The survey was conducted with recent home buyers who purchased a home between July 2008 and June 2009. Seller information was gathered from those home buyers who also sold a home. We sent out 120,038 questionnaires, and received 9,138 responses, for a response rate of 7.9 percent. Paper survey. Names obtained from Experian.
82% of homes were previously owned 78% detached single family homes Built in 1991 1,800 square feet More than half of homes purchased were in the suburbs, 18% in urban areas, and 17% in small towns. One in ten were in rural areas. Buyers typically moved 12 miles.
90 percent of home buyers used the Internet in their home search. A share that has been steadily increasing. 87 percent used real estate agents in their home search. Buyers continue to site finding about the home they purchased from their real estate agent (36%) and the Internet (36%)
Typically a buyer viewed 12 homes during the search process. In the West buyers typically viewed 15 homes, in the Midwest and South 12 homes and Northeast the lowest amount at 10. Buyers who didn’t use the Internet typically only saw 5 homes. Those who used the Internet saw 15.
In the West 17% percent of home purchases were through a foreclosure. 9% in the South, where one in ten purchased through a builder, Midwest only 8% purchased through a foreclosure, and 4% in the Northeast. 15% of unmarried couples bought foreclosures. First time buyers were slightly more likely to purchase a foreclosed home.
66% would definitely refer their agent or work with them again an additional 22% probably would 66% of home buyers contacted only one agent during their search process One in five contacted 2 agents.
92% of home buyers financed their home purchase FT buyers typically finance 96 percent of their home purchase and repeat buyers typically finance 85% The percent of buyers who financed 100 percent of their home purchase dropped from 23 percent to 15 percent of buyers. This has continued to decline in recent years.
While more than half of buyers did not need to cut spending or make any sacrifices for their home purchase Repeat buyers make less sacrifices than first time buyers. Spending habits differ from household composition. Cut spending on luxury items—32 percent Cut spending on entertainment –30 percent Cut spending on clothes—23 percent Cancelled vacation plans—12 percent
26% reduced their price once incentives—21 percent home warranty policies and 18 percent assistance with closing costs
50 percent also purchased an older home, while 1/3 purchased a newer home. Age influenced the price trade as well as the square footage.
Percent change in selling price compared with purchase price
Reputation of agent Agent is honest and trustworthy Agent is friend or family member Agent’s knowledge of the neighborhood
59% would definitely refer their agent or work with them again an additional 22% probably would 64% of home buyers contacted only one agent during their search process One in five contacted 2 agents.
The survey was conducted with recent home buyers who purchased a home between July 2008 and June 2009. Seller information was gathered from those home buyers who also sold a home. We sent out 120,038 questionnaires, and received 9,138 responses, for a response rate of 7.9 percent. Paper survey. Names obtained from Experian.
2010 NAR Profile of Home Buyers and Sellers HighlightsPresentation Transcript
2010 Profile of Home Buyers and Sellers
Methodology
Survey conducted with recent home buyers who purchased a home between July 2009– June 2010
Seller information gathered from those home buyers who sold a home
Mailed 111,004 questionnaires
Received 8,449 responses
Response rate of 7.9%
Names obtained from Experian
Home Buyers
Share of First-Time Buyers
Who is buying today? First-time Buyer: Repeat Buyer:
30-years-old
49-years-old
$59,900
$87,000
48% married
68% married
23% single females
17% single females
15% single males
9% single males
12% unmarried couples
4% unmarried couples
Why do buyers want to own today?
Senior Related Housing
Location, Location, Location
Quality of the neighborhood
Convenient to job
Overall affordability of homes
Convenient to friends and family
Quality of the school district
Convenient to shopping
Expected Tenure in Home Years in Home
The Search Process
Usefulness of Information Sources
Length of the Search Process
Method of Home Purchase
Benefits Buyers Had When Using an Agent First-time Buyers Repeat Buyers Helped buyer understand the process 80% 53% Pointed out unnoticed features/faults with property 55 50 Negotiated better sales contract terms 43 40 Improved buyer's knowledge of search areas 41 43 Provided a better list of service providers 41 42 Negotiated a better price 34 34
Referrals Matter
57 percent used an agent that was referred to them or they had worked with before
87 percent would refer their agent or work with them again
64 percent only interviewed 1 agent
Financing the Home Purchase
Sacrifices
Cut spending on luxury items
Cut spending on entertainment
Cut spending on clothes
Cancelled vacation plans
Housing a Good or Bad Financial Investment?
Used Tax Credit
Home Sellers
Selling Market Today
Sellers typically received 96% of their asking price for the home
43% of sellers did not reduce their asking price
44% offered incentives
Homes were typically on the market 8 weeks
Why are sellers moving?
Trade up or down?
More than half purchased a home that was more expensive
51% purchased a larger home
57% purchased a newer home
Equity Earned in Home
Method Used to Sell Home
What do sellers want from their real estate professional?
Help price home competitively
Help find a buyer for home
Help seller market home to potential buyers
Help sell the home within specific timeframe
Referrals Matter
64 percent used an agent that was referred to them or they had worked with before
84 percent would use agent again or refer to others
66 percent only contacted one agent during search process
Social Media Changing Landscape
First Step in Home Buying All Buyers First-time Buyers Repeat Buyers Looked online for properties for sale 36% 32% 41% Contacted a real estate agent 19 16 22 Looked online for information about the home buying process 11 15 8 Contacted a bank or mortgage lender 8 10 6 Drove-by homes/neighborhoods 7 6 9
Frequency of Use of Different Information Sources
Usefulness of Information Sources
Value of Website Features Very Useful Somewhat Useful Not Useful Did not use/Not Available Photos 85% 14% 1% 1% Detailed information about properties for sale 83 16 1 1 Virtual tours 61 27 5 6 Real estate agent contact information 45 35 10 10 Interactive maps 43 35 10 12 Neighborhood information 40 43 9 8 Pending sales/contract status 33 35 16 16 Detailed information about recently sold properties 30 39 16 15 Information about upcoming open houses 21 34 22 23
Websites Used by Age of Buyer AGE OF HOME BUYER All Buyers 18 to 24 25 to 44 45 to 64 65 or older Multiple Listing Service (MLS) Web site 59% 57% 60% 58% 55% REALTOR.com® 45 47 46 44 42 Real estate company Web site 43 45 44 43 38 Real estate agent Web site 42 41 44 41 40 Other Web sites with real estate listings 30 38 33 26 24 For-sale-by-owner Web site 15 12 16 14 10 Homes.com 11 15 11 12 6 Newspaper Web site 8 12 9 7 8 Real estate magazine Web site 4 5 4 4 6 Social networking Web sites (e.g. Facebook, MySpace, etc.) 2 2 2 1 1 Video hosting Web sites (e.g. YouTube, etc.) 1 1 1 1 *
Actions Taken from Result of Internet Search All Buyers First-time Buyers Repeat Buyers Walked through home viewed online 45% 44% 47% Found the agent used to search for or buy home 29 30 29 Drove by or viewed home 21 22 20
Where Buyer Found Their Home
Disconnect: Sellers’ Method to Market Home All Homes Listing on the Internet 91% Yard sign 79 Open house 56 Print newspaper advertisement 28 Real estate magazine 25 Other Web sites with real estate listings 25 Direct mail (flyers, postcards, etc.) 16 Video 12 Social networking Web sites 5 Television 2 Video hosting Web sites (e.g., YouTube, etc.) 2 Other 5
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