Most prospective home buyers are attracted to the low cost of real estate – it’s actually cheaper to buy than rent most of the time! However, people also purchase homes for a whole lot of other reasons too. Usually it’s because they want their own space, but sometimes it can be because of how much money they’ve got left in the bank at the end of each month and whether or not a house is actually more affordable than paying rent for example.
Characteristics of Home Buyers
Buying your first home isn’t always easy, but it is necessary if you want to secure a future for yourself and your family. As a first-time buyer you should remember to keep in mind how important it is to have someone on your side who can help guide you through the process of making such an important decision. The typical first-time buyer these days is 33 years old, while the typical repeat-buyer age rose to an all-time high of 56 years old, which means that as a consumer today you’re going to have more options at your disposal when it comes down deciding what kind of home or real estate property suits you best.
Characteristics of Homes Purchased
Home buyers know to shine light on 4 factors: value, cost, home condition and renovations. Most recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity at 36%. This was followed by an interest in paying less for the same quality of living (29%). Buyers who purchased previously-owned homes were most often considering a better overall value at 38% as opposed to more money where 19% highlighted it as their reasoning for purchasing. The typical home that was recently purchased was 1,900 square feet, had three bedrooms and two bathrooms, and was built in 1993. Homebuyers are finding what they need while saving their hard earned cash on properties they love!
The Home Search Process
Of the real estate market, 41% of all homeowners took the first step by searching online to view properties for sale and 19% took their search a step further and contacted a real estate agent or broker. While buyers looked at a median average of 8 homes during their search, they did so online by viewing three listings in particular that they liked. Nearly all buyers (95%) used online tools in their home buying process, which seems to indicate just how much potential this type of tool has in this industry. When asked about the experience, 94% said they were somewhat satisfied with their recent home buying purchase.
Home Buying and Real Estate Professionals
It is common knowledge that most people who are looking to buy a new home tend to purchase it through an agent rather than working directly with a builder. According to the National Association of Realtors’ 2013 Profile of Home Buyers and Sellers Report, 87% of buyers recently purchased their home through a real estate agent or broker, and 7% purchased directly from a builder or builder’s agent. Although most homes were sold through a real estate agent or broker, the reason why most people buy from an agent is because they don’t know what to look for in ordering a house (52%). The preferred way of choosing an agent is by word of mouth (73%). Once you’ve chosen an agent, it’s very likely you will use this person again if you ever plan on selling or buying anything.
Financing the Home Purchase
61% of buyers purchased their homes using the proceeds from selling their previous homes. 56%of recent first-time homebuyers acquired a downpayment through their savings account. Another 28% of recent first-time homebuyers purchased their new home using a gift or loan from friends and family as a down payment or closing cost assistance. The vast majority of both first time (87%) and repeat (83%) buyers funded the purchase with a mortgage.
Home Sellers and Their Selling Experience
For most sellers, the biggest motivation to sell their house was to live closer to friends and family (18%), followed by homes that are too small or in neighborhoods that have seen their quality decline over time (11%).
For-Sale-by-Owner (FSBO) Sellers
Only one in five sellers decides to go with a for-sale-by-owner (FSBO) approach for the home sale process, meaning that the majority of homes are sold through agents.
Keep these statistics in mind when you’re planning to sell your home yourself