180: The 2022 NAR Profile of Home Buyers and Sellers

Episode 79 Buyers Buyers Buyers

Episode 17 What to Do When You Are New or Slow

Episode 2 Culture of the Real Estate Industry:

Now Trending:
we're alissa & katy

We're two top producing Realtors who love to talk about fostering community while navigating the often times cutthroat real estate industry.

hello,

Email Templates 101

tell me more

Take your time back with streamlined client communication.

Last year one of our most highly downloaded episodes was The Profile of Home Buyers and Sellers, so we are here again with this year’s data! And, yes, there is A LOT of data! Being familiar with these numbers is integral in growing a successful business and knowing where to invest your time and energy. We even share with you lead generation ideas based on NAR’s findings. We cover the characteristics of home buyers and sellers in 2022 as well as how they utilize and feel about their Realtors. What percentage of consumers use the first agent they talk to? How long are people staying in their homes? Where do buyers find their homes? How many weeks will they search and how many homes do they see? We are going to tell you all of that and more! Find the full summary here. It isn’t just Realtors who are studying this report. It is utilized by market analysts and policy makers too. Don’t miss out on this important information!

Doors to the Hustle Humbly Community are OPEN NOW!! Jump in before January 24, 2022!
Get your FREE Database Template
Email Templates 101
Agent Systems 101
All Resources
Submit your topic ideas and toasts to HustleHumblyPodcast@gmail.com

Below is a rough transcript provided by Otter.ai

0:00
I feel like I’m not compromising at all

0:03
my house or my spouse. I’m like, I will just stay single thing. I’m gonna die here in this home. Okay 28% of homebuyers.

0:14
I would like to at least get an A on that for next year. So we could bump up the grade to the 90. That’d be good.

0:23
And you’re basically giving the advice that she would have gotten from you if she had used you as a big mess. They already got a realtor and then four steps later, they’re calling. Yes.

0:36
Hi, y’all. Welcome to hustle humbly. It’s Alyssa and Katie. And we are two top producing realtors in the Baton Rouge market.

0:42
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. Hi, Alyssa. Hey, Katie. It’s episode 180. Oh, good. It’s the profile of home buyers and sellers. Woohoo. 2022. Oh my gosh,

1:07
for those of you who have been with us for a while. Every year we Katie likes to read the National Association of REALTORS buyer and seller Profile Report. Listen, the people like the report. Yeah. And for some reason, it always is one of the top listen to episodes.

1:27
I think I know the reason why, because the report is quite lengthy. But the information is quite good. And people want to hear the information, but they don’t want to read the information. Like myself. We’re doing them a service. Yes. So the service is that we’re going to go through the report and tell you all the most interesting details.

1:48
If you are not familiar with this report, I will review their little summary of how they got this data. Okay, great. might be important to understand. In July of 2022, the National Association of REALTORS mailed out a 129 question survey using a random sample of recent home buyers and sellers. They received over 4800 responses from primary residence buyers.

2:21
Do you remember how many they sent out? I will tell you, they sent out 153,000 request and 4800 people did it. Wow. But I guess what I wonder what kind of incentive they give them

2:36
129 questions is much too long. It’s a

2:39
huge commitment, you’d

2:40
have to be a really good person to just do this for fun. Right? So the response

2:44
rate was 3.2%. Correct. I mean, that’s pretty wild. And let’s go back in time, the report originated in 1981. So they’ve been doing National Association of REALTORS has put together this report every year since 1981. I love that. I mean, it’s it’s a lot of data, right? But in 1981, I’m trying to find I believe there were 50 questions.

3:12
Yeah, it gets longer and longer.

3:14
It’s gets longer and longer and longer. I mean, 129 question,

3:18
they’re gonna have to start doing gift cards or something.

3:21
Right. That’s a lot. That’s quite the commitment. Okay, carry on. What else? Do you want to tell them about the report? Would I think that? Okay, I’ll tell you this as a realtor, you have access to this report. Now. Regular this among just a regular person off the street and economist of some kind of business person who wants to know about home buyer and seller habits can buy the report. It costs $200 Whoa, it costs $200. And the report is the full report is 142 pages.

3:56
Yeah, Katie sent me hundreds of pages to read didn’t tell you to read them every corporation for today.

4:04
To be fair, we’ve recorded this episode and 2020 2021 And now 2022. And the first time we did look at the whole report, yeah, because we didn’t know there was a summary. Now we’re smart. The summary is quite good, it is good. It just doesn’t have all of the charts and graphs, which I know you really like and appreciate the visuals, but it really pulls out all the most important data into the summary. Now here’s the great news if you’re a member of NAR, so I’ll Realtors you can get the summary for free. Very nice, so anyone can have the summary. If you’re just some Joe Blow off the street and want the full 142 pages it cost you 200 bucks, but if you’re a realtor and you want some nighttime reading, it’s only $20 Okay, okay, so it’s discounted to realtors $20 For the full report.

4:54
I just can’t imagine the work that went into putting this together.

4:58
So they sent the This is the other important information. The data covers a period from June of the previous year through July. And then they send out. So the report comes out in, I guess, November, December, and then tells you, but you’re really following the journey of the buyers and sellers from June to July of the previous year. Right. Okay. So it doesn’t really cover the biggest part of the market shift in my opinion this year. It just kind of gets to the beginning. I was

5:26
actually thinking when I was reviewing this, I’ll be more interested to see next year for because I like how they compare it from this year to last year. Yeah. Whereas I think next year, it’ll be a much bigger difference. Yeah,

5:39
I agree. I think it’s going to be a much bigger difference. Because the last two years, were kind of all that seller’s market. You know, a lot of buyers market. Okay. What else should we start with? Because y’all there’s a lot of stuff to unpack, rd are beginning. Okay, well, great. Let’s just do that. The report is divided by home buyers, and then home sellers. Each iteration of the report is as unique as the economic, social and demographic environment in which it is published. So they cover all kinds of demographic questions, all kinds of questions about their realtor. The report has a lot of facets. Okay. It did say that this year’s report does kind of note that it is a year of transition. Okay. In the market. Yes. Okay. Here’s one of the first and most interesting things. The distance moved from your last home increased this year. Yeah, people are moving further away. So went from 15 Miles was the you know, distance normally

6:38
moved to 50. That’s a really far way to go.

6:42
Yeah. So people are leaving, I guess a lot of people left the city and went more rural.

