When I first started out as a Realtor on my way to becoming a Real Estate Consultant, I had no way of understanding what all the letter designations behind a Realtors name meant. As it turns out, these designations do have nationally recognized significance among members of the realtor community. Unfortunately, these designations are proudly displayed to "one and all" usually with no explanation of meaning or value. In an effort to make clear what these mean, I have downloaded the official NAR (National Association of Realtors) designation descriptions. Many of these designations have their own websites.
The effort and study required to obtain some of the designations - like the GRI Designation which requires a year of classes -can be significant, while others require much less time to achieve and are aimed at providing enhanced services to a specialized group of folks - like the SRES designation. I hope you enjoy deciphering this secret world of Realtor Designations.
I have downloaded these designations from the National Association of Realtors website for folks to see a few of the advanced qualifications that Realtors can earn. As in any other profession, experience combined with education will tend to produce the better professional. There are also many continuing education classes available to Real Estate Consultants, literally hundreds of classes that are nationally recognized by NAR (The National Association of Realtors) to promote higher standards of performance among Realtors.
I think most folks would be well served to ask pointed questions of their prospective Realtors' experience and education.
REALTOR® Family Designation Programs
The NATIONAL ASSOCIATION OF REALTORS® has nine affiliated Institutes, Societies, and Councils that provide a wide-ranging menu of programs and services that assist members in increasing skills, productivity and knowledge. Designations acknowledging experience and expertise in various real estate sectors are awarded by each Affiliated group upon completion of required courses.
In addition, NAR offers five certification programs to its members.
ABR, Accredited Buyer RepresentativeWith over 40,000 members, REBAC is the largest association of real estate professionals focusing on all aspects of buyer representation. Over 30,000 ABR® designees have completed the REBAC course, passed the test and provided documentation of buyer agency experience.
REBAC (Real Estate Buyer's Agent Council)
Contact REBAC, 1-800-648-6224, or visit the REBAC Web site. ABRM, Accredited Buyer Representative ManagerGeared to real estate firm brokers, owners and managers that have or wish to incorporate buyer representation into their daily practice, designees have taken and passed both the ABR® and ABRMSM course and provided documentation of past management experience. REBAC (Real Estate Buyer's Agent Council)Contact REBAC, 1-800-648-6224 or visit the REBAC Web site.
ALC, Accredited Land Consultant
ALC’s are the recognized experts in land brokerage transactions of five specialized types: (1) farms and ranches; (2) undeveloped tracts of land; (3) transitional and development land; (4) subdivision and wholesaling of lots; and (5) site selection and assemblage of land parcels. Acquire valuable skills through educational offerings leading to the ALC designation.
REALTORS® Land Institute (RLI)
For information on the ALC designation call 1-800-441-5263, visit the RLI Web site or e-mail RLI.
CCIM, Certified Commercial Investment Member®
CCIMs are recognized experts in commercial real estate brokerage, leasing, valuation and investment analysis. The CCIM business network includes more than 7,500 designees and an equal number of candidates principally in North America, but also in Asia and Europe. CCIMs are backed by a respected education program, as well as superior technology products and business resources.
CCIM Institute Call 1-800-621-7027, visit the CCIM Web site.
CIPS, Certified International Property Specialist
The CIPS network is comprised of 1,500 real estate professionals from 50 countries who deal in all types of real estate, but with one common element: they are focused specifically on the "international" market. Whether traveling abroad to put deals together, assisting foreign investors, helping local buyers invest abroad, or serving an immigrant niche in local markets, CIPS designees are consumers' best resource to ensure they are dealing with a professional skilled in the unique aspects of international real estate.
NATIONAL ASSOCIATION OF REALTORS® Call NAR Customer Service at 800/874-6500, e-mail NAR International or visit the CIPS Education Web site.
CPM, CERTIFIED PROPERTY MANAGER®
Acquire valuable real estate management skills through educational offerings leading to the CPM® designation. CPM® members have the competitive edge in every area of real estate management from residential to commercial to industrial.
