Buyers, Especially First Time Buyers, Want Agents Who Know The Buying Process

Another agent I'm acquainted with in my market told me a story the other day about a buyer she had been working with who enjoyed using the benefits of AI to find out information about his transaction, i.e., analyzing the contract he had signed with the seller

Marina Vista Park

. The buyer was satisfied with getting all his information, at that point, by entering prompts and getting answers back about the contract, in spite of his agent's request to personally meet with him and review, which he refused. But according to the most recent annual buyer profile mentioned below, this is not what most buyers are looking for in an agent. Most people want the guidance and experience of their agent, to say nothing of the fact that a buyer broker agreement has been signed and this knowledge and duty is what the buyer is paying the agent for. There are myriad issues in a transaction that may not be accounted for if the right prompt isn't entered into the AI chat. AI is becoming more and more a very useful tool, but does it handle absolutely all situations? 

The "2024 Profile of Home Buyers and Sellers Highlights" by the National Association of REALTORS®, provides an annual overview of recent home buyers and sellers who completed transactions between July 2023 and June 2024. This edition highlights the challenges faced by buyers due to a housing affordability crisis, limited inventory, and high mortgage interest rates (averaging 7.02% and peaking at 7.79%). 

The following is summarized (about buyers) from the report:

Characteristics of Home Buyers:

• Demographics:
  • Median buyer age increased to a peak of 56 (up from 49 last year).
  • First-time buyer median age: 38 (up from 35).
  • Repeat buyer median age: 61 (up from 58).
  • Married couples: 62% (increased). Single females: 20% (slightly increased). Single males: 8% (decreased). Unmarried couples: 6% (decreased).
  • Ethnicity: 83% White/Caucasian, 7% Black/African-American, 6% Hispanic/Latino, 4% Asian/Pacific Islander.
  • Sexual Orientation: 88% heterosexual, 3% gay/lesbian, 2% bisexual.
  • 73% of buyers had no children under 18 in their home (highest recorded).
• Multi-generational Living: 17% purchased multi-generational homes (all-time high), primarily for cost savings (36%), elder care (25%), or adult children moving back/never leaving (21% each).
• Reasons for Purchase:
  • 22% desired to own a home of their own (64% for first-time buyers).
  • 43% said the timing was right; 23% had to purchase.
• Distance Moved: Median distance between previous and new home was 20 miles (down from 50 in 2022, but still elevated from 15 miles in 2018-2021).
• Location: 45% purchased in a suburb/subdivision, 23% in a small town, 16% in an urban/central city (highest since 2014).
• Neighborhood Factors: Quality of neighborhood (59%), convenience to friends and family (45%), and overall home affordability (36%) were most important. Convenience to job declined to 34% (from 52% in 2014).
• Expected Length of Ownership: Median of 15 years; 25% expected to never move.

Based on the "2024 Profile of Home Buyers and Sellers Highlights" report, the average home buyer primarily wants an agent who can:

• Help them find the right home: This was the top reason, with 49% of buyers seeking assistance with this task.
• Negotiate terms of sale: 14% of buyers wanted help with negotiations, and 11% specifically for price negotiations.
• Assist with paperwork: 7% of buyers sought help with managing the necessary documentation.
• Understand the home-buying process: Over half of all buyers (53%) found their agent invaluable in helping them understand the complex buying process, a figure that jumps to 80% for first-time buyers.

In summary, buyers seek agents who are knowledgeable, responsive, honest, possess good people skills, and can effectively guide them through finding a suitable home, negotiating the deal, and handling the intricacies of the transaction.

I have been helping buyers since 1994, the market and market conditions have gone through many growth phases since then, and I have the advantage of knowledge and experience. Just let me know how I can assist you!

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996