what buyers want! highlights from the national association of realtors ® 2007 profile of...

What Buyers Want!What Buyers Want!HighlightsHighlights from the from the NATIONAL ASSOCIATION OF REALTORSNATIONAL ASSOCIATION OF REALTORS® 2007 Profile of Buyers' 2007 Profile of Buyers' Home Features PreferencesHome Features Preferences

NAR Research Division, August 2007NAR Research Division, August 2007

22

About the SurveyAbout the Survey• Home buyers were asked about 75 features and Home buyers were asked about 75 features and

room types to assess the importance of eachroom types to assess the importance of each• Buyers who Buyers who didn’tdidn’t get a feature they desired in the get a feature they desired in the

home they purchased, were asked how much extra home they purchased, were asked how much extra they would have been willing to pay to get it they would have been willing to pay to get it

• The survey examined home improvement or The survey examined home improvement or remodeling projects undertaken by recent buyersremodeling projects undertaken by recent buyers

• The survey is based on 2,530 responses from The survey is based on 2,530 responses from buyers who purchased a home in between late 2006 buyers who purchased a home in between late 2006 and early 2007and early 2007

• The sample was obtained from Experian, a firm that The sample was obtained from Experian, a firm that maintains an extensive database of recent home maintains an extensive database of recent home buyers derived from county records buyers derived from county records

The 2007 NAR Profile of Buyers' Home Features Preferences

33

What was Important While What was Important While Searching for a Home?Searching for a Home?


It was “very important” to find a home with:

74%

57%

53%

50%

46%

40%

Central air conditioning

Garage with 2 or more spaces

Walk-in closet in master bedroom

Backyard or play area

Cable/Satellite TV-ready

High-speed Internet access

44

Oversized Garages are Oversized Garages are The New Big ThingThe New Big Thing With Buyers With Buyers

• The most significant change between the previous & current survey in what buyers consider very important is oversized garages (up 16 points)

• Hardwood floors, granite countertops, and cable-readiness follow

55

Change in Preferences in TimeChange in Preferences in Time


It was “very important” to find a home with:

74%

57%

53%

50%

46%

46%

40%

28%

23%

73%

41%

51%

42%

40%

21%

17%





Bedroom on main level


High-speed Internet access

Hardwood floors

Granite (or similar) countertops2007 survey2004 survey

N/A

N/A

66

A Few Regional DifferencesA Few Regional Differences• Southerners and Southerners and

Midwesterners Wanna Midwesterners Wanna Be Cool!Be Cool!

• Northeasterners Just Northeasterners Just Wanna Have Fun !Wanna Have Fun !

• Westerners Wanna Park Westerners Wanna Park Their Cars!Their Cars!

77

Most Important Features by RegionMost Important Features by Region

66%

59%

53%

51%

51%



Fencing




53%

41%

37%

36%

31%






81%

61%

49%

45%

41%






91%

66%

58%

53%

50%






SOUTH

NORTHEAST

MIDWESTWEST

88

Age Makes the Biggest Difference in What Buyers Want

Back yards for younger buyers

Walk-in closets for older buyers

99

Examples of Differences in Desired Examples of Differences in Desired Features by Age of the BuyersFeatures by Age of the Buyers

Separate shower enclosure in master bath

20%26%

38% 37%

47%

59%55%

18-24 25-34 35-44 45-54 55-64 65-74 75 orolder

Eat-in kitchen

12%

24%33% 35% 35%

44% 43%

18-24 25-34 35-44 45-54 55-64 65-74 75 orolder



35%44%

57% 53%62%

58%

71%

18-24 25-34 35-44 45-54 55-64 65-74 75 orolder


53%60% 59%

45%

35%

14% 17%

18-24 25-34 35-44 45-54 55-64 65-74 75 orolder

1010

What Would Buyers Pay More For?What Would Buyers Pay More For?• For those who purchased a home

without a particular feature, most are willing to pay extra for central air conditioning, a median of $1,880

• The biggest change was for an oversized garage, from 6% of buyers in 2004 to 56% in 2007

• Buyers are willing to pay most for waterfront property, typically an extra $4,760

1111

Energy Efficiency is Most Important to New-Home Buyers

As buyers age, this becomes more important

1212

How Important was a Home’s Energy How Important was a Home’s Energy Efficiency When Searching for a Home?Efficiency When Searching for a Home?


