Numbers don’t lie. And boy do we cover A LOT of them in this episode! It’s time to break down for you the 40th anniversary of NAR’s 2021 Profile of Home Buyers and Sellers! Numbers give us power and the confidence to make informed business decisions. This report is integral in understanding consumer behavior and how it affects your success. How many people used the first agent they talked to? How many buyers were single ladies? How many sellers went FSBO? We’ve got all the answers for you! If you’d like to read the full report you can find it here, https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
The following is a rough transcription provided by Otter.ai
Look at these 11 houses but they’re not the ones like mom Braley. Me love. Were very popular in Pennsylvania. They like the southern accent maybe. Hi, y’all. Welcome to hustle humbly. It’s Alyssa and Katie and we are two top producing realtors in the Baton Rouge market. We work for two different companies where we should be competitors. But we have chosen community over competition. The goal of our podcasts is to encourage you to find your own way in business to stop comparing yourself and start embracing your strengths. Okay, hi, Alyssa. Katie, some like I’m really nervous. I’m not recording right now. But it is recording. There’s just a lot less things in the office when we’re zooming. Right. Okay, so it’s episode 128. Okay. The 2021 profile of home buyers and sellers. I found this one interesting, because this is the first review they have done. That includes an entire year of COVID. Right, right. So like, pass, it was like we had only half the year. But now we have a full year of data. Yeah, cuz the report runs from July 2020 to June 2021. It’s not year it. I mean, it’s a year but it runs summer to summer. Right there. But do we need to do doo doo doo doo doo doo? Oh, yeah. didn’t do it. Before. I thought I had a buyer for a hot minute there. She was really serious. Just a neighbor, girl. Yes. Okay. She’s actually someone that I kind of know from the past. But she didn’t realize I was the owner of the house. Okay. And once she realized that she was like, Oh, my gosh. And I genuinely thought, This is it. She is going to be the one she went there. So many times. She was an artist, and she just loved the sunroom for her art space, loved that the barn door would open to her art space. But at the end of the day, she had to have a three bedroom. And that is what killed it. And that is what I’ve been worried about this whole time. So she had brought a contractor over there to price out adding a third bedroom. Like that’s how much she liked the house. Yeah, it was approved for a lot more than what I was going to be asking. Okay, so this house was under budget by a good bit. So she felt pretty good about adding on because it’s the location that she wanted, and she loved the kitchen and everything. And, you know, anytime you add on to a house and deal with roof lines and pouring new foundation, like it just wasn’t feasible. And I told her, I said, I do encourage my personal buyers to avoid big additions like the house either works for you or it’s not the house for you. But me additions are just not super costly, and then tying them in to feel right inside the home. Like I showed a house yesterday that did an addition. And it would have been so much better if they hadn’t. Yeah, like that’s it would have been smaller, but it would have just flowed better and felt more cohesive. Right. Um, so anyways, I’m disappointed but I felt like it was a really good test run. Yeah, because she really had no complaints about the design, the quality she loved at the yard. I mean, she really Spirit brought a lot of people by and felt like it was the perfect home for her. So very good test run. And yeah, we are I just said my assistant is is still out there so much like crud going around. And so I’ve kind of been a little bit putting it on the backburner. But we did a final punch list and I’m hoping that next week when we’re all back healthy and everything we can schedule photos and get it officially on the market most is very exciting. Yes. And you’re gonna take us a nice video. I am I’m gonna see if I can find someone to do a real video. Okay. And then what happens with your contractor? He just moves on to the next thing. You’re done. Yeah, he really wants me to buy another house that he does. But I can’t find another house. I’m still have one maybe on the backburner? Yeah, um,
but basically, it’s the house that I had sold my investor years ago. And I wanted to she called me it was like, I don’t want it anymore. We’re investing elsewhere. She was like, I want to let you know like a pipe burst in the kitchen. There was like a leak in the wall. It was like a bad leak. And I have to gut the kitchen and insurance is paying for it. And I told her I said I will be there Very interested, but don’t like take your insurance money and let me buy the house as is because we would be doing new cabinets we’d probably be knocking down a wall and opening up a wall. And for whatever reason, she felt like she needed to just move forward with doing the renovations together. So now she’s gonna want more for it when I would be ripping out those cabinets anyway, but likely, unless it just works, but I still have it on the list to check out. But I’m thinking the numbers won’t work. Now it would it would have worked if I could have bought it gutted. Yeah, the kitchen gutted, because I would be gutting it anyway. And then they could keep their insurance money to make up that difference. But I don’t know, maybe she didn’t understand people get confused about she’s an attorney. And she she mentioned that the insurance was requiring that the money was to be used to put the house back together. But I don’t know that that’s but she she would know better. I don’t know if it was a certain insurance prime you or you know what the full deal was? Or if she was like, I feel like I need to move forward anyway, in case like, just for myself, I need to move forward. But I was pretty dang serious. So I don’t know, I guess we’ll see. It’s still there. And I actually drove by it yesterday and you’re stalking nothing’s happened that I can see. So who knows? I mean, it’s gonna be hard to get that kind of stuff done. Maybe just floated back out there again, like, Hey, I am yeah, I think I think next week once I have like a definite hitting the market