what home buyers want 2007
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The home buyers most important house hunting wants for 2007TRANSCRIPT
What Buyers Want!What Buyers Want!HighlightsHighlights from the from the NATIONAL ASSOCIATION OF REALTORSNATIONAL ASSOCIATION OF REALTORS® 2007 Profile of Buyers' 2007 Profile of Buyers' Home Features PreferencesHome Features Preferences
What Buyers Want!What Buyers Want!HighlightsHighlights from the from the NATIONAL ASSOCIATION OF REALTORSNATIONAL ASSOCIATION OF REALTORS® 2007 Profile of Buyers' 2007 Profile of Buyers' Home Features PreferencesHome Features Preferences
NAR Research Division, August 2007NAR Research Division, August 2007NAR Research Division, August 2007NAR Research Division, August 2007
22
About the SurveyAbout the SurveyAbout the SurveyAbout the Survey
• Home buyers were asked about 75 features and Home buyers were asked about 75 features and room types to assess the importance of eachroom types to assess the importance of each
• Buyers who Buyers who didn’tdidn’t get a feature they desired in the get a feature they desired in the home they purchased, were asked how much extra home they purchased, were asked how much extra they would have been willing to pay to get it they would have been willing to pay to get it
• The survey examined home improvement or The survey examined home improvement or remodeling projects undertaken by recent buyersremodeling projects undertaken by recent buyers
• The survey is based on 2,530 responses from The survey is based on 2,530 responses from buyers who purchased a home in between late 2006 buyers who purchased a home in between late 2006 and early 2007and early 2007
• The sample was obtained from Experian, a firm that The sample was obtained from Experian, a firm that maintains an extensive database of recent home maintains an extensive database of recent home buyers derived from county records buyers derived from county records
• Home buyers were asked about 75 features and Home buyers were asked about 75 features and room types to assess the importance of eachroom types to assess the importance of each
• Buyers who Buyers who didn’tdidn’t get a feature they desired in the get a feature they desired in the home they purchased, were asked how much extra home they purchased, were asked how much extra they would have been willing to pay to get it they would have been willing to pay to get it
• The survey examined home improvement or The survey examined home improvement or remodeling projects undertaken by recent buyersremodeling projects undertaken by recent buyers
• The survey is based on 2,530 responses from The survey is based on 2,530 responses from buyers who purchased a home in between late 2006 buyers who purchased a home in between late 2006 and early 2007and early 2007
• The sample was obtained from Experian, a firm that The sample was obtained from Experian, a firm that maintains an extensive database of recent home maintains an extensive database of recent home buyers derived from county records buyers derived from county records
The 2007 NAR Profile of Buyers' Home Features Preferences
33
What was Important While What was Important While Searching for a Home?Searching for a Home?What was Important While What was Important While Searching for a Home?Searching for a Home?
The 2007 NAR Profile of Buyers' Home Features Preferences
It was “very important” to find a home with:
74%
57%
53%
50%
46%
40%
Central air conditioning
Garage with 2 or more spaces
Walk-in closet in master bedroom
Backyard or play area
Cable/Satellite TV-ready
High-speed Internet access
44
Oversized Garages are Oversized Garages are The New Big ThingThe New Big Thing With Buyers With BuyersOversized Garages are Oversized Garages are The New Big ThingThe New Big Thing With Buyers With Buyers
• The most significant change between the previous & current survey in what buyers consider very important is oversized garages (up 16 points)
• Hardwood floors, granite countertops, and cable-readiness follow
• The most significant change between the previous & current survey in what buyers consider very important is oversized garages (up 16 points)
• Hardwood floors, granite countertops, and cable-readiness follow
55
Change in Preferences in TimeChange in Preferences in TimeChange in Preferences in TimeChange in Preferences in Time
The 2007 NAR Profile of Buyers' Home Features Preferences
It was “very important” to find a home with:
74%
57%
53%
50%
46%
46%
40%
28%
23%
73%
41%
51%
42%
40%
21%
17%
Central air conditioning
Garage with 2 or more spaces
Walk-in closet in master bedroom
Backyard or play area
Bedroom on main level
Cable/Satellite TV-ready
High-speed Internet access
Hardwood floors
Granite (or similar) countertops2007 survey
2004 survey
N/A
N/A
66
A Few Regional DifferencesA Few Regional DifferencesA Few Regional DifferencesA Few Regional Differences
• Southerners and Southerners and Midwesterners Wanna Midwesterners Wanna Be Cool!Be Cool!
