National Association of REALTORS 2017 Profile of ...€¦ · Tactics Strategy: Where do you want to “play” so to speak? You want to grow your Referral Business? Add more Affinity

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National Association of REALTORS®

2017 Profile of Homebuyers and Sellers

A Practical Approach To Knowing What You Need To Know And

Doing What You Need To Do

The Source

2NAR 2017 Profile of Homebuyers and Sellers

https://www.nar.realtor/research-and-

statistics/research-reports/highlights-from-

the-profile-of-home-buyers-and-sellers

https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers


Legal Disclaimer‏ Genworth Mortgage Insurance is happy to provide you with these training materials. While

we strive for accuracy, we also know that any discussion of laws and their application to particular

facts is subject to individual interpretation, change, and other uncertainties. Our training is not

intended as legal advice, and is not a substitute for advice of counsel. You should always check with

your own legal advisors for interpretations of legal and compliance principles applicable to your

business.

‏ GENWORTH EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR

IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS

FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE RELATED

TRAINING. IN NO EVENT SHALL GENWORTH BE LIABLE FOR ANY DIRECT, INDIRECT,

INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER WITH

RESPECT TO THE TRAINING AND THE MATERIALS.

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training

Opportunities To Boost Your Know-How, Benefit Your Bottom Line, And Serve Your

Borrowers Better. Visit mi.genworth.com To Learn More.

Strategies

Goals

Measurements

Tactics

Strategy: Where do you want to “play” so to speak? You want to grow your

Referral Business? Add more Affinity Partners? Maybe find a way to gain a

larger share with that single/renter population? These are all strategies you can

use to grow your business.

Goals: In a way, you set the goal when you envisioned your desired customer

mix. You decided that you want to increase your Referral Base to 20%...that

becomes your goal statement. You could also base a goal around one of your

weaknesses.

Measurements: If a goal can’t be measured in some way, it’s really hard to

keep it on track and make adjustments. For each strategy/goal combination, you

will need to figure out a measurement. Depending on how much work you need

to do on each strategy/tactic, the measurements may be incremental, up to the

goal vision you had.

Tactics: These are the specific plans you will put into place to achieve your goal

Strategy-Tactics


Strategies

Goals

Measurements

Strategy-Tactics Alignment - Example


Tactics

Social MediaCharitable

Marketing

Campaign

Improve Realtor

RelationshipsStrategies

Goals

Measurements

Build Better Business


Tactics

Social MediaStrategies

Goals

Measurements

Build Better Business


Tactics

1. Establish a Facebook page, a LinkedIn page and a blog

2. Search for existing customers on the sites

3. Set up page appropriately

4. Create a post to help friends save money

5. Thank people for doing business with me

1. Measure # of social media applicants

2. Measure # of closed loans from social media

3. Number of friends on Facebook

Get 50 new inquiries through social media

Close 10 new loans acquired through social media

Create a database of at least 100 potential customers

Maintain contact with database using social media

Don’t limit yourself to the size of the box!

8

The Numbers

Median Age - All Buyers 45 (+1)

Median Age - FTB 32 (0)

All Buyers

18 - 24 2% (0)

25 - 34 26% (0)

35 - 44 21% (-1)

45 - 54 16% (-1)

55 - 64 18% (+2)

65 - 74 13% (0)

Over 74 4% (0)

NAR 2017 Profile of Homebuyers and Sellers

9

https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml


The Bacon

10

Household Income

All Buyers

Under $45,000 13% (-2)

$45,000 - 64,999 17% (+1)

$65,000 – 84,999 17% (0)

$85,000 – 99,999 12% (0)

$100,000 – 124,999 15% (0)

$125,000 – 149,999 9% (0)

$150,000 – 199,999 10% (+1)

$200,000 and Up 9% (+1)

83% Buyers Said Buying a Home Is a Good Financial Investment (44% Better

Than Stocks)


NAR 2017 Profile of Homebuyers and Sellers 11

https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/2017Q2_HPI.pdf

It’s All About The Kids?

12

# Children In Household (<18)

Zero 63%

One 16%

Two 15%

Three and Up 7%


I Got Your Back

13

13% Purchases Were Multi-Generational Homes

Why?

