HERE is where the Buyers are.

Everyone always asks me, “Are there really any buyers out there?” “Yes”. And, here are some interesting facts about Buyers and Sellers (from the this year’s survey conducted by the NATIONAL ASSOCIATION OF REALTORS). The link to the full article is all the way at the bottom.

Top 33 facts from the report

According to NAR, the following are the top takeaways from the report:

Seventy-eight percent of recent home buyers said their home is a good
investment, and 45 percent believe it’s better than stocks.
The study shows the median age of first-time buyers was 31 and the median
income was $62,400, up from $59,900 in the 2010 study.
The typical first-time buyer purchased a 1,570 square foot home costing
$155,000.
The typical repeat buyer was 53 years old and earned $96,600, notably higher
than the $87,000 median reported in 2010.
Repeat buyers purchased a median 2,100 square foot home costing $219,500,
with an estimated median payment of $1,006.
The median downpayment for all home buyers was 11 percent, ranging from 5
percent for first-time buyers to 15 percent for repeat buyers.
First-time buyers who financed their purchase used a variety of resources
for the downpayment: 79 percent tapped into savings, 26 percent received a gift
from a friend or relative, typically from their parents, and 7 percent received
a loan from a relative or friend. Nine percent sold stocks or bonds and 8
percent tapped into a 401(k) fund.
Ninety-four percent of entry-level buyers chose a fixed-rate
mortgage. Fifty-four percent of first-time buyers financed with a
low-downpayment FHA mortgage, and 6 percent used the VA loan program which
requires no downpayment.
Sixty-four percent of all buyers are married couples (up five percent from
2010), 18 percent are single women, 10 percent single men, seven percent
unmarried couples and one percent other.
Buyers searched a median of 12 weeks and visited 12 homes, both unchanged
from 2010.
Nine percent of recent buyers also own one or more investment properties,
and four percent own at least one vacation home.
Seventy-seven percent of respondents purchased a detached single-family
home, nine percent a condo, eight percent a townhouse or rowhouse, and six
percent some other kind of housing. The typical home had three bedrooms and two
bathrooms.
Fifty-one percent of all homes purchased were in a suburb or subdivision, 18
percent were in an urban area, 18 percent in a small town, 11 percent in a rural
area and 3 percent in a resort or recreation area.
The median distance from the previous residence was 12 miles, the same as in
the 2010 study.
More than half of buyers considered purchasing a foreclosure but didn’t buy
one for a variety of reasons: 29 percent couldn’t find the right house; 15
percent each reported poor condition and a difficult process.
Eighty-nine percent of respondents used real estate agents and brokers,
other methods include directly from a builder, 7 percent; and directly from the
previous owner, 4 percent. Sixty percent of buyers working with real estate
professionals were represented by a buyer’s agent.
To find their home, 88 percent use the Internet, 87 percent use real estate
agents, 55 percent yard signs, 45 percent attend open houses and 30 percent
review print or newspaper ads.
When buyers were asked where they first learned about the home they
purchased, 40 percent said the Internet; 35 percent from a real estate agent; 11
percent a yard sign or open house; 6 percent from a friend, neighbor or
relative; 5 percent home builders; 2 percent a print or newspaper ad; 2 percent
directly from the seller; and less than 1 percent from a home book or
magazine.
Ninety-one percent of home buyers who used the Internet to search for a home
purchased through a real estate agent, as did 70 percent of non-Internet users,
who were more likely to purchase directly from a builder or from an owner they
already knew in a private transaction.
Local metropolitan multiple listing service websites were the most popular
Internet resource, used by 56 percent of buyers; followed by real estate agent
websites, 46 percent; Realtor.com, 45 percent; real estate company sites, 40
percent; other websites with real estate listings, 38 percent; and
for-sale-by-owner sites, 14 percent; other categories were notably smaller.
The biggest factors influencing neighborhood choice were quality of the
neighborhood, cited by 67 percent of buyers; convenience to jobs, 49 percent;
overall affordability of homes, 45 percent; and convenience to family and
friends, 39 percent. Other factors with relatively high responses include
neighborhood design, 32 percent; convenience to shopping, 28 percent; quality of
the school district, 27 percent; convenience to schools, 22 percent; and
convenience to entertainment or leisure activities, 21 percent.
Commuting costs continue to factor strongly in decisions regarding location,
with 73 percent of buyers saying transportation costs were important.
The biggest reason people buy a home is the simple desire to own a home of
their own, cited by 27 percent of respondents, including 60 percent of
first-time buyers. The next biggest primary reasons for buying were desire for a
larger home or a job-related move, each cited by 10 percent of respondents; a
change in family situation or the affordability of homes, 8 percent each; and
desire to be closer to family, friends or relatives, 7 percent.
The typical home seller was 53 years old and their income was $101,500.
Sellers moved a median distance of 20 miles and their home was on the market for
9 weeks, up from 8 weeks in the 2010 profile. Forty-six percent moved to a
larger home, 31 percent bought a comparably sized home and 23 percent
downsized.
While sellers had been in their previous home for a median of nine years, up
from eight years in the 2010 study, first-time buyers plan to stay for 10 years
and repeat buyers plan to hold their property for 15 years.
The typical seller who purchased a home nine years ago realized a median
equity gain of $26,000, a 16 percent increase, while sellers who were in their
homes for 11 to 15 years saw a median gain of $57,900, or 39 percent.
Home buyers thought the most important services agents provide are helping
find the right house, and negotiating price and sales terms.
Like sellers, buyers most commonly choose an agent based on a referral from
a friend, neighbor or relative, with trustworthiness and reputation being the
most important factors; 89 percent are likely to use the same agent again or
recommend to others.
Of sellers working with real estate agents, the study found that 80 percent
used full-service brokerage, in which agents provide a range of services that
include managing most of the process of selling a home from listing to closing.
Ten percent of sellers chose limited services, which may include discount
brokerage, and 10 percent used minimal service, such as simply listing a
property on a multiple listing service. Realtors provide all of these types of
services, as do non-member agents and brokers, with comparable findings for each
year since questions about brokerage services were added in 2006.
For-sale-by-owner transactions accounted for 10 percent of sales, above the
record-low 9 percent in the 2010 study, but well below the record high of 20
percent set in 1987. The share of homes sold without professional representation
has trended lower since last reaching a cyclical peak, which was 18 percent in
1997.
Many FSBO properties are not sold on the open market. Factoring out private
sales between parties who knew each other in advance, the actual number of homes
sold on the open market without professional assistance was 6 percent.
The median transaction price for sellers who used an agent was $215,000,
well above the $150,000 median for a home sold directly by an owner, but there
were differences in the findings. The median income of unassisted sellers was
$82,500, in contrast with $101,500 for agent-assisted sellers.
Unassisted sellers were much more likely to be selling a smaller home, and
they were more likely to be in an urban or central city area. The most difficult
tasks reported by unrepresented sellers are attracting potential buyers, getting
the right price, and understanding and completing paperwork.