CENTURY 21® First Time Home Buyers and Sellers Survey

First Time Home Buyer & Seller Survey 4.21.10

Methodology • A quantitative study in the form of an online survey was fielded from March 12th to March 16th • The margin of error for this study is 3.7 percent • Survey respondents consisted of individuals over the age of 21 who have: – Purchased their first home within the past year or are currently in the market to buy or plan to buy their first home within in the next year – Sold their first home within the past year or are in the market to sell or plan to sell their first home within the next year • The survey yielded a total of 708 completes, 353 of which are first time homebuyers and 355 who are first time home sellers Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 3

Key Findings • More than 80% of buyers believe now is a good time to buy a home • Sellers feel it’s a great time to upgrade and/or change neighborhoods due to the current home prices and low mortgage rates • Buyers and sellers feel the current housing market is more affordable today than this time last year – However, 40% are more worried about the economy now than they were last year • The majority of buyers and sellers (84%) are well aware of the tax credits available to them – In fact, 63% of first time homebuyers are motivated to purchase a home due to the available tax credit Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 4

Key Findings • 85% of buyers and sellers view real estate agents as an important part of the home buying/selling process • About 70% of sellers and buyers either used or expect to use a realtor to help them buy or sell their home • First time homebuyers are less confident and need the most help from realtors—60% feel they don’t have a good handle on the real estate process Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 5

Key Findings • Friends and personal recommendations are the top method for finding a realtor among buyers and sellers – However, buyers are more prone to advertising as a means of finding a realtor. 13% look at ads in the newspaper, 25% contact realtors through area open house signs and 24% look on listing websites • Both buyers and sellers agree that trustworthiness, responsiveness and knowledge of an area are important qualities for a realtor to possess – However, buyers are more apt to find a realtors connections to mortgage brokers and their ability to provide enough quality listings more important than sellers Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 6

Age of Respondents • Not surprisingly, 1st time buyers skew younger than sellers • 30’s seem to be the point of entry for many in to the housing market Age 1st Time Sellers 1st Time Buyers (353) (355) A B <30 11.0% 12.5% 30-39 28.2% 35.7%A 40-49 21.7% 27.8% 50-64 31.0%B 21.2% 65+ 8.2%B 2.8% Q. Which of the following best describes your age? Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 8

Economic Concerns • Both 1st time buyers and sellers remain concerned about the economy – with almost 90% in both cases reporting some level of concern • Interestingly, concern levels are the same across the board regardless if you are a buyer or a seller Q. How concerned are you about the state of the economy? 50% 49% 36% 37% Sellers Buyers 12% 12% 2% 3% Not worried at all Not very worried Somewhat Very worried worried Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 9

Concerns on the Rise • Despite the bounce back in the stock exchange, respondent confidence in the economy has worsened, with 40% of both buyers and sellers saying that they are more worried now than they were last year. Q. How does your current concern about the state of the economy compare to how you felt this time last year? 40% 43% 23% 21% 19% 19% Seller 15% 16% Buyer 3% 1% Much less worried Somewhat less The Same Somewhat more Much more worried worried worried Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 10

It’s a Buyers Market • Almost 30% of 1st time home buyers believe that now is a great time to buy a home! • Likewise, both buyers and sellers agree that buyers are in control, with almost half of 1st time sellers stating that now is a very bad time to have to be selling. Q. In your opinion, how good of a time is it to buy a home? 29% Buyers 53% 12% 7% 38% Sellers 43% 10% 9% Very good time Somewhat good time Somewhat not a good time Column1 Q. In your opinion, how good of a time is it to sell a home? Not a very good time 3% Buyers2 11% 33% 52% 5% Sellers2 15% 32% 49% 0% 10% 20% 30% 40% 50% 60% Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 11

Housing Affordability • Both Buyers and Sellers agree that housing is more affordable now, with 46% of first time buyer believing that home prices are better this year than last • Sellers, most likely due to their experience, are more likely to recognize how much more affordable prices are today. Sellers Buyers Q. In the current market, how affordable would you say home prices are? Very affordable 26.8%B 19.0% Somewhat affordable 57.7% 60.6% Not very affordable 13.0% 16.1% Not affordable at all 2.5% 4.2% Q. How affordable do you think home prices are now compared to this time last year? Much more affordable 12.7% 10.8% Somewhat more affordable 41.7% 35.4% The same 35.8% 38.5% Somewhat less affordable 7.6% 13.3%A Much less affordable 2.3% 2.0% Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 12