• Northeasterners Just Northeasterners Just Wanna Have Fun !Wanna Have Fun !
• Westerners Wanna Park Westerners Wanna Park Their Cars!Their Cars!
• Southerners and Southerners and Midwesterners Wanna Midwesterners Wanna Be Cool!Be Cool!
• Northeasterners Just Northeasterners Just Wanna Have Fun !Wanna Have Fun !
• Westerners Wanna Park Westerners Wanna Park Their Cars!Their Cars!
77
Most Important Features by RegionMost Important Features by RegionMost Important Features by RegionMost Important Features by Region
66%
59%
53%
51%
51%
Garage with 2 or more spaces
Central air conditioning
Fencing
Walk-in closet in master bedroom
Backyard or play area
The 2007 NAR Profile of Buyers' Home Features Preferences
53%
41%
37%
36%
31%
Backyard or play area
Central air conditioning
Garage with 2 or more spaces
Cable/Satellite TV-ready
Walk-in closet in master bedroom
81%
61%
49%
45%
41%
Central air conditioning
Garage with 2 or more spaces
Backyard or play area
Walk-in closet in master bedroom
Cable/Satellite TV-ready
91%
66%
58%
53%
50%
Central air conditioning
Walk-in closet in master bedroom
Garage with 2 or more spaces
Cable/Satellite TV-ready
Backyard or play area
SOUTH
NORTHEAST
MIDWESTWEST
88
Age Makes the Biggest Difference in What Buyers WantAge Makes the Biggest Difference in What Buyers Want
Back yards for younger buyers
Back yards for younger buyers
Walk-in closets for older buyers Walk-in closets for older buyers
99
Examples of Differences in Desired Examples of Differences in Desired Features by Age of the BuyersFeatures by Age of the BuyersExamples of Differences in Desired Examples of Differences in Desired Features by Age of the BuyersFeatures by Age of the Buyers
Separate shower enclosure in master bath
20%26%
38% 37%
47%
59%55%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
Eat-in kitchen
12%
24%
33% 35% 35%
44% 43%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
The 2007 NAR Profile of Buyers' Home Features Preferences
Walk-in closet in master bedroom
35%
44%
57%53%
62%58%
71%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
Backyard or play area
53%60% 59%
45%
35%
14% 17%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
1010
What Would Buyers Pay More For?What Would Buyers Pay More For?What Would Buyers Pay More For?What Would Buyers Pay More For?
• For those who purchased a home without a particular feature, most are willing to pay extra for central air conditioning, a median of $1,880
• The biggest change was for an oversized garage, from 6% of buyers in 2004 to 56% in 2007
• Buyers are willing to pay most for waterfront property, typically an extra $4,760
• For those who purchased a home without a particular feature, most are willing to pay extra for central air conditioning, a median of $1,880
• The biggest change was for an oversized garage, from 6% of buyers in 2004 to 56% in 2007
• Buyers are willing to pay most for waterfront property, typically an extra $4,760
1111
Energy Efficiency is Most Important to New-Home Buyers
As buyers age, this becomes more important
Energy Efficiency is Most Important to New-Home Buyers
As buyers age, this becomes more important
1212
How Important was a Home’s Energy How Important was a Home’s Energy Efficiency When Searching for a Home?Efficiency When Searching for a Home?How Important was a Home’s Energy How Important was a Home’s Energy Efficiency When Searching for a Home?Efficiency When Searching for a Home?
The 2007 NAR Profile of Buyers' Home Features Preferences
46%
41%
50%
65%
39%
32%
38%
42%
55%
57%
56%
63%
46%
49%
44%
31%
52%
48%
53%
51%
41%
39%
37%
31%
8%
10%
6%
4%
9%
20%
10%
7%
5%
3%
7%
6%
ALL BUYERS
First-time buyers
Repeat buyers
Buyers of new homes
Buyers of existing homes
18-24
25-34
35-44
45-54
55-64
65-74
75 or older
Very important Somewhat important Not important
Age of Home Buyer:
1313
Bigger and YoungerBigger and YoungerBigger and YoungerBigger and Younger
• From 2004 to 2007, the size of the typical home purchased increased by about 100 square feet
• The median age of homes purchased decreased from 15 to 12 years
• From 2004 to 2007, the size of the typical home purchased increased by about 100 square feet
• The median age of homes purchased decreased from 15 to 12 years
1414
Characteristics of Homes Characteristics of Homes PurchasedPurchasedCharacteristics of Homes Characteristics of Homes PurchasedPurchased
20072007 20042004
MediansMedians
Size of homeSize of home 1,840 sq. ft.1,840 sq. ft. 1,730 sq. ft.1,730 sq. ft.
