2010 Charlotte Profile
of Home Buyers and
Sellers: Highlights
Jessica Lautz
December 2, 2010
Methodology
• Survey conducted with recent home buyers who
purchased a home between July 2009– June 2010
• Seller informat...
Home Buyers
Typical buyer:
• 39-years-old
• $70,900
• 60% married
• 22% single females
• 11% single males
• 7% unmarried
couples
Who i...
Share of First-Time Buyers
Charlotte
Who is buying today?
First-time Buyers
U.S. First-time
Buyer:
Charlotte First-time
Buyer:
30-years-old 30-years-old
$59,90...
Used Home Buyer Tax Credit?
All Buyers First-time Buyers Repeat Buyers
Used tax credit 69% 90% 50%
Did not qualify for tax...
Factor in Home Purchase
• 72% of all buyers
reported the tax
credit was a factor
in the timing of
your recent home
purchase
U.S. Repeat Buyer: Charlotte Repeat
Buyer:
49-years-old 50-years-old
$87,000 $99,000
68% married 76% married
17% single fe...
Why do buyers want to own
today?
All Buyers First-time Buyers
Repeat
Buyers
Desire to own a home 29% 50% 10%
Job-related r...
Timing of Buyers Recent
Home Purchase
All Buyers
First-time
Buyers
Repeat
Buyers
It was just the right time, the buyer was...
What homes are being sold?
Typical home purchased in Charlotte:
• 73% of homes were previously
owned
• 78% detached single...
Location, Location, Location
• Quality of the neighborhood
• Convenient to job
• Overall affordability of
homes
• Convenie...
Importance of Commute Costs
Importance of Home’s
Environmentally Friendly Features
Compromises on Home Purchase
All Buyers
First-time
Buyers
Repeat
Buyers
Price of home 19% 23% 14%
Lot size 19 19 19
Size o...
Expected Tenure in Home
Senior-Related Housing
Share who purchased a home in senior related housing
(among buyers over 50) 10%
Type of home purcha...
The Search Process
First-step Taken
All
Buyers
AGE OF HOME BUYER
18-24 25-44 45-64
65 or
older
Looked online for properties for sale 34% 33% ...
Frequency of Use of Different
Information Sources
Usefulness of Information Sources
Use of the Internet
Length of the Search Process
Number of Weeks SearchedNumber of Weeks Searched Charlotte U.S. South
2001 7 7
2003 8 8
2004 ...
Where Buyer Found Their Home
Charlotte
Real estate agent 38%
Internet 34
Yard sign/open house sign 13
Friend, relative or ...
Most Difficult Steps in Home Buying
All
Buyers
First-time
Buyers
Repeat
Buyers
Finding the right property 54% 57% 51%
Gett...
Satisfaction in Buying Process
Working With An Agent-Buying
Method of Home Purchase
Charlotte U.S. South
Through a real estate agent or broker 84% 83% 80%
Directly from builder or bu...
What do buyers want from real
estate professionals?
Agent Skills and Qualities
All Buyers First-time BuyersRepeat Buyers
Honesty and integrity 98% 98% 99%
Responsiveness 96 9...
Benefits Buyers Had When
Using an Agent
All Buyers
First-time
Buyers
Repeat
Buyers
Helped buyer understand the process 65%...
Referrals Matter
• 53% used an agent that
was referred to them or
they had worked with
before
• 67% of home buyers
contact...
Financing the Home Purchase
Percent Who Financed Purchase
Home Financing
• Typical buyer financed 92%
– First-time buyers typically finance 96%
– Repeat buyers typically finance 84...
Difficulty of Obtaining Financing
All
Buyers
First-time
Buyers
Repeat
Buyers
Much more difficult than
expected 15% 13% 16%...
Sacrifices
• Cut spending on luxury
items
• Cut spending on
entertainment
• Cut spending on clothes
• Cancelled vacation
p...
