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Profile for Home Buyers and Sellers

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Profile for Home Buyers and Sellers

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

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