% 90 87% 80 70 61% 60 58% 50 42% 40 39% 30 20 13% 10 8% 7% 1% 2% 2% 0 All Buyers 18-24 25-34 35-44 45-54 55-64 65-74 75 or older AGE OF HOMEBUYER Have a mortgage Does not have a mortgage

NATIONAL ASSOCIATION OF REALTORS ® 1 HOME PURCHASE FINANCING range of $35,000 to over $150,000, mainly because a large segment of this AND HOUSEHOLD INCOME 93 to 96 percent of home buyers income group includes home buyers Household income does not have a have a mortgage. Among those with a over age 55 who are more likely to have strong impact on whether a home buyer household income of less than $35,000, accumulated home equity from previous has a mortgage. Within the wide income this percentage drops to 84 percent, ownership. Exhibit 4-6 BUYERS WHO FINANCED THEIR HOME PURCHASE, BY HOUSEHOLD INCOME (Percentage Distribution) 100 95% 96% 94% 93% 92% 90 84% 80 70 60 50 40 30 20 16% 10 8% 7% 6% 5% 4% 0 All Buyers Less than $35,000 $35,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 or more HOUSEHOLD INCOME 2006 Have a mortgage Does not have a mortgage

2 2007 PROFILE OF BuyERS’ CHAPTER 4: HOME PuRCHASE, INvESTMENT ANd FINANCINg HOME FEATuRE PREFERENCES PURCHASE PRICE AND USE OF mortgage financing relative to home percent of buyers across each home MORTGAGE price. Between 90 percent and 95 price category have a mortgage. There is little variation in the use of Exhibit 4-7 BUYERS WHO FINANCED THEIR HOME PURCHASE, BY FINAL PURCHASE PRICE (Percentage Distribution) 100 95% 95% 92% 93% 91% 91% 90% 90 80 70 60 50 40 30 20 10% 10 8% 9% 9% 7% 5% 5% 0 All Buyers Less than $100,000 to $200,000 to $300,000 to $400,000 to $500,000 $100,000 $199,999 $299,999 $399,999 $499,999 or more PURCHASE PRICE OF HOME Have a mortgage Does not have a mortgage

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 4-8 INVESTMENT POTENTIAL OF INVESTMENT POTENTIAL* HOME (Percentage Distribution) While shelter is one of the primary Buyers of: functions of a home, the opportunity All first-time repeat New Previously Buyers Buyers Buyers Homes owned Homes to accumulate equity through price High (% 8, 9, and 10) 56% 54% 58% 63% 54% appreciation is also an important Moderate (% 4, 5, 6, and 7) 41 44 39 35 43 motivation for home buyers. When asked Low (% 1, 2, and 3) 3 3 3 2 3 to rate the investment potential of their Average 7.6 7.5 7.6 7.9 7.5 home on a scale from 1 to 10, over half of home buyers (56 percent) rated * On a scale of 1 to 10, where 1 is “Very poor” and 10 is “Excellent” their home as having high investment The scale was divided into categories: low=1,2,3; moderate=4, 5, 6, 7; and high= 8, 9, 10 for potential. Buyers of new homes were comparison purposes in the table. most likely to rate their home’s investment potential as high (63 percent). INVESTMENT POTENTIAL AND varies somewhat by the type of home as high compared with fewer than TYPE OF HOME home purchased. Home buyers who half of home buyers who purchased a While few buyers thought their purchased detached single-family homes condo in a building with five or more units home had a low investment potential, were most optimistic, with 58 percent or a townhouse/row house. the perception of investment potential rating the investment potential of their Exhibit 4-9 INVESTMENT POTENTIAL*, BY TYPE OF HOME (Percentage Distribution) Buyers of: All detached duplex/ apartments/ con- Apartments/ condos in buildings townhouses/ row Buyers single-family homes dos in 2 to unit buildings with or more units houses High (% 8, 9, and 10) 56% 58% 55% 44% 47% Moderate (% 4, 5, 6, and 7) 41 40 41 53 48 Low (% 1, 2, and 3) 3 2 4 4 6 Average 7.6 7.7 7.5 7.2 7.2 * On a scale of 1 to 10, where 1 is “Very poor” and 10 is “Excellent” The scale was divided into categories: low=1,2,3; moderate=4, 5, 6, 7; and high= 8, 9, 10 for comparison purposes in the table.