Housing a Good or Bad Financial
Investment?
All Buyers First-time BuyersRepeat Buyers
Good financial investment 88% 93% 84...
Home Sellers
Typical seller:
• 50-years-old
• $106,700
• 82% married
• 10% single females
• 4% single males
• 2% unmarried couples
• 39...
Home Selling Situation
Why are sellers moving?
All Sellers
Job relocation 26%
Want to move closer to friends or family 20
Home is too small 15
Mo...
Trade up or down?
Price of home
sold
Price of home
purchased Difference
18 to 34 years $165,000 $263,000 $98,000
35 to 44 ...
Selling Market Today
• Sellers typically
received 96% of their
asking price for the
home
• 47% of sellers did not
reduce t...
Equity Earned in Home
TENURE IN HOME All Sellers in Charlotte
Dollar value Percent
1 year or less -$40,000 -
2 to 3 years ...
Satisfaction with the Selling Process
Working With An
Agent-Selling
Method Used to Sell Home
Charlotte U.S. South
Sold home using an agent or broker 84% 88% 85%
Seller used agent/broker only...
Level of Service Provided
What do sellers want from their
real estate professional?
• Help price home competitively
• Help seller market home to
pot...
Method to Market Home
All Homes
Listing on the Internet 93%
Yard sign 75
Open house 49
Other Web sites with real estate li...
Buyer Side: Usefulness of
Information Sources
Referrals Matter
• 58% used an agent that was
referred to them or they had
worked with before
• 51% of home sellers contac...
FSBO Sellers
FSBO Experience (Charlotte)
• Most cited reason for
FSBO selling:
– Did not want to pay a
commission or fee (36%)
• Most d...
FSBO Selling Market (U.S.)
All Sellers All FSBO
Seller
Knew
Buyer
Seller did
not Know
Buyer
All Agent-
assisted
Agent-
ass...
Social Media Changing Landscape
Interact with NAR Research on the
Internet
Join our social media
network:
Facebook
Twitter
Active Rain
RealTown
Where to find NAR Research…and
make social media easier
• FaceBook:
http://www.facebook.com/pages/NAR-Research/7388829
• S...
2010 Profile of Home
Buyers and Sellers
Jessica Lautz
jlautz@realtors.org
202-383-1155
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
2010 Charlotte Profile of Home Buyers and Sellers: Highlights
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2010 Charlotte Profile of Home Buyers and Sellers: Highlights

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2010 Charlotte Profile of Home Buyers and Sellers: Highlights

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  • 2009-share of first time buyers in charlotte was 45%
    2008---share of first time buyers in charlotte was 37%
    2007--share of first time buyers in charlotte was 35%
    2006—share of first time buyers in charlotte was 36%
  • One in five contacted 2 agents.
  • Percent change in selling price compared with purchase price
  • One in five contacted 2 agents.
  • 2010 Charlotte Profile of Home Buyers and Sellers: Highlights

    1. 1. 2010 Charlotte Profile of Home Buyers and Sellers: Highlights Jessica Lautz December 2, 2010
    2. 2. 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 3,500 questionnaires – Received 305 responses – Response rate of 8.7% – Counties: Mecklenburg, Iredell, Anson, Stanly, Gaston, Lincoln, Union, Alexander, Montgomery and Cabarrus • Names obtained from Experian
    3. 3. Home Buyers
    4. 4. Typical buyer: • 39-years-old • $70,900 • 60% married • 22% single females • 11% single males • 7% unmarried couples Who is buying today?