timeframe. Over here, I’m going to reach out and see because I would have to sell this one. On a side note, you know, it’s really cute. So my flip house is on Arden. Yes, Arden place is the street name. Right. And Tate just moved up in a new classroom at daycare. And there’s a little girl in his class and her name was Arden. Love it. I thought that was a cute name for girl Arden. Sell her parents the house. Yeah. Love it. Okay, doo doo doo doo beep beep that. That’s it. The flip report. Okay, then. Okay, so let’s get back to the report. We did this last year for the 2020 report, which again, was not a full year of COVID data. So this is the 40th anniversary of this report. I mean, how crazy is that? It’s such a good report. Information is good. Well, I would like to start by saying I learned a few things this time. Last time around. Remember, we bought the full report? Yeah, if you don’t have to pay if you’re a member of NAR, but if you’re not a member, it’s like $200. It’s not cheap, because the report is, I don’t know, 100 pages, it’s really long, remember, and I’m like, Hey, let’s talk about this report. And then the morning of the show, you’re like, Well, wait a minute, I didn’t know it was so long. And I thought it was just gonna be like a couple of charts. And then it was so over the top. So it’s a really, really long report. But this time, I got smart. And I’m like, oh, there’s just this summary button. Let me download that thing. And it is nine pages fully, you can read it in one sitting. It has all the meaty details, I thought anyway. So unless you’re some kind of economist or doing some major research, you don’t need that full. The full report tells you how did they get the information? Who did they talk to? Like, what are all the demographics of every little, every little thing, remember, had the demographic of this type of person did this and this, it’s just a lot. It’s a lot. This is the meat. So I thought that was a lot better. And that’s it. That’s what I’ve learned about the report. It’s 40 years old. And you could just read the summary. So hot tips for you. What did you find to be most interesting? Did you disagree with anything? I mean, we’ll go through some of like the numbers part. So we’ll be the summary of the summary to our listeners. If they don’t want to read the summary. We’ll just summarize the summary. Yeah,
so one thing I found really interesting and I’ve been thinking this so to see it in the report kind of validated what I’ve been seeing and feeling in the marketplace. Is that when COVID started, interest rates also dropped, building prices, lumber prices, labor, every all of that just skyrocketed. And then all of a sudden and people were like, I want to build a house. I want to buy a house like in 2018 2019 You could go to any DSL D any builder pick from a option of lots Yeah, start construction as soon as possible and be in your new home in six months. Yeah. Now Now that prices are through the roof. Buyers are like, I want it now. And it kind of made me think is, is it the you want what you can’t have like now that there’s a demand? Yeah, too, because right in our marketplace right now, I’m on several waiting list for like, because for neighborhoods and I’m getting updates constantly. Hey guys, we’re still don’t have any inventory right now we’re just waiting to be able to release more lots or find more lands like we don’t know what the timeframe is going to be. I mean, people, I just had a buyer on a $250,000, like, track home. And she wanted to build and so we it’s going to be like eight months. And that’s a long time to wait on track. It is and she signed the contract. And we’ve been going through the process. And we closed in a few months. But her brother was like, Hey, I think I want to build in that same neighborhood. So I contacted and she was like, we don’t have anything else. Like we’re done. That’s it. But it’s like why I can’t put my finger on what the, you know, is but they said in the report that despite historically low inventory, and historically high prices, buyers are continuing to enter the marketplace now more than ever. Yeah. So this report doesn’t cover it. But we’ve talked about it before. And I don’t remember if I read an Inman article, or where I read an article that finally kind of put all the pieces together for me and started to make sense of this talk about inventory. And you know, why isn’t there any, so the new construction, part of the problem is new construction, right? There’s not enough of it. Well, that started way back in 678, during the crash, and then was exacerbated in the beginning of COVID. Because lumber mills started to produce less lumber due to like not just labor shortage, they thought they weren’t going to need it, like people weren’t going to move or I don’t know, like the end of the world was coming. But I don’t know what they thought, but they slow down production. And so then that doubly impacted it. And then all of a sudden, I mean, all these people show up wanting to buy there is no new construction. And if you want wood, you got to pay 400 times the price, it doesn’t make any sense. So it was new construction leads to the inventory issue. And then if you think about what we talked about last week, what was it 18% of home sales in the third quarter of 2021? Were investors. Yep. So every time an investor buys a house, it removes it from the circulation of regular three to seven year flipping of an owner occupant by living there for a while selling their behind these and because investors are typically buying those starter level homes. Yeah, they’re not going to buy a luxury million dollar home to rent out their behind the the lowest part of that market. So is it 200,000, the starter home in your neighborhood in your area, then they’re buying that taking out of circulation. So there’s that. And then there is the fact that they’re Millennials have reached their home buying age, right. And they’re physically more millennials than any other generation. So just physically more humans who were at home buying age, trying to buy houses that didn’t get built from, you know, an investor. So taking them all out of the market. It’s like the perfect storm. And then I think this report did say, regardless of COVID, this inventory problem was coming. Like, this was like, where the train was going. And it just got there way faster, and way more like over the top, but it was going to happen.
