Profile of Home Buyers and Sellers

Jessica LautzMay 12, 2011

Home Buyers

Typical buyer:• 39-years-old• $72,200• 58% married• 20% single females• 12% single males• 8% unmarried

couples• 35% have children in

home

Who is buying today?

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

32% have children

37% have children

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 4Desire to be closer to family/friends/relatives 5 1 10

Desire for a home in a better area 5 2 7

What homes are being sold?

Typical home purchased:• 85% of homes were

previously owned• 77% detached single

family homes• Built in 1990• 1,780 square feet• 3 bedrooms/2 full baths• More than half of homes

purchased were in the suburbs

• Buyers typically moved 12 miles

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

The Search Process

First Step in Buying Process

All Buyer

s

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 35Looked 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 12Talked with a friend or relative about home buying process

7 13 8 4 6

Visited open houses 4 2 2 5 9

Use of Information Sources

Where Buyer Found Their Home

Length of the Search Process

Number of Weeks Searched

Satisfaction With Buying Process

Method of Home Purchase

What do buyers want from real estate professionals?

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 50Negotiated better sales contract terms 42 43 40Improved buyer's knowledge of search areas 42 41 43Provided a better list of service providers 41 41 42Negotiated a better price 34 34 34

Referrals Matter

• 57% used an agent that was referred to them or they had worked with before

• 87% would refer their agent or work with them again

• 64% of home buyers contacted only 1 agent during their search process

Home Sellers

Typical seller:• 46-years-old• $90,000• 75% married• 16% single females• 6% single males• 3% unmarried

couples• 40% have children in

home• Typically lived in

their home for 8 years

Who is selling today?

Why are sellers moving?

• Home is too small• Job relocation• Want to move closer to

friends or family• Neighborhood has become

less desirable• Change in family situation

(e.g., marriage, birth of a child, divorce)

Trade up or down?

• 55% purchased a more expensive home

• 51% purchased a larger home

• 57% purchased a new home

Satisfaction With Selling Process

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

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

Referrals Matter

• 64% used an agent that was referred to them or they had worked with before

• 84% would refer their agent or work with them again

• 66% of home sellers contacted only 1 agent during their search process