2007 PROFILE OF BuyERS’ CHAPTER 4: HOME PuRCHASE, INvESTMENT ANd FINANCINg HOME FEATuRE PREFERENCES Exhibit 4-10 INFLUENCE OF EXPECTED INVESTMENT POTENTIAL*, BY EXPECTED LENGTH OF TENURE LENGTH OF TENURE ON IN HOME PURCHASED INVESTMENT POTENTIAL (Percentage Distribution) Home buyers who purchased a home exPeCted leNgtH of teNure iN HoMe PurCHAsed with the expectation of staying in that All one year 2 to to 10 11 to 1 1 or more Buyers or less years years years years home for a number of years are most High (% 8, 9, and 10) 56% 55% 44% 54% 59% 71% optimistic about their home’s investment Moderate (% 4, 5, 6, and 7) 41 21 51 44 40 29 potential. Among those buyers who Low (% 1, 2, and 3) 3 24 5 2 1 1 intend to re-sell their home within one Average 7.6 6.6 7.0 7.6 7.6 8.2 year, over half believed that their home holds significant investment potential. * On a scale of 1 to 10, where 1 is “Very poor” and 10 is “Excellent” Still nearly one-quarter of this group have The scale was divided into categories: low=1,2,3; moderate=4, 5, 6, 7; and high= 8, 9, 10 for very low expectations suggesting that comparison purposes in the table. investment was not a primary reason for their home purchase. ROLE OF HOME BUYER’S AGE compared with younger home buyers. investment gains on any particular home. ON INVESTMENT POTENTIAL Younger buyers have not yet had Fifty percent of home buyers under A home buyer’s age influences experience in real estate markets that age 25 believe their home has a high the perceived investment potential of influences their perceptions of future investment potential, compared to 63 the home they purchase. Older home gains, combined with a typically shorter percent of buyers aged 65 to 74, and 71 buyers tend to have more faith in the period of ownership that may limit future percent of home buyers 75 or older. investment potential of their homes Exhibit 4-11 INVESTMENT POTENTIAL*, BY AGE (Percentage Distribution) Age of HoMe Buyer All Buyers 1-2 2- - - - - or older High (% 8, 9, and 10) 56% 50% 54% 53% 54% 66% 63% 71% Moderate (% 4, 5, 6, and 7) 41 48 44 43 42 32 35 27 Low (% 1, 2, and 3) 3 1 2 4 4 2 2 2 Average 7.6 7.5 7.6 7.4 7.6 8.0 7.8 8.1 * On a scale of 1 to 10, where 1 is “Very poor” and 10 is “Excellent” The scale was divided into categories: low=1,2,3; moderate=4, 5, 6, 7; and high= 8, 9, 10 for comparison purposes in the table.

natIonal assocIatIon of realtors ® 65 methodology I I n m a r c h 2 0 0 7 , n at I o n a l a s s o c I t I o n o f r e a lt o r s ® m a I l e d a 3 9 - q u e s t I o n survey to a random national sample of 40,000 home buyers who purchased a home in the period from late 2005 through early 2007. the survey yielded 2,530 usable responses with a response rate, after adjusting for undeliverable addresses, of 6.7 percent. consumer names and addresses were obtained from experian, a firm that maintains an extensive database of recent home buyers derived from county records. the analysis included in this report was conducted after survey responses were weighted according to each state’s share of home sales in 2006. the primary measure of central tendency used throughout this report is the median, the middle point in the distribution of responses to a particular question or, equivalently, the point at which half of the responses are above and half below a particular value. some results are presented for the four census regions: northeast, midwest, south and West. due to rounding and omissions for space, percentage distributions may not add to 100 For three-quarters percent. of first-time buyers, the desire to own a home and establish their own household was the primary motivating factor underlying their home purchase.

