2017 Moving with Kids

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1 2017 Moving with Kids National Association of REALTORS Research Department

2 Introduction Home buyers and sellers that have children living at home under the age of 18 have unique needs when they purchase or sell a home. In this report, 2017 Moving With Kids, we look at the different purchasing habits as well as seller preferences during the home buying and selling process. The information in this report comes from NAR's Profile of Home Buyers and Sellers. Purchasing Habits The most stark difference between home buyers that have kids under 18 years and those that do not is the influence of the neighborhood. Forty-nine percent of buyers that have children consider a neighborhood based on the quality of the school districts and 43 percent choose a neighborhood by the convenience to schools. For roughly half of all buyers regardless of children, finding the right property was the most difficult step in the process. For all buyers, nine in 10 purchased a home through the help of a real estate agent. Nearly half of all buyers found their agent through a referral from a friend, neighbor, or family member and 13 percent were repeat clients who had worked with their agent in the past. For buyers without children, they prefer an agent that calls to inform them of real estate activity. For buyers with children, they prefer that an agent sends postings of property when listed and to communicate through text message. The majority of buyers purchased a detached single-family home. For buyers with children, they purchased larger homes at 2,100 square feet in size with 4 bedrooms and 2 full bathrooms. For 22 percent of buyers with children, child care expenses delayed the home buying process and they made compromises on the price, style, and size of home followed by the distance to a job. What Sellers Needs Twenty-six percent of buyers with children under the age of 18 years sold their home very urgently, compared to 14 percent of buyers with no children at home. For sellers with children, the main reasons for selling were that the home was too small, job relocation, and a change in family situation. For sellers with children, 44 percent found their agent by referral compared to 36 percent of sellers without children. Twenty-five percent of sellers with children want help selling within a specific timeframe and 18 percent want help to fix up the home to sell for more money, more so than other sellers. For all buyers, 81 percent of agents provided a broad range of services and managed most aspect of the home sale.

3 Importance of Neighborhood Factors Forty-nine percent of buyers with children in the home under the age of 18 years said the quality of the school districts is an important factor when purchasing a home and 43 percent said convenience to schools. Convenience to Schools % 4 Quality of the School District %

4 Most Difficult Step When Purchasing Home: Finding the Right Property For half of all buyers regardless of children in the home, finding the right property is the most difficult step in purchasing a home. However, this was slightly more difficult for families with children. Finding the Right Property % 2

5 Home Purchase Through Real Estate Agent For nine out of 10 buyers regardless of children in the home, buyers purchased their home through the help of a real estate agent. Purchased Home Through Real Estate Agent % 88% 4 3 2

6 How Buyer Found Agent For all buyers, they found their agent first by referral, then by previously working with the agent. For buyers with children at home, referrals and repeat use was slightly more common than among buyers without children at home. How Buyer Found Agent Referred by (or is) a friend, neighbor or relative Used agent previously to buy or sell a home Website (without a specific reference) Referred by another real estate agent/broker 1 1 8% 4 44% Visited an open house and met agent Saw contact information on For Sale/Open House sign Personal contact by agent (telephone, , etc.) Referred through employer or relocation company Walked into or called office and agent was on duty Mobile or tablet application Saw the agent's social media page without a connection Advertising specialty (calendar, magnet, etc.) 4% 6% 4%

7 Communication With Real Estate Agent For buyers without children, they prefer an agent that calls to inform them of real estate activity. For buyers with children, they prefer that an agent sends postings of property when listed and to communicate through text message. Communication with Agent Calls personally to inform me of activities Sends me postings as soon as a property is listed/the price changes/under contract Sends me property info and communicates via text message Can send market reports on recent listings and sales Sends me s about my specific needs 77% % 5 58% 48% 47% Has a mobile site to show properties Has a website % 3 Active in local community/volunteerism Is active on social media Sends me an newsletter Advertises in newspapers Has a blog % 9% 6%

8 Type of Home Purchased For buyers with children under the age of 18 years in the home, they purchased larger homes at 2,100 square feet in size with 4 bedrooms and 2 full bathrooms. No children in home Children under 18 in home Detached single-family home Detached single-family home 1,800 square feet 2,100 square feet 3 bedrooms & 2 full bathrooms 4 bedrooms & 2 full bathrooms

9 Child Care Expenses Delayed Home Buying Process For 22 percent of buyers with children, child care expenses delayed the home buying process. Compromises that were made by buyers include the price of the home, follow by style, size, and distance from job. Children Under 18 in Home Child care expenses delayed purchase 2 Price of home Style of home Size of home Distance from job Condition of home Lot size Distance from friends or family Quality of the schools Quality of the neighborhood Distance from school None, Made no compromises Compromises Made by Buyers With Child Care Expenses 4% 7% 1 16% 2 19% 2 24% 24% 26%

10 Seller Urgency When Selling Home Twenty-six percent of sellers with children in the home under the age of 18 years sold their home very urgently, compared to 14 percent of sellers with no children at home. Children Under 18 in Home Not urgently, waited for the right offer 3 Very urgently, needed to sell home as quickly as possible 26% Not urgently, waited for the right offer 47% No Children in Home Somewhat urgently, had to sell home within reasonable time frame 44% Very urgently, needed to sell home as quickly as possible 14% Somewhat urgently, had to sell home within reasonable time frame 39%

