2013 SURVEY OF CALIFORNIA HOME SELLERS. Methodology Telephone surveys conducted in August/September...

2013 SURVEY OF CALIFORNIA HOME SELLERS

Methodology• Telephone surveys conducted in August/September of 600 randomly selected home sellers who sold in the past 6 months.

• Maximum sampling error: ±4.0 percent at two standard deviations (a 95% confidence level). (Subsets of the total sample will have a higher sampling error.)

ABOUT THE SELLER

The Typical Seller

56% female

46 years old

36% white

48% married

97% househo

ld income >$75k

65% repeat sellers

Majority of Sellers are Females

Male 44%

Female 56%

Females Hold Majority

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

43% 38% 35% 36% 37%48%

40% 40% 42% 43% 42% 44%

57% 62% 64% 64% 63%52%

60% 60% 58% 57% 58% 56%

Male Female

Q: Your Gender

Median Age: 46

11%

32%

27%

24%

7%

25-34

35-44

45-54

55-64

65+

Q: What is your age?

Sellers Are Getting Older

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

5

10

15

20

25

30

35

40

45

50

Median Age

Average Age


Gen X and Y Dominate Seller Population

2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gen Y (1980-1999) Gen X (1965-1979) Boomers (1946-1964)

Seniors (before 1946)


Minorities are the Majority

36%

26%

25%

12%

WhiteHispanicAsianAfrican American

Q: How would you describe your ethnic background?

Ethnic Background

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OtherBlackAsianHispanicWhite

Most Sellers are Married

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

20%

40%

60%

80%

100%

120%

24%13%

39% 37% 36% 30% 34% 37% 35% 32% 33% 32%

76%87%

61% 63% 64%

53% 50% 48% 50%46% 47% 48%

17% 17% 16% 16%22% 20% 19%

Single Married Other

Q:What was the marital status the head of your household at the time of the sale?

Household Income

3%

26%

27%

26%

18%

< $50,000$50,000-$74,999$75,000-$99,999$100,000-$149,999$150,000-$199,999$200,000+

Q: Which of the following categories best describes your total annual household income from all sources?

Annual Household Income

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

< $50,000 $50,000-$74,999 $75,000-$99,999$100,000-$149,999 $150,000-$199,999 $200,000+

First-time Sellers

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

21%

16%

20%18% 17%

15%

33%

44%47% 48%

57%

35%

Q: Was this your first experience in selling a house?

Length of homeownership surgedImplication: Sellers who bought during the peak decided to sell as price increases minimized losses

1st-time Seller Repeat Seller0

20

40

60

80

100

120

3944

104 103

Average Months

2012 2013

Q: Length of time home was owned prior to sale.

Length of Ownership Spiked

2008 2009 2010 2011 2012 20130

20

40

60

80

100

120

3228

4036 39

96

Median Months Mean Months

Q: Length of time home was owned prior to sale.

Moving up is #1 Reason for Selling

Q: Why did you sell your home?

Concerned that the economy is in a recession or heading into a deeper recession

Desired smaller home

Moved to rental to save money

Concerned that home prices were going to go down further

Mortgage is just too expensive

Concerned interest rates were going up

Home not worth what we paid for it

Income not keeping up with expenses

Home worth more now

Home not worth what we owe

Moved to a less expensive market

Interest rate are not going to get any better

Time was right to move-up

*Affordability problems include: couldn’t afford mortgage, moved to less expensive market, loss of household income, income not keeping up with expenses, monthly payment went up, new job paid less, needed to move to less expensive residence.

“Moving up” is #1 Reason for Selling in 2013


Other

Jos loss

Home worth more now

Financial difficulties/Cannot afford to keep the house


Moved to a less expensive market

Changed jobs/relocation

Desired larger home

Could get maximum price/ value for our home


Time/Price was right to move up

0% 5% 10% 15% 20% 25%

8.0%2.0%

4.0%

5.0%

7.0%

8.0%

8.0%

9.0%

13.0%

14.0%

23.0%


“Financial Difficulties” was #1 Reason for Selling in 2012


Price decline concern

Desired smaller home

Moved out of state

Job loss

Low prices allowed upward move

Job change/relocation

Possibility of interest rate rise

Under water

Job/income uncertainty

Financial difficulties/Cannot afford to keep the house

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

1%

2%

3%

3%

4%

4%

4%

7%

17%

58%


Moving up is #1 Reason for Selling for Both First-Time Sellers and Repeat Sellers


Other

Concerned that home prices were going to go down further

Jos loss

Home worth more now


Changed jobs/relocation

Desired larger home

Could get maximum price/ value for our home

Affordability issues


Time/Price was right to move up

0% 5% 10% 15% 20% 25%

5%

0%

3%

4%

6%

9%

7%

12%

14%

14%

23%

4%

1%

1%

4%

6%

8%

9%

13%

14%

16%

22%

Repeat First-Time

*Affordability problems include: couldn’t afford mortgage, moved to less expensive market, loss of household income, income not keeping up with expenses, monthly payment went up.