Yeah, I could see that. So it’s so wild. It also said made a good point that the pandemic changed how homes are being used, because now they are not just your home, they are your business. They are your children’s school. I mean, it’s where you are doing all the things. And also people the number one factor that people were considering when buying a home was proximity to work. And now its proximity to friends with friends and family. I read that too. And you know what was so funny in how it’s not just for buyers, it so buyers that the number one reason was to get closer to friends and family and for sellers. The number one reason was to get they were selling to get closer to friends and family. They’re like, well, we don’t need the short commute to work anymore. Or maybe we don’t even need to be near this school anymore. Like yeah, like where are my friends? I just want to be close to my friends. Mm hmm. I thought that was interesting too. I have a question for you about inventory though. Are you feeling like buyers standards are changing with restricted inventory because I don’t hear that. But I want to know, because you work with so many buyers, do you feel like they’re starting to lower their standards just because there isn’t a lot to choose from? Well, I feel like with any buyer, as you look at homes, you’re comparing it to what you see. So what we are comparing against is low a lower standard A lot of times, yeah. Then what I used to be able to show them that when inventory was, you know, abundant, there were some better options. Yeah. All as we compare houses, they’re not as good or there’s a reason they’re still on the market. So it’s kind of like the buyer doesn’t the buyer today doesn’t even realize that there’s there was better out there. Because this is all they know. Yeah. So I am seeing them being more open to oh, well, we could change this carpet, or we can paint because that every house they’ve seen needs carpet and paint. Yeah. So I do think that they’re starting to their expectations are lower only because they they never saw the good stuff. Anything. It’s almost like I’m the one that’s struggling right now knowing I don’t think this is a good house. So they’re like, Well, we think it could work for us. And I’m like, but I’ve seen better not lately, but I know it’s out there somewhere. But it’s not, you’re looking for something that doesn’t exist. Okay. So yesterday, I got a new buyer call. They’re out of state, they’re in Mississippi, and they were like, we’re moving. I mean, from like a good four or five hours away, we’re going to move to Baton Rouge, because they’re not changing jobs, their jobs are now strictly from home. And they wanted to change schools, and they felt like they were going to give they had some type of batteries, like he had gone to school at LSU, or whatever. And they’re like, we’re gonna give that a try. Because we can just work from there. And I’m like, okay, and then I set up their search. And I was like, I wanted to say, and I’ve found this for the last year, every time I set up a new buyer search, and I look at what’s immediately available. I’m like, these are not these are not the houses. So like these are their houses that are garbage that are nobody wanted that fit your parameters. There’s something wrong with the majority of these houses. So I’m sitting to search, you can look at these 11 houses, but they’re not the ones because they were in like a good price range like four to 650. And I’m like, Just wait for the new stuff that comes every day. That’s the stuff you want. But so does everyone else, right? And so like, it’s a weird disclaimer that you almost have to give them at the beginning of the search. Like, it’s not like back five years ago, when you’d like, Oh, you want to buy a house in this area at this price. So I’m going to set you on the search. And look, we can go look at these 10 houses this weekend. So I think what you just said is super important, because a lot of agents are not communicating the buyer struggle to the buyer from the beginning. And I have never had so many phone calls from buyers. I’ve had at least five or six in the last three months, where it’s a buyer, maybe I kind of know them from somewhere, or they got my name from somewhere. But they call me and they say hey, Alyssa, you know, we’ve been looking for a house for a while and we have an agent, but we just feel like they’re not doing anything. They’re not working for us. They never send us any houses. But the problem is that they never hear from the agent, right? The agent needed to say is there no houses to send? Hey, guys,
I’m still so I was and I said listen, I hear you. I understand it sounds like y’all are maybe having you need more communication between houses popping up. But I just want to let you know, I don’t have anything else to send you. I tell them when I set up a search for a buyer, I say, hey, buyers, these are the only options right now I do have a search set up for you. But I don’t know how frequently something will meet your criteria. If nothing has met their criteria in a while, whenever I’m going through my Trello. And looking at my buyers, I might just shoot them an email and say, Hey, guys, I know I haven’t sent you anything this week. I am still looking. But nothing has met the criteria. But I’m still here. If y’all see anything I’m missing, please send it to me. So I’m communicating that whereas a lot of times the agent just goes in my day and they think they’ve been forgotten about right or if the search sends me a crummy house, I send it to the buyers and say hey guys, I know this is not the house. I just wanted to let you know I’m still here. I’m still looking we’re going to find something. We just have to be patient. So right communication is so important right now. I even had one girl, I’ve talked to her on the phone for like 30 minutes and she said we’ve written so many offers with this agent and they kept me and I said listen, if you are truly unhappy with your agent, I am more than happy to help you But at the same time, I just want to explain to you why this is happening. Like, you’re not gonna be able, you’re not gonna be able to change the market, right? And she said, okay, and she actually called, she actually emailed me the next day and said, Hey, I just want to thank you for taking the time to explain the market to me. While I do wish this agent would have communicated better to set our expectations properly. We do feel like we need to just stay with her because she’s done. She’s written and showed us so many houses, like, you know, thank you for helping us. But we’re and I said, I totally respect that. Let me know if you need anything. Good luck. It’s tough out there. But they want to hear that from you. Yeah, if you are their agent, yeah, we need to be communicating what to expect before they start calling other agents or telling their friends. Well, this is my agent, but I just feel like she’s not doing a very good job, right? Well, because they think it’s easy that you can just say, today I want to buy a house and you can just go buy a house, but you can’t just go buy a house, right? Oh, my goodness. Okay, well, with that being said, first time buyers grew to 34% this year, somehow, some way 34% of buyers fail in a first time house to buy up from 31%. Yeah, I mean, there’s so there’s still out there. What I like about this report, and they tell you in the summary is that this is insight into consumer behavior, which we should all be studying. So we understand how to service our clients like what our consumers doing, also, so that we can cut through the noise. When we get to the seller part we’re going to cut through a lot of the noise, because people will make you believe things that have been studied and are not true. Like the the numbers don’t lie. The numbers tell you the truth. And they’re not just serving 30 new buyers, they’re serving hundreds and hundreds and 1000s of people, right. And it made me think maybe this increase in first time homebuyers is like all the, you know, the millennial memes out there, like the millennial doesn’t want to leave the basement or like mom bringing me love, like they don’t want to leave home. But they always think about that when I see those memes. But now all of a sudden, everybody’s home all the time. And they’re like, I don’t want to be home with my parents all the time. Maybe I need to buy a house and get my own space. So I can no doubt so maybe that’s one of my predictions of why I think that makes sense. Oh, before we move on to the actual real, real meaty stuff. I thought this was interesting. And I wanted to reiterate this the first time they administered the survey was in 1981 Do you remember how many questions they asked Take a guess. Do you know? Was it 50? Yes. 59 questions in 2021 the survey contain 129 Questions Wow. Like they really have to get some committed survey responders I love survey. I like to take a survey to So anyway, the the number of weeks your buyers are searching for a home is only at eight weeks. I thought that was interesting surprise. It feels surprising, right?
