For many sellers, 2021 saw record breaking real estate sales, with multiple offers over asking price, appraisal waivers and inspection waivers. Buying a house can be an extremely stressful process, and potentially the largest financial transaction someone will make in their life. Buyers purchase a home not only for the benefits of homeownership, but also because of career changes, growing or downsizing families, and the need for a home office. Here are some of the highlights from the annual survey conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers.
Home Sellers Motivation to Sell
The most commonly cited reason for selling a home was the desire to be closer to friends and family (18%), that their current house was too small (17%), and the location had become less desirable (11%). 90% of home sellers worked with a real estate agent to sell their home. For recently sold homes, the final sales price was a median of 100% of the final listing price.
Using Real Estate Agents & MLS in Home Selling Process
82% of recent sellers contacted only one agent before finding the right person to work with to sell their home. 89% of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home.
Average Home Buyer Profile
First-time home buyers made up 34% of all home purchases in 2021, an increase from the year of 2020 which was 31%. The typical first-time buyer was an average 33 years old in 2021, while the average repeat-buyers age rose to an all-time high of 56 years old this year.
29% Bought Homes for Over Asking Asking Price
Most recent buyers who purchased new homes were looking for a turn key home and avoid all issues with plumbing or electricity at 36%. Buyers typically purchased their homes for 100% of the asking price, with 29% purchasing for more than the asking price. The typical home purchased in 2021 was an average of 1,900 square feet, had three bedrooms and two bathrooms, and was built in 1993 or newer. Convenience to jobs and affordability was the most important factor in influencing neighborhood choice, the second most important factor being closely located to family and friends
The Role of the Internet in the Home Buying Process
For 41% of buyers in 2021, the first step that they took in the home buying process was looking online at properties, while 19% of buyers contacted a real estate agent first. On average, buyers searched for 8 weeks, looked at a median of 8 homes and viewed 3 of these homes online only. Almost all buyers used online tools in the search process at 95%.
Using Real Estate Agents in Home Buying Process
87% of buyers purchased their home in 2021 through a real estate agent or broker, whereas 7% purchased directly from a builder or a builder’s agent. Having an agent to help find their perfect home was what buyers wanted most when choosing an agent at 52%. 73% of home buyers interviewed one real estate agent to use during their home search. 90% of buyers would use their selected agent again or recommend their agent to others to ease the home buying process.
Find out how much your home is worth and learn about how a hot seller’s market could help you get to your next step in life. Whether you are downsizing, looking for your forever home, or thinking about a vacation home, reach out for your complementary consultation today. Call Molly Bruno, eXp Realty, 860-961-8627.