Most Sellers Currently Own

Own 69%

Rent 31%

Q: Do you own or rent your current home?

More Sellers Are Repurchasing

2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

55%42%

12%

47%

69%

45%58%

88%

53%

31%

Own Rent

Short Seller Are More Likely to Rent

Own 75%

Rent 25%

Equity Sale Homeowners


Own 25%

Rent 75%

Short Sale Homeowners

Most Sellers Own

Own69%

Not buying another home

30%

Buying an-other home

70%


Sellers Are Optimistic About Future Home Prices

1 Year 5 Years 10 Years0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

37%

19%10%

21%

23%

17%

43%

58%

74%

Down Flat Up

Q: Do you think home prices in your neighborhood will go up, down, or stay flat?

Sellers More Optimistic About Future Home Prices

In 1 Year In 5 Years In 10 Years

16%20%

35%

13% 14%

26%

9%12%

20%

43%

58%

74%2010 2011 2012 2013

Q: Do you think home prices in your neighborhood will go up?

ABOUT THE HOME

More single family homes were sold

Single-family detached

62%

Condo/ Townhome54%

Q: What type of home was it?

Average Type of Home over the years

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Single-family Detached Condo/Townhome

Most Homes are Primary Residence

91%

8%1%1%

Primary residenceInvestmentVacation/2nd homeFor relative

Q: What type of occupancy was it?

Equity Sales Make up the Majority of Home Sales

Short sale12%

Equity sale88%

Q: Was the home sold as a short sale?

Average Sale Price is 9% Lower than the List Price

Average$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$510,730

$463,050

ListSale

Q: What was the initial listing price of your home? Selling price?

Average Listing Price vs. Average Sale Price

2009 2010 2011 2012 2013 $-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

Listing Price Sale Price

Percentage Difference of Average Sale Price vs. Listing Price Over the Years

2009 2010 2011 20120%

2%

4%

6%

8%

10%

12%

14%

THE SELLING PROCESS

Average Home Owner Considered Selling More than a Year Before Actually Doing So

4 8 10 12 16 24 36 48 60 72 96 108 1200%

2%

4%

6%

8%

10%

12%

14%

16%

18%

6%

17%

10%

17%

4%

16%

14%

5% 5%

2%1%

2%1%

Months

Q: How long did you consider selling before actually doing so?

Average Months Owner Considered Selling Home in the Past

2011 2012 20130.0

5.0

10.0

15.0

20.0

25.0

30.0

16.614.6

25.4

Most Important Websites for Sellers

Q: What was the single most important web site you used in your home selling process?

Most Important Websites for Sellers (Top 3)

2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

Realtor.com Zillow.com Yahoo! Real Estate Trulia

Half of All Homes Were on the Market Longer than 6 Months

1-4 5-8 9-12 13-24 25-520%

5%

10%

15%

20%

25%

30%

35% 32%

25%

16%

27%

0%

Weeks on MarketQ: How many weeks was your home listed on the market prior to the opening of a successful escrow?

Half of All Homes Were on the Market For Less than 6 Months

1-3 4-6 7-9 10-12 13-240%

5%

10%

15%

20%

25%

30%

24%26%

11%12%

27%

Weeks on MarketQ: How many weeks was your home listed on the market prior to the opening of a successful escrow?

Decline in Average Weeks on Market Reflects Tight Inventory

2005 2006 2007 2008 2009 2010 2011 2012 20131.0

6.0

11.0

16.0

21.0

26.0

31.0

3.3

10.7

14.0

20.5

25.627.4

29.2

26.0

8.5

Q: How many weeks was your home listed on the market prior to the opening of a successful escrow?