Here’s what I have found my buyers that are on a deadline they will meet the deadline. My buyers that are month to month on a rental have they’re never gonna get they are never that I mean, I have had some really long term relationships lately. And they’re kind of they’re kind of weighed me down. Yeah, no doubt. It’s just dead weight. It is because you know, they’re they just are looking looking looking. And it’s been months and months and in and then I think they even forget what we’re doing. So right now not interesting. And it really depends on the motivation. You can make it happen if you need to. Yeah, well look in we I feel like the housing market more than almost anything is one of those things that the media can impact by by the rhetoric that they share. So Oh, inventory sell, oh, there’s nothing to buy. Here’s a good stat for you. tenure in the home dropped to eight years from 10 years, which is the largest single year change in home tenure in the history of this report. So that’s saying more people sold their house quicker in the last year than the previous year. So people are selling their houses. There’s just so many people that want to buy them. Yeah. And then the part about 31% paid asking price and 29% paid more than asking price and you know what you’re looking at 60% Yea less price or more and when they put that into the media, how was dying about this debt? I gotta find it. It’s 100% of list price is the median sale price. So median is the most accurate when you average of course, there are always outliers, right? But the median is what did most people do? Guess what? Most people paid list price list price. That’s wild to me. Yeah. I just like I hoping that we’re able to give perspective while also giving comfort and giving good advice for this market to new agents because we have so many new agent listeners and I laugh at myself when I think about I know the difference like I know what a crazy market looked like in 2005 and six, I know what like recession look like in eight nine you know like I know the difference and it’s so funny that we’re like back in this crazy hot market you can’t find a house and everything sells and at some point like your sellers are going to not sell their house on day one like at some point it will come back it will come all back around and I know it’s frustrating for buyer’s agents now but what when the shift happens then it’s frustrating for listing at like it’s going it’s never just easy for everyone like level market almost never exist. So while what else did you find that was interesting to you? I kind of moved on into the who use an agent how that went and how 88% of buyers used an agent and 90% of sellers use an agent 90% 90% 7% of sellers sold for sale by owner and of that the reason that they did I felt that I found was very interesting was that how many percent knew their buyer oh it’s a lot I’ll tell you a lot of them knew going to buy their power ugly that’s always the case with for sale by owner that no one tells you for sale by owners as recorded and sole typically know their buyer it’s 57% of for sale by owners knew the buyer of their home a lot of those transactions also this is an interesting point are rural. Okay, so it’s like a huge difference between rural and when you’re on for sale by owner rural versus or you know, urban they know their buyer and their family a lot of times it’s just transfers within family so it wasn’t even for sale it’s just a sale happened without an agent.