6:47
And as people are being allowed to work from home, being super close to the office is not as important.

6:53
Exactly, they can do it anywhere. So they just keep going further and further away. Here’s the interesting thing about inventory. Inventory continued to sink and by January of 2020, to reach the lowest level recorded by NAR since the data series began. So in 1999 was the most the previous lowest recorded inventory. That’s a long time. That is the longest time 23 years since then inventory was this low. Okay, first time buyers also shrunk to the smallest share since the data started. So affordability. That’s not just a talking point. It’s really true is a problem. And it’s just 26%.

7:37
That’s not very many. Probably because it was so hard for first timers. Not very many when the bidding wars the last year. Yeah. Okay,

7:45
so do you want to talk buyers first? Where did you start? I think I have buyers. Okay, first. So here’s an interesting so we now we know, there’s only 26% for some buyers 97% of the first time buyers finance their purchase. That makes sense, right? I mean, it’s unusual for you to be a cash first time buyer with a typical down payment of 6%. Okay, which is virtually unchanged from last year. And I just think that’s how first time buyers have been for a while, right? That’s a pretty standard down payment. Okay,

8:18
the the standard first time homebuyer this year was 36 years old. They got older, they got older, they got older, people are waiting a little longer to purchase, because there isn’t anything to buy. So last year, the age was 33. That’s a big

8:34
jump. Yeah. And I think that it said homebuyer ages for resales jumped as well

8:39
as 59. Everything is higher. Everyone who bought was older, everyone got older before they bought this year. Now here’s one thing that

8:47
dropped the repeat buyers who financed drop to 73% down from 83% The last year because their equity had had gone up so much. Right, right. So now they’re like, Well, we have all this cash. Maybe it’s all in their house. Maybe it’s not but the equity impacts there so they less people needed financing. So your resales were only 73% needed financing. That’s crazy.

9:13
That’s a huge percentage of cash buyers. Well, right.

9:17
That’s a big percentage of cash buyers. 27 Yeah, it’s a lot. You know, and that’s why they had all that extra equity in their homes, or at least one of the reasons Yeah. Okay, how about the length of time did you get this the length of time a homebuyer grew, it grew this year. It went from eight weeks they used to search the year before to 10

9:39
weeks. If you’re lucky

9:42
thing to look at

9:44
right right. I know I still have a few stragglers that we just like can’t find something and then you start looking so long and then you’re driving yourself crazy and things start looking the same and you forget what you wanted in the beginning

9:57
because the time some time has passed because Hello, buying a home really is when the mood strikes you, it’s better to get that done quickly. If it drags on for months and months, you really may just change your motivation. And buyers continued to report the most difficult task for them in the home buying process was just finding a home just finding the right house just finding the right house.

10:20
It said that the group that was least likely to compromise on anything white was single males.

10:27
Maybe that’s why they’re the lowest percentage of buyers. Right?

10:31
Right. Like I will not compromise, I will not compromise at all. I will only buy it if it has everything on my checklist.

10:37
Do you think that’s why they’re also not married? Maybe. So that’s interesting. Maybe they’re like,

10:42
I’m not compromising at all on my house, or my or my wife’s my house or my spouse?

10:48
I’m like, I’ll just stay single things. That’s really interesting.

10:52
I was like, wow, okay. Okay, that’s crazy,

10:55
but it kind of makes sense. It does and of the share of single females homebuyers keeps going up. Yes, we’re

11:04
a lot more compromisable.

11:06
I guess we’re just like, look, let’s be realistic,

11:09
right.

11:10
Okay, what else did you get on buyers? anything of note

11:14
86% of buyers used a realtor.

11:18
Okay, I love that. Because it’s also 86% of sellers.

11:22
I did not understand that. Like, how is it the exact same?

11:26
Well, we’ll get to sellers in a minute. But on buyers. I mean, that makes sense to me what you want someone to represent you? I totally think that makes sense. Okay, 61% of buyers were married 17% were single females 9% were single males. Two big difference, a huge difference. And then 10% were unmarried couples. Okay, so this is and it said this was the highest share of unmarried couples recorded.

11:55
People are buying and buying and buying a lot more now than

11:58
before they get married maybe before they get married. Right? Or maybe they don’t get married at all right? Right. Okay. Of the first time buyers 18% were unmarried couples. Okay, it’s pretty interesting. It is. Now here’s a good one. Did you catch the percentage of multi generational homes?

12:17
14% 18% that’s I think that’s getting higher and higher. And

12:23
it wasn’t just some more like, you know, homes where a parent and aging parent was moving in. And some were homes where an older child was coming back, right? Because probably a little bit based on the fact that they couldn’t find a house. Okay. And I did note the they do tell you all the demographic breakdown, but I wanted to mention that 88% of buyers were white, Caucasian, 8% were Hispanic Latino, and both of those had gone up. 3% were black, African American 2% were Asian Pacific Islander and 3% identified as other. And then 22% of recent homebuyers were veterans.

13:03
That’s a huge amount of veterans. Right. I was surprised at that number.

13:08
It’s a lot. And 22% The primary reason for purchasing a home was the desire to own a home of their own. Yeah, I like that. Yeah. And that number actually jumps for first time buyers. It’s 62%. Like, I guess that desire to have something of your own. Yeah, that 22% They’re just like, Oh my God. Yeah,

13:27
yeah, I guess I should buy some.

13:29
I should just do this. Okay, anything else? I’m buyers you thought was interesting, huh? Yeah, about new home versus previously owned home. Okay. 88% of buyers purchased a previously owned home. So 12% bought a brand new home 88%. But previously owned home. Buyers who purchased previously owned homes were most often considering better price at 31%.

13:55
So that was the motivation. So new construction is getting very expensive, super expensive, especially this past year with the cost of everything going up, right.

14:03
It’s hard to even find them and now they’re building not as quickly anyway, so it’s gonna be even harder to find them and more expensive, detached single family homes are the most popular. It’s 79%.

14:15
This next line surprised me. What was it followed by mobile or manufactured at 8%?

14:22
I guess it’s market dependent, though. Yeah. Some areas probably maybe more rural areas would have a lot of mobile or manufactured homes. Right. Yeah. But I would have thought that it goes down homework. Yes. Like, yes. Like,

14:35
I would have definitely thought there would be things before that jump. No.