Institute of Real Estate Management (IREM)
Contact Customer Service at 1-800-837-0706, Ext. 4650 or visit the IREM Web site.
CRB, Certified Real Estate Brokerage Manager
The Certified Real Estate Brokerage Manager (CRB) designation is recognized industry-wide as the measure of success in brokerage and real estate business management. The designation is awarded by the Council of Real Estate Brokerage Managers to REALTORS® who have completed the Council's advanced educational and professional requirements.
CRB designees consistently increase their level of industry knowledge, advance their earning and career potential, increase their firm’s profitability and benefit from active involvement in our network of real estate professionals.
The new CRB Designation Program now provides credit for management experience, higher education and previously earned NAR designations. Additional credits can be earned through the Council's management education programs delivered live or by Self Study on CD-ROM.Council of Real Estate Brokerage ManagersFor more information, contact CRB, call 800.621.8738 or visit the CRB Web site.
CRS®, Certified Residential Specialist®
Agents can maximize their potential by earning the CRS® Designation and joining the organization that has served top-producing residential sales agents since 1977. The more than 35,000 CRS® Designees benefit from nationwide referral opportunities, a professional image that attracts customers, and sales and marketing support. The CRS® Designation is awarded to experienced REALTORS® who complete advanced training in listing and selling, and meet rigorous production requirements.
Council of Residential Specialists Contact Customer Services at 1-800-462-8841, visit the CRS Web site.
CRE, Counselor of Real Estate
The Counselor of Real Estate – or CRE – is a member of The Counselors of Real Estate, an international group of recognized professionals who provide seasoned, objective advice on real property and land-related matters. Only 1,100 practitioners throughout the world carry the CRE designation. Membership is by invitation only.
Counselors of Real Estate Call 1-312-329-8427 or visit the CRE Web site.
GAA, General Accredited Appraiser
Certified general appraisers wishing to increase their visibility should consider pursuing the GAA designation. The GAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the NATIONAL ASSOCIATION OF REALTORS®.
NATIONAL ASSOCIATION OF REALTORS® Call 1-800-874-6500 ext. 8393 or visit the NAR Appraisal page .
GRI Graduate REALTOR Institute
Members involved in residential real estate who want a solid base of information for their practice will want to participate in the REALTOR® Institute program and earn the GRI designation. NATIONAL ASSOCIATION OF REALTORS® Contact your State REALTOR® Association for course dates and locations or go to the listing of State REALTOR® Associations available here. NAR maintains a clearinghouse of information for individuals interested in the GRI program. For more information, visit the new GRI site.
PMN, Performance Management Network
The Performance Management Network (PMN) is a new REALTOR® designation that’s built from the ground up to bring you the real-world skills, the know-how and the tools that will keep your business out front and on top of a lighting-fast market. This designation is unique to the REALTOR® family designations, focusing on the idea that in order to enhance your business, you must enhance yourself. The curriculum is driven by the following topics: negotiating strategies and tactics, networking and referrals, business planning & systems, personal performance management and cultural differences in buying and selling.
Women's Council of REALTORS®
Contact the WCR Education Department, 1-800-245-8512 or visit the WCR Web site.
RCE, REALTOR®
Association Certified ExecutiveAssociation executives interested in demonstrating commitment to the field of REALTOR® association management should pursue the RCE designation.
Association Executives
AEs are recognized for their specialized industry knowledge and their association achievements and experience. NATIONAL ASSOCIATION OF REALTORS®Contact Renee Holland, 1-312-329-8545. More information can be found at the Association Executives Homepage.
Residential Accredited Appraiser
Certified residential appraisers wishing to increase their visibility should consider pursuing the RAA designation. The RAA designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the NATIONAL ASSOCIATION OF REALTORS®. NATIONAL ASSOCIATION OF REALTORS® Call 1-800-874-6500, ext. 8393, or visit the NAR Appraisal page.
