As a Realtor we learn the fundamentals of what it means and takes to be a successful real estate agent. Everything from Code of Ethics and our fiduciary duties, to learning how to reach leads, sign up buyers and everything in between that ultimately leads us to closing. Although it Is important to keep these skills sharpened and continuously train on best practices, it is equally as important to know where our consumers are; emotionally, situationally, and financially.
Knowing more about your audience is going to help you become better at reaching, understanding, and educating them.
The National Association of Realtors puts out a survey every year called “Profile of Home Buyers and Sellers”. This survey provides us with the ever-changing consumer trends and a more in-depth insight into the behavior of home buyers and sellers.
According to the National Association of REALTORS® 2019 PROFILE OF HOME BUYERS AND SELLERS:
- First-time buyers made up 33% of all home buyers, holding steady from last year’s 33 percent.
- Sixty-one percent of recent buyers were married couples, 17 percent were single females, nine percent were single males, and nine percent were unmarried couples.
- Twelve percent of home buyers purchased a multigenerational home, to take care of aging parents, because of children over the age of 18 moving back home, and for cost-savings.
- Most recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity at 39 percent. Buyers who purchased previously owned homes were most often considering a better overall value at 33 percent.
- Detached single-family homes continued to be the most common home type for recent buyers at 83 percent, followed by six percent of buyers choosing townhomes or row houses.
- Heating and cooling costs were the most important environmental features for recent home buyers, with 85 percent finding these features at least somewhat important.
- For 60% of buyers, the source of the down payment came from their savings. 38% of buyers cited using the proceeds from the sale of a primary residence.
- Of buyers who said saving for a down payment was difficult, 51% of buyers reported that student loans made saving for a down payment difficult. 45% cited credit card debt, and 38% cited car loans as also making saving for a down payment hard.
- Among non-owners, 74% of those surveyed are currently renters and 26% currently live with someone else without paying housing costs.
- 57% percent of non-owners believe it would be at least somewhat difficult to become a homeowner based on their current financial situation.
NAR’s survey helps to gain information into the minds of buyer and sellers, in addition to providing statistics on their behavior each year and how it compares to years prior. Being able to notice patterns in different aspects of the home buying process will help you understand and better target your consumers. NAR has always been an immensely useful resource for Realtors providing research, discussion boards, events, blogs, market conditions and much more.