Latest posts by Rob Chrisman (see all)
- Jan. 12: AE, LO, and management job; reverse mortgage trends: NY proposal, HECM purchase program, & upcoming conference - January 12, 2017
- Jan. 11: Correspondent & LO jobs, lead gen system; the ceaseless lender & investor FHA, VA, Fannie, Freddie program changes - January 11, 2017
- Jan. 10: DTC, LO, compliance jobs; vendor updates of note; training this week on cybersecurity, LO sales; FHA’s premium cut helpful for some - January 10, 2017
The National Association of Realtors 2015 profile of homebuyers and sellers:
If you didn’t have an opportunity to read the NAR’s 2015 profile, we have listed a few of its highlights.
86% of recent buyers financed their purchase. Of those buyers, typically 90% of the loan amount was financed. First time buyers accounted for 94% of financing while repeat buyers came in at 86%.
For 60% of buyers, the down payment source was their savings. 38% of those polled cited proceeds from the sale of a primary were the next most common way of financing. 46% saved for the down payment 6 months or less. 13% of respondents claimed saving for down payment was the most difficult step. Of these, 51% reported student loans as the culprit, 47% stated credit card debt, and 35% reported car loans made saving difficult.
With regard to sellers and their selling experience, the typical seller was 54 years old with median income of $104,100. The small size of the home was with the most commonly cited reason for selling (16%), job relocation accounted for 14%, with living closer to friends and family coming in third at 13%. Typically, the polled sellers lived in home for 9 years before selling, last year the figure was 10 years.
89% of seller worked with a real estate agent and 37% offered incentives to attract buyers.
Of the recently sold homes, the final sale price was median 98% of final listing price with a median of 4 weeks on the market. The profile documents that 61% were satisfied will the selling process. If we do our math here, 89% working with an agent resulting in 61% satisfaction rate leaves approximately 28% room for improvement. Sometimes boring numbers are helpful!
Moving into the arena of home selling and real estate professionals, 72% contacted only 1 agent before finding their realtor of choice. One could surmise that agents are making a very good first impression so kudos! The typical seller has recommended their agent once since selling their home but 32% recommended their agent 3 or more times.
87% of homebuyers purchased through a realtor or broker while 8% bought directly from builder or builders agent. When choosing an agent, 53% said having a realtor help find the right home was the most important. Very akin to the sellers’ results, nearly 7 in 10 buyers interviewed only 1 agent during their home search. While 41% used a realtor referred by friend, relative or neighbor, 88% stated they would use their agent again or recommend them to someone else.
Ah, the allure of instant gratification, isn’t it considered a mantra in our industry today? Unfortunately, very few things are instantaneously within our grasp. For instance, sometimes, obtaining a prequel letter can be time consuming. How cool would it be if both you and your buyer could receive a prequal letter on your mobile device instantly? The negotiation power it would provide could be extraordinary.
According to Union Home Mortgage Corp., it has accomplished just that with its vLoan, vQual technology, an innovative online mortgage pre-qualification tool. If you are curious, visit its website to investigate.
What’s happening with new construction in the U.S. Metro areas?
According to Forbes, New York returns to the top of the list, with $46.6 billion in new construction starts. Building overall jumped 44% for greater New York (the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area), with residential starts increasing 41% to $24.8 billion. Was it likely boosted by an influx of foreign money and helped along by the impending end of a tax break for developers who agreed to put affordable units in their projects? The diverse economy of the Dallas-Fort Worth-Arlington metro area welcomed $17.8 billion in new project starts in 2015, 19% more (in dollar terms) than the year before. Houston holds the number 3 spot followed by Los Angeles-Long Beach-Santa Ana, Calif., Chicago-Naperville-Joliet, Ill.-Ind.,-Wis., Washington-Arlington-Alexandria, D.C.-Va.,-Md.,-W.Va., Miami-Fort Lauderdale-Miami Beach, Fla., Boston-Cambridge-Quincy, Mass.-N.H., Atlanta-Sandy Springs-Marietta, Ga., and Seattle-Tacoma-Bellevue, Wash.
An APP for every occasion:
Trulia Mortgage has created an app that can help provide homebuyers with new home financing knowledge. Calculation of personal home affordability is available by entering information like annual income and credit score; it also pulls in real time property taxes and interest rates in your area. Trulia’s app provides an in-context help to assist with alternative options for getting a loan, or inform you of cases where mortgage insurance will be added to your monthly payments. It also provides you a cheat sheet on what various industry terms mean.
I was in my back yard trying to launch a kite.
I threw the kite up in the air, the wind would catch it for a few seconds, and then it would come crashing back down to earth. I tried this a few more times with no success.
All the while, my wife Karen is watching from the kitchen window, muttering to herself about how men need to be told how to do everything.
She opens the window and yelled to me, “You need a piece of tail.”
I turned with a confused look on my face and yelled back, “Make up your mind. Last night, you told me to go fly a kite.”
(Copyright 2016 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman. To subscribe please visit www.knowledgeforrealestateagents.com.)