SRES®, Senior Real Estate Specialist
The SRES® Designation program trains REALTORS® to profitably and ethically serve the real estate needs of clients age 50+. Includes first year membership in SRES Council and its umbrella of services. SRES CouncilCall 800-500-4564 or visit the SRES website site.
SIOR, Society of Industrial and Office REALTORS®
Individuals certified with the SIOR designation are top producers in industrial and office real estate brokerage. SIOR's network includes more than 2,800 members in 480 cities in 20 countries on six continents. The Society's mandatory recertification requirement assures clients of the designee's excellence in the fast changing commercial brokerage field. Society of Industrial and Office REALTORS® Contact Membership at 202-449-8200 or visit the SIOR Web site.
NAR Family Certifications At Home with Diversity Certification
A ground-breaking professional education initiative designed to provide America's real estate professionals with training and tools to expand their businessas well as homeownership opportunities for more Americans. AHWD certification relays to the public that those certified have been professionally trained in and are sensitive to a wide range of cultural issues inviting a wider volume of business from a greater variety of cultures. For more information on this course and its business principles, please visit the At Home With Diversity sub-site or contact Diversity, 202/383-1201.
e-PRO®
e-PRO® is a revolutionary training program presented entirely online to certify real estate agents and brokers as Internet Professionals. The NATIONAL ASSOCIATION OF REALTORS® is the first major trade group to offer certification for online professionalism.
e-PRO® is not just about technology - it's about how you can leverage your most powerful asset, your people-skills, into doing more business on the Internet. e-PRO® gives you: - Exhaustive Internet Training - Unique Competitive Advantage- Professional Distinction - CE credit is now available in several states. For more information on the e-PRO® certification, visit the REALTOR e-PRO® Web site.
REPAsm, Real Estate Professional Assistantsm
REPA is a comprehensive two-day certificate course that provides an intensive introduction to the real estate business and to the specific ways support staff can become valuable assets to their employers. Every administrative employee in the brokerage office, from listing secretary to the personal assistant, will benefit tremendously from this quick-start program.
For more information, visit the Real Estate Professional AssistantWeb site.
Resort & Second-Home Markets Certification
The RSPS is a new certification offered by NAR Resort for resort & second-home REALTORS around the world. REALTORS specializing in resort and second-home markets and interested in demonstrating their knowledge and expertise should pursue the RSPS certification. The RSPS core certification requirements include the NAR Resort & Second-Home Market Course and the RLI Tax-Deferred (1031) Exchange Course. RSPS applicants will also choose from nine different elective choices including courses from the NAR Education Matrix and the NAR Resort Symposium held every 18 months. For more information, NAR Resort 312-329-8393, or visit the NAR Resort Web site.
Transnational Referral Certification
The goal of this certification offered by the National Association of REALTORS® is to prepare real estate professionals to make and receive compensated referrals using the Transnational Referral system developed NAR and the International Consortium of Real Estate Associations (ICREA). Students will learn how to integrate international referrals, resulting in increased income, into their business plans.
When you are involved in an international referral, as a referring or receiving agent, the Transnational Referral Certification demonstrates to other real estate professionals that you are well versed in the procedures of the Transnational Referral system, have pledged to follow a code of conduct in business dealings, and expect that compensation, paid in a timely manner, will be an integral part of the transaction. For more information, visit NAR International: Transnational Referral Certification.
Copyright NATIONAL ASSOCIATION OF REALTORS®Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-20201-800-874-6500License Agreement Privacy Policy REALTOR.com Contact NAR Site
Tuesday, November 27, 2007
Tuesday, October 30, 2007
NAR Home Buyer & Seller Survey - 2006
Here is a little survey done awhile back that is more notable for the trends uncovered, than for the actual numbers discussed. I pulled this off the official National Association of Realtors website, so many of the prices mentioned reflect national values more than our local California prices. Enjoy!