More than ¾ of Sellers Closed Escrow Within 60 Days

30 45 60 75 90 1200%

5%

10%

15%

20%

25%

30%

35%

40%

17%

36%

21%

16%

9%

1%

Days

Q: How long was your home in escrow?

Average Days in Escrow

2011 2012 20131

11

21

31

41

51

6157.9

54.5 55.25

Q: How long was your home in escrow?

Most Escrows Don’t Close on Time Due to Loan Problems

57%

• Trouble with buyer loan approval

23%

• Loan didn’t fund on time

13%

• Paperwork not completed on time

10%

• Title company late with recording

9%

• Lender didn’t approve terms, priceQ: Why did your escrow not close on time?

¾ of Homes Fell Out of Escrow at Least 3 Times

1 2 3 4 5 60%

5%

10%

15%

20%

25%

30%

35%

26%

15%

34%

13%

10%

3%

# of Times Home Fell Out of Escrow

Q: How many times did your home fall out of escrow?

The Average Home Fell Out of Escrow 2.9 Times

2012 20130.0

0.5

1.0

1.5

2.0

2.5

3.0 2.9 2.8

98% of Sellers Received Multiple Offers

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 160%

5%

10%

15%

20%

25%

30%

2%3%

22%

14%

30%

5%

2%1%

5%

8%

2%1%

0%

3% 3%

1%

Q: How many offers did you receive from buyers?

Sellers Received 5.9 Offers on Average

2012 20130.0

1.0

2.0

3.0

4.0

5.0

6.0

3.1

5.9

Q: How many offers did you receive from buyers?

What Sellers Would Change About the Sale

Q: If there was one thing you could change about your recent home sale, what would it be?

Improve agent communication (40%)

Sell for higher price (39%)

Market property more aggressively (5%)

Get agent to respond faster(4%)

Initial listing price closer to what it would sell for (4%)

SELLERS WORKING WITH AGENTS

More than Half of Sellers Found Agent Online

Friend or relative

Farming material

Referral

"For Sale" sign

Previous client

Internet

0% 10% 20% 30% 40% 50% 60%

3%

4%

7%

8%

26%

51%

Q. How did you find your real estate agent?

Over ¾ of Sellers Interview at Least 3 Agents

1 2 3 4 5 60%

5%

10%

15%

20%

25%

30%

10%12%

28%

25%

14%

11%

Q: How many agents did you interview prior to selecting the agent you used in your recent home selling process?

Sellers Interview More Agents

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

1

2

3

4

5

6

7

2 2

3

4 4

5

6

5

3

4

3.5

Median Average

Q: How many agents did you interview prior to selecting the agent you used in your recent home selling process?

Reason Seller Selected Agent

Appeared most responsive (29%)

Used agent before (19%)

Appeared most aggressive (18%)

First agent to response (12%)

Most qualified (8%)

Q: What was the single most important reason for selecting the agent you used in your recent home sale?

More than Half of Sellers Google their Agents

2012 201348%

50%

52%

54%

56%

58%

60%

52%

60%

Q: Did you Google your agent?

1/3 of Seller Initially Listed their Home With Another Agent

All

Firs

t-tim

e se

ller

Repea

t sel

ler

Seni

ors

Boom

ers

Gen X

Gen Y

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0.31 0.320.3

0.33

0.22

0.390.37

Q: Did you initially list your home with an agent other than the one with whom you sold it?

More Sellers Initially Listed Home With Another Agent

2009 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70% 64%

22%

44%

31%


More Sellers Initially Listed Home With Another Agent

2009 2011 20120%

10%

20%

30%

40%

50%

60%

70%

18% 20% 24%

46%

2%

20%

Distressed Non distressed


1/3 of Sellers Changed Agents Lacked Negotiating Skills

Not strong in negotiating

(35%)

Poor communicati

on (31%)

Not aggressive

(25%)

Q: Why did you start with one real estate agent and change to another?

Response Time is Most Important in Agent Selection

Category 2011 2012 2013First agent to respond to my inquiry/quickest response time 4.2 4.3 4.3

Agent offered the best deal, lowest commission rate 4.1 4.3 4.1

Agent offered best marketing proposal 4.1 3.9 4.0

Agent was a REALTOR® N/A 3.8 3.9

Agent was the most knowledgeable in the market area where the property was located 3.8 3.8 3.8

Agent's knowledge of handling foreclosures, short sales, other distressed properties 2.9 3.0 2.5

Agent was referred by relative/friends/co-workers 3.1 2.9 3.0

Q: Please rate the following factors by their importance in your decision on selecting the agent you used for your home selling process on a scale from 1 to 5, where 5 is “Extremely important” and 1 is “Not at all important”.