66 2007 ProfIle of Buyers’ home feature Preferences lIst of exhIBIts Chapter 1: Characteristics of Home Purchased Exhibit 1-1 SIZE OF HOME PURCHASED Exhibit 1-2 SIZE OF HOME PURCHASED Exhibit 1-3 SIZE OF HOME PURCHASED, BY REGION Exhibit 1-4 SIZE OF HOME PURCHASED, BY AGE OF HOME Exhibit 1-5 SIZE OF HOME PURCHASED, BY HOUSEHOLD COMPOSITION Exhibit 1-6 CHARACTERISTICS OF HOMES PURCHASED Exhibit 1-7 CHARACTERISTICS OF HOMES PURCHASED, BY AGE OF HOME BUYER Exhibit 1-8 TYPE OF HOME PURCHASED Exhibit 1-9 TYPE OF HOME PURCHASED, BY REGION Exhibit 1-10 TYPE OF HOME PURCHASED, BY AGE OF HOME BUYER Exhibit 1-11 TYPE OF HOME PURCHASED, BY HOUSEHOLD COMPOSITION Exhibit 1-12 LOCATION OF HOMES PURCHASED Exhibit 1-13 LOCATION OF HOMES PURCHASED Exhibit 1-14 LOCATION OF HOMES PURCHASED, BY REGION Exhibit 1-15 LOCATION OF HOMES PURCHASED, BY AGE OF HOME BUYER Exhibit 1-16 DISTANCE FROM PREVIOUS RESIDENCE Exhibit 1-17 DISTANCE FROM PREVIOUS RESIDENCE, BY AGE OF HOME BUYER Exhibit 1-18 SATISFACTION WITH HOME PURCHASED Chapter 2: Searching for a Home Exhibit 2-1 USE OF INTERNET TO SEARCH FOR HOMES Exhibit 2-2 METHOD OF HOME PURCHASE Exhibit 2-3 MOST DESIRED HOME FEATURES Exhibit 2-4 BUYERS WHO THOUGHT FINDING A HOME WITH A PARTICULAR FEATURE WAS “VERY IMPORTANT” Exhibit 2-5 BUYERS WHO THOUGHT FINDING A HOME WITH A PARTICULAR FEATURE WAS “VERY IMPORTANT”, BY REGION Exhibit 2-6 BUYERS WHO THOUGHT FINDING A HOME WITH A PARTICULAR FEATURE WAS “VERY IMPORTANT”, BY AGE Exhibit 2-7 BUYERS THAT PURCHASED A HOME WITH THE FEATURES CONSIDERED IMPORTANT Exhibit 2-8 BUYERS THAT PURCHASED A HOME WITH THE FEATURES CONSIDERED IMPORTANT, BY REGION Exhibit 2-9 BUYERS THAT PURCHASED A HOME WITH THE FEATURES CONSIDERED IMPORTANT, BY AGE Exhibit 2-10 HOME BUYERS WILLING TO PAY MORE FOR DESIRED FEATURES Exhibit 2-11 BUYERS WHO THOUGHT FINDING A HOME WITH PARTICULAR ROOMS WAS “VERY IMPORTANT” Exhibit 2-12 BUYERS WHO THOUGHT FINDING A HOME WITH PARTICULAR ROOMS WAS “VERY IMPORTANT”, BY REGION Exhibit 2-13 BUYERS WHO THOUGHT FINDING A HOME WITH PARTICULAR ROOMS WAS “VERY IMPORTANT”, BY AGE Exhibit 2-14 BUYERS THAT PURCHASED A HOME WITH PARTICULAR ROOMS CONSIDERED IMPORTANT

NATIONAL ASSOCIATION OF REALTORS ® Exhibit 2-15 BUYERS THAT PURCHASED A HOME WITH PARTICULAR ROOMS CONSIDERED IMPORTANT, BY REGION Exhibit 2-16 BUYERS THAT PURCHASED A HOME WITH PARTICULAR ROOMS CONSIDERED IMPORTANT, BY AGE Exhibit 2-17 HOME BUYERS WILLING TO PAY MORE FOR DESIRED ROOMS Exhibit 2-18 IMPORTANCE OF HOME’S ENERGY EFFICIENCY Exhibit 2-19 IMPORTANCE OF HOME’S ENERGY EFFICIENCY, BY AGE OF HOME BUYER Exhibit 2-20 IMPORTANCE OF HOME’S ENERGY EFFICIENCY, BY AGE OF HOME PURCHASED Exhibit 2-21 HOME BUYER’S IDEAL OR PREFERRED HOME COMPARED WITH THE HOME PURCHASED Exhibit 2-22 HOME BUYER’S IDEAL OR PREFERRED HOME COMPARED WITH THE HOME PURCHASED, BY AGE Chapter 3: Home Improvement and Remodeling Exhibit 3-1 UNDERTOOK HOME IMPROVEMENT PROJECTS WITHIN 3 MONTHS OF HOME PURCHASE Exhibit 3-2 UNDERTOOK HOME IMPROVEMENT PROJECT WITHIN 3 MONTHS OF HOME PURCHASE, BY AGE OF HOME Exhibit 3-3 AMOUNT SPENT ON HOME IMPROVEMENT PROJECTS Exhibit 3-4 AMOUNT SPENT ON HOME IMPROVEMENT PROJECTS, BY EXPECTED LENGTH OF TENURE IN HOME PURCHASED Exhibit 3-5 AMOUNT SPENT ON HOME IMPROVEMENT PROJECTS, BY AGE OF HOME Exhibit 3-6 HOME IMPROVEMENTS UNDERTAKEN WITHIN 3 MONTHS OF PURCHASE Exhibit 3-7 HOME IMPROVEMENTS UNDERTAKEN WITHIN 3 MONTHS OF PURCHASE, BY AGE OF HOME Exhibit 3-8 HOME IMPROVEMENTS UNDERTAKEN WITHIN 3 MONTHS OF PURCHASE, BY EXPECTED LENGTH OF TENURE IN HOME Exhibit 3-9 HOW REMODELING WAS FINANCED Exhibit 3-10 HOW REMODELING WAS FINANCED, BY HOUSEHOLD INCOME Exhibit 3-11 HOW REMODELING WAS FINANCED, BY REMODELING COST Chapter 4: Home Purchase, Investment and Financing Exhibit 4-1 PURCHASE PRICE OF HOME Exhibit 4-2 PURCHASE PRICE OF HOME, BY AGE Exhibit 4-3 PURCHASE PRICE OF HOME, BY HOUSEHOLD INCOME Exhibit 4-4 BUYERS WHO FINANCED THEIR HOME PURCHASE Exhibit 4-5 BUYERS WHO FINANCED THEIR HOME PURCHASE, BY AGE Exhibit 4-6 BUYERS WHO FINANCED THEIR HOME PURCHASE, BY HOUSEHOLD INCOME Exhibit 4-7 BUYERS WHO FINANCED THEIR HOME PURCHASE, BY FINAL PURCHASE PRICE Exhibit 4-8 INVESTMENT POTENTIAL* Exhibit 4-9 INVESTMENT POTENTIAL*, BY TYPE OF HOME Exhibit 4-10 INVESTMENT POTENTIAL*, BY EXPECTED LENGTH OF TENURE IN HOME PURCHASED Exhibit 4-11 INVESTMENT POTENTIAL*, BY AGE

