First Time Home Buyer Survey

This survey was administered to agents who have worked with first-time buyers in 2009.

2,453 Keller Williams agents responded to the survey.

They were asked to answer questions on the most recent first-time buyer they worked with.

We analyzed the responses of those agents who worked with a first-time homebuyer in the last three months.

 

46% of first-time home buyers were married. The proportion of married first-time buyers appear to be declining over time.

 

51% of first-time buyers are in the 25 to 30 age group.

The overall median age is 28 which is significantly lower than the median age of  age of 32 four years ago.

The median size home purchased was 1,600 square feet.

40% of first-time buyers bought a home between 1,501- 2,000 square feet.

 

81% of first-time buyers bought single family homes

 

82% of agents recommended mortgage professionals to their first-time buyers. •Two out of three first-time buyers used a recommended mortgage professional to finance their home purchase.

95% of first-time homebuyers who needed financing were prequalified before their agents started searching for homes. •80% were preapproved.

Prequalified (GOOD) – Process by which a loan officer estimates the amount you can borrow based on information you provide about your financial situation. There is no formal application, verification or commitment from the lender.

Preapproval (BETTER) – Involves a formal application that goes through underwriting for independent verification of the information you provide. Upon preapproval, you will receive a FORMAL COMMITMENT from the lender stating how much you can borrow and at what rate.

 

HOW MUCH DID THEY PAY?

The typical first-time homebuyer purchased a $155K house.

2 out of 3 sellers made price concessions.

The median reduction was 3 percent of the list price.

 

2 out of 3 sellers actually paid for a portion of the buyer’s closing costs.

The standard amount paid was 3 percent of the final sale price

.

What were the most common seller concessions?

How big was their downpayment?

The typical down payment by first-time buyers is 3.5 percent, which is the minimum amount required for FHA loans.

73% put less than 4 percent down to get into their first home.

Where did they come up with their downpayment?

76% of first-time buyers withdrew from their savings for the down payment.

1 in 4 buyers received help from their family

How did they solve Financing Issues?

 

Did they close on time?

70% of homes closed on time.

Common Reasons for Delayed Closings