Right. Oh, that’s so crazy. But I thought that number would have been a lot higher given the market and so it kind of goes back to the fear that people are having like you don’t have to fear we are still bringing value right time you know, the public is still using us and we are selling the homes for a lot higher than the For Sale By Owner Yeah, I found it it’s 12% of sales were for sale by owner in rural areas and only 4% in urban areas. Wow for so there’s no reason to be afraid of for sale by owners you don’t 90% of sellers would prefer to use an agent so why are you wasting your time trying to convince such a small percentage of people are worried about that it’s not really what’s happening so I think that should be maybe helping people to calm down about that. I just I wrote something down about it. But for sale by owner Okay, here it is. This reminds me in general consumer behavior. Nobody wants to work. They don’t want to divide up the potato chips from the big back. They want to buy singles right? It’s the same thing with for sale by owner. I don’t want to sell my house. I want someone to just do it for do it for me, please. People don’t it sounds like work. Consumers are gonna pay for convenience. Obviously 90% of people are like, I will pay you to do this for me. Yeah, absolutely. So we just have to focus on that. And it did say one of the things that brought value was having the agent help them prepare the home for the market, all that before legwork that we do to get to actually listing it is very valuable to be seller. Yep, for sure. I also am going to show you to this. The summary has literally one delightful chart. I mean like it’s quite nice. It explains a lot of interesting stuff to you. And you should use this type of data to help you market to help you speak to your niche. To help you choose a niche to like to help you calm down when you’re like worked up about for sale by owner, just look at the numbers like help use the data. Don’t listen to the noise use the data. Okay? Good data looks great. The data guys, were okay. Everything’s gonna be fine. Hey, Alyssa, Hey Kati, guess what? We have updated the email templates. Finally? Hallelujah. They are updated. And there are more of them. Yes, we have 10 Fire template, right 15, seller templates, as well as a checklist for when to send all the emails at what point in the transaction? Yes. So you don’t have to guess when they go. It’s very specific. This happens now then you send this email. So this is what they need to know. This is what they need to know right now. Also, there are six attachments that go along with some of the seller side. So like move out checklist and showing prep or all that stuff. So there’s hope the information you will ever need to tell your clients in one of these templates. Yes. And if you still aren’t sure, you can go back and listen to episode 31, where we talk about the importance of the templates and why we use like what are we even doing so we hope that they help you because they have helped us so much immensely. And we have gotten so many wonderful reviews about how they have helped others. And so now they are up to date and ready for you. And you can go read reviews and all the information at email templates. One Oh one.com Lovely. Oh, easy. Is that great. Okay, y’all enjoy my, um, I found this really ironic. This report compared so this graphic is comparing 1981 to 2021. Okay, so the beginning of the report 40 years ago to the to this part, the amount of people who financed their home in 1981 was 93% versus the 2021, only 87%. So the number of people paying cash has gone up. Meanwhile, the percentage of downpayment has actually gone down. So the people who financed back in 81, it was 20%, down, and now the average is 13%. Down. So it’s ironic, it’s like all or nothing, you either have all the money and pay cash or you don’t and you have a lower down payment than they did back in 1981. I just found that to be interesting. And it said that the number one struggle that buyers had the hardest thing about the home buying process was saving the downpayment, I saw that, yeah, that was hard for them.
Well, and you know why that is? Because rents are so high, and everything’s so expensive cost of everything is high. So like, how do you save money? It’s really tough. And at this point, at the rate that your home price appreciates, you should just find the lowest down payment loan, you can’t get in this thing. Yeah, I have to laugh because I know you’re always telling us that you’re, you know, Ramsey indoors, but I saw that meme where the guy is like in the bathtub crying and I feel like he even has like one of Dave Ramsey’s books. And it’s saying, you know, Dave told me to, you know, have this huge downpayment or pay cash for my house and not have any debt for a house, you know, five years ago, that would have been 100,000. And now it’s worth like, 600,000. He’s like, why didn’t I just get the loan? And have the house? And the House would have appreciated and could have, you know, paid for it? Yeah, you would have that every day that you’re supposed to have? Uh huh. So it’s really how all in how you look at it. And you then you look at the numbers and numbers. Numbers don’t lie. Numbers don’t lie. What is owner what Dave has to say about that now? He sticks to his principles? Mm hmm. He sticks to it. It’s like you don’t need to know de know. Well, he lets you get alone but the downpayment is specific to like your income versus your assets and all of that. So he’s still advocates that you save money to buy a house they don’t want you have to he does not promote. I mean, if you have cash, great, but he’s not anti mortgage, you just need to have some like downpayment. Yes. Love it. Okay, one thing I found interesting was that a lot more single females bought houses than single males. Oh, yes. Teen percent single females versus 9%. Single males? Yep. And then 60% Married couples and 9% couples but we’re not married. So when you’re working on your niche, or you’re talking about your messaging, okay, if you want to talk to Single Ladies, go for it. There’s only 20% of buyers are single ladies. You can literally make that your entire message. Yep. I will help you buy a house single lady. You could Find organizations that like I actually served for a charity here called the life of a single mom. And they have, like education classes and help moms, if they want to buy a home get out of renting. I mean, you’re right. You could pick it a niche and just join charities or volunteer in areas that support your mission. Hmm, there you go. There you go. You want to get back to new construction? Only 15% of sales in 2021. Were new construction. In 1989. Did you read this? I 29%. So it’s less than half of the new construction sales from 40 years ago are happening now. Wow. Wow. Wow. Like it’s just wild. Okay. What else? Can you hear Dante barking outside? No. Okay. Sounds like he’s in the back. But he’s barking at something he’s having a moment. Yeah, we are zooming today. I don’t know if we mentioned that. I think we really talked about it, you know? Oh, it’s 2022 still doing this still zoom in? Sometimes they’ll do in this COVID thing. Mm hmm. Let’s see. Okay, so the typical first time buyer was 33 years old. Yep. Okay, the typical repeat buyer. Their age continued to climb to an all time high of 56. So those are the people who have purchased before. Okay, but your new first time buyers 33 11% of homebuyers purchased a multi generational home. So yes, I have kids parents do construction home that has an amazing but mother in law suite attached to it. And it’s incredible. Yeah. But I do think we’re seeing more of that. Yeah. And another reason I read for that is because people are more nervous to put their aging parents in, in like a nursing home because of us of the visitation restrictions or locked down. You can’t go in there. So Right. scarier. Now, that’s very scary. And that’s very isolating and not good for your mental health for either side. So how about 14% of homebuyers were veterans and 3% were active duty service members, that’s me. So if you are in a niche niche niche niche, like you want to talk to veterans live it up.
