Well, it’s that time of the year again.
The turkey has been prepared, the decorations are out, your friends and family have arrived and the children are waiting eagerly by the fireplace for the annual tradition to get started. Let the festivities begin:
The 2013 Profile of Home Buyers and Sellers has been released by NAR.
Pop the bubbly!
Let’s see what cool gifts they’ve given us this time…
- The use of internet in the home search process rose to 92%!!!!!1!
Whoa! That’s a ridiculously high number. Not that I’m surprised, since we at RESAAS have been preaching the importance of the internet for quite some time now. Oh well, it’s still an exciting present anyway. I’m sure we’ll have some fun playing with that number in future articles.
Let’s see what else they’ve given us…
- 42% of home buyers looked online for properties as their first step, while 14% of home buyers looked online for information about the home buying process as their first step.
- 88% of buyers purchased their home through a real estate agent or broker. This has steadily increased from 69% in 2001.
- 12% of buyers used online recommendations when searching for an agent, and it influenced half of those buyers.
- 42% of buyers found their agent through a referral from a friend or family member. 12% used an agent they had used previously.
- 39% of sellers found their agent through a referral from a friend or family member. 25% used the agent they worked with previously.
- Two-thirds of recent buyers and sellers only interviewed one agent before they found the agent they worked with.
- 88% of buyers would use the same agent again or recommend to others.
- 84% of sellers would definitely (65%) or probably (19%) use the same agent again.
- 38% of recent home buyers were first-time home buyers, which is lower than the historical norm of 40%
- The typical buyer was 42 years old. The typical first-time buyer was 31. The typical repeat buyer was 52.
- 66% of recent home buyers were married couples. This was the highest share since 2001.
- 88% of home buyers financed their recent home purchase.
- 95% of first time home buyers financed their home. 86% of repeat buyers financed their home.
- Almost a quarter of buyers reported the mortgage application and approval process was somewhat more difficult than expected. 16% reported it was much more difficult.
- 12% of buyers cited saving for a down payment was difficult.
- 43% of buyers reported student loans as the reason for difficulty.
- 38% reported credit card debt.
- 31% reported car loans.
As always, this gives us a lot to work with. What sticks out the most, however, is the fact that while the use of internet during the home search process has continued to rise (92%!!1!), the real estate agent still plays a vital role.
What’s more, an agent is chosen after a very brief search period and is more often than not used again for future home transactions. This means that getting yourself in front of first-time home buyers is extremely important so as to retain customers.
First-time home buyers represented a lower share of the recent home purchase market than the historical norm, and given the nature of historical norms, you would have to assume that there will be an increase of first time home buyers in the near future.
What is also apparent is that almost all first-time home buyers need to finance their home, and almost one in four held misconceptions about how difficult this process actually was.
You need to present yourself as an expert to those who are new to real estate. You need to establish yourself online where they conduct their research. You need to be a source of knowledge.
This is where RESAAS comes in.
Answer questions directly from consumers. Market yourself through social engagement. Show your knowledge.