Mark Thorngren
http://www.markthorngren.com
Home Buyer & Seller Survey Shows Rising Use of Internet, Reliance on Agents
WASHINGTON, January 17, 2006
Technology is transforming how Americans buy and sell homes in unexpected ways, including how they work with real estate agents and brokers, according to one of the largest surveys of real estate consumers ever conducted. The study was released today by the National Association of Realtors®.
Nine out of 10 home buyers use a real estate agent in the search process, but use of the Internet to search for a home has risen dramatically over time, increasing from only 2 percent of buyers in 1995 to 77 percent in 2005; it was 74 percent in 2004. The next largest source of information for buyers is a yard sign, mentioned by 71 percent of buyers.
When asked where they first learned about the home purchased, 24 percent of buyers identified the Internet, up strongly from 15 percent in 2004 and only 2 percent in 1997. Although most buyers use an agent to complete the transaction, 36 first learn about the home they buy from a real estate agent and 15 percent from yard signs; five other categories were 7 percent or less.
The 2005 National Association of Realtors® Profile of Home Buyers and Sellers, based on more than 7,800 responses to a questionnaire mailed to a large national sample of consumers located through county deed records, is the latest in a series of surveys evaluating demographics, marketing and other characteristics of home buyers and sellers.
NAR President Thomas M. Stevens from Vienna, Va., said the findings underscore the complexity of the home-buying process. "Buyers who use the Internet in searching for a home are more likely to use a real estate agent than non-Internet users, and consumers rely on professionals to provide context, negotiate the transaction and help with the paperwork," said Stevens, senior vice president of NRT Inc.
"The real estate industry today bears little resemblance to the way we did business 10 years ago. It is hard to find another industry that has adopted technology so readily to its customers," Stevens said. "Realtors® have invested a lot of time and money in building information technology, and because of these efforts, more consumers than ever are using the Internet in their home search."
The survey shows 81 percent of buyers who use the Internet to search for a home purchase through a real estate agent, while 63 percent of non-Internet users buy through an agent; non-Internet users are more likely to purchase directly from a builder or an owner they knew in advance of the transaction.
"We find that the level of for-sale-by-owners is on a sustained decline and is now at a record low. In addition, a growing share of FSBO properties are not placed on the open market - they're private transactions," Stevens said.
A clear downtrend in FSBOs has been seen since that market share experienced a cyclical peak of 18 percent in 1997. Only 13 percent of sellers conducted transactions without the assistance of a real estate professional in 2005, and 39 percent of those FSBO transactions were "closely held" between parties who knew each other in advance, up from 32 percent in 2004. The FSBO market share was at 14 percent in both 2003 and 2004. NAR began tracking the FSBO market in 1981; the record was 20 percent in 1987.
"In reality, the term 'FSBO' is a misnomer when used to broadly describe homes sold directly by owners. Since two out of five of these transactions are between related parties, and those properties are not placed on the open market, we believe that 'unrepresented sellers' would be a much more accurate term to describe this segment," Stevens said.
The median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200; there were no significant differences between the types of homes sold. "While many unrepresented sellers are motivated to save on paying a commission, we think the price difference speaks for itself," Stevens said. "Owners without professional assistance also have problems in understanding and completing paperwork, prepping the home for sale, getting the right price and selling within the time planned."
Survey data don't explain the price difference, but Stevens offered some context. "Agents know best how to prepare a home and maximize value, agents provide broader exposure to the market and are more likely to generate multiple bids, and the portion of sales that are between private parties are likely to be at a lower price than those on the open market."
"The housing market today contrasts sharply with predictions a decade ago that the Internet would 'disintermediate' real estate agents, including speculation that NAR membership would fall in half. In reality, it's grown dramatically - selling real estate is not like selling a book or buying an airline ticket," he said.
Realtor.com was the most popular Internet resource, used by 54 percent of buyers, followed by multiple listing service (MLS) Web sites, 50 percent, real estate company sites, 38 percent, real estate agent Web sites, 31 percent, and local newspaper sites, 15 percent; other categories were smaller.