14:40
It’s the mobile home. Okay, the median distance we kind of talked about this was an insignificant increase. So now they’re moving 50 miles away. In between 2018 and 2021. It was always 15 miles, right. So this year, like to where they were already. Okay. Here’s my favorite that will change next year, buyers typically purchased their home for what percentage of the asking price? Alyssa

15:06
100%.

15:08
Not going to be the same next year leave that it. It was 100 101st because you because all there’s all the ones that paid more yet

15:17
28% purchased for more than the asking price or 28%. That’s wild.

15:23
That’s wild. Okay, how about did you catch the typical square footage

15:31
1800.

15:32
That’s felt pretty big. Yeah. 18 103 bedroom, two bath, perfect and built in 1986 To be precise, to be really precise. And buyers expected to live in their homes for a median of 15 years.

15:48
And 28% said they’re never moving.

15:51
Right? We can refer them back to the forever home episode because you know how I feel about this. It’s a myth. I’m never moving. I’m gonna die here in this home. Okay, 28% of homebuyers

16:03
are gonna own it forever. I was just watching the episode of Gilmore Girls. When Sookie and Lorelai are talking to Fran about buying her Dragonfly Dragonfly and yeah, and she’s like, Well, I’m just gonna own it forever. And they’re like, but what happens after that? She’s like, What do you mean? And they’re like, you know,

16:26
when you are not?

16:28
And she’s like, No, I don’t understand what you’re saying. And they’re like, Mmm hmm. But yeah, that’s what this reminds me of.

16:37
Yeah, like, Well, yours made me a little nervous. And like,

16:41
that’s a very long time. They

16:42
think they’re gonna stay for 15 years. How

16:44
long have you been here now? Eight. It’s a long time.

16:48
How long have you been in your house? Five? I know. Okay, maybe they are gonna stay for 15. But

16:54
you’re pretty comfy here.

16:56
I could see staying. Yeah, yeah, for a long time.

16:59
You’re sure. 15 years, maybe at least another seven?

17:02
I don’t know about another set? I know. Who knows? I mean, maybe another seven. Then they both of the children will be out of school. Or almost at school. Yeah. Next 10. They figure it out? Yeah. Interesting. Okay. 47% of recent buyers say the first step they took was to look online for properties for sale while 18% of buyers. The first thing they did was contact an agent.

17:27
Yes. And I think we are going to start seeing this a lot more. Yeah, I had a dear friend. Hmm. That was not on my radar for looking right. They had not reached out or told me they were looking or anything, right. And she called me and was like, I made a mistake. I have been casually browsing online. I wasn’t ready. I didn’t think I was gonna actually do anything. And this house came up. And I just clicked the button that said, Would you like to see this home? No. And I did not understand that it was going to give me a real estate agent.

18:10
That wasn’t the that wasn’t you?

18:13
Right? I didn’t, I wasn’t at a point where I was ready to reach out to you yet. And she was like, now I feel really bad for this. This agent. They are really trying to like win my business. And she’s like, so I’m going to work with them to buy and I just need you to sell my house. And I’m so sorry. She’s really sweet. And I told her I understood but I thought it was a very valuable lesson that sometimes we just need to check in or even like do a stories that says that you had no clue. She hadn’t mentioned she was looking at all No, she wasn’t even on my radar. So like

18:51
you mean, like you just want to check in with everyone you know? Well, I mean,

18:55
even doing something like an education post, like on your social media or something that says, you know, did you know that you should never click the button that puts you in touch with another realtor? It won’t be me, but the consumer really doesn’t understand.

19:14
So listen. This month in January we’re going to air our How do you buy a house episode? It’s going to be good geared to the consumer so that you can share it with your buyer or your sphere, right whoever that doesn’t even know how to buy a house all the things that you would want them to know right? We’re just gonna do it. How do you online leads even work?

19:35
Did you know agents page or that we’re gonna just tell the consumer that’s right. We’re gonna give them the 411 But I thought that this report there was a few things in this report that really got my wheels turning one being like, okay, these are the real numbers like this is the reality. They are looking before they even call us. Yep. And we need to be aware of that.

19:55
Well, here’s the good news. 86% of recent buyers found their real estate agent to be very or somewhat useful information source? Great. Good job, y’all.

20:04
I would like to at least get an A on that for next year. So we could bump up the grades and the 90 That’d be that’d be good.

20:12
Okay, the buyer search for 10 weeks, we talked about that and looked at Do you know how many houses five? Can you remember five years ago, you might have looked at five in a day. Right? Now you’re like five total, over 10 weeks. That’s not even a house a week.

20:27
My buyer at the inspection yesterday, her mom was like, I mean, you’ve just been working with her for such a long time. And I said I have, but I’ve really only showed her like six houses spread out, really very spread out. Because once every couple of weeks, one house pops up that meets our criteria.

20:44
That’s what I don’t like about this market. Because the momentum of a buyer is important. And a buyer only has momentum, as long as they’re looking at homes. Because it’s three weeks since the last time you saw a home. Maybe they’re just not in the frame of mind to look or they go and they can’t remember what else they saw. Yeah, they don’t remember this house is better than the last house Correct. far in between? Yeah, I don’t have the answer to how to fix that. But I don’t like it. They looked for eight weeks in 2020 and 2021. Yeah. Okay. Nearly all buyers used online tools in the search process at 96%. Wow. So your website should be mobile, mobile optimized, you should have a Google business, you should have all of your profiles Correct. Like the you’re there all 990 6% You should be telling your sellers that photos are the most important thing you will do. And that professional photos are required because 96% of buyers are online.

21:48
If it doesn’t look good, they’re not coming. They’re not coming and 60% are using their phones. Yes mobile

21:53
device. So that’s important to remember, just because you have a fancy good looking website, you better check and make sure it looks good on a mobile device. Because just on your computer on your desktop that you’re looking on it when you edit it, it does not mean that it makes sense and looks good on a phone, right? Or an iPad or whatever people are using. So so important. Okay. 91% of buyers were at least somewhat satisfied with their recent home buying process.

