Brian Buffini’s Real Estate Report
Brian Buffini CEO & Founder, Buffini & Company, North America’s Largest Real Estate Coaching & Training Company
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Buying, selling or financing a home is one of the biggest decisions a person will make, so it’s only natural that they will want to work with a knowledgeable professional they can trust. Remaining educated on the market and providing your clients with relevant and current information will give them peace of mind and help you secure their long-term business. That’s why I’ve compiled Brian Buffini’s Real Estate Report—to inform you and help you exceed your client’s expectations. Filled with facts and figures on the industry, this report is a must-read for today’s professional. You’ll learn about current buyer and seller trends and changing demographics as well as gain insight about where the market is headed. I hope you enjoy the report and put it to use in your business.
It’s a good life!
Contents Industry Facts
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Distressed Properties
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Buyer Facts, Trends and Demographics
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Seller Facts, Trends and Demographics
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The New Era of Real Estate is Here
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Transaction & Income Information
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Real Estate Agent Facts
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Why Working by Referral Works
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SOURCES: NAR The Nielson Company U.S. Census Bureau Federal Reserve Board RealTrends RISMedia Buffini & Company™
© 2010 Buffini & Company • REALTOR® and REALTORS® are registered trademarks of the National Association of REALTORS®
Brian Buffini’s Real Estate Report
Industry Facts
Distressed Properties The average homeowner’s net worth is more than
The median time for a home on the market was
10 times
10 weeks 1/3 of homes were on the market for
17+ weeks In 2009, first-time home buyers made up
47%
of homes sold
The National home ownership rate in the U.S. is nearly
67%
78% of all homes purchased were single family detached homes
Almost 1/2 of REALTORS® completed at
that of the average renter
least 1 transaction involving a property in foreclosure
22%
40%
of listings on the market went through at least one price reduction in June 2010, a decrease from 23.6% in June 2009
of REALTORS® completed at least 1 transaction involving a short sale
Almost 1/2 of all buyers considered purchasing a foreclosed home
1 in 10 buyers purchased a home through a foreclosure
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Brian Buffini’s Real Estate Report
Buyer Facts, Trends & Demographics
64%
When deciding where to live, consider quality of neighborhood
The typical home buyer searched for and viewed
12 homes
12 weeks
Top 10
“must-have” features for today’s home buyer: 1 Large kitchen 2 Energy efficiency (including
appliances, insulation and windows)
3 Home office 4 Main-floor master suite 5 Outdoor living room 6 Ceiling fans 7 Master suite soaker tubs 8 Stone and brick exteriors 9 Community landscaping
(with walking paths and playgrounds)
10
Two or three-car garage
of individuals
77%
of buyers purchased their home through a real estate agent or broker
30 48
Typical age of first-time home buyer Typical age of repeat home buyer
92%
of buyers financed the purchase of their home with a mortgage
Buyers rate honesty and trustworthiness as the most important factors when choosing an agent
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1/3
More than of buyers said that they did not make any compromises when purchasing their home
18%
said they compromised on price
17%
said they compromised on size
Brian Buffini’s Real Estate Report
Seller Facts, Trends & Demographics The median age of a seller is
46
50%
of sellers purchased homes that were larger than the home they sold
68%
of sellers remain in the same state when they purchase their next home The typical home seller has owned their home for
7 years
93%
on an MLS
of sellers listed their home
Top 5
things sellers want help with from their agent: 1 Price the home competitively
85%
of sellers sold their home with the assistance of a real estate agent
2 Sell the house within a specific timeframe 3 Find a buyer for the home 4 Market the home to potential buyers 5 Find ways to fix up the home to sell it for more
Married couple households account for
3/4 of sellers
For recently sold homes, sellers received
95%
of the listing price
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Brian Buffini’s Real Estate Report
The New Era OF Real Estate IS Here There are approximately
80 million Echo Boomers
Echo Boomer Earning power compared:
89%
Considered the children of Baby Boomers, Echo Boomers are people between the ages of 18 and 31
There are now more couples without children than with children in Canada.
Housing market increases compared (2002-2010): Increase in Hispanic market:
46% Baby Boomers
Echo Boomers
$125
$200
Billion
97%
of buyers use the internet to search for homes
of buyers using the internet also used a real estate agent as a source of information
What is an Echo Boomer?
of them use social networking every day
90%
Billion
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Increase in Asian market:
32% 52%
of single home buyers are more interested in purchasing a home in the suburbs than in the city
Increase in Caucasian market:
5%
Brian Buffini’s Real Estate Report
Transaction & Income Information In 2009, the average gross income of a REALTOR® was
Nearly 40% of Realtors® reported gross incomes below $25,000 and only 16% reported incomes of $100,000 or more
$52,300
$8,800
The typical REALTOR® works at a company that employs
transactions
REALTORS® spend about
29 agents and brokers
with a company
73%
In 2009, the typical Canadian real estate professional closed
14.9
5 years
More than 1/2 of REALTORS® are affiliated with an independent non-franchised company
Nearly 2/3
REALTOR® earnings comparison:
2 years or less experience
80%
of REALTORS® specialize in residential brokerage
transactions
16 years or more experience
Real estate Agent Facts
In 2009, the typical U.S. real estate agent closed
7
$32,000
In 2009, Buffini & Company One2One Coaching™ Members earned an average gross commission of
$168,000
and closed an average of
20
transactions
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of all REALTORS® reported having a website, 1 in 10 have a real estate blog and more than 1/2 use social media
of REALTORS® reported receiving no benefits through their company
80%
of REALTORS® do not use a personal assistant
71%
have a home office
Brian Buffini’s Real Estate Report
Why Working By Referral Works
90%
of consumers worldwide are most likely to trust the recommendations of the people they know
81%
of sellers say they would recommend their agent or use the agent’s services again in the future
73%
of sellers chose their real estate agent based on a referral, or had worked with their agent in a previous transaction
64%
of sellers contacted only one agent. Staying in constant contact with your database will keep you at the forefront of their mind!
Only 36%
of REALTORS® have generated some business from holding an open house, a “traditional, transactional” lead-generation activity
63%
of buyers chose their real estate agent based on a referral, or had worked with their agent in a previous transaction
66%
of buyers said they would either use their real estate agent again or recommend him or her to another buyer
There is no lead more powerful than one referred from someone you know—someone who knows you, trusts you and will put their name to you.” —Brian Buffini
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