Agent Satisfaction Ratings Relatively Unchanged

Category 2011 2012 2013

Marketing the home 3.6 3.4 3.5

Setting the price 3.4 3.3 3.3

Preparing the home for sale 3.1 3.2 3.1

Assuring the buyer is qualified 3.1 3.0 3.0Value received for what you paid your real estate agent 3.1 3.0 3.0

Negotiating the transaction 3.0 3.0 3.0

Overall satisfaction with the real estate agent 2.8 2.8 2.7Overall satisfaction with the home selling process 2.6 2.5 2.6

Q: Please rate your degree of satisfaction with your agent for each of the following aspects on a scale of 1 to 5, where 1 is least satisfied and 5 is most satisfied.

Seller Satisfaction Declining

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Agent Selling process

Seller Satisfaction with Agent is Correlated to Sale Price

1. Negotiated good deal (57%)2. Got best price (48%)3. Worked hard on seller’s behalf (39%)

1. Ineffective communication (54%)2. House took too long to sell (39%)3. Slow response (34%)

Q: Please explain why you had that level of satisfaction with your agent.

COMMUNICATION

Most Sellers Used Social Media

2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

24%

77%74% 74%

Q: Did you use social media in the home selling process?

Agent / Seller Communication Gap in Telephone & Text Message

47%

5%

32%

13%

49%

3%

1%

44%

Preferred Actual

Q: What was the actual method of communication used most frequently with your agent?

Q: What was your preferred method of communication with your agent?

The Communication Gap Widens With the Generations

PreferText Msg

ActualText Msg

Prefer phone

Actual phone

Prefer in

per-son

Actual in

per-son

Prefer email

Actual email

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Seniors Boomers Gen X Gen Y

Q: What was the actual method of communication used most frequently with your agent?

Q: What was your preferred method of communication with your agent?

96% of Sellers Expect Response Within 1 Hour

Inst

antly

With

in 3

0 Min

utes

With

in 1

Hou

r

With

in 2

Hou

rs

With

in 4

Hou

rs

Sam

e da

y

1 bu

sines

s da

y

> 1

bus

ines

s da

y0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

14%11%

4%

32%

19%

14%

5%1%

43%

34%

19%

2% 1%

Actual Expected

Q: On average, what was the ACTUAL time of your agent to return any form of communication to you?

Q: What was the typical response time you EXPECTED from your agent to return any form of communication with you?

Q. What was the typical response time you expected from your agent to return any form of communication to you?

More Sellers Expect Instant Response from Agent

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Seller Advice to Agents

59%

• Improve communication speed

49%

• Sell home faster

42%

• Negotiate more aggressively

29%

• Improve communication quality

26%

• Listen to needs better

Q: What advice would you give to real estate agents to improve the process or level of service?

FINANCING

Most Sellers had Non-traditional Loans

FRM 43%

ARM 31%

Interest only 12%

No financing 11%

Q: What type of mortgage did you have?

Fewer Sellers Had Adjustable Loans

2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ALTA Stated Income ARM Interest Only FRM No Financing

Q: What type of mortgage did you have?

Most Sellers Did Not Tapped Into Their Equity

Q: At the time of your home sale, was any portion of your outstanding mortgage balance due to a cash-out refinance?

Yes (25%)

No (75%)

More Sellers Tap Into their Home Equity

2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

27%32% 31%

79%

25%

Cash-out Refinance

Q: At the time of your home sale, was any portion of your outstanding mortgage balance due to a cash-out refinance?

Most Sellers Considered Strategic Default

Yes87%

No13%

Q: As you may be aware, some home owners decided to stop paying their mortgages because their home value was lower than the balance on their loan. This is known as strategic default. Did you consider a strategic default?

More Sellers Considered Strategic Default

2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

35%

74%

87%

Q: As you may be aware, some home owners decided to stop paying their mortgages because their home value was lower than the balance on their loan. This is known as strategic default. Did you consider a strategic default?

2013 SURVEY OF CALIFORNIA HOME SELLERS. Methodology Telephone surveys conducted in August/September...

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Transcript of 2013 SURVEY OF CALIFORNIA HOME SELLERS. Methodology Telephone surveys conducted in August/September...