22:21
I felt like that was pretty high considering that it was kind of a tough year for buyers. I agree with the bidding wars and the sellers not wanting to make concessions. Yeah, it’s a lot. Hey, Alyssa, Hey, Katie,

22:34
what do we mention almost

22:36
every episode, email template, you’re right,

22:40
we sure do. And after every time, we mentioned an email template, do you know what we get

22:44
emails asking if they can have copies of the email template,

22:48
send me a copy of that template? I would like that, that sounds great. And you know what the good news is, you can get all of our email templates from our course, email templates, one on one, tell the people about it, our

23:01
course has all of the email templates you would need to send to your buyers and your sellers and your clients that are buying and selling at the same time. Exactly. To get through every step of the transaction and giving them information that they need for where they are in the transaction. It’s great, because you never forget to tell them something. Yeah. So we’ve already done all the work for you. Yeah, we wrote them and you can personalize them. Yes. And just feel organized, knowing that you have all the information where it needs to be.

23:29
And if you purchase email templates, 101, you do get lifetime access. So occasionally, we like to go in and make updates based on the market or if we find a new best practice. So we put that right into the template and you get that updated straightaway.

23:42
It just goes straight to your core. Yes.

23:46
It’s already there. It’s just already in there. You don’t have to worry about it.

23:49
We’ll email and we’ll say updated. That’s great. Where can they find these email templates? You

23:53
can find the email templates at email templates with an S one Oh one.com

23:59
email templates. One Oh, one.com. Yes. Head over for reviews and all of the specifics. Wonderful.

24:05
Okay, enjoy. Okay, now we’re gonna move on to the portion of the homebuyers that talk specifically about their real estate professional. Okay, are you ready? Yeah. Okay, this is important information because this is where we come into the process. Okay. 86% use their real estate agent. We’ve talked about that and 10% purchased directly from the previous owner so bought a for sale by owner right? Yes. Okay. Having an agent help them find the right home was what they most wanted. At 49%. However, to me, that said, more than half of the people didn’t need their agents to find their home.

24:46
Right? They made it sound like that was the big perfect No, no,

24:50
for sure. The other motivations may have been split. But to me, the important thing to note was that less than half of the people said I need my agent to help me find a house They need them for all these other things. Right, right. Yeah. So I’ve been saying that for a long time. But I thought that was interesting.

25:07
Well, it seems that it I look back at the beginning of my career when I was setting up searches, and I have found a few things. One, they always know what they like more than I do. Yeah, I enter what they tell me I enter their basic criteria and try not to make it too limiting. But a lot of times, they end up sending me houses that were just not on my radar based off of what they told me because I

25:32
think they’re changing their search in the moment based on what they can and cannot find. Whereas if you just set them on, well, you said this is what you wanted. And then it doesn’t they don’t there’s nothing like that. Right? They’re basically sacrificing what they told you mid search, when they’re searching. Well, okay, I don’t mind going up $10,000 in price, or maybe I need to take out that third bathroom or you know, they’re changing it as they search. Okay. 38% of buyers used an agent that was referred to them by a friend, neighbor or relative 38% 12% Use an agent that they had worked with in the past to buy or sell a home. And 10% fail on their agent when inquiring about a specific property online getting higher. It’s scary. Hi,

26:24
I don’t like it. 10% all that clicks the button 10% click the button that said want to see this house clever

26:30
lawyer. Fine.

26:32
Sure. You’re all interchangeable? Yeah, I

26:35
don’t care who it is. Right. Just show come open the door for me. Hmm, very scary.

26:41
And I think that it can be frustrating for us. Yeah, when we lose the client, but I think it can also be frustrating for the agent that does pay for the online leads. Because then that person’s like, thanks so much. I’m gonna call my Aunt Susie. Now she’s my realtor.

26:55
Right? But that is their fault for not explaining right? Because I still feel like the way the system is set up. It’s a trick. It’s tricky. It’s very tricky. They’re not being very forthcoming to the person that calls them Hey, just so you know, this isn’t my listing. I would love to represent you as a buyer’s agent. Happy to schedule the showing you know that that’s not what happens they try to suck you in and then hope you’re nice and won’t fire them

27:18
cry like my friend right? Yes, like please, please feel bad for me. She felt awkward she did. She told

27:24
me that she was like I don’t want to tell this agent that I didn’t know what I was doing. And she called

27:29
and asked me several questions during her buying process that I couldn’t believe

27:34
that they didn’t answer did did you ask her did you ask your agent right? Did you ask I did and she was like they didn’t know she was

27:41
like I didn’t want to bother me so busy.

27:43
Yeah, working on that right you’re right he’s so busy working those online leads because he has to drop everything and go always and you’re basically giving the advice that she would have gotten from you if she had used you as

27:58
a big mess oh my

27:59
gosh but you all take note that is what happens and then you’re depending on your personality you might be so hurt by the situation that you don’t want to help them through that part or maybe you just like damage the relationship for the future very frustrating

28:16
these were the steps that most buyers to let’s hear this one there Okay, okay. The first thing they did when they decided that they were ready to purchase was they started looking online at properties for sale that’s all buyers Okay, not first timers anybody second timer I need to buy a house second thing was then they contacted a realtor. Okay, third thing was then they contacted a lender okay. Then they Googled information for the home buying process. Okay, which I didn’t Why didn’t your agent or your lender gives you that then they talked with their friend or relative about the fact that they were buying a home so now they’ve probably got like a budget and they know that they actually can buy because they’ve talked to the lender. Okay, so now they’re like, Hey, Mom, I’m buying it I’m gonna buy a house I think what do you think?

29:11
Interesting because mom can’t refer you to her agent now you three steps ago. Right?

29:16
Right. Exactly. Okay, then they drove by homes and neighborhoods Okay. Some of them at this point contacted a home seller directly so they’re starting to drive around Realtors man i given them the rule they already

29:31
got a realtor and then three four steps later they’re calling

29:35
Yes yes. No looked up information about different neighborhoods started going to open houses Okay. visited some builder model home all in the buyer rules. Yes. All in the buyer rules on our templates. And that’s it. Okay. Whoa. And then 1% of those people attended a home buying seminar interesting. They really studious ones. They’re like I need to know more. Yeah. Okay. Wow.

30:05
How about this? 67% of those buyers only interviewed one agent. Great one. So basically, they didn’t interview anyone. They just worked with the first agent they saw face to face, right? Yeah. And 89% of buyers said they would use their agent again or recommend them to others. So I feel like kudos to y’all. Yeah. Okay. We’ve already talked about who financed. And we already talked about first time buyers, and they did say saving for the down payment was their most difficult step in the process. But also we were learning, they think they have to save so much more than they have to save. Right. So while they’re saying that was the hardest part, maybe it’s because they were saving more than they needed to.