Married couples make up the largest share of the housing market, accounting for 61 percent of transactions. Single women purchase 21 percent of homes while single men account for 9 percent. Unmarried couples were 7 percent of the market, and 2 percent were listed as other. In 2004, single women were 18 percent of buyers and single men were 8 percent.
The typical buyer walked through nine properties, searched eight weeks to buy a home and moved 12 miles from their previous residence. The typical seller placed their home on the market for four weeks, had lived in it for six years, moved 15 miles to their new residence and previously owned three homes, including the one just sold.
NAR's senior economist Paul Bishop said both buyers and sellers use traditional methods to choose a real estate agent. "Word-of-mouth recommendation is the most common way to learn about real estate professionals," Bishop said. "The most important criteria, whether you're buying or selling, are the individual agent's reputation and their knowledge of the local market."
In finding a real estate professional, 44 percent of buyers were referred by a friend, neighbor or relative, 11 percent used an agent from a previous transaction, 7 percent found an agent on the Internet, 7 percent met at an open house and 6 percent saw contact information on a "for sale" sign. Six other categories accounted for smaller shares each.
The most important factor in choosing an agent was reputation, according to 41 percent of home buyers, followed by an agent's knowledge of the neighborhood, 24 percent. In terms of desired qualities in an agent, three categories were rated as very important by more than nine out of 10 buyers: knowledge of the purchase process, responsiveness and knowledge of the market. Of buyers who use an agent, 63 percent choose a buyer representative. Satisfaction with real estate agents is very high, with 85 percent of buyers saying they were likely to use the agent again.
Seller responses are comparable: 43 percent chose agents based on a referral by a friend, neighbor or relative, and 28 percent used their agent previously; 10 other categories were 5 percent or less. Fifty-seven percent of sellers said reputation was the most important factor in selecting an agent, followed by their knowledge of the neighborhood, 17 percent. Eighty-two percent said they were likely to use the same agent again or recommend to others.
Four out of ten respondents are first-time buyers, a finding that is consistent for more than a decade. The median age of entry-level buyers is 32 years, also typical over time, and the household income was $57,200. They made a downpayment of 2 percent on a home costing $150,000, but 43 percent purchased with no money down. Of first-time buyers who made a downpayment, 23 percent received a gift from a friend or relative.
The typical repeat buyer is 46 years old and had a household income of $83,200. They placed a downpayment of 21 percent on a home costing $235,000, but 11 percent of repeat buyers paid cash for their home. In all, 94 percent of buyers and sellers believe their home purchase is a good financial investment.
"To underscore the value of housing as an investment, all you have to do is look at the difference in how repeat buyers purchase their next home - the wealth effect of homeownership provides the greatest source for their downpayment, which is significantly larger," Bishop said. Aside from sellers who pay cash for their new home, 66 use the equity from their previous home for a downpayment.
The most important factors in choosing a location to purchase a home are neighborhood quality, cited by 68 percent, close to a job or school, 43 percent, close to family or friends, 36 percent, and the school district itself, 23 percent; seven other categories were under 20 percent.
NAR mailed an eight-page questionnaire to a national sample of 145,000 home buyers and sellers, based on county records, who purchased their homes between August 2004 and July 2005. It generated 7,813 usable responses; the response rate was 5.4 percent.
The 2005 National Association of Realtors® Profile of Home Buyers and Sellers can be ordered by calling 800/874-6500 or going to the Realtor.org store. The cost is $50 for NAR members and $125 for non-members. It can be ordered on-line at http://www.realtor.org/prodser.nsf/OpenProd?OpenForm&IN=186-45-0506
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.
For more information, contact:
Walter Molony, 202/383-1177, wmolony@realtors.org
© Copyright NATIONAL ASSOCIATION of REALTORS® I Headquarters: 430 North Michigan Avenue, Chicago, IL 60611 DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500License Agreement Privacy Policy REALTOR.com Contact NAR Site Map
Mark Thorngren
http://www.markthorngren.com
Home Buyer & Seller Survey Shows Rising Use of Internet, Reliance on Agents
WASHINGTON, January 17, 2006
Technology is transforming how Americans buy and sell homes in unexpected ways, including how they work with real estate agents and brokers, according to one of the largest surveys of real estate consumers ever conducted. The study was released today by the National Association of Realtors®.
