No such thing as TMI when it comes to Orlando buyers, sellers
Monday, January 17, 2011
Ninety-four percent of Orlando sellers who sold their homes between July 2009 and July 2010 used a broker or agent (up from 87 percent the year proceeding), reveals the ORRA 2010 Profile of Orlando Homebuyers and Sellers (login required). This 200-plus page behemoth of information examines in great detail the preferences of buyers and sellers; their use of real estate professionals; and the characteristics of their properties.
"Because the real estate market is always evolving, it is important for REALTORS® to have a clear picture of today's homebuyers and sellers," explains ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, PL. "With this study, ORRA intends to help its members track the changing demands of consumers. The information will assist REALTORS® as they strive to meet the varied needs of their clients and determine which services are of most value to homebuyers and sellers."
Here are just some of the survey's findings:
Characteristics of Orlando homebuyers
- Fifty-three percent of recent homebuyers were first-time buyers, compared to 50 percent nationwide.
- The typical first-time homebuyer was 32 years old, while the typical repeat buyer was 52 years old, nationwide first-time buyers were typically 30 and repeat buyers were typically 50 years old.
- The 2009 median household income of buyers was $65,000, slightly lower than the median income of buyers nationwide at $72,200.
- The median income was $57,500 among first-time buyers and $83,400 among repeat buyers.
- Seventeen percent of recent homebuyers were single females, and 10 percent were single males. Nationwide, twenty percent of recent homebuyers were single females and 12 percent were single males.
- For 36 percent of recent homebuyers, the primary reason for the recent home purchase was a desire to own a home.
Characteristics of Orlando homes purchased
- New home purchases were at the lowest level in nine years nationwide — down to 15 percent of all recent home purchases. This is reflective in Orlando — 23 percent of homes were new.
- The typical home purchased was 1,860 square feet in size, was built in 2001, and had three bedrooms and two full bathrooms.
- Seventy-eight percent of homebuyers purchased a detached single-family home.
- The median price of home purchased was $159,000 compared to $179,000 nationwide.
- When considering the purchase of a home, commuting costs were considered very or somewhat important by 78 percent of buyers.
The Orlando home search process
- For more than one-third of homebuyers, the first step in the home-buying process was looking online for properties.
- Eighty-nine percent of homebuyers used the Internet to search for homes.
- Real estate agents were viewed as a useful information source by 83 percent of buyers who used an agent while searching for a home.
- The typical homebuyer searched for 12 weeks and viewed 15 homes. This compares to 12 weeks and 12 homes viewed by the typical buyer nationwide.
Orlando home buying and real estate professionals
- Seventy-six percent of buyers purchased their home through a real estate agent or broker.
- Eight percent of buyers purchased a home in foreclosure — about the same share as buyers nationally.
- Forty-seven percent of buyers found their agent through a referral from a friend or family member.
- Eighty-five percent of buyers would definitely use their real estate again or recommend the same agent to others.
Financing the Orlando home purchase
- Eighty-four percent of homebuyers financed their recent home purchase. This is slightly lower than all buyers nationwide — 91 percent financed their recent home purchase.
- The typical buyer financed 95 percent of their home purchase.
- Forty-three percent of homebuyers reported they have made some sacrifices such as reducing spending on luxury items, entertainment, or clothing.
- Twenty-nine percent of buyers reported their mortgage application and approval process was somewhat more difficult than they expected, and 13 percent reported it was much more difficult than expected.
Orlando home sellers and their selling experience
- Ninety-four percent of sellers were assisted by a real estate agent when selling their home. Nationwide, 88 percent of sellers used a real estate agent when selling their home.
- Recent sellers typically sold their homes for 95 percent of the listing price, and 56 percent reported they reduced the asking price at least once.
- Among all sellers nationally, sellers typically sold their homes for 96 percent of the listing price, and 57 percent reported they reduced the asking price at least once.
- Fifty percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.
Orlando home selling and real estate professionals
- Forty percent of sellers who used a real estate agent found their agents through a referral by friends or family, and 29 percent used the agent they worked with previously to buy or sell a home.
- Eighty-four percent of sellers reported that their home was listed or advertised on the Internet.
- Among recent sellers who used an agent, 69 percent reported they would definitely (57 percent) or probably (12 percent) use that real estate agent again or recommend to others.
Orlando for-sale-by-owner (FSBO) sellers
- The share of home sellers who sold their home without the assistance of a real estate agent was 2 percent, which is significantly lower than the national share of 9 percent.
- The primary reason that sellers choose to sell their home without the assistance of a real estate agent is that the buyer contacted the seller directly.