    5. 5. Share of First-Time Buyers Charlotte
    6. 6. Who is buying today? First-time Buyers U.S. First-time Buyer: Charlotte First-time Buyer: 30-years-old 30-years-old $59,900 $52,700 48% married 42% married 23% single females 31% single females 15% single males 14% single males 12% unmarried couples 12% unmarried couples 32% have children 34% have children
    7. 7. Used Home Buyer Tax Credit? All Buyers First-time Buyers Repeat Buyers Used tax credit 69% 90% 50% Did not qualify for tax credit 28 9 47 Was not aware of tax credit 2 1 3
    8. 8. Factor in Home Purchase • 72% of all buyers reported the tax credit was a factor in the timing of your recent home purchase
    9. 9. U.S. Repeat Buyer: Charlotte Repeat Buyer: 49-years-old 50-years-old $87,000 $99,000 68% married 76% married 17% single females 13% single females 9% single males 8% single males 4% unmarried couples 2% unmarried couples 37% have children 39% have children Who is buying today? Repeat Buyers
    10. 10. Why do buyers want to own today? All Buyers First-time Buyers Repeat Buyers Desire to own a home 29% 50% 10% Job-related relocation or move 9 2 15 Home buyer tax credit 8 15 1 Desire for larger home 8 1 13 Desire to be closer to family/friends/relatives 7 1 13 Change in family situation 7 7 7 Desire for a home in a better area 6 2 10 Retirement 6 1 10 Affordability of homes 4 4 3
    11. 11. Timing of Buyers Recent Home Purchase All Buyers First-time Buyers Repeat Buyers It was just the right time, the buyer was ready to buy a home 34% 37% 30% It was the best time because of affordability of homes 28 35 21 Did not have much choice, had to purchase 13 6 19 It was the best time because of availability of homes for sale 7 4 9 It was the best time because of mortgage financing options available 6 8 5
    12. 12. What homes are being sold? Typical home purchased in Charlotte: • 73% of homes were previously owned • 78% detached single family homes • Built in 2001 • 2,000 square feet • 3 bedrooms/2 full bathrooms • 55% of homes purchased were in the suburbs • Buyers typically moved 14 miles
    13. 13. Location, Location, Location • Quality of the neighborhood • Convenient to job • Overall affordability of homes • Convenient to shopping • Convenient to friends and family
    14. 14. Importance of Commute Costs
    15. 15. Importance of Home’s Environmentally Friendly Features
    16. 16. Compromises on Home Purchase All Buyers First-time Buyers Repeat Buyers Price of home 19% 23% 14% Lot size 19 19 19 Size of home 13 17 10 Style of home 12 15 10 Distance from job 12 15 10 Condition of home 10 13 8 Distance from friends or family 7 8 7 Quality of the neighborhood 5 7 3 Distance from school 2 3 1 Quality of the schools 2 1 3 Other compromises not listed 6 6 7 None - Made no compromises 37 31 42
    17. 17. Expected Tenure in Home
    18. 18. Senior-Related Housing Share who purchased a home in senior related housing (among buyers over 50) 10% Type of home purchased Detached single-family home 22% Townhouse/row house 33 Apartment/condo in building with 5 or more units 22 Duplex/apartment/condo in 2 to 4 unit building 11 Other 11
    19. 19. The Search Process
    20. 20. First-step Taken All Buyers AGE OF HOME BUYER 18-24 25-44 45-64 65 or older Looked online for properties for sale 34% 33% 37% 30% 31% Contacted a real estate agent 20 20 15 26 35 Looked online for information about the home buying process 15 13 18 13 3 Drove-by homes/neighborhoods 10 7 9 14 7 Talked with a friend or relative about home buying process 9 7 9 7 7 Contacted a bank or mortgage lender 5 13 6 5 3
    21. 21. Frequency of Use of Different Information Sources
    22. 22. Usefulness of Information Sources