Nine out of 10 home buyers use a real estate agent in the search process, but use of the Internet to search for a home has risen dramatically over time, increasing from only 2 percent of buyers in 1995 to 77 percent in 2005; it was 74 percent in 2004. The next largest source of information for buyers is a yard sign, mentioned by 71 percent of buyers.
When asked where they first learned about the home purchased, 24 percent of buyers identified the Internet, up strongly from 15 percent in 2004 and only 2 percent in 1997. Although most buyers use an agent to complete the transaction, 36 first learn about the home they buy from a real estate agent and 15 percent from yard signs; five other categories were 7 percent or less.
The 2005 National Association of Realtors® Profile of Home Buyers and Sellers, based on more than 7,800 responses to a questionnaire mailed to a large national sample of consumers located through county deed records, is the latest in a series of surveys evaluating demographics, marketing and other characteristics of home buyers and sellers.
NAR President Thomas M. Stevens from Vienna, Va., said the findings underscore the complexity of the home-buying process. "Buyers who use the Internet in searching for a home are more likely to use a real estate agent than non-Internet users, and consumers rely on professionals to provide context, negotiate the transaction and help with the paperwork," said Stevens, senior vice president of NRT Inc.
"The real estate industry today bears little resemblance to the way we did business 10 years ago. It is hard to find another industry that has adopted technology so readily to its customers," Stevens said. "Realtors® have invested a lot of time and money in building information technology, and because of these efforts, more consumers than ever are using the Internet in their home search."
The survey shows 81 percent of buyers who use the Internet to search for a home purchase through a real estate agent, while 63 percent of non-Internet users buy through an agent; non-Internet users are more likely to purchase directly from a builder or an owner they knew in advance of the transaction.
"We find that the level of for-sale-by-owners is on a sustained decline and is now at a record low. In addition, a growing share of FSBO properties are not placed on the open market - they're private transactions," Stevens said.
A clear downtrend in FSBOs has been seen since that market share experienced a cyclical peak of 18 percent in 1997. Only 13 percent of sellers conducted transactions without the assistance of a real estate professional in 2005, and 39 percent of those FSBO transactions were "closely held" between parties who knew each other in advance, up from 32 percent in 2004. The FSBO market share was at 14 percent in both 2003 and 2004. NAR began tracking the FSBO market in 1981; the record was 20 percent in 1987.
"In reality, the term 'FSBO' is a misnomer when used to broadly describe homes sold directly by owners. Since two out of five of these transactions are between related parties, and those properties are not placed on the open market, we believe that 'unrepresented sellers' would be a much more accurate term to describe this segment," Stevens said.
The median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200; there were no significant differences between the types of homes sold. "While many unrepresented sellers are motivated to save on paying a commission, we think the price difference speaks for itself," Stevens said. "Owners without professional assistance also have problems in understanding and completing paperwork, prepping the home for sale, getting the right price and selling within the time planned."
Survey data don't explain the price difference, but Stevens offered some context. "Agents know best how to prepare a home and maximize value, agents provide broader exposure to the market and are more likely to generate multiple bids, and the portion of sales that are between private parties are likely to be at a lower price than those on the open market."
"The housing market today contrasts sharply with predictions a decade ago that the Internet would 'disintermediate' real estate agents, including speculation that NAR membership would fall in half. In reality, it's grown dramatically - selling real estate is not like selling a book or buying an airline ticket," he said.
Realtor.com was the most popular Internet resource, used by 54 percent of buyers, followed by multiple listing service (MLS) Web sites, 50 percent, real estate company sites, 38 percent, real estate agent Web sites, 31 percent, and local newspaper sites, 15 percent; other categories were smaller.