30:51
Right. I always tell my buyers, even if you’re six or seven months away from looking, it’s not a bad idea to just talk to a mortgage, let’s say to make sure that you’re setting the right goals. How much do I need to save? It’s there’s something worth paying off versus not paying off?

31:08
Right. It’s a very good tip. Okay. Um, 88% reported that they viewed their home purchase as a good investment. Yeah. Okay. So they’re happy that they bought the house after they bought it. Okey dokey. Now let’s talk about the home sellers, we’re going to transition into their selling experience. Okay. So the home typical home seller was 60 years old and increase from 56 last year. So the age went up. Their most common reason for selling was the desire to move closer to friends and family at 21%. Moving due to retirement 11%, or the neighborhood has become less desirable 11%.

31:54
They just feel like it’s not what it was when they buy it. I

31:58
mean, if they’ve been there a long time, all neighborhoods declined based on the age of the homes. Sure,

32:03
you know, and then it says that most of the sellers lived in their home for at least 10 years, 10 years. So they have been there a while.

32:12
But that increased from last year, it was eight years. So people were in their home a little bit longer that decided to move this year. Probably because it was such a tough market for buyers. They’re like, you’re not getting as many people into the market. Right? So that number goes up. Okay, 86% of home sellers worked with the real estate agent 10% sold for sale by owner and less than 1% sold the eye buyer

32:37
remember how scared everyone was? Oh, the eye buyers? Buyers gonna take away my buyers and sellers and sellers. I’m not gonna have any business right robot is gonna come the robot

32:49
is still around, but it’s needing some help. Okay, for recently sold homes, the final sales price was a median of you guessed it right 100% of the listing price, the final listing price,

33:02
it’s that that was the highest recorded since 2002. Right? What was going on in 2002?

33:11
It was like now I was a little young to be like really aware. Right? I was in my 20s and then there was.com burst, and then the housing market went crazy. And then that happened that burst in like 2007. Okay, okay, but So 2002 would have been like, I guess, things were good with the economy. Yeah. And that’s 100% 100% of the listing price. Wow. Okay, recently sold homes were on the market for a median of two weeks, an increase from one week last year. So already that’s starting to trickle in like yeah, it’s it’s taking a little bit longer, even though you pay full price.

33:53
Sure. It’s took a little longer to sell.

33:56
Okay, 91% of sellers were at least somewhat satisfied with the selling process.

34:02
You other 9% you got 100% of your list price.

34:07
Their agents have been terrible. Yeah. I don’t know what else you could want. Right? Okay, here let’s talk about the sellers. 63% failed their agent through a referral from a friend, neighbor or relative or used an agent they had worked with before. So some someone that probably sold them the house or they were getting a referral. Here’s a big huge one. 80% of recent sellers contacted only one agent, before finding the right agent they worked with to sell their home. 80% Alyssa Yeah, that means you almost are never having to interview for the gig.

34:47
I haven’t really interviewed in a long time. I don’t typically

34:50
interview because all of my clients are repeat referral. So I’m not in competition. I’m not taking reloads or something that where they have to interview me but it doesn’t seem like anyone’s in competition. The competition is being the one they think to call, right or push the button on. Yes. Right. Because once you’re there, they’re like, okay, okay,

35:11
sure, we’ll hire you and I want to interview Yeah.

35:14
Okay. 39% of sellers use the same agent to purchase a home and sell

35:19
their home. It’s so funny because I was like, why would they not use? What about the other they moved over 50 miles away, right? Going so far away, or like my, my sweet buyer, click the button. And now she’s using two different agents I’m selling and they’re buying look,

35:33
if they were purchasing within 10 miles, that number went up to 85%. But then I wonder 15% of sellers within a 10 mile radius didn’t use the same agent to buy.

35:44
Right. That’s a strange, very strange. It makes me wonder is it a situation like I’m in right now? Like a model home? Like a Yeah, model home? They were building? I don’t know. It’s

35:56
very interesting, though. Very, very interesting. 74% of sellers reported that they provided the agents commission, I mean, compensation I’m like, who provided the buyers by no other was that because the market was so wide? I’m just I don’t understand this step,

36:16
right. Anyway, that’s the wonder where the other

36:19
part of it come from, I don’t get it. Okay, the typical seller, this is so key and crucial. The typical seller recommended their agent once since selling their home. 27% of sellers recommended their agent four or more times since selling their home. That’s a big jump. So you want to provide the excellent, that’s how you get more business, providing excellent service to the clients you already have.

36:46
Even when I have a difficult listing or listing I know is going to sit for a minute. My goal is always even if I don’t sell the house and they hire somebody else when my listing term is up. I want them to miss me. Right? That’s always my goal.

37:00
Do you miss me?

37:01
Do you miss me when they’re like, man, at least listen, talk to us. Yeah, we talked all that to at least we knew she was paying attention.

37:08
Right? That’s key 85% of sellers. So they would definitely or probably recommend their agent for future services. All right, let’s talk about the for sale by owners real quick. These sellers. 10% of recent home sales were for sale by owner. Okay, this is up from 7% the year before. Yeah, think about how many things were off market even when they weren’t like so many things. It’s just because like so many houses sold word of mouth in that crazy market. Right. Like they may not have even been trying to avoid an agent. It just happened. Right? Okay. We’re thinking of selling all of a sudden three people, you know, we’re like, can we buy your house? Right. Okay. And then the majority of for sale by owner sellers. 50% knew the buyer of their home. 50%. That makes sense. knew the buyer. Yeah. Okay. So I don’t even some of that means I don’t even think they went to like open market. No,

38:03
no, they just like, Okay, well by, right.

38:07
Okay. within rural areas 13% sold via for sale by owner compared to 6% in suburban areas. So like the total in the in the whole report is 10%. Where for sale by owner. Right. But in rural areas, it’s higher 13. Whereas in suburban areas, it’s only six. Yeah. So if you’re working in a city, there’s not that many not that many. It’s just not that many.

38:32
I like that it said that the For Sale By Owner homes had a median price of 225. Yeah. But those listed and sold with an agent sold at a median price of 345. It’s a big difference. $120,000 difference?

