Whether you are buying or selling a home in the Sarasota, Venice or Englewood area, each task comes with its set of challenges. Home buyers purchase a home not only for the desire to own a home. There is always a reason for it. They do it most likely because of changes in their job situation, family circumstances, or the need for a smaller or larger living area. They are retiring, need a change of scenery, or they don’t like their cold winter any more. The same applies to the sellers as well.
What were the characteristics of Home Buyers in the year 2014?
- Only 24% were first time home buyers in Florida. That is 10 % compared to the national level and nearly 20% compared to the historical average.
- In Florida, 14% home buyers bought a “multi-generational home” because their children over age 18 had to move back into the house. Or the younger generation was moving back because they had to take care of their parents.
The typical first time home buyer in Florida was 33
- The average home buyer was 54, and the typical repeat buyer was 59 years old. That is about five years above the national average.
- The average household income in Florida was (2013) for first-time buyers $62,900 and regular buyers $80,700.
- In Florida, 67% of the home purchasers were married couples. Compared to 65% nationally.
What kind of home did they purchase?
- 18% bought a new home.
- The typical retail home, built in 1998, had three bedrooms and two bathrooms.
- 81% bought a detached single-family home
- 21% of buyers age 50+ purchased in senior related housing.
- For 81% heating and cooling costs were an important figure.
- Only 60% were concerned about commuting costs.
How did they Search for a Home?
- 40% looked for properties online.
- 12% of the home buyers first looked online to learn about the home buying process.
- 91% of the buyers used the internet in some way in their home search process. 12% used mobile websites or applications in Florida, while 50% (!) of the home buyers used mobile sites nationally.
97% of buyers used a real estate agent in Florida
- 85% of the buyers bought through a real estate agent or broker.
- On average, the home buyer searched for ten weeks and viewed ten homes.
- Eventually, 87% of the home buyers were satisfied with the process.
Financing the New Home
- In 77% of the home purchases, financing was involved. Typically 91% was financed.
- 95% of the first time home buyers financed their home; 71% of repeat buyers used financing.
- 44% said that they had to make some sacrifices such as reducing spending on certain items/services.
- 25% reported that the mortgage process was somewhat more challenging. 24% reported that it was much more difficult.
- Student loans (36%), credit card debt (61%) and car loans (39%) were the main obstacles.
- 82% believe their home is a sound investment.
Home Sellers and their Experience
- The typical home seller lived in the home for 11 years (6 years in 2007).
- 87% of home sellers were assisted by a real estate professional.
- On average homes sold for 97% of the listing price. %0% of home sellers reduced the asking price at least once.
- 15% of the sellers had a delay or stall of selling because the appraisal came in lower.
29% of the sellers offered incentives (home warranties, closing cost)
- 92% of the homes were listed on the MLS (Multiple Listing Service).
- 12% sold their home without the assistance of a realtor. 33% knew the buyer before the home purchase.
- 8% were contacted by a buyer they did not know.
- 50% of home sellers did not want to pay a commission.
- Typical FISBO sale was 13% lower than the average. The typical median selling price of a FISBO sale was $170,000 compared to agent-assisted sales at $230,000.
All Data courtesy of National Association of Realtors®, “2014 Profile of Home Buyers and Sellers.”