Home Prices—Sellers • Sellers are not anticipating housing prices will decrease much further and expect that they will begin increasing again by this time next year. Q. How much do you think home prices will fluctuate over the next 3 months, 6 months, 1 year, 2 years? 3 mths 60% 6 mths 1 year 52% 49% 2 years 48% 31% 23% 22% 19% 19% 15% 9% 10% 11% 8% 7% 8% 6% 4% 1% Decrease a lot Decrease a little Stay the same Increase a little Increase a lot Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 13

Home Prices—Buyers • Buyers also believe that housing prices will rebound in the next year, however it should be noted that they are more likely to believe that prices will modestly drop in the coming months – which may delay them making a purchase decision Q. How much do you think home prices will fluctuate over the next 3 months, 6 months, 1 year, 2 years? 3 mths 60% 6 mths 1 year 46% 2 years 47% 44% 30% 27% 25% 20% 21% 19% 16% 10% 10% 7% 5% 4% 1% 0% Decrease a lot Decrease a little Stay the same Increase a little Increase a lot Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 14

Mortgage Rates • Both 1st time buyers and sellers believe that mortgage rates are good right now • Most likely due to their experience, sellers are more likely to find the current rates affordable, and less likely to believe that they are higher vs. a year ago. Sellers Buyer How affordable do you think home mortgage (355) (353) rates currently are? A B Very affordable 35%B 21% Somewhat affordable 51% 58% Not very affordable 11% 17%A Not affordable at all 3% 5% How do you think current home mortgage rates compare to rates from this time last year? Much/ somewhat lower 39% 37% Much/ somewhat higher 16% 20% Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 15

Ability to Obtain a Mortgage • Most respondents feel that getting a mortgage today is fairly difficult, and almost half believe that it’s only going to get worse • Because many may be going through the process currently, buyers were significantly more likely to find the process very difficult vs. not difficult at all Not at all Somewhat Very How difficult do you think it is to difficult difficult difficult get a mortgage right now? A B C Sellers (355) 18% 56%AC 26% Buyers (353) 13% 56%AC 31%A How difficult do you think it is to get a Sellers Buyers mortgage now compared to this time last year? Much/ somewhat more difficult 45% 45% Much/ somewhat less difficult 15% 13% Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 16

Real Estate Process • First time buyers are significantly more likely to rate their understanding of the real estate process as poor or fair. – 60% do not feel they have a good handle on the process • While most buyers and sellers (67%, 68%) find the process to be moderately difficult, 17% of buyers find it to be very difficult vs. 13% of sellers. Q. How would you rate your understanding of the real estate process? 47% 44% 38% 34% Seller 13% 12% Buyer 6% 7% Poor Fair Good Excellent = statistical significance Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 17

Importance of a realtor • More than 85% of 1st time buyers and sellers feel that using a realtor is important right now • 70% of sellers and 68% of buyers state that they either used or plan to use a realtor to help them buy or sell their home • 15% of sellers and 17% of buyers are unsure if they will use a realtor. 15% of each group said that they don NOT plan to use a realtor. Q. With the current market, how important is it to use a real estate agent? Sellers 52% 50% Buyers 36% 33% 11% 10% 4% 4% Not at all Somewhat not somewhat Very important important important important Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 18

Finding a Realtor • Not surprisingly, word of mouth remains the highest means in which to find a realtor • For first time buyers, advertising and website listings has a significantly greater effect. Seller Buyer How did you find/ do you expect to find a (302) (300) realtor? A B Through friends/ personal recommendations 58% 61% Ratings on sites like Angie’s list 4% 4% Calling realtor offices with good reputations 29% 29% Contacting listing realtors on area open house signs 14% 25%A Contacting realtors on listing websites 12% 24%A Ads in newspapers 6% 13%A Social networks 2% 4% Sample: those who stated they either used or planned to use a realtor Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 19

Needed Skills in a Realtor • Knowledge of the area, trust and responsiveness are the top skills valued in realtors for both buyers and sellers. Seller Buyer Which of the following qualities do you think (355) (353) are most important when finding a realtor? A B Strong financial knowledge 27% 28% Connections to mortgage brokers 21% 28%A Experience 56% 54% Responsive 56% 60% Trustworthy 67% 70% Knowledge of the area 62% 59% Negotiating skills 40% 41% Good reputation 54% 57% Having enough quality listings 23% 36%A Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 20