38:50
Well, a lot of times they say for sale by owners sell below market value, especially if they’re selling to a relative or someone that they know. And they don’t have an agent involved who gave them cops. Yeah. Clearly they didn’t do a very good job of figuring out what it was worth oopsies Oh, well, you could have made yourself another 100,000 If you got an agent that would have more than covered your commission, right? Yes, be these are things we’ll share with the public in our in our episodes for sellers and buyers. Okay, we already talked about the methodology of the report. Okay, here’s an interesting detail. 87% of homebuyers were primary residence buyers in 2021, which accounts for 5,000,857 350 homes sold and 2021. So 5.8 million homes were two primary residence buyers.

39:50
Whenever I was looking at the Education graph, I thought it was interesting, that of those who purchased the highest level 26% was a high school graduate. That’s all no college. Yeah. So 26% was high school. To be

40:10
fair, those people could probably afford a home better because they don’t have student

40:13
I know. That’s why I found it. So interesting. Yeah. Now the second place was 24% had a bachelor’s degree. Okay. And then third place was 22% had a master’s degree. Hmm. It’s pretty the high school graduate bought the most homes.

40:33
Right, because they’re probably in skilled labor or some kinds of other jobs. Yeah, get paid.

40:38
Right. They get paid. They don’t have student loans. Yeah.

40:41
Love that. Love that for them. So interesting. super interesting. Any other interesting tidbits you found?

40:50
The household income was the highest? Let me see where it was. Between 85 Nope, nope, that’s not right. Between 100 and $125,000. Oh, so for those who bought the highest income bracket of those who bought make between 100 to 125,000. Okay. And then the second highest was actually 200 or more $200,000 or more? The highest frequency of people? Yes. Okay. Yes. And then the third was 85,000 to 100,000. Okay, so basically at $5,000 is like the end up is the majority of buyers. But I think they’re coming out with so many new programs now that we’re gonna see these other numbers. Really, really? Yeah, like with the bond programs and things get to

41:48
be more affordable. Okay, I also found a great article after I read this summary, in Inman, written by Bernice Ross in November, about how to use this data, okay, like, what do we know? Right? We now we know a bunch of numbers and stats, like what are some things we want to do? She did point out, which we haven’t talked about yet that buyers and sellers talk about what they want in their agent. When searching for an agent buyers, we’re looking for someone who is honest, has integrity is responsive. I’m gonna give you a beat is responsive, has strong knowledge of the real estate market and the purchase process. When hiring an agent, the three factors that were ranked highest on the profile, were the agents reputation, trustworthiness and honesty. Yeah, so there’s like, please don’t use car salesman me.

42:44
Like just be on tell me the truth. Is this a good house?

42:47
Exactly. It she also was like, well, referrals are still the primary source of business. So we’re going to keep beating the drum of you should have a database if you don’t have a database. And if you’re not reaching out to your database, then you’re missing out on the primary source of your business, right 41% of all transactions resulted from a referral. Hmm I mean, that’s a lot. That’s huge. Yeah. She mentioned that you would want to devote at least 36% of your 2023 marketing budget to developing a referral business from your sphere and then gave some you know ideas like we talked about a lot of times you know, instead of farming an area actually use your print and digital marketing budget to stay in contact with your sphere shocking people already know like and trust you and the trust is all they really want it’s the easiest This is so easy. Okay. She also mentioned for any lead this is key and crucial y’all listen for any lead you did not meet in person schedule a face to face meeting a s a p that’s good why Alyssa

43:55
because we have to know like and trust you know, you’re a real

43:59
first agent they see Yeah, right. So you want to be the first agent that they see yes, they need to get their eyeballs on you don’t let them see the agent that they pushed the button on and if you’re the agent they push the button on you better scheduled see them in person right right. Hey, hurry quickly. Yes, it said the first agent that meets in person with a seller gets the listing 80% of the time huge percentage huge in terms of buyers two thirds work with the first agent they interview. Okay. Now, she recommends to stop throwing away buyer leads. So what does that mean? If she says how many incoming buyer leads did you ignore this year according to this profile? So our report 58% of them were living in a home they owned. So the theory here is you get a buyer lead it’s maybe not exactly what you want. You didn’t even ask or no, but they were a seller too. Right? Like you should have pursued them because they were likely also a To transactions to Yeah, then you have to find half as many. Just get two transactions out of the one. Yeah. 58% were sellers and buyers and they just reached out to you as a buyer. Sure. I mean, so you really got to find out what they’re doing and what’s their story.

45:21
I thought it was interesting that it said 76% of buyers felt that they wanted their agent to call them to inform them of activity. 76% of buyers like hey, this new house just came up. Oh, like alert me? Yes. Let me see what they yes via the phone not just

45:42
I think my millennial friends are starting to have small panics.

45:46
Right? Same let me find the chart and my my ears. Now listen to how close it is. Okay. 75% said it was very important that their agent call them on the phone and tell them updates. Okay. See, these don’t add up to 100.

46:05
But they tell you in the report why that is okay. But I don’t remember. So just get 170 3%

46:08
Okay, said they would like a text message. Oh, because you can probably pick more than one answer on that. Yeah, yeah. Okay. But the most people said phone call, okay. 2% later text message. And then it says it goes to 69%. Since postings, postings,

46:29
oh, like the actual listing email, or maybe

46:31
not maybe like a listing email. Gotta be

46:34
okay. I will send it to you by post in the morning.

46:38
Mm hmm. That’s good. Okay. It’s very interesting. Very

46:42
interesting. Okay. Next up, the sweet Bernice is recommending me prospect for the 24% of people that have to move. Okay. So in a rapidly increasing interest rate environment like the one we’re in now, one of the best places to prospect for clients are those who are being forced to move okay, this can result from a major life change like marriage, divorce, birth of child children leaving home job change or retirement, as well as financial difficulties, mobility issues or inability to take care of their home. Okay, in the chart, the 24% of the buyer said they did not have much choice they had to move. Okay. So who had to move? 11% were retiring. 9% It was a change in family situation. Okay, so marriage or divorce?

47:33
And I do think that, especially right now, even though I think we’re okay, because things are settling back down. For a minute, they’re the only people that were looking for the ones that had to because everyone else is saying, Oh, the rates are high, and the prices are high. Be careful, but I don’t know how to do it. Yeah,

47:50
job relocation was 7%. The upkeep was too difficult for they had a health or financial limitation 5% And they couldn’t afford the mortgage and their living expenses was 3%. Right? Yeah. Okay. Then we use the data to find our high probability sellers. Okay. So sellers who are 18 to 34 years old, and have been in their home for two to five years. Then you have the sellers who are 35 to 44 years old, who have been in their homes, six to 10 years. And then the sellers who are 55 or older who have owned their home for 21 years or more. Okay, so these are the three categories of sellers that are most likely to move by their age and length of time they’ve owned their home. Okay. So it’s different for every age group. How long you sit. Interestingly, the older you are, the longer you’ve stayed in your home.