11 Main Reason for Selling Home For sellers with children under the age of 18 years, 29 percent sold because their previous home was too small, followed by a job relocation (19 percent) and a change in family situation (14 percent). Reason for Selling Home Home is too small Job relocation Change in family situation (e.g., marriage, Neighborhood has become less desirable Want to move closer to current job 9% 14% 1 14% 9% 4% 7% 19% 29% Schools became less desirable 6% Want to move closer to friends or family Can not afford the mortgage and other 4% 4% 18% Home is too large 1 Moving due to retirement Other Upkeep of home is too difficult due to 6% To avoid possible foreclosure 2 3

12 Method Seller Used to Find Agent For sellers with children under the age of 18 years in the home, 44 percent found their agent by referral compared to 36 percent of sellers without children. Referred by (or is) a friend, neighbor or relative Used agent previously to buy or sell a home Other Personal contact by agent (telephone, , etc.) Internet Web site (without a specific reference) Referred by another real estate agent/broker Referred through employer or relocation company Visited an open house and met agent Saw contact information on For Sale/Open House sign Walked into or called office and agent was on duty Direct mail (newsletter, flyer, postcard, etc.) Newspaper, Yellow Pages or home book ad Crowdsourcing through social media/knew the person through social media How Seller Found Agent 1 24% 2 36% 44% 2 4 6

13 What Sellers Want Most From Agent For sellers with children in the home under the age of 18 years, 25 percent want help selling within a specific timeframe and 18 percent want help to fix up the home to sell for more money, more so than sellers without children. What Sellers Want from Agent Help sell the home within specific timeframe 18% 2 Help seller market home to potential buyers Help seller find ways to fix up home to sell it for more Help price home competitively Help find a buyer for home % 19% 18% 17% Help with negotiation and dealing with buyers Help with paperwork/inspections/preparing for settlement Other Help seller see homes available to purchase Help create and post videos to provide tour of my home 4% 2 3

14 Level of Service Provided By Sellers Real Estate Agents For all sellers, 81 percent of agents provided a broad range of services and managed most aspect of the home sale. Children Under 18 in Home My agent performed a limited set of services as I requested 9% My agent provided a broad range of services and managed most aspects of my home sale 8 My agent provided a broad range of services and managed most aspects of my home sale 8 No Children in Home My agent listed my home on the Multiple Listing Service or Internet sites and performed few if any additional services My agent performed a limited set of services as I requested 9% My agent listed my home on the Multiple Listing Service or Internet sites and performed few if any additional services

15 Negotiating Commission Rate or Fee With Agent For all sellers, negotiating the commission rate was initiated by the real estate agent most often, followed by the seller bringing up the topic and the agent was willing to negotiate their commission or fee. Negotiating Commission Rate Real estate agent initiated discussion of compensation 4 46% Client brought up the topic and the real estate agent was willing to negotiate their commission or fee 2 2 Client did not know commissions or fees could be negotiated 1 17% Client did know commissions and fees could be negotiated but did not bring up the topic 1 Client brought up the topic and the real estate agent was not willing to negotiate their commission or fee 7% 4% 2 4 6

16 Methodology Data from this report was taken from the National Association of REALTORS (NAR) 2016 Profile of Home Buyers and Sellers. In July 2016, NAR mailed out a 132-question survey using a random sample weighted to be representative of sales on a geographic basis to 93,171 recent home buyers. The recent home buyers had to have purchased a primary residence home between July of 2015 and June of A total of 5,465 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 5.9 percent. Respondents had the option to fill out the survey via hard copy or online. The online survey was available in English and Spanish. Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent home buyers derived from county records. Information about sellers comes from those buyers who also sold a home. All information in this Profile is characteristic of the 12-month period ending June 2016, with the exception of income data, which are reported for In some sections comparisons are also given for results obtained in previous surveys. Not all results are directly comparable due to changes in questionnaire design and sample size. Some results are presented for the four U.S. Census regions: Northeast, Midwest, South, and West. The median is the primary statistical measure used throughout this report. Due to rounding and omissions for space, percentage distributions may not add to 100 percent National Association of REALTORS All Rights Reserved. May not be reprinted in whole or in part without permission of the National Association of REALTORS. For reprint information, contact

17 The National Association of REALTORS, The Voice for Real Estate, is America s largest trade association, representing 1.2 million members, including NAR s institutes, societies and councils, involved in all aspects of the real estate industry. NAR membership includes brokers, salespeople, property managers, appraisers, counselors and others engaged in both residential and commercial real estate. The term REALTOR is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS and subscribes to its strict Code of Ethics. Working for America s property owners, the National Association provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property. NATIONAL ASSOCIATION OF REALTORS RESEARCH DIVISION The Mission of the National Association of REALTORS Research Division is to collect and disseminate timely, accurate and comprehensive real estate data and to conduct economic analysis in order to inform and engage members, consumers, and policymakers and the media in a professional and accessible manner. To find out about other products from NAR s Research Division, visit NATIONAL ASSOCIATION OF REALTORS Research Division 500 New Jersey Avenue, NW Washington, DC

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