Resources Used • Real estate agents – both in person and via the web – are top resources for buyers Q. Please indicate whether you are currently or planning to use the following resources 48% 56% 39% 43% 57% 47% 47% 31% 38% 44% 31% 27% 20% 24% 41% 35% 35% 34% 17% 34% 29% 30% 27% 25% 23% 16% 20% 17% 6% 3% 9% 6% Friends or Local Area Real Estate Books Aggregator Realtor WOM Family Realtor Newspapers Blogs Sites (i.e. Websites zillow) (C21) Sellers: Currently Use Expect to Use Buyers: Currently Use Expect to Use Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 21

Distance Planning to Move • The majority of respondents have moved or intend to move more than 10 miles, but less than 50 miles from where they previously lived Q. Which of the following best describes how far (distance) you have moved or intend to move? 15% Sellers Within 5 21% Buyers Miles Away from Previous Home > 5 but <10 17% 21% 29% >10 but <50 32% >50 but <100 9% 4% >100 but <300 7% 4% >300 18% 11% Does not apply 5% 7% = statistical significance Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 22

First Time Homebuyer Tax Credit • 84% of first time buyers are aware of the first time homebuyer tax credit • 64% of those who state they are in the market for their first home say they qualify for this credit – 21% are unsure or prefer not to say Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 24

Home Buying Influencers • The current housing prices were the biggest reason for new buyers to enter the market, followed closely by both the homebuyer tax credit and interest rates. Q. How much did the following factors influence your decision to buy a home 66% 63% 70% 60% 60% 50% 41% 42% 34% 36% 40% 30% 18% 15% 20% 11% 10% 0% Investment Family needs Current housing Homebuyer tax Low interest Opportunity prices credit rates Top 2 box Bottom 2 box Note: Based off a 5pt scale where 5= “greatly influenced” and 1= “did not influence at all” Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 25

Intent to Purchase a Home Under Unique Circumstances • Only roughly one-quarter of first time homebuyers plan to purchase or have purchased a home under a short sale agreement or in foreclosure Q. Did you buy or are you planning to buy a home that is…? 42% 16% 16% 16% 10% In Foreclosure Under Short A Fixer-upper A New None of the Sale Agreement Construction Above Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 26

Factors of Importance When Buying a Home • Finding a home within a buyers price range is extremely important (95%), as is a neighborhoods safety (90%) • First time homebuyers are least concerned with living close to public transportation and finding a good school system Q. How important are the following factors when Top 2 Box Bottom 2 purchasing a home? Box Finding a good school system 41% 45% Finding a home within my price range 95% 2% Living close to public transportation 24% 54% Living close to family 34% 38% Size of home 77% 4% Size of yard/land 65% 11% Proximity to local shops & restaurants 57% 13% Safety of neighborhood 90% 2% Amount of property tax 73% 4% Distance to either your job site or your partners 61% 15% Note: Based off a 5pt scale where 5= “very important” and 1= “not at all important” Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 27

Concerns for First Time Homebuyers • Over half of first time homebuyers are more concerned with securing an affordable mortgage rate than actually being approved for a mortgage Q. How worried are you or were you about the following? Top 2 Box Bottom 2 Box Getting approved for a mortgage 47% 30% Securing an affordable mortgage rate 52% 24% Having enough money for a down payment 48% 32% Not paying too much for a property 49% 26% Finding a property in good condition 47% 27% Home prices beginning to rise if I don’t purchase a home soon 47% 24% Suffering a loss of income (through unemployment or a pay cut) 45% 29% Finding a property in the location that I wanted 47% 28% Dealing with the paperwork involved 41% 29% Note: Based off a 5pt scale where 5= “very worried” and 1= “not at all worried” Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 28

Home Buying Time Frame • Almost half (43%) of first time homebuyers are carefully considering buying before actually beginning to engage in the search process • 56% of first time homebuyers have spent up to six months actively searching for a home Time Spent Considering the Time Spent Searching Purchase of a Home for a Home 43% 29% 22% 18% 21% 16% 13% 8% 10% 7% 6% 7% < 1 mo 1-3 mo 4-6 7-9 10-12 > 12 < 1 mo 1-3 mo 4-6 7-9 10-12 > 12 mo mo mo mo mo mo mo mo Q. How long did you think about buying a home Q. How long did you search/have you been before you actually started to engage in the process? actively searching for a home? Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 29

