The 2013 NAR Profile of Home Buyers and Sellers was released on November 4, and as it does each year the report examined the demographics, preferences, motivations, plans, and experiences of recent buyers and sellers.
One recent trend discussed is how much consumers now embrace technology during the home search process. Did you know that…
- Fifty-six percent of buyers start their home search online, 43 percent found the home they ultimately purchased online (edging out all other sources), and 92 percent used the internet at some point during their search process.
- Forty-five percent of recent buyers used a mobile or tablet website or application during their home search and among those who did 22 percent found the home they purchased online.
Here are a few charts from the Profile that highlight the growth in technology usage over the years:
- The share of home sellers who sold their home without the assistance of a real estate agent was 9 percent. One-third of those sellers knew the buyer prior to home purchase.
- The primary reason that sellers choose to sell their home without the assistance of a real estate agent to a buyer they did not know was that they did not want to pay a fee or commission (43 percent).
- One-third of FSBO sellers took no action to market their home, and 60 percent did not offer any incentives to attract buyers.
- The typical FSBO home sold for $174,900 compared to $210,000 among agent-assisted home sales.
- For more information on the annual Profile of Home Buyers and Sellers, click here. The 2013 report will be released next Monday, November 4.
International clients frequently pay all cash compared to domestic buyers: About 63 percent of reported transactions were all cash, as reported in the recently released 2013 Profile of International Home Buying Activity, which captures transactions of respondents in the 12 months ended March 2013.
Mortgage financing tends to be a major problem for international clients due to a lack of a U.S. based credit history, lack of a Social Security number, difficulties in documenting mortgage requirements, and financial profiles that are different in some cases from those normally received by the financial institution from domestic residents. Financing-related issues accounted for about 26 percent of the reported reasons for not buying a property in the United States.
There is a good chance of having a foreign buyer, whose expectations and needs may differ from those of U.S. buyers. The site http://www.realtor.org/global provides a substantial amount of information that may be of help to REALTORS® not experienced in dealing with international clients. Information at the site may be useful in addressing reasons why clients don’t buy—and helping to convert no-sales into sales.
- According to the Digital House Hunt, a joint report between NAR Research and Google, there is an opportunity for REALTORS® to market to home shoppers in online video environments.
- New home buyers place an emphasis on virtual tours and videos showcasing properties and communities.
- Finding an agent and agent related searches on YouTube grew 46% year-over-year.
- Number of agent-related videos on YouTube:
- 19,200 results for how to find a real estate agent;
- 88,400 for real estate agent;
- 118,000 for buying a home
- Home buyers who purchased previously owned homes are more likely to bring their online research offline by walking through or driving by a home they viewed online.
- Fifty-three percent of buyers undertook a home improvement project within three months of their home purchase.
- Buyers who purchased older, previously-owned homes were the most likely to undertake a home improvement project. Seventy-three percent of those who purchased a home that was built in 1920 or earlier did make a home improvement soon after buying the home, compared to only 33 percent of those who purchased a home built between 2010 and 2012.
- Remodeling the kitchen was the most common home improvement project among recent buyers—47 percent of buyers who did undertake a home improvement project remodeled the kitchen. Bathrooms were a close second at 44 percent.
- For more information, check out the 2013 Home Features Survey.