Reprinted from the Ohio REALTOR magazine (Winter/Spring 2014):
For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This annual survey conducted by the National Association of REALTORS of recent home buyers and sellers helps to gain insight into detailed information about their experiences with this important transaction. The information provided supplies understanding, from the consumer level, of the trends that are transpiring and the changes seen. The survey covers information on demographics, housing characteristics and the experience of consumers in the housing market. Buyers and sellers also provide valuable information on the role that real estate professionals play in home sales transactions.
Buyers continue to face tighter credit standards than seen in previous years. This year’s report continued to show an elevated share of married couples and suppressed levels of single buyers, similar to last year’s report. Married couples who purchased a home have the advantage of more buying power and added financial stability—their typical household incomes are higher than single households.
Due to suppressed inventory levels in many areas of the country, buyers are typically buying more expensive homes as prices increase. While the search time for buyers stayed the same length as in previous years, the selling time for sellers dropped substantially.
Buyers need the help of a real estate professional to help them find the right home for them, help them understand the process, and negotiate terms of sale. Sellers, as well, turn to professionals to help sell their homes within a specific timeframe, market their home effectively and find the right buyer. As the market changes and evolves, the need for a professional to help with the transaction has increased. More buyers and sellers are turning to professionals to help them with this transaction. Satisfaction with agents continues to be high.
This report provides real estate professionals with insights into the needs and expectations of their clients. What do consumers want when choosing a real estate professional? How do home buyers begin the process of searching for a home? Why do some sellers choose to forego the assistance of an agent? The answers to these questions, along with other findings in this report, will help real estate professionals better understand the housing market and also provide the information necessary to address the needs of America’s real estate consumers.
This year’s report saw some interesting changes in buyer and seller demographics. Nationally, for example, the share of married couple buyers rose to its highest share since 2001, slightly higher even than the 2012 share: 65 to 66 percent. The single buyer share remains suppressed. This suggests that while tightened lending conditions continue, married couples are better able to provide the purchasing power needed to buy a home.
On the home seller side, those who performed real estate transactions in the last year were older, typically had a lower household income than was seen in previous years, and were more likely to be a married couple than other household compositions. The typical seller was in their home nine years before selling and 13 percent of recent sellers had to delay or stall selling their home because the value of their home was worth less than their mortgage.
Characteristics of Home Buyers
- 38 percent were first-time buyers in Ohio, the same percentage as the national report, which is still at a suppressed level of the historical norm of 40 percent.
- Fourteen percent of buyers nationally purchased a multi-generational home due to children over the age of 18 moving back into the house, cost savings, and health and caretaking of aging parents. In Ohio, this was also 14 percent.
- In Ohio, the typical buyer was 42-years-old, while the typical first-time buyer was 29 and the typical repeat buyer was 53. Nationally the typical buyer was 42-years-old, while the typical first-time buyer was 31 and the typical repeat buyer was 52.
- The 2012 median household income of buyers was $83,300 nationally and $75,200 in Ohio. The median income was $67,400 among first-time buyers and $96,000 among repeat buyers, and in Ohio this was $60,300 and $86,300 respectively.
- Sixty-six percent of recent home buyers were married couples — the highest national share since 2001. 61 percent of recent home buyers were married couples in Ohio.
- Nationally, for 30 percent of recent home buyers, the primary reason for the recent home purchase was a desire to own a home. This was similar to Ohio at 27 percent of recent home buyers.
Characteristics of Homes Purchased
- New home purchases continue to drag at a share of 16 percent of all recent home purchases on a national level. In Ohio, this share is 9 percent.
- The typical home purchased was 1,900 square feet in size, was built in 1992, and had three bedrooms and two bathrooms. In Ohio, the typical home purchased was 1,900 square feet, built in 1986, and had 3 bedrooms and 2 bathrooms.
- Eighty percent of home buyers purchased a detached single-family home nationally, and 82 percent in Ohio.
- Fourteen percent of recent buyers over the age of 50 bought a home in senior-related housing, and 12 percent over the age of 50 made a similar purchase in Ohio.
- When considering the purchase of a home, heating and cooling costs were at least somewhat important to 85 percent of buyers nationally and 87 percent in Ohio. Commuting costs were considered at least somewhat important by 73 percent of buyers nationally and 72 percent in Ohio.
Peg Ritenour, vice president of legal services/administration for the Ohio Association of REALTORS, explores one of the leading issues resulting in calls to the OAR Legal Hotline — disputes between brokerages over commissions. In this episode of Legal Matters, Peg offers an overview on the issue of procuring cause.
By Marilou Butcher Roth
Today I want to talk about the organization of your projects. First, however, lets make sure we are on the same page with what I consider a project — activity that will have a start and finish — not something ongoing such as finding new business. An example of a work project may be to create a new packet to use on your listing consultations, while a home project might be to organize all of your pictures.
First, make a list of all projects that come to mind — you can separate home and business now if you want to or just wait until the list is done. Or, you may choose to keep them together. Once you feel your list is complete (which it probably isn’t), identify how you want to track these items. There are countless ways, depending on what works for you. Personally, I have experimented with many methods, currently using a book I found at Staples with a page for each project. It is definitely important that you track these but how you do it is up to you.