Length of Time Buyers Plan to Reside in Home • First time homebuyers are looking for a home they can reside in for an extensive period of time – 61% plan to live in their first home for at least 10 years before selling 44% Q. How long do you expect to live in your first home before selling? 19% 18% 17% 2% Less than At least At least At least More than 1 yr 3 yrs 7 yrs 10 yrs 10 yrs Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 30

Locations & Types of Homes Being Purchased • The majority of first time homebuyers (81%) are searching for a single family home • Over half of all first time homebuyers (53%) are interested in purchasing a home in the suburbs • Cities are the second most sought out area to purchase a home in (30%) What type of home did you purchase What type of area are you planning or are you currently interested in on purchasing a home in? purchasing? 53% 81% 30% 24% 13% 14% 3% 4% 4% Condo/ Townhouse Single Family Two Family Other City Suburb More rural Not sure Apartment Home Home Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 31

Locations & Types of Homes Being Purchased, cont. • 64% of first time homebuyers are looking to purchase a two family home in the suburbs • Condos/apartments and townhouses are mainly appealing to buyers looking to purchase a home in the city 64% 57% 57% 54% 54% 48% 45% 46% 36% 29% 27% 18% 18% 11%12% 8% 2% 2% 4% 0% City Suburb More rural area Not sure Condo/Apartment Townhouse Single Family Home Two Family Home Other Q. What type of home did you purchase or are you currently interested in purchasing? Q. What type of area are you planning on purchasing a home in? Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 32

Move-Up/Repeat Homebuyer Tax Credit • 84% of first time sellers are aware of the move- up/repeat homebuyer tax credit • 33% of those who state they are in the market for their second home say they qualify for this credit – 24% are unsure or prefer not to say Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 34

Reasons for Selling • First time home sellers are placing their homes on the market for a varied of reasons Q. Why did you/are you selling your home? 26% 25% 26% 23% 18% 14% Upgrading Downsizing Job Changing Lifestyle Other Transfer Neighborhoods Change Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 35

Deciding to Sell • Deciding to sell a home is still largely based on personal and family related reasons (48%) • The current housing prices are also motivating sellers (48%) Q. How did the following factors influence your decision to sell your home? Top 2 Bottom 2 63% 56% 48% 48% 41% 37% 40% 33% 25% 17% Investment Family Current Move-up/repeat Low interest rates opportunity reasons housing homebuyer prices tax credit Note: Based off a 5pt scale where 5= “greatly influenced” and 1= “did not influence at all” Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 36

Decisions Based on Reasons to Sell • The current home prices have influenced 50% of sellers to upgrade their home and 37% to change neighborhoods Greatest Influence (Top 2 Box) 65% 56% 48% 48% 50% 46% 44% 42% 43% 37% 37% 32% 31% 31% 34% 30% 27% 31% 28% 24% 24% 22% 23% 25% 17% 18% 20% 15% 11% 9% Investment Family Reasons Current Housing Prices Move-up Low Interest Opportunity Homebuyer Tax Credit Rates Upgrading Downsizing Job Transfer Changing Neighborhoods Lifestyle Change Other Q. Why did you/are you selling your home? Q. How did the following factors influence your decision to sell your home? / 5pt scale, 5=“greatly influenced” and 1= “did not influence at all” Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 37

Preparations to Sell Home • When preparing to put a home on the market, the internet is an important tool that’s frequently utilized by sellers • 55% look at listing prices of homes on real estate sites, while another 41% get specific estimates on their home or will look at comparable homes online Q. Which of the following activities did you do or are you currently doing to prepare your home for market? Visit other local open houses 22% Look at listing prices of homes on real 55% estate websites Go online to get a specific estimate on my 41% home or look at comparable homes Have my realtor pull area comps 45% None of the above 23% Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 38

Potential Concerns • Sellers are mainly concerned about losing money on the sale of their home and getting offers near their asking price Q. How concerned are you/were you with the following Top 2 Bottom 2 issues when putting your house on the market? Box Box Listing too high 26% 34% Listing too low 37% 34% Realtor not being aggressive enough in getting qualified buyers 39% 30% Getting offers near my asking price 67% 13% Selling my home within a specific time frame 56% 20% House being in the right condition to be put on the market 49% 29% Finding a property to move in to within a reasonable time 41% 39% Problems with the close of sale due to appraisals 34% 34% Buyers ability to get a mortgage 54% 18% Losing money on the sale 57% 21% Note: Based off a 5pt scale where 5= “very concerned” and 1= “not at all concerned” Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 39

