Use of real estate services at ten year high
The 2011 National Association of Realtors® Profile of Home Buyers and Sellers surveyed 5,708 home buyers and sellers, and report that almost all Americans now use a Realtor (89 percent); the percentage is at a ten year high, rising twenty percent in the last decade alone.
What buyers want in a Realtor
According to the National Association of Realtors (NAR) report, the most common service home buyers want from their agent is to help them find the right home (55 percent) with 13 percent saying what they want most from their Realtor is to help negotiate the price of the home they seek to purchase. Twelve percent say what they want most is for their agent to help them negotiate the terms of the sale, 7 percent want them to determine what comparable homes were selling for, 6 percent wanted help with paperwork, 3 percent wanted help determining how much home they can afford and another 3 percent said the most important service in their agent was helping to find and arrange financing.
We were intrigued that so many people didn’t see Realtors’ primary service as helping to locate the actual home they are buying – is this because real estate search sites make people feel that they have a grasp on the search process more than ever, or is it because the value proposition of competing brokerage models is better understood by the public, therefore they seek different services?
According to NAR, what consumers wanted in an agent was fairly consistent with first time and repeat buyers, new and resale home buyers and household composition, although first time buyers put more emphasis on agents helping guide the mortgage process than repeat buyers.
What buyers see as the benefit of having an agent
Most consumers say that the benefit of having an agent was helping them to understand the home buying process (61 percent), although there was a drastic difference between first time buyers who value the help of understanding the process (81 percent) compared to repeat buyers (48 percent).
More than half of all buyers surveyed said that real estate agents pointed out unnoticed features or faults with a property and 44 percent said their agent negotiated better sales contract terms and 46 percent said their agent improved their knowledge of search areas.
Although consumers are using Realtors more now than any time in the last decade, the reasons aren’t uniform. Some consumers say they need a negotiator, others need to better understand the process, and the benefits they name of having an agent vary as well from their agent pointing out unnoticed flaws in a property to improving their knowledge of a search area.
Realtors that understand the complexity of why they are being hired have an edge over agents who simply fly by the seat of their pants.
Austin tops the list of best places to buy a home
When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?
Looking at the bigger picture
(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).
That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).
They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.
“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”
Average age of houses on the rise, so is it now better or worse to buy new?
With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.
The average home age is higher than ever
(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.
With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.
Prices of new homes on the rise
Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.
Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?
The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.
Why Realtors are vulnerable to these rapid changes
(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.
Note: We’ll let you decide which company plays which role in the image above.
So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.
1. Zillow poaches top talent, Move/NAR sues
It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.
Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.
2. Two major media brands emerge
All the creative services you need are curated in one place
Which security company (that knows better) is actively selling your data?
WTH is ‘Green UX’ anyway?
Soma AI + ML = security system to reduce the number of mass shootings
How SmileDirectClub uses NDAs to silence bad reviews
7 ways to tell if a job posting is actually a human sex trafficker
What’s DMT and why are techies and entrepreneurs secretly taking the drug?
Free shipping is everywhere… how can small businesses keep up?
AI technology is using facial recognition to hire the “right” people
UI/UX design trends in 2020 for maximum user friendliness
Anti-surveillance mask – creepy, ingenious, or potentially illegal?
Amy’s Ice Cream founder on Austin’s business risks and rewards #WhyAustin
Turns out a lot of people are in between introverted and extroverted
P. Terry’s founder on the booming economy in Austin #WhyAustin
Ladies and gentlemen, the U.S. National Anthem
Our Great Partners
news neatly in your inbox
Subscribe to our mailing list for news sent straight to your email inbox.
Thank you for subscribing.
Oh boy... Something went wrong.
Business News2 weeks ago
Interview escape plan 101: Because you definitely need one
Opinion Editorials1 week ago
Could Facebook’s newest censorship tactic decimate an entire industry?
Tech News2 weeks ago
Computer vision helps AI create a recipe from just a photo
Business News1 week ago
AdvoCare MLM was painted as a pyramid scheme! Well color me surprised
Tech News2 weeks ago
Google chrome: The anti-cookie monster in 2022
Social Media2 weeks ago
New Reddit policy on impersonation mimics other social media giants
Business News1 week ago
Bose is closing their retail stores, but we haven’t heard the last of them
Business Entrepreneur1 week ago
Why receiving big funding doesn’t guarantee startup success