Married couples make up the largest share of the housing market, accounting for 61 percent of transactions. Single women purchase 21 percent of homes while single men account for 9 percent. Unmarried couples were 7 percent of the market, and 2 percent were listed as other. In 2004, single women were 18 percent of buyers and single men were 8 percent.
The typical buyer walked through nine properties, searched eight weeks to buy a home and moved 12 miles from their previous residence. The typical seller placed their home on the market for four weeks, had lived in it for six years, moved 15 miles to their new residence and previously owned three homes, including the one just sold.
NAR's senior economist Paul Bishop said both buyers and sellers use traditional methods to choose a real estate agent. "Word-of-mouth recommendation is the most common way to learn about real estate professionals," Bishop said. "The most important criteria, whether you're buying or selling, are the individual agent's reputation and their knowledge of the local market."
In finding a real estate professional, 44 percent of buyers were referred by a friend, neighbor or relative, 11 percent used an agent from a previous transaction, 7 percent found an agent on the Internet, 7 percent met at an open house and 6 percent saw contact information on a "for sale" sign. Six other categories accounted for smaller shares each.
The most important factor in choosing an agent was reputation, according to 41 percent of home buyers, followed by an agent's knowledge of the neighborhood, 24 percent. In terms of desired qualities in an agent, three categories were rated as very important by more than nine out of 10 buyers: knowledge of the purchase process, responsiveness and knowledge of the market. Of buyers who use an agent, 63 percent choose a buyer representative. Satisfaction with real estate agents is very high, with 85 percent of buyers saying they were likely to use the agent again.
Seller responses are comparable: 43 percent chose agents based on a referral by a friend, neighbor or relative, and 28 percent used their agent previously; 10 other categories were 5 percent or less. Fifty-seven percent of sellers said reputation was the most important factor in selecting an agent, followed by their knowledge of the neighborhood, 17 percent. Eighty-two percent said they were likely to use the same agent again or recommend to others.
Four out of ten respondents are first-time buyers, a finding that is consistent for more than a decade. The median age of entry-level buyers is 32 years, also typical over time, and the household income was $57,200. They made a downpayment of 2 percent on a home costing $150,000, but 43 percent purchased with no money down. Of first-time buyers who made a downpayment, 23 percent received a gift from a friend or relative.
The typical repeat buyer is 46 years old and had a household income of $83,200. They placed a downpayment of 21 percent on a home costing $235,000, but 11 percent of repeat buyers paid cash for their home. In all, 94 percent of buyers and sellers believe their home purchase is a good financial investment.
"To underscore the value of housing as an investment, all you have to do is look at the difference in how repeat buyers purchase their next home - the wealth effect of homeownership provides the greatest source for their downpayment, which is significantly larger," Bishop said. Aside from sellers who pay cash for their new home, 66 use the equity from their previous home for a downpayment.
The most important factors in choosing a location to purchase a home are neighborhood quality, cited by 68 percent, close to a job or school, 43 percent, close to family or friends, 36 percent, and the school district itself, 23 percent; seven other categories were under 20 percent.
NAR mailed an eight-page questionnaire to a national sample of 145,000 home buyers and sellers, based on county records, who purchased their homes between August 2004 and July 2005. It generated 7,813 usable responses; the response rate was 5.4 percent.
The 2005 National Association of Realtors® Profile of Home Buyers and Sellers can be ordered by calling 800/874-6500 or going to the Realtor.org store. The cost is $50 for NAR members and $125 for non-members. It can be ordered on-line at http://www.realtor.org/prodser.nsf/OpenProd?OpenForm&IN=186-45-0506
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.
For more information, contact:
Walter Molony, 202/383-1177, wmolony@realtors.org
© Copyright NATIONAL ASSOCIATION of REALTORS® I Headquarters: 430 North Michigan Avenue, Chicago, IL 60611 DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500License Agreement Privacy Policy REALTOR.com Contact NAR Site Map
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