20 Or we’ve already talked about the desire, okay. 28% of buyers said the primary reason for purchasing a home was the desire to own a home of their own. One thing in that when they went back to like buyers that were buying new, it was kind of split on if they wanted new or resale. But of the ones that want to new it was strictly because they did not want to do any renovations. They were buying for convenience and they were willing to pay more for convenience. Yep, versus the buyers that bought a resale home. Were buying because they genuinely felt like they were getting a bigger house a bigger yard more value or value going more for value and they were okay if they had to make some modifications. Some people are willing to pay more for convenience and some people would rather look at the overall value of it and would be okay. making modifications. Yeah. Okay. And the typical home the most common home sold. Oh, let’s hear that was 1900 square feet. three bedroom, two bath and was about 30 years old. Yeah. Built in. 1993 93. Yep. So amazing. Oh my gosh, it said overall, buyers were expected to live in their homes for a median of 12 years, while 18% said they’re never moving. I’m never moving again ever doing this after this market though. Anyone would say that right? Like I never got all my sellers are like this. I’m not doing this again. Right? Well, it’s hard. It’s hard to sell. It’s hard to buy. I just want to stay or people just gonna get nervous. They can do it again. They’re like we’re stay in here. Okay, what else? I found this part interesting because it kind of goes back to how you’re communicating with your buyers. But 41% of buyers said that their first step in wanting to buy a home was starting to browse online before they ever even contacted a real estate agent. I think that’s good. Have it. And I find myself in that buyer consultation saying, Well, you may have noticed, because you have been looking at the ones that you do like, are not they’re very long on your app. I mean, they’re, Oh, this one’s great. And then by lunch, it’s probably not there. And that will give you a good indication of what the market is doing. Right. Make sure that you’re asking the buyer the right questions. Have you been looking online? I always asked that question. Yeah. had someone say, no, no, no, they never say no, no. They’re always like, yeah, we’ve been browsing. They certainly are typically not. Well, it says 19% of buyers first contacted a real estate agent. I don’t know, like, that seems high to me feel like everyone goes online. And it’s like, well, what’s out there? Before they start the process and less 20% of people could have just been like, I have to move like maybe I have to move for work, or I need a bigger house, like whatever it is. Maybe they had to. Okay, 91% of recent buyers found their real estate agent to be very, or somewhat useful information source. Great. I let’s let’s work on that. Yeah, let’s get that. Let’s get that to 100% people. Okay, and they’ve searched for eight weeks and looked at a median. I don’t know if you’re going to do you believe this eight homes. They looked at a median of eight homes. I believe the eight homes because there weren’t more than that to look at. Because there weren’t more than that to look at that might have taken two or three months. Yeah. All right. I just list a buyer. Well, we closed this week, but I we closed this week. And we have been looking since like March. But we’ve probably looked at 12 homes since March would that’s not a lot. Yeah, it feels like a lot. But really, if you think about it, it’s not a lot. But the reason the reason it feels like a lot is because they were all one at a time, right? It wasn’t like one day we sell four houses. No, it’s like 12 times I had to go meet them to look at houses, right? Because a house finally popped us up. Yeah, that’s crazy. And nearly all buyers y’all all if you’re a listing agent, this is why your photos are so important. Nearly all buyers used online tools in their search process at 95% 95% of buyers are looking at that house online first.
Okay, and then this is interesting. If you’re doing any kind of website work, or you’ll hear a lot of I knew when I was with REMAX, they would just really be like, Oh, we’re focusing on mobile, and we’re gonna get your website mobile optimized. So the internet searches conducted by homebuyers were split 50% On a desktop and 50% on a mobile device. So that number is always increasing on mobile. So you’ve definitely mean half and a half. You need your you need both. You need it to work both ways. Right? They need to both be good. Okay, and only not only good news 94% of recent buyers were at least somewhat satisfied with their recent home buying process. What I found interesting was it said 47% of buyers use an agent that was referred to them by a friend or family member, huh. 13% use an agent that they had worked with in the past, I felt like that was kind of low, like wildly. Unless it was the first time homebuyer so there was no past agent. Right. But it just seemed like it’s currently not high. What is the there’s a it was a class that I took, but it said, you know, 95% of sellers said that they were happy with their agent and would use them again. But 5% do, right? Because they forget they’re in the moment of the transaction. And at the closing table. They’re very happy with you. Yeah, but how do they remember you? friends on Facebook? Are you sending them Christmas cards? What do you do to stay in their life? Right? Because yes, in the surveys, they say, Yeah, I would totally refer you. But are you being intentional about saying, Hey, guys, you know, I have big goals set for this year. If you know anyone looking to buy or sell, here’s some of my business cards. Feel free to send people my way. Are you being intentional about capitalizing on the fact that they would refer you Yeah, but do they think to write or do they have a survey do they think too and are you reminding them that you’re open for business and that we would love referrals? Right, right make it easy for them to Give you a referral. Oh my goodness, oh, that two things that you might want to know 7% of buyers purchase directly from the builder. So it’s not that many 87% used a real estate agent only seven purchased directly from the builder. Again, those are things that are addressed in that your pre approved email, you know, don’t go straight to the builder don’t go to the for sale by owner, we can help you with these things. So that just kind of tells you how many actually go straight to the builder. Right? Okay. Oh, this is so important. 73% of buyers interviewed only one real estate agent during their home search. Wow. So 47% were referred right 13% knew someone they had worked with before, but out of all of everyone. 73% of people are like whoever the first person I talked to is that’s just it. Yeah, you win. Great. That’s just it. Okay, oh, it sounds saying 90% of buyers would use their agent again or recommend them. Great. Okay. 90% would recommend and this is your staff, but only 13% reuse them. Yeah, they say they will. But they don’t. Because they forget they gotta be there. You gotta be there. All right. I’m a one to finances side note on that. Yeah. My cleaning lady who has been my cleaning lady. She was Tanner’s cleaning lady before I knew him, right. She’s been in our family air quotes for about 1314 years now. Yeah. But she’s always she does a great job for me. She does our personal home and I sent her to clients to do move in, move out. Sometimes I feel like she’s really busy. Like some weeks if I’m like, Hey, I’m having some people over at my house. Can we add extra clean on Friday? Sometimes she’s like, Oh, let me see what I can figure out, you know, and I’m like, Okay, I’m sorry. I did. So I feel bad sometimes. Yeah. She actually called me and was like, Alyssa, I just want to say thank you for all the business you’ve been sending. Send me more girl. I’m open. And I was like, sweet.