48:47
I think that makes sense. Right? Right.

48:50
Okay, I’m trying to see if there was any other good tips she gave us. She did say that the 55 and older crowd was a really important demographic I just but there’s less senior housing I know it says educate yourself about right sizing and avoid using the term downsizing that’s an interesting tip. What do we call it right sizing? Oh, we

49:16
need to find the right size for you. Yeah, not downsize. Down. I don’t want to move down in line.

49:22
I mean, things are getting no one around me

49:25
like the arrow

49:27
Oh, right size, the right size. It’s interesting. I like that term. Me to sizing. Well, to be fair, almost all of my people who were downsizing were always moving from a large piece of land and a large home to a large home and a small piece of land. They were always downsizing their exterior maintenance and they would keep the house the same size.

49:51
They just didn’t

49:52
want some lawnmower. Sometimes they would get the bigger house. But the smaller yard, okay for the downsizers

49:59
you cuz it’s too hot outside. You can’t cut

50:01
grass that long. You don’t want to cut grass. They’re like, No, thank you.

50:05
Um, this was the I thought this was kind of I always like to know where people come from, as you know, from our toes. But the ones that bought where were they before? Okay, the majority owned their previous home. Okay, right. The second majority, the second highest. were renting an apartment or house okay, third highest lived with parents or relatives and paid no rent. Okay. fourth highest lived with parents, relatives or friend and paid rent. Oh, okay. And then the last group rented the home that they ended up purchasing. Oh, so I guess maybe they approached their landlord and was like, Hey, I’d really like to

50:45
buy this thing. Yeah, save me a move. Oh, interesting. Okay, here, you know, since everyone is on their computer, first their mobile device. Here are the top website features from the report. Okay. These were ranked as very useful in this year’s report. 85% of people said photos. Yes. Okay. 80% said detailed information about the properties for sale. Okay. I cannot tell you how many times I still run a coop run across a home for sale. That is not one day on the market. Let’s call it a couple of weeks. Okay, with no description at all.

51:24
So sad. Why? Why? Tell me what did you write your descriptions?

51:31
I don’t understand. We have a whole episode about it. There’s even services that will write it for you. Oh, wow. cost money, but so sure. Okay. And then real estate agent contact information. 53% of people said that was the top website feature floorplans 49% and virtual tours. 39%. Okay, so those were their favorite website features. That was interesting. Okay, what else we got?

52:00
I was looking at the graph on what was their primary reason for purchasing a home. And they stopped asking this year. Why? If it was if you Oh, no, wait, wait, wait. They, okay. So if they did not ask the question they have in a okay, we didn’t ask so we have no data. Okay, so the desire for a better pet for your, for a better home for your pet. They didn’t ask. They did not ask in 2010. Okay, then started app. They started in 2018. And people say yes. Like one to 2% of people every year are buying for their pet.

52:41
I think that’s pretty cool. Yeah, like if you

52:43
are my dog needs this needs a bigger yard. Yeah. Well, because less people are having children. They like my dog. It’s their it’s their little. They’re like we got to start asking this question are babies? Yeah, I love it for babies.

52:56
Okay, important. Huh? Okay. I think that’s really the tenure I think is really important that I think I honestly feel like tenure for it to fluctuate two years, like from an eight year last year to 10 year this year, I really believe that will change every single year dependent on the market. Yeah, right. It could be a seven year it could be like everyone decides to sell or it could be, you know, 12 years. Everyone’s like, No, I don’t want to sell. Right. It’s just hard to, it’s hard to predict that. I do think it’s important to note that this report y’all is valued and used not just by realtors. It’s used by market analysis policymakers. So like lawmakers, Reno go back to this report. A lot of people access this data economist in order to kind of figure out the health of the housing market and how to proceed. Yeah. Okay, anything else?

53:51
Ah, man, oh, man, I know, it’s like y’all, it’s very much information. The graphs

53:57
and charts are not in the summary. Okay. And I pretty much hit most of the high points of the summary. And that’s a 10 page document. Again, the full report, like we said, is 142 pages, I don’t know a

54:09
lot of big pictures. So don’t let that number of pages overwhelm you. It’s not all black and white words. Yeah, it’s pretty graphs that really show what the words just told you, for sure.

54:20
And then you can also get the 2022 home buyers and sellers generational Trends report. So that’s separated out. And it’s the basically the same questions again, but then put in the context of generational trends. That’s 143 pages. I mean, there’s a lot. There’s a lot of information out there. The key here is you should know some of these key stats, they should some of them are important for you to be able to relate to your clients. I think a lot of them are important so that you know how to shape your business. Like what how do you use these things to make good choices with your marketing dollars, right like you just You’re not gonna mark it to someone who’s not going to sell their home when you want to sell more homes, like if you want to be a listing agent. Yeah, it wouldn’t make any sense. And this has been the leading industry source of insight into consumer behavior for four decades. So, so long, it’s so well, okay, yeah. 1981 It started with 59 questions.

55:23
50. Now we’re at 109 129 Oh, 29. A lot. I

55:27
think that’s a big commitment for people to even answer. Yeah. I mean, that’s a wild. Yes. And the report is so key because it provides that valuable information on the role that real estate professionals play in the transaction. So we know it’s not a secret, you can tell people Oh, well, you know, only 6% of suburban sellers go for sale by owner. If you told someone who was considering for sale by owner that they might be like, oh, man, that’s not Yeah. You mean 94% of sellers use an agent? Well, I don’t want to be in that minority.

