Unless you have been living under a rock you might have realized we went from being a buyer’s market to becoming a seller’s market when it comes to real estate. Every day I am in my office and it seems like every one of my coworkers along with myself has a cash buyer or has a motivated buyer who has qualified for a mortgage and just needs to find their dream place to call home. Sellers listen up, that doesn’t mean you can list a property and come up with a price that doesn’t involve some concrete thought behind it. As a seller, it’s important you have to also understand the profile of the buyers in the marketplace. I found some interesting facts From the National Association of Realtors along with Mass Association of Realtors that talked about the buyer in the marketplace and what Sellers need to realize when they are listing their home for sale or consider the idea.
The typical first time home buyer is typically 38% which has come down from 40%, the average age of the typical buyer is 42 years of age and the repeat home buyer average age is 52. More than half of home buyers in the market are married couples. When it comes to first time home buyers primary reason for buying was a desire to own a home. When it came down to buying a new home or buying a home that needed work majority of home buyers wanted something that required the least work that they had to do to make a home their home.
All home buyers start their search online and on average searched 12 weeks, and viewed 10 homes for the exception of First time home buyers took more time to view listing on average 12 weeks The typical home buyer used the internet and overwhelming 89% and viewed listing via mobile phones or via tablets. The buyer valued being able to view listing on a website or other application most useful part of their search. Besides valuing the ease of being able to research properties online the home buyer said the second most important part in finding their home was the real estate agent. The median age of home buyers as I said was 42, but the largest share of home buyers was 25-34 and the northeast had the largest share of 44 percent of the market. First time home buyers their primary motivation to buy is to own their own home, however, repeat buyers are less likely to be motivated by desire to simply own their own home and are more likely to make purchase as a result of changing circumstances like changing job, downsizing, or in need of a larger space.
First time home buyers are slightly more like to purchase a condo or townhouse than repeat buyers. If you look at the single-family data the trend of buyers tends to want to buy other types of homes beside single family home due to the cost of upkeep could be a possible reason. Mass Associations of Realtors reported 3.3 percent drop in sales in September. This was the 8th consecutive month of year over year decrease. The first time home buyers is also more likely to buy a newer home vs. existing home this could also be a factor why there has been a decrease in single-family homes. A lot of single-family homes in the Northeast especially in New England tend to be older styled homes. Other factors that matter they hold are less likely to buy in the suburbs and are more likely to buy in the city. These same buyers are also only willing to commute no more than 10 miles from their place of employment. Besides a potential buyer try to reduce their commute time another factor that matters is the quality of neighborhood mattered to a buyer.
When it comes to marketing to buyers 8-10 rated photos, virtual tours, and interactive maps along with the easy ability to reach an agent all important factors in their search. The more traditional marketing is still being used towards buyers, but they are more likely to find their information online than in more traditional media. When a seller is listing a home they should be concerned that all forms of media are being covered making sure they max exposure of selling their home. The home buyer is typically searching on iPhones 47% and Ipads 40 percent of the time.
When buyers were asked if they saw a benefit to using a real estate agent almost half of buyers felt there was a real benefit to using a real estate agent. They felt the agent helped them understand the process, and the percentage was higher when it came to first-time home buyers but a higher value of using a real estate agent. Sellers felt similar feeling towards agents when it came to a first-time seller. They depended on the agent to help guide them through the selling process, and if they had a good experience with that agent they are more likely to use that agent again in the next sales transaction.
So what is the takeaway from this blog? Sellers, if you’re getting ready to list your home, and thinking about shooting for the moon on the price I wouldn’t. You still need to be able to reason your thought on price. If your thinking the buyer doesn’t educate themselves on the market you are only kidding yourself. Knowing what you’re competing with is very important when figuring out what to sell your home for, and speaking to an agent can help you on that front. Besides figuring out the price you should really take a hard look at what needs some work and make sure your home looks as fresh as possible. You want to cast the widest net on potential buyer and making sure your unit looks the best is very important. I sometimes tell sellers to locate a second set of eyes and ask what would you want to revamp if you could? Once you have revamped and made your home look the best it can look from removing clutter, updating appliances, paint. Get your agent in if you haven’t already and make sure all forms of media are going to be used in marketing your property. Make sure online is covered and that includes making sure it comes up on Zillow, Trulia, Boston.com, MLS, Facebook, Companies websites, Agents Personal Web sites, Virtual tours, Twitter, and Instagram to name a few.
Make sure your agent will use more traditional forms of media like print media in their efforts. If your agent has an in-house marketing dept then that is even better news for you as a seller they can do more than get you results. You also want to make sure that your listing is easily viewable on a buyer’s smartphone or tablet since most buyers will use these forms of technology to view your listing. The last concern you should have in the marketing department is open houses. Not all properties are the most appropriate course of action. For example, open house at large full-service building. An open house at a large full-service building is possible but might require additional planning or some just don’t allow them at all. Your agent should also take into account especially in Boston what sports teams could affect traffic and plan according to when possible. A good agent will look at the local sports teams schedule and plan if there is a Pats game a 1 pm on a Sunday doing an open house might be better turnout if they do it before the game vs doing an open house after 1 pm or worst at 1 pm.
The agent you hire should be thinking about every aspect of the home and figure out how to get the place listed and keep the listing fresh and strong going into the market. You, as the seller job are to actually listen to the agent and figure out items you can do to make sure your home stands out when a buyer sees your home on MLS or Trulia. Sellers also should be asking questions what the agent will be doing to promote the home, and get that right buyer into the home and put an offer in. It’s Almost November and the market in Mass especially in Metro Boston, Cambridge and Brookline haven’t slowed down. Interest rates are still low and investors have slowly gotten out of the real estate market making it a better environment for buyers. A seller who thinks about the buyer out there first and then on price will more likely get their unit or home sold faster and sometimes over asking price. So the question is when are you going to list your home now that you understand the buyer profile in the marketplace? Contact me if you’re looking to list or have questions about this blog.
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