And so I had a seller that was moving out. And so they sold and bought with me. And I had gotten them a little gift for the buying. And that’s all I was going to do. Right? But they were tough. They also just had a baby. And they’re like, Okay, we’re moving out this weekend. And then we took off work Monday to come back and just clean it. I said, Look, I’m sending my cleaning lady consider it a closing gift. And they were like, what? I said, yeah, she’s gonna just go in there and do it all don’t even and they were like, are you serious? I said yes. And they have just been they have thanked me for it about 27 times. Oh, my God. I called her and I said, Hey, can you go to the south? Sure. I’ll be there Monday. Love it. But it goes to show she called me. Yeah. Hey, thanks so much for using me in the past. Would you mind? Send them you know, if you hear of anybody else? Sure. And I did. And I have more coming. Clients don’t know unless you’re intentionally saying, hey, thanks so much for using me in the past. I have big goals. This is why you just write them a letter. Send them a few business cards. Yeah. Yay. I’m so thankful that You trusted me to help you with your home transaction. I have big goals for 2022. If you know anyone looking to buy or sell, I would love to help them. Here’s a few business cards. Thanks so much. Let me know if I can do anything for you. Yeah, the end write that letter, the easy times and send it to your top 50 people and you’ll have a great year, I promise. Yeah, I love it. Do it now. That’s very good. Okay, do you want to do financing or the home sellers and they are selling experience? You go ahead. Let’s do financing. Okay, we’ve already talked about I said there was more cash buyers now than in 1981. The typical downpayment for first time buyers was 7% While the typical down payment for repeats was 17. And the other thing I thought was interesting for first time homebuyers, oh you said this, that 29% said saving for the down payment is the hard part. And buyers continue to see purchasing a home as a good financial investment 86% reported they view a home purchase as a good investment. Because it is it is very good. Okay, so that’s that these are the facts, ma’am. Just the facts. Okay, let’s go to home sellers and see if we didn’t catch any of this. We’ve already talked about them being 56 years old. One that that interesting was that the final sales price was the hunt. was 100% of the highest recorded pricing since 2002. Yeah. So it’s been 20 years almost that this is a record or record. 100%. Like, that’s crazy. I wonder what was happening in 2000 and two.com? Boom, I think, okay, but I don’t look, I don’t know, I was still, you know, in my 20s. I was, you know, I was at a high grade, I was in my 20s. Anyway. Okay, recently sold homes were on the market for a median of one week, a drop from three weeks last year. So they don’t stay on the market loan. Okay, remember the little thing I will have to share it because we reference it, but we’re their slice. It’s a meme where they’re slicing a little bitty sliver of meat off of the pork to put it on the plate. And they look so sad at the little morsel of meat that they’re getting. You know, the meme, the cartoon would tell me what happens. I can picture it right now. Yeah, well, but it says that only 26% of sellers offered incentives. Oh, no. Like now buyers are like, can I have closing costs? No. Okay. No, okay. Okay. But they’re just getting the littlest sliver? Nothing. They’re like, Well, you take 500 off your price. No. Okay. You want to stay living in the home after? Oh, okay. I mean, it’s just been a,
I know, much out there. That supply and demand situation is crazy. Oh, that’s beautiful. Okay, home sellers cited that they sold their homes for a median of 85,000. More than they purchased it for a jump from 66. Last year. So just in one year, that’s $20,000 difference. I had a buyer that had reached out to me in at like the beginning of 2020. And I had sold him his home, he had paid like 180 for it. I said, I think that we could list it for like 199. Now. He hadn’t lived there that long and had done no upgrades, real upgrades, let’s say. So he was fine. He was happy. And then they found out they were having a baby and they we decided to build and it took forever. So they were like, Okay, well, we still need to sell our home, but not until our house is finished. By the time their house was finished eight months later. I said you all the values just in the last eight months, I think we can list it for 229. Wow. And he was like what I said, I’m telling you. And I said and it looks so cute. I would prepare for a bidding war. I don’t know if it’ll appraise. But there are some sales that support this. So we listed for 229 and went under contract for 234. Oh my word. So just in eight months, it was a $35,000. And that’s what a $200,000. Home. That’s what’s a lot. I couldn’t believe it. Oh, wow. He must have been real jazzed. Yes. Very excited. I mean, wow, the new home. Yeah, that’s right. Get some new furniture. Okay, we talked about why sellers wanted to move number one 18% to be closer to friends and family. The next one 17% Was that they needed a bigger place because they’re doing all the things at their house, right. And then the neighborhood had become less desirable was 11%. So mostly they want to be close to their friends in maybe a bigger house. But then it said 46% of sellers traded up for larger but 28% bought the same size. So they were just trying to change maybe location, but they still bought the same size home. Yeah. Okay. Um, well, my notes, that’s all your notes. 92% of sellers were at least somewhat satisfied with the selling process? Well, I’m sure you were sure. Because it happened quick and you got all the money that you want. And you didn’t have to give any concessions, no concessions. I’m very pleased. Right. Don’t expect this. The next time you sell you should stay in your house for 12 years because we don’t know what’s going to happen. 