What is the Profile of the First Time Buyers?

The number of first-time buyers is up to 39 percent from 36 percent of closings in 2006. The median age of first-time buyers was 31, and the median income was $58,600. The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for seven years. The median down payment by first-time buyers was 2 percent, but 45 percent purchased with no money down – the same as in 2006. Of first-time buyers who made a down payment, 73 percent used savings and 22 percent received a gift from a friend, relative, or parents, usually from the latter.

For Must Know Facts for First Time Home Buyers, click here.

I would imagine that since the credit crunch, there will be less zero down buyers in the next National Association of Realtors® Survey.  There are still great financing options available in the Ann Arbor Real Estate Market.  Feel free to call our preferred lender, Jennifer Marshall, Chase Mortgage at 734-426-6669 to look at options.

WE ARE SELLING HOMES. We would love to put our extensive resources to work for you.  Do you want a specific neighborhood?  We have postcards ready to be mailed to the target areas on your behalf as soon as you become our client. Our team (click here to “Meet the Team”) is dedicated to caring and professional service.

Come to our next Buyer Seminar on Feb 19^th. For more information click here.

Of buyers who used an agent, 62 percent chose a buyer’s representative. Two-thirds said their agent was compensated by the seller, 15 percent of agents were paid by the buyer and 9 percent were paid by both.

Nearly three-quarters of all buyers purchased a detached single-family home, 11 percent a condo, 9 percent a townhouse or row house, and 5 percent some other kind of housing; 77 percent of respondents bought an existing home and 23 percent purchased a new home. When viewed as an investment, more than three-quarters believe their home will perform at least as well as stocks.

The median distance from the previous residence was 13 miles. Fifty-six percent of all homes purchased were in a suburb or subdivision while 16 percent were in an urban area, 16 percent in a small town, 10 percent in a rural area and 2 percent in a resort or recreation area.

The biggest factors influencing neighborhood choice varied by household type, but overall they were quality of the neighborhood, cited by 65 percent of respondents; convenience to jobs, 50 percent; overall affordability of homes, 42 percent; and convenience to family and friends, 37 percent. Other factors with higher responses include quality of the school district, 28 percent; convenience to shopping, 27 percent; and neighborhood design, 26 percent.

The median age of a home seller is 45, with an income of $89,400. Seventy-five percent are married couples, had been in their home for six years and moved a median distance of 18 miles. Their home was on the market for seven weeks, up from six weeks in the 2006 survey; 89 percent were satisfied with the selling process.

The typical seller sold their home for 97 percent of the listing price, and 55 percent reported they had remodeled or made improvements within three months before placing it on the market, spending nearly $3,000 on the project.

Most sellers expect an agent to market the home, with 90 percent of sellers reporting their home was placed on a MLS and 88 percent saying their home was listed on the Internet; eight in 10 had yard signs.

Eight in 10 sellers, using all kinds of brokerage services, said their agent reviewed sales contracts and purchase offers, managed paperwork and contracts, negotiated with buyers and scheduled showings. Three-quarters worked with their agent in determining the asking price, and said their agents coordinated home inspections and appraisals.

The level of for-sale-by-owner transactions remains at a record-low market share of 12 percent, the same as in 2006. The level of FSBOs has declined since reaching a cyclical peak of 18 percent in 1997.

Four out of 10 FSBO properties were not placed on the open market – 39 percent were “closely held” between parties who knew each other in advance, such as family or acquaintances.

Factoring out properties that were not placed on the open market, the actual number of FSBOs is 7 percent – the rest are unrepresented sellers in private transactions.  This is down from 10 percent sold on the open market in 2004.

The median home price for sellers who used an agent was $240,000 vs. $180,000 for a home sold directly by an owner, but there were significant differences between the two. Unassisted sellers were more likely to be in a small town or rural area, the home was more likely to be a mobile or manufactured home, and the owner’s income was lower than that of sellers using agents – suggesting homes sold without professional assistance may be worth less than homes in agent-assisted transactions, or that sellers of more expensive homes choose to seek professional assistance.

The median price for transactions between parties that knew each other in advance was noticeably lower than those sold on the open market. The median price of an open-market FSBO was $208,000 vs. $142,400 for closely held transactions.

The most difficult tasks reported by unrepresented sellers are understanding and performing the paperwork, preparing the home for sale and getting the right price.

NAR mailed an eight-page questionnaire in August 2007 to a national sample of 150,000 home buyers and sellers who purchased their homes between July 2006 and June 2007, according to county records. It generated 9,966 usable responses; the adjusted response rate was 6.9 percent. All information is characteristic of the 12-month period ending in June 2007 with the exception of income data, which are for 2006. Due to rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.

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Kathy Toth & Team: Ann Arbor Area Real Estate Experts

www.KathyToth.com

Keller Williams Realty

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