2010 nar profile of home buyers and sellers
DESCRIPTION
Yearly study published by the National Association of REALTORS covering the home buying and selling process.TRANSCRIPT
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2010 Profile of Home Buyers and Sellers
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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
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Home Buyers
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Share of First-Time Buyers
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Who is buying today?
First-time Buyer: Repeat Buyer:30-years-old 49-years-old$59,900 $87,00048% married 68% married23% single females
17% single females
15% single males 9% single males12% unmarried couples
4% unmarried couples
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Why do buyers want to own today?
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Senior Related Housing
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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
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Expected Tenure in Home
Years in Home
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The Search Process
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Usefulness of Information Sources
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Length of the Search Process
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Method of Home Purchase
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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
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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
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Financing the Home Purchase
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Sacrifices
• Cut spending on luxury items
• Cut spending on entertainment
• Cut spending on clothes
• Cancelled vacation plans
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Housing a Good or Bad Financial Investment?
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Used Tax Credit
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Home Sellers
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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
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Why are sellers moving?
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Trade up or down?
• More than half purchased a home that was more expensive
• 51% purchased a larger home
• 57% purchased a newer home
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Equity Earned in Home
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Method Used to Sell Home
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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
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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
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Social Media Changing Landscape
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First Step in Home Buying
All BuyersFirst-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
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Frequency of Use of Different Information Sources
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Usefulness of Information Sources
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Value of Website Features
Very Useful
Somewhat Useful Not Useful
Did not use/Not
AvailablePhotos 85% 14% 1% 1%Detailed information about properties for sale 83 16 1 1Virtual tours 61 27 5 6Real estate agent contact information 45 35 10 10Interactive maps 43 35 10 12Neighborhood information 40 43 9 8Pending sales/contract status 33 35 16 16Detailed information about recently sold properties 30 39 16 15Information about upcoming open houses 21 34 22 23
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Websites Used by Age of Buyer
AGE OF HOME BUYERAll 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 38Real estate agent Web site 42 41 44 41 40Other Web sites with real estate listings 30 38 33 26 24For-sale-by-owner Web site 15 12 16 14 10Homes.com 11 15 11 12 6Newspaper Web site 8 12 9 7 8
Real estate magazine Web site 4 5 4 4 6Social networking Web sites (e.g. Facebook, MySpace, etc.) 2 2 2 1 1Video hosting Web sites (e.g. YouTube, etc.) 1 1 1 1 *
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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 29Drove by or viewed home 21 22 20
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Where Buyer Found Their Home
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Disconnect: Sellers’ Method to Market Home
All HomesListing on the Internet 91%Yard sign 79Open house 56Print newspaper advertisement 28Real estate magazine 25Other Web sites with real estate listings 25Direct mail (flyers, postcards, etc.) 16Video 12Social networking Web sites 5Television 2Video hosting Web sites (e.g., YouTube, etc.) 2Other 5
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Interact with NAR Research on the Internet
Join our social media network:FacebookTwitterActive RainRealTown
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Where to find NAR Research…and make social media easier
• FaceBook: http://www.facebook.com/pages/NAR-Research/73888294183
• 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
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2010 Profile of Home Buyers and Sellers