Selling to a First Time Home Buyer
As a seller, have you ever wondered who the potential buyers are in today's market? Have you ever thought about how many of those ready to buy a home are first-time buyers? We have provided some statistics to help you learn more.
Each year, first-time homebuyers make up about 40% of the market. At 60%, the majority of this group says the biggest factor in deciding to buy is the desire to own a home. Most people in the last 30 years that have bought a home for the first time have been between the ages of 30-32, with age 31 being the average in 2013.
Real Estate Knowledge
New buyers have different levels of experience when it comes to being informed of the market. A vast majority of them have previously rented, while the remaining percentage of them lived with their parents until they were ready to buy their first home.
Many sellers wonder what the best methods to use for advertising are. Internet advertising proves to be the most effective, with 87% of first-time homebuyers looking online for a home. Newspaper listings and open houses attracted almost the same number of first-time buyers each at 49% and 44%.
Today's home market includes both couples and single men and women. About half of the first-time buyer market is married couples at 51%, while unmarried couples trail behind at 11%. Single females make up 25% and the remaining 11% includes single males.
The average annual income of females in the market to buy their first home is $44,000, which is just under that of males at $52,000. Couples that are in the market earn an average annual income of $68,000. A common price range that home sales fall in for current first-time homebuyers is between 100,000-175,000. 38% of clients end up buying their first homes within this price range.
Financing a First Home
Finally, when it comes to actually financing the home, almost all first-time homebuyers choose to use mortgage. For a down payment, 73% of these buyers used their savings and 22% were gifted funds to be used towards their payments.
With these statistics, you can determine how many of your potential traffic might be first-time homebuyers. If you are a first-time buyer yourself, you can see where you fit. This information will help to make sure you are marketing to the right buyer, or if you're a buyer, it will help to find out if you're looking at the right homes based on what other first-time buyers are looking at.