22% Health / Caring for Aging Parent

17% Cost Savings

16% Children / Relatives Moving Back In (>18)

13% Children / Relatives Never Left (>18)

6% Bigger Home – Multiple Incomes



The Melting Pot

15

All Buyers

White 83% (-2)

Hispanic 7%

Asian/Pacific Islander 5%

African American 5% (+1)

96% Primary Language English

91% Born in USA (86% West)

3% Active Military

18% Veteran

80% No Military Service


16

https://new.mi.genworth.com/homebuyer-education



https://www.benefits.va.gov/HOMELOANS/lender_state_volume.asp

18

The Numbers

Median Age All Buyers 45 (+1)

Median Age FTB 32 (0)

All Buyers FTB

18 - 24 2% (0) 5% (0)

25 - 34 26% (0) 55% (+1)

35 - 44 21% (-1) 23% (+2)

45 - 54 16% (-1) 8% (-2)

55 - 64 18% (+2)

65 - 74 13% (0)

Over 74 4% (0)


The Coveted First-Time Buyer

19

34% of All Buyers Were First-Time Buyers (-1)

Northeast 43%

Repeat Buyer FTB

Married Couple 69% 57%

Single Female 17% 18%

Single Male 7% 7%

Unmarried Couple 4% 16%


20

https://miblog.genworth.com/


Facts


Household Income

All Buyers FTB

Under $45,000 13% (-2) 18%

$45,000 - 64,999 17% (+1) 21%

$65,000 – 84,999 17% (0) 22%

$85,000 – 99,999 12% (0) 12%

$100,000 – 124,999 15% (0) 12%

$125,000 – 149,999 9% (0)

$150,000 – 199,999 10% (+1)

$200,000 and Up 9% (+1)

22

Where Did You Come From?

FTB

73% Rental

12% Parent/Friend/Relative

1% Rent to Own



24

Why First-Time Buyers Buy? Why Now?

65% Desire To Own

6% Change in Family Situation

4% Job Related

1% Purchased From Family Member

58% Time Is Right

13% No Choice

10% Mortgage Opportunity

7% Affordability


Meme To Remember


Thousands Of Meme Generators



Caution

28

Check with Your Legal

Counsel Before Using

Multiple Concerns Including,

But Not Limited To:

• Improper / Unauthorized

Endorsement

• Copyright

• False Advertising

• And More


29

So…What Did You Buy? Where?

85% Bought Previously Owned Home

(Between 14% and 16% Since 2010)

83% Detached Single Family

7% Townhouse

51% Suburbs

22% Small Town

13% City

12% Rural

2% Resort

Median 15 Miles From Previous Residence


30

What Do They Want?

Influencing Factors

58% Quality of Neighborhood

42% Convenient to Job

39% Affordability

36% Near Family and Friends

25% Good Schools

24% Convenient to Shopping

19% Convenient to Entertainment

17% Convenient to Parks / Rec Center

4% Convenient to Public Transportation



32

How Much Did It Cost?

< $100,000 8%

$100,000 - $149,999 13%

$150,000 - $199,999 17%

$200,000 - $249,999 15%

$250,000 - $299,999 12%

$300,000 - $349,999 9%

$350,000 - $399,999 7%

$400,000 - $499,999 8%

> $499,999 1%

Median Price Repeat Buyer $266,500

Median Price FTB $190,000


33

Setting Goals

Make Them SMART

Specific

Measurable

Attainable / Achievable

Rewarding / Relevant

Time Bound


Make Them SMART

34

Specific / Measurable / Attainable‏

Work Backwards‏

Example -

I want to earn $75,000 a year in commissions.

An Average Loan Size is $150,000.

My Commission Rate is .70%.

Typical Fallout for Withdrawals & Declines is 10%.


Make Them SMART

35

Specific / Measurable / Attainable‏

Work Backwards‏

Example -

How Can I Make $75,000?

A $150,000 Loan @ .70= $1,050 commission per closed loan.

At $1,050 per loan, I would need to Close 72 loans.

With Withdrawals & Declines I need to Originate 80 loans. 20 loans per quarter.

Only 1.5 loans per week!!!!!


