Characteristics of the 2012 Minnesota Home Seller

In a previous WestSavageBlog post, we discussed the characteristics of the 2012 Minnesota home buyer.  This time we look at home financing and experiences and comments from SELLERS.

Home Sellers and Their Selling Experience

• The typical national seller lived in their home for 9 years. The median tenure has increased in recent years. In 2007, the typical tenure in home was only 6 years.   In Minnesota, the median tenure is 10 years.
• 88% of sellers were assisted by a real estate agent when selling their home nationally, and 90% were assisted by a REALTOR® in Minnesota.
• Nationally, recent sellers typically sold their homes for 95% of the listing price, and 60% reported they reduced the asking price at least once.   In Minnesota, recent sellers sold their homes for 94% of the listing price and 57% reduced the asking price at least once.
• 40% of sellers offered incentives to attract buyers nationally, most often assistance with home warranty policies and closing costs.  In Minnesota, 40% of sellers offered incentives as well.

Home Selling and Real Estate Professionals

• Nationally, 38% of sellers who used a real estate agent found their agents through a referral by friends or family, and 23% used the agent they worked with previously to buy or sell a home.   In Minnesota, the share of sellers found their agents through a referral was 35% and 21% used an agent they had worked with before.
• Two-thirds of home sellers only contacted one agent before selecting the one to assist with their home sale on a national level, and this was also true in Minnesota.
• 93% of sellers reported that their home was listed or advertised on the Internet nationally, and 96% in Minnesota.
• Among recent sellers nationally who used an agent, 84% reported they would definitely (66%) or probably (18%) use that real estate agent again or recommend to others.   In Minnesota, 84% of sellers reported they would definitely (67%) or probably (17 %) use the real estate agent again or recommend to others.

Financing the Home Purchase

• On a national level, 87% of home buyers financed their recent home purchase. Among those who financed their home purchase, the buyers typically financed 91%.   In Minnesota, 90% of buyers financed their recent purchase and 91% of the purchase was financed.
• The share of first-time buyers who financed their home purchase was 95% compared to 81% of repeat buyers, nationally.  In Minnesota, that share was 95% of first-time buyers and 86 % of repeat buyers.
• More than a third of home buyers nationally reported they have made some sacrifices such as reducing spending on luxury items, entertainment or clothing.  This also holds true in Minnesota.
• Nationally, 23% of buyers reported the mortgage application and approval process was somewhat more difficult than expected and 17% reported it was much more difficult than expected.  These numbers are roughly equivalent to the Minnesota numbers, where 27% of buyers reported the process was somewhat more difficult than expected and 10% reported it was much more difficult than expected.

Home buying and selling remains an important segment of the national and local economies, especially due to the housing sector’s unique power to revitalize the economy during challenging times.  With historically low mortgage rates, buyers and sellers continue to have opportunities to trade up, trade down, relocate or purchase a second home.  In Minnesota, First-time buyers are now 41% of the market, are discovering and capturing the benefits of homeownership, which contributes to significant wealth accumulation, among other financial, social, and personal rewards.

Consumers rely on the experience and expertise of real estate professionals to assist when buying and selling a home. Working in an extremely competitive environment, agents and brokers provide high levels of service to meet the varied needs of home buyers and sellers. The value that consumers place on the services offered by real estate professionals is reflected in the large majority of both buyers and sellers who would use their agents again or recommend them to others.

For more information, please view 2012 Characteristics of Minnesota Home Buyers.

Comments

[MN Real Estate]

Way cool some valid points! I appreciate you making this article available; the rest of the site is also high quality. Have a fun. MN Real Estate