Profile of Home Buyers and Sellers

Highlights From the 2010 NAR Profile of Home Buyers and Sellers

Various individuals and households aspire to homeownership while others continue to appreciate both the financial and non-financial rewards of owning a home. In tough economic times, the aim of buying a first home can seem tricky, no matter the motivation. Even for seasoned homeowners looking to trade up, relocate or purchase a vacation property, buying or selling a property is a complex procedure. The economical uncertainties that would-be purchasers and sellers think of in the best of times are amplified when the economic climate is only just emerging from a deep downturn. There are a multitude of decisions that are part of the home purchase process and there are unknowns as purchasers search for the ideal residence that will meet their needs currently as well as in the future.

It is no shock that a majority of home buyers and sellers depend on the services and knowledge of real estate professionals to assist them with their transaction. Purchasers and sellers appreciate the knowledge and expertise of real estate professionals who can guide them through each stage of the transaction. One gauge of client approval is that a majority of both buyers and sellers say that they would use the same real estate agent again or refer that agent to others.

Characteristics of Home Buyers

• Fifty percent of recent home buyers were first-time buyers.
• The typical first-time home buyer was 30 years old, while the typical repeat buyer was 49 years old.
• The 2009 median household income of buyers was $72,200. the median income was $59,900 among first-time buyers and $87,000 among repeat buyers.
• Twenty percent of recent home buyers were single females, and 12 percent were single males.
• For one-third of recent home buyers, the primary reason for their recent home purchase was a desire to own a home.

Characteristics of Homes Purchased

• New home purchases were at the lowest level in nine years—down to 15 percent of all recent home purchases.
• The typical home purchased was 1,780 square feet in size, was built in 1990, and had three bedrooms and two bathrooms.
• Seventy-seven percent of home buyers purchased a detached single family home.
• Eleven percent of buyers over 50 purchased senior-related housing or in an active adult community.
• When considering the purchase of a home, commuting costs were considered very or somewhat important by 76 percent of buyers.

The Home Search Process

• For more than one-third of home buyers, the first step in the home-buying process was looking online for properties.
• Nine in ten home buyers used the internet to search for homes.
• Real estate agents were viewed as a very useful information source by 81 percent of buyers who used an agent while searching for a home.
• The typical home buyer searched for 12 weeks and viewed 12 homes.

Home Buying and Real Estate Professionals

• Eighty-three percent of buyers purchased their home through a real estate agent or broker.
• Four percent of buyers purchased a home in foreclosure and 6 percent of buyers purchased a short sale.
• Forty-eight percent of buyers found their agent through a referral from a friend or family member.
• More than half of buyers most want their agent to help them find the right home to purchase.
• Eighty-seven percent would recommend or use their agent again in the future.

Financing the Home Purchase

• Ninety-one percent of home buyers financed their recent home purchase.
• First-time buyers typically financed 96 percent of their home purchase, while repeat buyers financed 86 percent of their purchase.
• Forty-six percent of home buyers reported they have made some sacrifices such as reducing spending on luxury items, entertainment or clothing.
• More than one-quarter of first-time buyers reported their mortgage application and approval process was somewhat more difficult than they expected, and 14 percent reported it was much more difficult than expected.
• Seventy-one percent of all home buyers and 93 percent of first-time home buyers used the homebuyer tax credit during their home purchase.

Home Sellers and Their Selling Experience

• The typical seller lived in their home eight years before selling.
• Eighty-eight percent of sellers were assisted by a real estate agent when selling their home.
• Recent sellers typically sold their homes for 96 percent of the listing price, and 57 percent reported they reduced the asking price at least once.
• The typical home was on the market eight weeks.
• Forty-four percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.
• Eighty-six percent of sellers were at least somewhat satisfied with their selling experience.

Home Selling and Real Estate Professionals

• Forty-one percent of sellers who used a real estate agent found their agents through a referral from friends or family, and 23 percent used the agent they worked with previously to buy or sell a home.
• Ninety-one percent of sellers reported that their home was listed or advertised on the internet.
• Among recent sellers who used an agent, 83 percent reported they would definitely (63 percent) or probably (21 percent) use that real estate agent again or recommend to others.

For-Sale-by-Owner (FSBO) Sellers

• The share of home sellers who sold their home without the assistance of a real estate agent was 9 percent. Half of them 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 (38 percent).
• Twenty-eight percent of FSBO sellers took no action to market their home, and 56 percent did not offer any incentives to attract buyers.
• Twenty-three percent of FSBO sellers reported getting the price right was the most difficult task, while 18 percent reported preparing or fixing up the home for sale was their most difficult task.

Copyright National Association of REALTORS®. Reprinted with permission.