36

Negotiate For Success

8% Buyers Less Than 90% of Asking Price

15% 90% - 94% of Asking Price

36% 95% - 99% of Asking Price

28% Paid Asking Price

14% Paid Over Asking Price

Price Is

ONE Of

Many

Interests


37

Year Built

2016 14%

2012 – 2015 4%

2008-2011 5%

2003 – 2007 12%

1988 – 2002 20%

1962 – 1987 25%

1914 – 1961 19%

Median Year Built

NE 1970

MW 1980

W 1991

S 2000


38

How Long Do You Expect To Be There?

Don’t Know 36%

16+ Years 27%

8 – 15 Years 20%

How Long Were You There?

Typical Seller Owned for 10 Years


39

First Step In Home Buying Process


40

First Step In Home Buying Process

42% Looked Online At Homes For Sale

17% Contacted Real Estate Agent

12% Looked Online About Home Buying Process

8% Contacted a Lender

1% Attended a Home Buying Seminar


41

Where Did You Get Your Information

95% Looked Online (86% Go Back Frequently 9% Occasionally)

89% Real Estate Agent

74% Mobile Device (Responsive Web Design)

52% Open House

48% Yard Sign (34% Found This Very Useful)

39% Online Video Site (56% Found This Very Useful)

Fun Fact (Median)

Person Looks at 10 Homes

Person Looks for 10 Weeks



43

Toughest Part of Home Buying Process

54% Finding the Right Property

22% Paperwork

16% Process

13% Saving Down Payment

9% Getting a Mortgage

16% Nothing Tough

92% Very- Somewhat Satisfied With the Process


44

Satisfaction =Reality

Expectations


45

Let’s Look At Real Estate Agents

87% Buyers Used A Real Estate Agent

22% Received “Better” List Of Lenders From REA

42% Buyers Found REA By Friend / Family Referral

12% Used Same REA In Past

53% Sellers Used Same REA When They Bought

<1% Found REA Thru Print Advertising

<1% Found REA Thru Social Media – No Prior Knowledge

72% Buyers Interview One REA

15% Buyers Interviewed 2 REAs

89% Would Recommend Their Agent

91% Recommended Their REA Once


46

How Did You Buy It?

88% Buyers Got a Mortgage (>64 64%)

100% LTV 14%

95% - 99% LTV 21%

90% - 94% LTV 14%

80% - 89% LTV 22%

Median LTV 90%

34% Found Mortgage Process More Difficult Than Expected

5% Buyers Had Mortgage Application Denied


47

https://new.mi.genworth.com


48

Saved For Down Payment (FTB)

29% < 6 Months

19% 6 – 12 Months

11% 12--18 Months

9% 18 – 24 Months

32% >2 Years

26% Buyers Had Student Debt

Median Amount Student Debt $25,000

17% >$75,000 Student Debt

20% <$10,000 Student Debt



50

Grab Bag of Fun Facts

Person Looks at 10 Homes (Median)

Person Looks for 10 Weeks (Median)

35% Buyers Considered Buying a Foreclosure

92% Fixed Rate Mortgage



Contact Info

Steve Richman‏

[email protected]‏

870.2519 919‏

– Please Join Me‏

LinkedIn: www.linkedin.com/in/steverichman‏

Facebook: www.facebook.com/ThatMIGuy‏


mailto:[email protected]

http://www.linkedin.com/in/steverichman

http://www.facebook.com/ThatMIGuy

53

Legal Disclaimer‏ Genworth Mortgage Insurance is happy to provide you with these training materials. While

we strive for accuracy, we also know that any discussion of laws and their application to particular

facts is subject to individual interpretation, change, and other uncertainties. Our training is not

intended as legal advice, and is not a substitute for advice of counsel. You should always check with

your own legal advisors for interpretations of legal and compliance principles applicable to your

business.

‏ GENWORTH EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR

IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS

FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE RELATED

TRAINING. IN NO EVENT SHALL GENWORTH BE LIABLE FOR ANY DIRECT, INDIRECT,

INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER WITH

RESPECT TO THE TRAINING AND THE MATERIALS.

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training

Opportunities To Boost Your Know-How, Benefit Your Bottom Line, And Serve Your

Borrowers Better. Visit mi.genworth.com To Learn More


REALTOR® is a registered trademark of the National Association of REALTORS