NAR Survey Results 2009: What You Need to Know About First-Time Buyers

It’s that time of year again—the National Association of Realtors® 2009 Survey of Home Buyers and Home Sellers has just been released!

While it contains a wealth of information and stats about home buyers, seller, FSBO’s, 2^nd homes (you name it), this article extracts what you
need to know about First Time Home Buyers—who have accounted for almost half of all the homes purchased in 2009.

While we list some of the stats you are about to read, we have interpreted the “who, what, where and how” you could use this info to develop
a marketing plan, generate first time buyer leads and save a ton of money in the process—because all the research has been done for you.

We believe that you will find even MORE first-timers entering the real estate market in the next year or two and you are missing a huge chunk
of the market if you don’t have a game plan to attract FTHB.

You will also find a shortened version of this info in the Realtor Newsletter/Email- Jan/Feb 2009 in this issue!

By the way, watch for the next issue and our report on “Repeat Homebuyers”

• First-Time Home Buyers Made up 47% of All Home Purchases

While it has increased 6% over last year, regionally, the Northeast has increased the most with 48% (or almost ½ of all business being sold to FTHB);
48% Midwest; 45% South; 51% West. Five out of every 10 buyers fit into this category—they need more handholding and the way you interact with
them will be different than your repeat clients.

• Living Arrangements Prior to Buying Their First Home

78% of FTHB lived in apartment complexes or rented a home or condo prior to purchasing. It has increased 3% over 2008. 19% lived with parents
prior to purchasing. The bottom line is that you might want to concentrate your marketing to apartment complexes or combing your database for
clients who children might be buying a home in the future—and asking for their referrals.

• Marital Status of First-Time Home Buyers

49% Married Couples

12% Unmarried Couples

25% Single Females

12% Single Males

Notice that single female buyers are double the percentage of single males and half of married couples. It’s a niche within a niche.
FTHB seminars are a way to attract prospects but be aware that single females have additional “need & concerns” so you may want to hold a
“Women-Only First-Time Home buying Seminar”.

• Medium Age of First-Time Home Buyers

12% – Age 18-24

53% – Age 24-35

18% – Age 35-44

Creative emails, an awesome website and social networking all need to be part of your FTHB business plan.

• Average Income of First-Time Home Buyers

1. 2009

$70,000 Married $71,300

$65,000 Unmarried Couples $68,600

$47,000 Single Female $47,900

$54,000 Single Male $53,700

Single women earn 11% less income than single males, but they purchase twice as many homes. Again, another reason to consider
Women-only seminars and creating marketing pieces “for women only”—or “Couples-Only Seminars”.

• Purchase Price Range

10% – Price Range $75K to $100K 13% – Price Range $150K to $175K

12% – Price Range $100K to $125K 10% – Price Range $175K to $200K

16% – Price Range $125K to $150K

Some areas of country are more affordable than others—however based on this info, over half of your FTHB are more likely to purchase
a home $175K or below.

• Moving Distance From Current Residence

FTHB move an average distance of 12 miles from their previous residence (apartment or

parent’s home). So if you are marketing to apartment complexes, consider the location of the complex and compare it to the surrounding (affordable)
homes as a guide in choosing the complexes to market to.

• Information Sources PRIOR to Buying Home

2008 2009

94% Internet Search Prior to Purchase 94%

63% Virtual Tour 63%

45% Newspaper Ads 40%

48% Open Houses 43%

30% Homes Magazines 24%

9% T V 9%

Without a doubt, the Internet plays the most important role in the first steps that FTHB take when looking for a home. While spending your money
on a cool-looking website is a must, it’s MORE important that the site is ultra-easy to navigate.

• The Internet, Virtual Tours and Social Networking

2008 2009

32% Found Home On Internet 36%

28% Found Agent Online 36%

11% Mortgage Pre-qual Online 11%

7% Mortgage Application 7%

FTHB use of social networking to find homes and real estate agents. 42% of buyers, age 18-24 uses Social Networking sites EVERY DAY versus
19% of buyers, ages 25-44. However, in the 25-44 age group, another 14% (total of 33%) use it several times a week.

With 94% searching for homes on the web, and over 1/3 buying a home they found while doing the research online, real estate agents and loan officers
should team up and provide financing info, with different loan products (FHA, VA, Conventional) and with different down payment scenarios to assist
in the buying process. Check out www.KarensUnfairAdvantage.com for dynamic, single property websites.

• Length of Time to Buy Home

1. 2009

3 Weeks Research Time Before Agent 2 weeks

10 Weeks Sign a Contract 12 weeks

FTHB are finding an agent to work with about a week sooner, but taking longer to buy a home. Keeping in contact, on a regular basis, is critical.

• Financing The Home Purchase

2008 2009

69% Own Savings 61%

26% Gifts 22%

92% Fixed Rate Mtg 96%

No brainier here—fixed rates are popular again; savings are down. Brush up on the rules and regs for Gift Funds—each agency has their own set of rules.

• FTHB Tenure in Home Resale

Age 18-25 – 4% plan to sell their home within 2-3 years after buying it

Age 25-44—24% plan to sell their home within 2-3 years after buying it

It’s critical to keep in touch, especially emails or social networking, if you want to chance to sell them another home and work with you in the future.