Now you separate each project, giving ample space to create small steps for each one. Yes, I do mean that small. Let’s go back to the example of the packet for your listing consultation. Steps involved might be to (1) look at what you are currently using and decide if any of the pieces need to be deleted from the bunch or updated, and which ones you want to keep, (2) see what your company has available that isn’t part of your current packet, (3) look on your local, state and national association websites to see if there are relevant articles you might like to include…etc. So, each project will have a breakdown of action steps ready to take, not necessarily on the same day.
Next, create some structure with your project work by slotting it into a day (or two) of the week. It doesn’t need to have a specific time, just a day. So, let’s say you have decided that Thursdays will work best for project work. Next Thursday rolls around and you are overwhelmed by paperwork and have convinced yourself that you do not have time for your project actions. I totally get that, and, that is exactly why I wanted you to break these steps down as small as you can. You may only have about 5-10 minutes that you feel you can devote to this — that’s OK! Look at your list and decide what you can do in that period of time — and do it!
What is most important here is the consistency, not the quantity. Creating this consistency will lead to accomplishment and then results! You can always change the day you have this plugged in, what is important is that you keep with it, even if you are only tackling small steps each week.
Another part of this is to make sure when you have one of your brilliant ideas of something to do that you get that idea out of your head and onto the project list. The tendency is to have the thought, and then another, and another. Before you know it, your head is filled with mental clutter which works against us, so write it down!
This is an easy and fun way to make sure you get those tasks done that sometimes get moved to the bottom of the pile under the pretense of “not enough time.” As always…enjoy!
Marilou Butcher Roth is the owner of The MBR Group, a coaching and training company working primarily with REALTORS who have a desire to work and live from a more inspired place. She is also the Broker/Owner of Group REALTORS in Cincinnati. Marilou is a member of the OAR Executive Committee and immediate past chairman of the organization’s Communications Committee. Feel free to contact Marilou to see if coaching is right for you: Marilou@mbr-group.com
By Carl Horst, OAR Director of Publications/Media Relations
A REALTOR-backed legislative initiative, establishing common-sense reforms to streamline the process for obtaining a mortgage and provide lenders with greater clarity about priority of liens, unanimously passed the Ohio House last week. The legislation moves to the Senate, where final passage is expected prior to the General Assembly’s summer recession.
In addition to the Ohio Association of REALTORS, HB 201 is supported by the Ohio State Bar Association and the Ohio Land Title Association. In a joint letter to lawmakers, the groups noted:
The bill outlines and clarifies mortgage subrogration in Ohio and updates the fees to be charged when paid off mortgages are not timely released by lenders. The bill is the product of the OSBA Real Property Section and addresses long standing concerns of real property lawyers, title agents and REALTORS in Ohio. Many people are harmed when paid off mortgages are not properly and timely released.
Throughout the seven-month hearing process, proponents addressed the rationale for legislation sponsored by Rep. Jim Butler (R-Oakwood). The key point stressed was that consumers who sell or refinance their property might discover that a previous mortgage has been paid, but the payoffs are not filed with the county recorder. Obtaining a release is often a protracted and expensive endeavor.
The bill’s provisions will apply to equity lines and second mortgages, but not land contracts. The Bar has estimated that one in five titles are defective due to the unreleased mortgages.
Rep. Butler applauded passage:
“Ensuring that lenders, mortgagees, mortgagors, title agencies, attorneys, and everyone involved with transactions involving real property understand how the processes are supposed to work, and that there are potential penalties if the processes are not followed correctly is critically important. Increasing efficiency and expediting real estate transactions will have a positive economic impact in communities throughout Ohio.”
Specifically, HB 201:
- Codifies Ohio’s common law approach to determining the priority of liens between lenders. This gives lenders predictability and assurances as to how Ohio’s real property priority system works, which will facilitate more lending and reduce unnecessary litigation.
- Promotes secured lending by increasing the penalty for failure of timely recording of a mortgage. Tardy recording means that future real estate transactions may be delayed as information contained in the chain of title to property throughout Ohio is not consistently accurate.
- Requires a mortgage to record a release of a mortgage evidencing its satisfaction within 90 days from the date of its satisfaction, regardless of whether it is a residential or commercial mortgage.
- Expands to a current owner of real property to which a mortgage pertains the provision permitting a mortgagor to bring a cause of action for damages of $250 for a mortgagee’s failure to record a satisfied mortgage.
- Requires a current owner of property to provide a notice to a mortgagee if the mortgagee fails to record a satisfied mortgage within the required time period.
- Creates a cause of action for the current owner to collect damages when a mortgagee fails to record the satisfied mortgage after the current owner provides notice.
- Provides requirements and damages for noncompliance with the requirements for a mortgagee, mortgagor, and property owner who are parties to an unreleased mortgage that has been satisfied, but not recorded, prior to the effective date of the bill.
Keep an eye out for the current issue of the Ohio REALTOR magazine, which will be arriving in your mailbox soon!
Our Winter/Spring edition features a timely look at a rising trend throughout the Buckeye State — “Coming Soon” signage and pocket listings. OAR Legal Counsel Peg Ritenour explores the legal and ethical questions that are emerging from these relatively new marketing techniques.
- A closer look at Ohio’s home buyers and sellers in 2013 — who they were, what they bought/sold and their overall experience;
- OAR Daily Buzz Coach Marilou Butcher Roth asks if you’re ready for the always exciting real estate roller coaster;
- Ohio’s own, Steve Brown, checks in with OAR President Chris Hall to provide a timely update on his ongoing efforts leading the 1 million-plus National Association of REALTORS;
- Ohio officials are moving forward with new septic rules — what’s fact, what’s rumor;
- And much, much more!