Age of homeAge of home 12 years12 years 15 years15 years
Number of levelsNumber of levels 22 11
Number of bedrooms Number of bedrooms 33 44
Number of full bathroomsNumber of full bathrooms 22 22
Number of fireplacesNumber of fireplaces 11 11
Central air conditioningCentral air conditioning 83%83% 83%83%
GarageGarage 82%82% N/AN/A
BasementBasement 41%41% N/AN/A
Previously ownedPreviously owned 71%71% 71%71%
Purchase price (median)Purchase price (median) $205,000$205,000 N/AN/A
The 2007 NAR Profile of Buyers' Home Features Preferences
1515
Detached and SuburbanDetached and SuburbanDetached and SuburbanDetached and Suburban
• Over four-fifths of homes purchased are detached single-family homes
• More than half are located in the suburbs
• Over four-fifths of homes purchased are detached single-family homes
• More than half are located in the suburbs
1616
Type and Location of Homes Type and Location of Homes PurchasedPurchasedType and Location of Homes Type and Location of Homes PurchasedPurchased
82%
7%
5%
5%
Detached single-familyhome
Townhouse/row house
Apartment/condo in 5 ormore unit building
Duplex/apartment/condoin 2 to 4 unit building
The 2007 NAR Profile of Buyers' Home Features Preferences
Small town, 20%
Urban/ Central city,
15%
Rural area, 10%
Resort/ Recreation area, 1%
Suburb/ Subdivision,
53%
1717
No Buyers’ RemorseNo Buyers’ RemorseNo Buyers’ RemorseNo Buyers’ Remorse
• More than 90 percent of home buyers are satisfied with the home they purchased
• Nearly two-thirds are very satisfied
• More than 90 percent of home buyers are satisfied with the home they purchased
• Nearly two-thirds are very satisfied
1818
How Satisfied Were Recent How Satisfied Were Recent Home Buyers?Home Buyers?How Satisfied Were Recent How Satisfied Were Recent Home Buyers?Home Buyers?
The 2007 NAR Profile of Buyers' Home Features Preferences
Very dissatisfied,
1%
Somewhat dissatisfied,
4%
Somewhat satisfied, 32%
Very satisfied, 63%
1919
• Sixty percent of buyers undertook home improvement projects immediately after the home purchase
• Median amount spent on home improvement or remodeling projects undertaken within three months of the purchase was $4,350
• Sixty percent of buyers undertook home improvement projects immediately after the home purchase
• Median amount spent on home improvement or remodeling projects undertaken within three months of the purchase was $4,350
From the Closing Table to the From the Closing Table to the Home Improvement StoreHome Improvement Store
2020
Who Did Home Improvement Projects Who Did Home Improvement Projects Within Three Months of Purchase?Within Three Months of Purchase?Who Did Home Improvement Projects Who Did Home Improvement Projects Within Three Months of Purchase?Within Three Months of Purchase?
The 2007 NAR Profile of Buyers' Home Features Preferences
59%
57%
59%
42%
65%
42%
50%
57%
64%
71%
72%
73%
ALL BUYERS
First-time buyers
Repeat buyers
Buyers of new homes
Buyers of existing homes
One year or less
2 to 5 years
6 to 10 years
11 to 20 years
21 to 30 years
31 to 50 years
51 or more years
Buyers who purchased homes aged:
2121
Which Home Improvement or Which Home Improvement or Remodeling Projects?Remodeling Projects?
The 2007 NAR Profile of Buyers' Home Features Preferences
47%
45%
43%
31%
22%
18%
14%
39%
39%
36%
35%
15%
12%
12%
Kitchen
Bathroom(s)
Bedroom(s)
Living room
Family room
Garage
Home office
Appliances
Lighting
Floor coverings
Landscaping
Additional storage
Windows
Fencing
Features added or replaced:
Rooms where improvements were undertaken:
• $50 for Members$50 for Members• $125 for Non-Members$125 for Non-Members• 1-800-874-65001-800-874-6500• www.realtor.org/store www.realtor.org/store
and click on the and click on the Research TabResearch Tab
• Item #186-75-07Item #186-75-07
• $50 for Members$50 for Members• $125 for Non-Members$125 for Non-Members• 1-800-874-65001-800-874-6500• www.realtor.org/store www.realtor.org/store
and click on the and click on the Research TabResearch Tab
• Item #186-75-07Item #186-75-07
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