Home Buyer Statistics

Written by on April 11, 2011 in Uncategorized - No comments

Active home search (median):

* Number of weeks searched: 12
* Number of homes seen: 15

First-Time vs. Repeat Buyers:

* First-time buyers: 50%
* Repeat buyers: 50%
* Median age of first-time buyers: 30
* Median age of repeat buyers: 49

Buyers who definitely would use same agent again: 65%

Actions taken as result of Internet home search:

* Walked through a home viewed online: 45%
* Found agent used to search/buy home: 29%
* Drove by/viewed a home: 21%

Information sources used in home search:

* Internet: 74%
* Real estate agent: 69%
* Yard sign: 22%
* Open house: 12%
* Newspaper ad: 9%
* Home book or magazine: 6%

Source: 2010 National Association of REALTORS® Profile of Home Buyers and Sellers

Did You Know?

The first-time homebuyer share climbed in both 2007 and 2008, and then surged in 2009. First-time purchasers rose from 36 percent of all homebuyers in 2006 to about 45 percent in 2009. The increase in share added roughly 306,000 sales in 2008-9. Without this gain, existing home sales for the year would have fallen by 63,000.

An important catalyst for the jump in first-time homebuyers in 2009, however, was the first-time homebuyer tax credit program. Various estimates place the impact of the tax credit on either pulling demand forward or releasing pent-up demand at 200,000-400,000 additional buyers- similar to last year’s increase in first-time sales.

Source: State of the Nation’s Housing 2010 (Harvard University – Joint Center for Housing Studies)

For Sale By Owner (FSBO) Statistics

FSBOs accounted for 9% of home sales in 2010. The typical FSBO home sold for $140,000 compared to $199,300 for agent-assisted home sales.

FSBO Methods Used to Market Home:

* Listing on Internet . . . 27%
* For-sale-by-owner Web site . . . 11%
* Yard sign . . . 46%
* Friends/neighbors . . . 39%
* Newspaper ad . . . 12%
* Open house . . . 14%

Most Difficult Tasks for FSBO Sellers:

* Getting the right price . . . 23%
* Preparing/fixing up home for sale: 18%
* Selling within the planned length of time: 14%
* Having enough time to devote to all aspects of the sale: 13%
* Understanding and performing paperwork: 10%

Source: 2010 National Association of REALTORS® Profile of Home Buyers and Sellers

Statistics on REALTORS® and Technology

* The typical REALTOR® spent up to $1,200 on technology for real estate purposes in 2008.
* The top three tools that respondents plan on purchasing or replacing in the next year are: smartphone with email/Internet connection (42%); notebook/laptop (34%), and digital camera (26%).
* The most frequently used operating system is Windows XP (63%).
* The most popular smartphones are Blackberry (32%), Palm Treo (14%), and iPhone (10%).
* 84% of REALTORS® use social media to some extent.
* The top places where REALTORS® place their listings are REALTOR.com, their broker’s website, their local MLS site, and their own website.

Source: 2009 REALTOR® Technology Survey

Best Real Estate Clients

Revealing New Statistics Show that Internet Savvy Shoppers Make the Best Real Estate Clients

Are you marketing to the wrong audience? Here are some interesting statistics that could change the way you conduct your real estate business.

Where did we get this data?

California Association of REALTORS

1,600 people were surveyed. 800 were Internet Buyers who said the web played an important role in the home buying process. 800 were “Traditional Buyers”. This group said that they did not use the web as an important role in the home buying process.

 

Internet Buyers are the Key to Making More Money In Real Estate

The average internet buyer spends an only 2.2 weeks working with the Realtor to find their home. The traditional buyer spends almost 6 weeks!

So How Many Houses did the Realtor Have to Show During This Time?
Internet Buyers only previewed an average of 6.65 homes while the Traditional Buyer previewed 21.7.

Internet Buyers know what they want and because of this, you, the Real Estate Agent, spend less time educating them. After all, the average Internet Buyer has already invested almost 6 weeks of research before they contact an agent. This is in contrast to the Traditional Buyer who has researched homes for less than 2 weeks before contacting a Real Estate Agent. With this in mind, who do you think is going to be the easier client?

 

More Internet Savvy Real Estate Buyers Equals More Money and Less Work for You

Interesting Real Estate Buyer Facts

  • Internet buyers spend almost a third the amount of time working with a real estate agent compared to a Traditional Buyer. This means less time carting buyers around in your car!
  • Internet buyers interviewed about half as many real estate agents as traditional buyers before selecting a Realtor.
  • Nearly a three quarters of all Internet buyers first saw the home they purchased on the Internet.

 

Start Marketing to Internet Buyers

Think about this data next time you spend your marketing dollars

Who are you targeting? The Traditional Buyer or the Internet Buyer?

If your website is not producing for you, then perhaps it’s time to take a hard look at your website. It may be time for a complete website make-over or at the very least, a website analysis. If your focusing your marketing dollars to attract Traditional Buyers then it may be time to adjust your marketing budget.

Home Buyers Twice as Likely to Use Online vs Print to Find an Open House

This is a blog post about home buyers, real estate, marketing, websites and search engine optimization so it has a little bit for everybody. A survey commissioned by Trulia and conducted by Harris Interactive shows that U.S. home buyers are twice as likely to use online sources than print sources to find open house information. Trulia is an online listing service so these results reinforce what we already know from other surveys including the National Association of Realtors surveys that show more than 75% of home buyers plan to start their home search on the web. Key Survey Results o 62 percent of U.S. home buyers reported using/planning to use online sites to find open houses. o 53 percent who use/plan to use information from real estate agents o 36 percent who use/plan to use neighborhood signs o 31 percent who reported using/planning to use print sources, including newspapers and local flyers to find open houses.

I work with a lot of Realtors and read a lot of real estate related marketing information and there is a large percentage of Realtors that voice the opinion that open houses are a “waste of time” and say “I have never sold a house at an open”. They might want to take note that this survey shows that 91 percent of home buyers attended/plan to attend open houses during the home buying process. I think this is proof that an open house is an important part of the marketing mix. I have created a number of websites and the biggest selling point is how effective their blog platform is with search engines. When a Realtor takes 30 seconds to add an open house to their website using the Content Management System a blog entry is created automatically.

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