68% of sellers found their agent through a referral from a friend, neighbor or relative or use an agent they’d worked with before. So 68% Repeat referral. So whenever we talk about database and loving your people and all of this jazz, these are founded in this is actually what will grow your business, you can go focus on an online lead service or do some kind of crazy marketing, but 68% of people are still going to use someone they used before or were given a referral to. Right. Okay. 82% of sellers contacted one agent, and one. So there really isn’t. I know a lot of people are worried about their listing presentation and, you know, winning the interview and which is fine, I think you should have a good interview process listing presentation, you should be providing value to that seller, but the odds are not that they’re interviewing three people every time the odds are that they’re going to interview you unless you totally blow it, they’re probably just going to work with you. So that’s kind of, I don’t know, makes you feel a little better, I guess. Yeah, I’m 53% of sellers use the same agent to purchase to sell and purchase. Okay, that number when, like, do that it was like they bought percentage. 53. Why wouldn’t that be higher? Because a lot of people left the city and went somewhere else. Oh, that makes sense. Yeah. So if you if you will, here’s where it gets interesting. If they moved within 10 miles, it went up to 85%. But here’s my question. 15% of people didn’t use the same agent to bind with a 10 miles. Like, what did you do wrong?
I know, that’s weird. That’s very strange. So anyway, I just thought that was really interesting. 89% of sellers put their home on the MLS. I don’t know why you would not 66 No, 76% of sellers reported that they paid agent compensations. I guess the rest would be for sale by owners. And but that doesn’t add up because for sale by owners are only 7%. Yeah, I don’t know. I don’t get it anyway. The typical seller recommended their agent twice, since using them twice. 27% of sellers recommended their agent four or more times since selling their home. And that is the best business that you can get the best the Capita Yeah, the best, the best, the best. And we kind of already talked about for sale by owner there, you know, rural versus urban. I mean, it’s 4% in cities are using for sale by owner. And oh, this is important, though, because this is one of the stats you can actually talk to, for sale by home owner sold at a median of 260. Last year, significantly lower than the median of agent assisted sales were 318. huge gap, huge gap, huge gap. And of course, part of the gap is because they knew the buyer, whether they were family or not, they’re not selling it at market value. When they say oh, we’re going to save the commission, I’m like, you’re also going to lose a bunch of money. Ah, that make any sense? That’s all the things that I had on this one, you’re done. I’m done. Okay. Here’s the last point I’d like to make data is powerful. Being able to talk to data, share data, tell your clients, your sphere, where you got the data, what kind of study did it come from? Where was the report, if you are following an economist or any of these things, this gives you credibility and gives you data that you know, facts that can help you like devise a plan for your clients that can help you make them make choices. Like don’t just give advice based on nothing. No, no the data know their data. So I just think it’s super powerful. And it’s like the number one thing that you have going for you. Okay, are you ready for a toast? Yeah. Great. Let’s do this. This toast. I’m gonna hold on you talk to me for a second. Well, I find her last name. We’re still doing pretty good on toast I think. Oh my God, there’s so many all in the bank. I love seeing all the people wanting to encourage and shout out. I know, I know. And it’s just it is very positive. And I like it too. All right, this toast is from Mikayla, but I want to tell you Mikayla is last name. Okay. Mikayla was singer was injure. Oh, God, I should have. I should have not looked it up because I’m going out. I know. Mikayla is in near where is she? Okay. She’s a realtor by day we lift her by night. Where is she? Cool. She’s in Pennsylvania. Okay. There’s in Pennsylvania lately. Have you noticed that? Wait, a lot of people from Pennsylvania. I don’t. Yeah, you’re right. This recently had like a surge there. We’re very popular in Pennsylvania. They like the southern accent maybe. Okay. Hi ladies. I would love to make a toast for one of your podcasts. I am about a year into real estate business and I would love to toast my good friend Sarah Orozco. Oh gosh, I’m sure I messed that up Roscoe, who started around the same time as me. We have been navigating this crazy market together. We have only known each other a few months, but it was like friends at first sight. We both listen to your podcast and utilize what we learned in our business. She is killing it in her first year. She’s my sounding board and we both live for community over competition. That’s awesome. So nice. So cheers to Sarah and thank you to Mikayla and thank you to all of you all for listening to all of these very meaty facts. Yes, that was a good one. Okay, goodbye. Bye. Thank you so much for tuning in to the hustle humbly podcast. Let us know who we should toast to for the next episode. Be sure to follow us on Facebook and Instagram at hustle humbly podcast. If you have an episode topic or question please email us at hustle humbly email@example.com Be sure to subscribe to the podcast and leave a review. See you next week. Bye. This is the goodbye