    23. 23. Use of the Internet
    24. 24. Length of the Search Process Number of Weeks SearchedNumber of Weeks Searched Charlotte U.S. South 2001 7 7 2003 8 8 2004 8 8 2005 8 8 2006 8 8 8 2007 7 8 8 2008 8 10 8 2009 12 12 10 2010 10 12 10 Number of homes viewed 12 12 12
    25. 25. Where Buyer Found Their Home Charlotte Real estate agent 38% Internet 34 Yard sign/open house sign 13 Friend, relative or neighbor 7 Home builder or their agent 6 Print newspaper advertisement 0 Directly from sellers/Knew the sellers 2 Home book or magazine 1
    26. 26. Most Difficult Steps in Home Buying All Buyers First-time Buyers Repeat Buyers Finding the right property 54% 57% 51% Getting a mortgage 13 16 11 Meeting the April 30, 2010 deadline to qualify for the tax credit 7 10 4 Saving for the down payment 7 10 4 Appraisal of the property 5 5 5 Meeting the deadline to close on the purchase to get the tax credit (September 30, 2010) 3 6 1 No difficult steps 24 20 28
    27. 27. Satisfaction in Buying Process
    28. 28. Working With An Agent-Buying
    29. 29. Method of Home Purchase Charlotte U.S. South Through a real estate agent or broker 84% 83% 80% Directly from builder or builder's agent 8 6 9 Directly from the previous owner 3 6 5 Knew previous owner 2 3 2 Did not know previous owner 1 3 3 Through a foreclosure or trustee sale 4 4 5
    30. 30. What do buyers want from real estate professionals?
    31. 31. Agent Skills and Qualities All Buyers First-time BuyersRepeat Buyers Honesty and integrity 98% 98% 99% Responsiveness 96 95 97 Knowledge of purchase process 95 99 92 Knowledge of real estate market 95 96 95 Negotiation skills 92 90 94 Communication skills 88 89 87 Knowledge of local area 88 90 86 People skills 82 82 83 Skills with technology 42 40 44
    32. 32. Benefits Buyers Had When Using an Agent All Buyers First-time Buyers Repeat Buyers Helped buyer understand the process 65% 83% 49% Pointed out unnoticed features/faults with property 59 62 57 Negotiated better sales contract terms 50 50 50 Improved buyer's knowledge of search areas 48 50 47 Provided a better list of service providers 48 50 46 Negotiated a better price 46 45 47
    33. 33. Referrals Matter • 53% used an agent that was referred to them or they had worked with before • 67% of home buyers contacted only 1 agent during their search process • 9 in 10 would use agent again or referral to others
    34. 34. Financing the Home Purchase
    35. 35. Percent Who Financed Purchase
    36. 36. Home Financing • Typical buyer financed 92% – First-time buyers typically finance 96% – Repeat buyers typically finance 84% • Downpayment sources: – Savings – Proceeds from sale of primary residence – Gift from relative or friend – Sale of stocks or bonds – 401k/pension fund including a loan
    37. 37. Difficulty of Obtaining Financing All Buyers First-time Buyers Repeat Buyers Much more difficult than expected 15% 13% 16% Somewhat more difficult than expected 21 24 18 Not difficult/No more difficult than expected 65 63 66
    38. 38. Sacrifices • Cut spending on luxury items • Cut spending on entertainment • Cut spending on clothes • Cancelled vacation plans • Earned extra income through a second job
    39. 39. Housing a Good or Bad Financial Investment? All Buyers First-time BuyersRepeat Buyers Good financial investment 88% 93% 84% Better than stocks 47 55 40 About as good as stocks 30 27 33 Not as good as stocks 11 11 11
    40. 40. Home Sellers
    41. 41. Typical seller: • 50-years-old • $106,700 • 82% married • 10% single females • 4% single males • 2% unmarried couples • 39% have children in home • Typically lived in their home for 9 years Who is selling today?
