I took a look though the stats of the 2015 NAR Profile of Home Buyers and Sellers the other day and here’s what I noted:
First-time buyers made up 32 percent of all home buyers. And, first-time buyers who financed their home financed 94 per-cent of their home compared to repeat buyers at 86 percent. No surprises here as the most difficult thing for first time buyers to do is to save up a down payment
The typical buyer was 44 years old, and had a median household income of $86,100. And the typical home seller was 54 years old, with a median household income of $104,100. Why? Because home sellers cited that they sold their homes for a median of $40,000 more than they purchased. If you plan on being in your home for more than about 2 years then even with transaction costs owning a home is a smart move.
Thirteen percent of home buyers purchased a multi-generational home to take care of aging parents, for cost savings,and because children over the age of 18 are moving back home.
Home prices increased slightly this year to a median of$220,000 among all buyers. Buyers typically purchased their homes for 98 percent of the asking price. Around Jupiter prices have come up by about 10% and Sellers typically get about 95% of the asking price.
Heating and cooling costs were the most important environmental features for recent home buyers, with 84 percent finding these features at least somewhat important. Pay attention Sellers, the condition of your AC is a major concern. Replacing it is the least expensive upgrade probably only second to changing the appliances to stainless steel.
Overall, buyers expect to live in their homes for a median of 14 years, while 23 percent say that they are never moving. However, Sellers typically lived in their home for nine years before selling. YOUR HOUSE WILL BE A 10 YEAR PLAN.
For 42 percent of recent buyers, the first step that they took in the home buying process was to look online at properties for sale, while 14 percent of buyers first contacted a real estate agent.
Eighty-seven percent of buyers recently purchased their home through a real estate agent or broker, and eight percent purchased directly from a builder or builder’s agent.
Eighty-nine percent of home sellers worked with a real estate agent to sell their home. And, ninety-one percent of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home.
It follows that 90% of all homes sold are entered into the MLS and this data is used by Realtors to find homes for their Buyers. THE MLS DATA IS USED NOT ONLY BY AGENTS WHO ARE LOOKING FOR THEIR BUYERS BUT IT IS ALSO USED TO POPULATE DATA ACROSS THE INTERNET SUCH AS ZILLOW, TRULIA ETC. AS A TACTICAL MATTER IS IT 90% OF THE MARKETING FOR A PROPERTY. CHECK IT. DOUBLE CHECK IT. ADD DESCRIPTIONS TO EVERY PICTURE. THIS IS 90% OF THE GAME!