Home Selling Time Frame • A little less than half of sellers (42%) have lived in their homes for over 10 years • Half of all sellers haven’t yet placed their home on the market, but plan to within the next 12 months Years Spent in 1st Home Length of Time Home Has Before Selling 42% Been on Market 50% 18% 16% 16% 10% 10% 11% 10% 8% 6% 3% 1-3 3-5 5-7 7-10 yrs > 10 < 1 mo 1-3 4-6 7-9 10-12 mo Over 12 Not on yrs yrs yrs yrs mo mo mo mo market yet Q. How long did you/have you lived in your Q. How long has your home been on the home prior to placing it on the market? market? Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 40

Location & Types of Homes Being Sold • The majority of sellers (80%) have sold or are planning to sell a single family home • 54% are selling or planning to sell a home located in the suburbs What type of home did you sell or are you What type of area is/was your currently trying to sell? home located in? 54% 80% 24% 20% 9% 7% 1% 3% 2% Condo/ Townhouse Single Two Family Other City Suburb More rural Not sure Apartment Family Home Home Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 41

Locations & Types of Homes Being Sold, cont. • Over half of sellers (54%) owned a home in the suburbs which they’re now trying to sell • Townhouses, condos/apartments and single family homes are the primary types of homes to be placed on the market 65% 52% 54% 39% 40% 33% 33% 33% 31% 30% 24% 22% 20% 10% 7% 4% 3% 0% 1% 0% City Suburb Rural Area Not Sure Cond/Apartment Townhouse Single Family Home Two Family Home Other Q. What type of home did you sell or are you currently trying to sell? Q. What type of area is/was your home located in? Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 42

Marital Status Q. What is your current marital status? SELLERS BUYERS Divorced/ Divorced/ Married separated separated 15% Married 17% 63% Widowed 48% Widowed 2% 6% Single Single (never (never married) married) 16% 33% = statistical significance Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 45

Children • The majority of Sellers and Buyers don’t have children living with them Q. Do you have any children under the age of 18 living at your home with you? Sellers Buyers Yes Yes No 35% 37% No 65% 63% Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 46

Number of Children Q. How many children live in your household? 40% 37% 33%33% Sellers Buyers 15% 16% 12% 8% 2% 1% 2% 1% 1 Child 2 Children 3 Children 4 Children 5 Children 6+ Children Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 47

Ethnicity Q. Which best describes your ethnicity? 87% Sellers 76% Buyers 8% 5% 8% 4% 2% 5% 1% 2% 1% 1% Caucasian African Hispanic/ Asian Other Prefer not to American Latino American answer = statistical significance Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 48

Household Income • The majority of buyers and sellers earn a household income between $30,000 and $74,999 Q. Which of the following categories best describes your annual household income before taxes? 29% Sellers 25% Buyers 21% 22% 17% 17% 14% 12% 9% 10% 7% 6% 5% 6% Under $30K $30K-$49,999 $50K-$74,999 $75K-$99,999 $100K-$125K $125K+ Prefer not to answer Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 49

Employment Status • There are almost twice as many retired or semi-retired sellers than buyers Sellers Buyers Other 3% Other Unemployed 4% 5% Unemployed 7% Full time 58% Retired or Retired or Full time semi-retired semi-retired 61% 14% 8% Part time Homemaker Homemaker Part time 11% 9% 9% 11% Q. Which of the following best describes your current employment status? = statistical significance Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 50

Education Q. What is the highest level of education that you’ve completed? 37% 35% Sellers 32% 33% Buyers 20% 18% 11% 11% 1% 1% 1% 0% Some High High School Some College or Bachelor's Post Graduate Prefer Not to School Graduate Trade School Degree Degree Answer Copyright © 2010 Century 21 Real Estate LLC. All rights reserved. 51

Thank you.

http://agentgenius.com	23
http://www.slideshare.net	14
http://agbeat.com	3

CENTURY 21® First Time Home Buyers and Sellers Survey

by CENTURY 21 on Apr 20, 2010

Accessibility

Categories

Upload Details

Usage Rights

3 Embeds 40

Statistics