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Market research goes a long way in working with clients, agents and local and state associations. Researchers at the National Association of REALTORS® produce timely reports on every aspect of the real estate business, many of which can be used to a broker’s advantage. At its meeting during the REALTORS® Legislative Meetings in Washington, D.C., the Broker Engagement Committee discussed how to use some of these reports.
Profile of Home Buyers and Sellers
Perfect to use as a training and information tool with your agents, the 2022 Profile of Home Buyers and Sellers includes just about every data point you could ask for on your most important asset: your clients.
This report includes information like:
- Statistics on generations and communities in the marketplace.
- How far buyers are moving and what’s driving those moves.
- Characteristics of a typical home.
- How long buyers are expected to live in their homes.
- Seller statistics like median age, reasons for selling and final sales price.
How to use this report: The data points can be used as an education tool on their own, or you can use the information to help agents strategize in their business. For example, homeowners are expected to live in their homes for 15 years before selling. This information can help an agent strategize how many people they need in their database to garner consistent business from repeat clients.
Data also can help reduce misperceptions about buyer groups. For instance, baby boomers are rarely downsizing nowadays, move an average of 90 miles away from their current location and are interested in technology and green features in their new homes.
Wealth Gains by Income and Racial/Ethnic Group
Homeownership continues to be one of the most effective ways to build wealth. The Wealth Gains by Income and Racial/Ethnic Group report breaks down wealth generation through real estate by income amount and racial and ethnic groups.
This report includes information like:
- Wealth gains accumulated through the last decade.
- How wealth is built by racial and ethnic group.
- A breakdown of monetary figures by income level.
How to use this report: Brokers can use this report with their agents as training material. The statistics in this report provide valuable information for agents to leverage with their clients. This material can show clients the wealth-building opportunities present in homeownership
Additionally, this report can be used with local and state government agencies as an advocacy tool for fair housing and equity measures, revitalization arguments or as an argument to increase inventory in a given area.
Remodeling Impact Report
The frenzied market of 2020 and 2021 saw homes selling in nearly any condition. Buyers were less worried about dated features needing upgrades and more concerned about getting into a home in the first place. Today’s market revives the need for homeowners to consider remodeling, and the Remodeling Impact Report can help agents and their clients understand the best options.
This report includes information like:
- Reasons homeowners remodel.
- Average cost of remodeling projects.
- How much various types of projects appeal to buyers.
- An estimate on how much sellers can recoup on remodeling projects.
How to use this report: An excellent source of education, this report shows agents how important some remodeling projects may be for their listing, which they can then use to help homeowners position themselves well in the marketplace. Agents can relay the report’s findings to their clients when advising on whether or not upgrades are needed to command a better sale price. When assessing which upgrades are most attractive to buyers and which ones sellers can maximize their return on, agents can use the data provided to back up their claims.
The demand for usable and attractive outdoor space expanded in the last couple of years as well, and to address the specifics of outdoor remodeling, NAR also collected and analyzed data in the Remodeling Impact Report: Outdoor Features.
Profile of Home Staging
Data has long shown the benefits of staging to help attract buyers and sell homes faster, but factors like price and hassle often deter clients from enlisting this service. The Profile of Home Staging provides a holistic view of the practice, including how buyers’ and sellers’ agents report on its effectiveness, how staging is influenced by television and how it affects the selling timeline.
This report includes information like:
- The buyer’s agent and seller’s agent perspectives on the effectiveness of staging.
- Which rooms are most commonly staged.
- Median dollar value spent on staging.
- How television shows have influenced staging.
How to use this report: Brokers can provide this report as an educational tool for agents, explaining the benefits and specifics of staging. This report also gives insight into pricing and expectations of buyers and sellers when it comes to staging. The report can provide the information agents need to help counsel their clients with confidence on whether staging would help with the homeselling process. Agents can also use this report to help substantiate their recommendations for staging.