56:02
I’m like you I read a lot of these statistics the other way, right? Like how they said 49% wanted their agent to help them find the right house. Right. And like, 51 did it? No, no, they just wanted you to be helpful, right? Do the paperwork. I know. Help them negotiate. Yeah, they’re like, I’ll find the house. They’re gonna find

56:22
it online. Anyway. Yeah, I think I really need agents, especially in 2023 to stop fighting the fact that their buyers are gonna find a home online at some website that you don’t control. Right. I saw someone another cares. Realtors asked this all the time, but I saw one in a group. today. I think what I’m considering buying a $4,000 website. I’m having buyer’s remorse before even signing the contract. Do y’all think I should do it? No. Thankfully, all the answers were like, no, no, but you can’t compete with Zillow. Yeah. So you don’t need you don’t even need a website with a search feature. It doesn’t matter, you’d be better off, they

57:06
still need us to get to the closing table, we provide value, they

57:10
do want a trusted adviser. So why don’t you just make your whole website? Testimonials? Great, right?

57:18
That’s what they’re looking for. That’s what this data says Your website should be just want

57:24
you to tell them that you’re going to be trustworthy and give them the truth and tell them how to do this. And they’ll find a house and you’ll take them there and show it to them. But you better be the first one. Yeah, because if they see somebody else, they’re

57:37
sober. They don’t have time to come

57:39
and find you. That’s a really great takeaway. Buyers and sellers do not have time to come and find you.

57:45
You need to be easily accessible. Top of Mind in front of in front of

57:52
fear. Yes, you gotta be like, here I am. I’m here again. Great telling you another story. or sending you an email about whatever. Yeah, right. I feel like process getting simpler. Oh, yes. Don’t you? Yeah, like I don’t have to worry about finding the right home. They’re all out there. I like that.

58:12
I did see that it said a bigger percentage are driving by before calling their agent. I had a buyer that just did that. And I found it very helpful. She was kind of looking a little more on the outskirts. And she knew the rules. She had my buyer rules. We had talked about all of that. She’s like, I just like to drive around. So that used to be my requirement. Yeah, like, please make sure that you’ve liked it because I will not roll up to another showing where you say to me, nevermind don’t actually like this neighborhood. Yeah, you didn’t know that. Like,

58:41
what do I buy? Yeah. Do you drive bys? That’s what I used to tell them, especially if we were trying to see 10 houses in a day. You got to drive by before we go out. Yeah, days from now. Do you drive bys? Let’s eliminate some of these. Okay, I think that’s all I had to know one

58:58
more. Oh, please. One more last thing. You know, I like price per square foot. Yeah. Yeah. The most expensive price per square foot was found in townhomes. Okay, so townhomes had a supplier. Yeah, I guess they’re smaller, higher price per square foot might say the medium came median came in at 190 a square foot. Okay. All other types of homes had an average or median of 150. So there’s a $40 price difference?

59:32
Yeah. Probably because townhomes are typically smaller.

59:36
Yeah. So between 150 and 190 price per square foot. Interesting for the whole country.

59:40
Yeah. Like I thought it’d be higher. It varies wildly. Yeah. I wonder how in line that is with the median home price, though. If the median home price is in the three hundreds. Do you know what I mean? Like what’s the math? If the houses are 1800 square feet, I don’t know the median home price is at three 25 Okay, I’m just guessing. And then if you divide that by eating 100 square feet, that’s 181 square foot.

1:00:07
Right in the middle right there. Right there. Right.

1:00:09
All all makes sense. Oh, fascinating. I hope that you all were riveted. remedy is for me rattling off. Oh, stats and statistics. And if you’re still awakened with us, kudos to you. Yeah. You’ve survived another year of the profile of home buyers and sellers brought to you by hustle.

1:00:33
We try to understand your your target audience.

1:00:36
It’s super helpful information that I could see. Previous to our podcast. I never sat down and read it. No, but I am so so glad that I read it now. I do think it’s valuable. Like I’m not sure Alyssa is 0% glad she has read it now is fine. It was good. I am wearing her glasses. She did stuff on

1:00:57
it to be extra studious for you to be

1:01:00
very studious. today. I’m gonna toast somebody and we’re gonna move on with our lives. Okay. Okay. Today’s toast comes to us from Lindsay Anderson. In Vermont. Vermont. I know, in Vermont, she is toasting to Andrea Hosley hopefully Hosley I don’t know. And then I’m always worried that Andrea, Andrea?

1:01:21
Oh, yeah. I always say Andrea. Okay.

1:01:25
Okay, here’s what Lindsey has to say. Oh, wait, hold on. Lindsay is in Maine. And Andrea’s in Vermont. It’s very close together. They’re super close together. Okay. We’re both members of the hustle humbly community. Oh, that’s a great point. Oh, good news. I think you can get into the community

1:01:44
right now. Okay, good. All right. The doors are open. You want to join

1:01:47
Andrea and Lindsey, you can come on. Okay. We’re both members of the hustle family community. And she reached out to me with the absolute best seller referral ever. Oh, man. I didn’t even play in this disease. Good. These sellers are incredibly kind and value my knowledge and are very receptive to advice. They’re my favorite kind of seller. Yeah. They are dream sellers. The listing will be live on Wednesday. This was back in September. Andrea, I appreciate you trusting me with this family. I am so so grateful to be a part of such a wonderful community of like minded agents. Oh, here’s to Andrea. I am looking forward to helping get this awesome family back to Vermont.

1:02:32
That’s amazing. That’s already gone. Yeah, that’s out there. Now.

1:02:36
Lindsey give us the follow up because I think you’re done. Yeah.

1:02:38
So if you are not in the community in the hustle humbly community, we have the hustle humbly community referral network. That’s right. So if you are part of it, you will be able to be on the list. Yeah. And enter the city where you love connections.

1:02:54
I’m so proud of everyone to be able to find another like minded agent is hard. Yeah, it’s very nice to just be able to go that spreadsheet and type in the location and be like, here you are. Here you are. So Lindsay got found by Andrea and I’m loving that. So cheers to Andrea.

1:03:14
Cheers everyone.

1:03:15
Cheers everyone. You’ll have a wonderful day and I guess go get a cup of coffee to wake up Yeah. Goodbye.

1:03:24
Thank you so much for tuning in to the hustle humbly podcast. Let us know who we should toast to for the next episode.

1:03:29
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 podcast@gmail.com Be sure to subscribe

1:03:39
to the podcast and leave a review. See you next week. Bye. This is the goodbye

Two Realtors fostering community over competition through light-hearted conversations.

Home
PODCAST
About
COURSES
SHOP

HUSTLE HUMBLY

follow along 
on Instagram:

SEND US A NOTE >

GET ON THE LIST >

INSTAGRAM >

© HUSTLE HUMBLY 2022  

Episodes
CONTACT
RESOURCES