2007 PROFILE OF BuyERS’ HOME FEATuRE PREFERENCES T h e N AT I O N A L A S S O C I AT I O N O F R E A LT O R S ® R e a l t y C h e c k ™ is the source for information about all aspects of the real estate industry. Let your organization harness the power of NAR’s survey capabilities and analyses to broaden your understanding and strengthen your business. you can contract with NAR to provide insights like those seen in this survey for your state or local market. The behavioral and demographic information from NAR’s national surveys can help your organization tailor products and services to your market. For all of our national surveys, your organization can commission NAR to (a) add proprietary questions or (b) more extensively sample defined geographies when conducting our national surveys. The custom information is provided only to your organization for re-sale, sharing, or release to the media. NAR Research also has the ability to create custom surveys, designed specifically for your organization, targeted to your business interests and focused on your geographic priorities. Leverage NAR’s extensive surveybuyers, market information to master For three-quarters of first-time data and dynamic economic a home estate trends on the local, regional, and the desire to own and real and establish their own household was the primary national level. NAR RealtyCheck™ provides valuable information to meet motivating factor underlying their home your organization’s critical planning needs. For organizations that need to purchase. understand the impact of a turbulent economy and a dynamic industry, NAR RealtyCheck™ provides information to improve your operations and profitability. To learn more about NAR RealtyCheck™ products and services please visit www.NARRealtyCheck.com or contact Tj doyle at (202) 383-7535 or Hristina Toshkova at (202) 383-7529.

NAR RESEARCH STAFF Quantitative Analysis and International Research Lawrence Yun, Ph.D. Managing Director, Quantitative Research Keunwon Chung Statistical Economist Ken Fears Manager, Regional Economics Scott MacIntosh Senior Economist, Commercial and Investment Real Estate Existing-Home Sales Statistics Kevin J. Thorpe Manager, Existing-Home Sales Wannasiri Chompoopet Senior EHS Analyst NATIONAL ASSOCIATION OF REALTORS® Michael Hyman RESEARCH DIVISION Research Assistant The Research Division of the NATIONAL ASSOCIATION OF REALTORS® produces the Survey Research and the National premier measurements of residential real estate activity – the existing-home sales and the Center for Real Estate Research pending home sales series. NAR Research examines how changes in the economy affect Paul C. Bishop, Ph.D. the real estate business, trends in real estate practices and how NAR members are adapting Director of the National Center for Real technology in their business operations. Additionally, NAR Research evaluates regulatory Estate Research and legislative policy proposals for their impact on REALTORS®, their clients and America’s Harika “Anna” Barlett property owners. Senior Research Analyst To find out about other products from NAR’s Research Division, visit Jessica Lautz www.REALTOR.org/research. Senior Research Analyst Learn more about NAR RealtyCheckTM products and services at www. Business Operations and www.NARRealtyCheck.com Communications Thomas Doyle Manager, Research Marketing Liz Giovaniello NATIONAL ASSOCIATION OF REALTORS® Communications Manager Research Division Hristina Toshkova 500 New Jersey Avenue, NW Business Manager Washington, DC 20001 Caroline Van Hollen 202-383-7518 Administrative Coordinator eresearch@realtors.org

Item # 186-75-07

Profile of Home Buyer Preferences

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