    42. 42. Home Selling Situation
    43. 43. Why are sellers moving? All Sellers Job relocation 26% Want to move closer to friends or family 20 Home is too small 15 Moving due to retirement 11 Neighborhood has become less desirable 9 Want to move closer to current job 6 Change in family situation (e.g., marriage, birth of a child, divorce) 4 Home is too large 2 Can not afford the mortgage and other expenses of owning home 1 Other 6
    44. 44. Trade up or down? Price of home sold Price of home purchased Difference 18 to 34 years $165,000 $263,000 $98,000 35 to 44 years $165,500 $267,500 $102,000 45 to 54 years $230,000 $240,000 $10,000 55 to 64 years $321,000 $271,000 -$50,000 65 to 74 years $259,500 $205,000 -$54,500 75 years or older $237,000 $259,000 $22,000
    45. 45. Selling Market Today • Sellers typically received 96% of their asking price for the home • 47% of sellers did not reduce their asking price • 53% offered incentives • Homes were typically on the market 5 weeks
    46. 46. Equity Earned in Home TENURE IN HOME All Sellers in Charlotte Dollar value Percent 1 year or less -$40,000 - 2 to 3 years -$29,500 - 4 to 5 years $6,000 3% 6 to 7 years $24,500 11% 8 to 10 years $30,000 17% 11 to 15 years $60,500 40% 16 to 20 years $63,000 48% 21 years or more $112,500 125% Median $30,000 18%
    47. 47. Satisfaction with the Selling Process
    48. 48. Working With An Agent-Selling
    49. 49. Method Used to Sell Home Charlotte U.S. South Sold home using an agent or broker 84% 88% 85% Seller used agent/broker only 83 85 83 Seller first tried to sell it themselves, but then used an agent 1 3 2 For-sale-by-owner (FSBO) 13 9 11 Seller sold home without using a real estate agent or broker 10 8 9 First listed with an agent, but then sold home themselves 3 2 2 Sold home to a homebuying company 0 1 1 Other 2 3 3
    50. 50. Level of Service Provided
    51. 51. What do sellers want from their real estate professional? • Help price home competitively • Help seller market home to potential buyers • Help find a buyer for home
    52. 52. Method to Market Home All Homes Listing on the Internet 93% Yard sign 75 Open house 49 Other Web sites with real estate listings (e.g. Google, Yahoo) 33 Real estate magazine 27 Direct mail (flyers, postcards, etc.) 24 Print newspaper advertisement 20 Video 15 Social networking Web sites (e.g. FaceBook, MySpace, etc.) 11 Video hosting Web sites (e.g. YouTube, etc) 1 Television 1 Other 4
    53. 53. Buyer Side: Usefulness of Information Sources
    54. 54. Referrals Matter • 58% used an agent that was referred to them or they had worked with before • 51% of home sellers contacted only 1 agent during their search process • 8 in 10 would use agent again or refer them
    55. 55. FSBO Sellers
    56. 56. FSBO Experience (Charlotte) • Most cited reason for FSBO selling: – Did not want to pay a commission or fee (36%) • Most difficult tasks: – Getting the price right – Having enough time to devote to all aspects of the sale
    57. 57. FSBO Selling Market (U.S.) All Sellers All FSBO Seller Knew Buyer Seller did not Know Buyer All Agent- assisted Agent- assisted only First FSBO, then Agent- assisted Median selling price $190,000 $140,000 $139,600 $155,700 $199,300 $200,000 $168,000 Median (sales price as a percent of asking price) 96% 100% 100% 97% 96% 96% 93% Percent who reduced asking price 57% 42% 23% 62% 59% 59% 62%
    58. 58. Social Media Changing Landscape
    59. 59. Interact with NAR Research on the Internet Join our social media network: Facebook Twitter Active Rain RealTown
    60. 60. Where to find NAR Research…and make social media easier • FaceBook: http://www.facebook.com/pages/NAR-Research/7388829 • Slide Share: http://www.slideshare.net/NARResearch/ • Twitter: http://twitter.com/#!/NAR_Research • Active rain: http://activerain.com/blogs/nar_research • Real Town: http://www.realtown.com/NARResearch/blog
    61. 61. 2010 Profile of Home Buyers and Sellers Jessica Lautz jlautz@realtors.org 202-383-1155

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