46%

41%

50%

65%

39%

32%

38%

42%

55%

57%

56%

63%

46%

49%

44%

31%

52%

48%

53%

51%

41%

39%

37%

31%

8%

10%

6%

4%

9%

20%

10%

7%

5%

3%

7%

6%

ALL BUYERS

First-time buyers

Repeat buyers

Buyers of new homes

Buyers of existing homes

18-24

25-34

35-44

45-54

55-64

65-74

75 or older

Very important Somewhat important Not important

Age of Home Buyer:

1313

Bigger and YoungerBigger and Younger

• From 2004 to 2007, the size of the typical home purchased increased by about 100 square feet

• The median age of homes purchased decreased from 15 to 12 years

1414

Characteristics of Homes Characteristics of Homes PurchasedPurchased

20072007 20042004MediansMedians

Size of homeSize of home 1,840 sq. ft.1,840 sq. ft. 1,730 sq. ft.1,730 sq. ft.Age of homeAge of home 12 years12 years 15 years15 years

Number of levelsNumber of levels 22 11Number of bedrooms Number of bedrooms 33 44Number of full bathroomsNumber of full bathrooms 22 22Number of fireplacesNumber of fireplaces 11 11

Central air conditioningCentral air conditioning 83%83% 83%83%GarageGarage 82%82% N/AN/ABasementBasement 41%41% N/AN/A

Previously ownedPreviously owned 71%71% 71%71%Purchase price (median)Purchase price (median) $205,000$205,000 N/AN/A


1515

Detached and SuburbanDetached and Suburban• Over four-fifths of homes purchased

are detached single-family homes• More than half are located in the

suburbs

1616

Type and Location of Homes Type and Location of Homes PurchasedPurchased

82%

7%

5%

5%

Detached single-familyhome

Townhouse/row house

Apartment/condo in 5 ormore unit building

Duplex/apartment/condoin 2 to 4 unit building


Small town, 20%

Urban/ Central city,

15%

Rural area, 10%

Resort/ Recreation area, 1%

Suburb/ Subdivision,

53%

1717

No Buyers’ RemorseNo Buyers’ Remorse

• More than 90 percent of home buyers are satisfied with the home they purchased

• Nearly two-thirds are very satisfied

1818

How Satisfied Were Recent How Satisfied Were Recent Home Buyers?Home Buyers?


Very dissatisfied,

1%

Somewhat dissatisfied,

4%

Somewhat satisfied, 32%

Very satisfied, 63%

1919

• Sixty percent of buyers undertook home improvement projects immediately after the home purchase

• Median amount spent on home improvement or remodeling projects undertaken within three months of the purchase was $4,350

From the Closing Table to the From the Closing Table to the Home Improvement StoreHome Improvement Store

2020

Who Did Home Improvement Projects Who Did Home Improvement Projects Within Three Months of Purchase?Within Three Months of Purchase?


59%

57%

59%

42%

65%

42%

50%

57%

64%

71%

72%

73%

ALL BUYERS

First-time buyers

Repeat buyers

Buyers of new homes

Buyers of existing homes

One year or less

2 to 5 years

6 to 10 years

11 to 20 years

21 to 30 years

31 to 50 years

51 or more years

Buyers who purchased homes aged:

2121

Which Home Improvement or Which Home Improvement or Remodeling Projects?Remodeling Projects?


47%

45%

43%

31%22%

18%

14%

39%

39%

36%35%

15%

12%

12%

Kitchen

Bathroom(s)

Bedroom(s)

Living room

Family room

Garage

Home office

Appliances

Lighting

Floor coverings

Landscaping

Additional storage

Windows

Fencing

Features added or replaced:

Rooms where improvements were undertaken:

• $50 for Members$50 for Members• $125 for Non-Members$125 for Non-Members• 1-800-874-65001-800-874-6500• www.realtor.org/store www.realtor.org/store

and click on the and click on the Research TabResearch Tab

• Item #186-75-07Item #186-75-07

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