Brian Buffini’s Real Estate Report Page 2

ContentsIndustry Facts Page 3

Distressed Properties Page 3

Buyer Facts, Trends and Demographics Page 4

Seller Facts, Trends and Demographics Page 5

The New Era of Real Estate is Here Page 6

Transaction & Income Information Page 7

Real Estate Agent Facts Page 7

Why Working by Referral Works Page 8

SOURCES:NAR The Nielson Company U.S. Census Bureau Federal Reserve Board RealTrends RISMedia Buffini & Company™

© 2010 Buffini & Company • REALTOR® and REALTORS® are registered trademarks of the NATiONAL ASSOCiATiON Of REALTORS®

Buying, selling or financing a home is one of the biggest decisions a person will make, so it’s only natural that they will want to work with a knowledgeable professional they can trust. Remaining educated on the market and providing your clients with relevant and current information will give them peace of mind and help you secure their long-term business. That’s why I’ve compiled Brian Buffini’s Real Estate Report—to inform you and help you exceed your client’s expectations.

Filled with facts and figures on the industry, this report is a must-read for today’s professional. You’ll learn about current buyer and seller trends and changing demographics as well as gain insight about where the market is headed.

I hope you enjoy the report and put it to use in your business.

It’s a good life!

Brian BuffiniCEO & Founder, Buffini & Company,North America’s Largest Real Estate Coaching & Training Company

Brian Buffini’s Real Estate Report Page 3

The average homeowner’s net worth is more than

10 times that of the average renter

22% of listings on the market

went through at least one price reduction in June 2010, a decrease from 23.6% in June 2009

78% of all homes purchased were single family detached homes

The National home ownership rate in the U.S. is nearly

67%

The median time for a home on the market was

10 weeks1/3 of homes were on the market for

17+ weeksIn 2009, first-time home buyers made up

47%of homes sold

Industry FaCts dIstressed ProPertIes

almost 1/2of REALTORS® completed at least 1 transaction involving a property in foreclosure

40% of REALTORS® completed at

least 1 transaction involving a short sale

1 in 10 buyerspurchased a home through a foreclosure

almost 1/2of all buyers considered purchasing a foreclosed home

Brian Buffini’s Real Estate Report Page 4

77% of buyers purchased

their home through a real estate agent or broker

When deciding where to live, 64% of individuals consider quality of neighborhood

Buyer FaCts, trends & demograPhICs

30

48

The typical home buyer searched for 12 weeks and viewed 12 homes

toP 10 “must-have” features for today’s home buyer:

1 Large kitchen

2 Energy efficiency (including appliances, insulation and windows)

3 Home office

4 Main-floor master suite

5 Outdoor living room

6 Ceiling fans

7 Master suite soaker tubs

8 Stone and brick exteriors

9 Community landscaping (with walking paths and playgrounds)

10 Two or three-car garage

More than 1/3 of buyers said that they did not make any compromises when purchasing their home

92% of buyers financed the

purchase of their home with a mortgage

Typical age of first-time home buyer

Typical age of repeat home buyer

18% said they compromised on price

17% said they compromised on size

Buyers rate honesty and trustworthiness as the most important factors when choosing an agent

Brian Buffini’s Real Estate Report Page 5

The median age of a seller is

seller FaCts, trends & demograPhICs

46

Married couple households account for

3/4 of sellers

68% of sellers remain in

the same state when they purchase their next home

The typical home seller has owned their home for

7 years

50% of sellers purchased

homes that were larger than the home they sold

93% of sellers listed their home

on an MLS

85% of sellers sold their home with the assistance of a real estate agent

toP 5 things sellers want help with from their agent:

1 Price the home competitively

2 Sell the house within a specific timeframe

3 Find a buyer for the home

4 Market the home to potential buyers

5 Find ways to fix up the home to sell it for more

For recently sold homes, sellers received

95% of the listing price

Brian Buffini’s Real Estate Report Page 6

the new era oF real estate Is hereThere are approximately

80 million Echo Boomers

Increase in Hispanic market:

46%

ECHO BOOMER EARNINg POWER COMPARED:

HOUSINg MARkET INCREASES COMPARED (2002-2010):

Increase in Caucasian market:

5%

Increase in Asian market:

32%

There are now more couples without children than with children in Canada.90% of buyers use

the internet to search for homes

52% of single home buyers

are more interested in purchasing a home in the suburbs than in the city97% of them

use social networking every day

89% of buyers using the

internet also used a real estate agent as a source of information

Echo Boomers

$200Billion

Baby Boomers

$125Billion

what is an echo Boomer?

Considered the children of Baby Boomers, Echo Boomers are people between the ages of 18 and 31

Brian Buffini’s Real Estate Report Page 7

transaCtIon & InCome InFormatIon real estate agent FaCts

In 2009, Buffini & Company One2One Coaching™ Members earned an average gross commission of

$168,000 and closed an average of

20 transactions

16 years or more experience

$52,300

2 years or less experience

$8,800

REALTOR® EARNiNgS COMPARISON:

Nearly 40% of REALTORS® reported gross incomes below $25,000 and only 16% reported incomes of $100,000 or more

In 2009, the average gross income of a REALTOR® was

$32,000

In 2009, the typical U.S. real estate agent closed

7 transactionsIn 2009, the typical Canadian real estate professional closed

14.9 transactions

The typical REALTOR® works at a company that employs

29 agents and brokers

73% of REALTORS® reported

receiving no benefits through their company

80% of REALTORS® do not use a

personal assistant

71% have a home office

80% of REALTORS® specialize in

residential brokerage

REALTORS® spend about

5 years with a company

more than 1/2 of REALTORS® are affiliated with an independent non-franchised company

nearly 2/3 of all REALTORS® reported having a website, 1 in 10 have a real estate blog and more than 1/2 use social media

Brian Buffini’s Real Estate Report Page 8

why workIng By reFerral works

90% of consumers worldwide

are most likely to trust the recommendations of the people they know

81% of sellers say they would

recommend their agent or use the agent’s services again in the future

73% of sellers chose their

real estate agent based on a referral, or had worked with their agent in a previous transaction

66% of buyers said they would

either use their real estate agent again or recommend him or her to another buyer

63% of buyers chose their

real estate agent based on a referral, or had worked with their agent in a previous transaction

only 36% of REALTORS® have generated some business from holding an open house, a “traditional, transactional” lead-generation activity

There is no lead more powerful than one referred from someone you know—someone who knows you, trusts you and will put their name to you.”

—Brian Buffini

64% of sellers contacted only one agent. Staying in constant contact with your database will keep you at the forefront of their mind!