2019 Moving With Kids - PRC Home Real Estate Sales .

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2019 Moving with KidsNational Association of REALTORS Research Group

NAR Research Staff:Lawrence Yun, Ph.D.Chief Economist and Senior Vice PresidentJessica Lautz, Dr. of Real EstateVice President, Demographics and Behavioral InsightsMeredith DunnManagerLead Author:Brandi SnowdenDirector, Member and Consumer Survey Research2019 Moving With Kids

IntroductionHome buyers and sellers that havechildren living in home under the age of18 have unique needs when they purchaseor sell a home. In this report, 2019Moving With Kids, we look at thedifferent purchasing habits as well as sellerpreferences during the home buying andselling process. The information in thisreport comes from NAR's Profile of HomeBuyers and Sellers.Purchasing HabitsThe most stark difference between homebuyers that have kids under 18 years andthose that do not is the importance of theneighborhood. Fifty-three percent ofbuyers that have children consider aneighborhood based on the quality of theschool districts and 50 percent choose aneighborhood by the convenience toschools.The majority of buyers purchased adetached single-family home. For buyerswith children, they purchased largerhomes at 2,110 square feet in size with 4bedrooms and 2 full bathrooms.For 26 percent of buyers with children,child care expenses delayed the homebuying process. Compromises that weremade by buyers with child care expensesinclude the condition and size of thehome, followed by price, lot size, and styleof home.Selling NeedsTwenty-three percent of buyers withchildren under the age of 18 years soldtheir home very urgently, compared to 14percent of buyers with no children athome. For sellers with children under theage of 18 years, 25 percent sold becausetheir previous home was too small,For roughly half of all buyers regardless of followed by a job relocation (19 percent)children, finding the right property was the and a change in family situation (13percent).most difficult step in the process. Eightyseven percent of buyers without children, For sellers with children, 42 percent foundand 86 percent of buyers with childrentheir agent by referral compared to 37purchased a home through the help of apercent of sellers without children.real estate agent. Forty-one percent ofTwenty-one percent of sellers withbuyers with children in the home foundchildren want help selling within a specifictheir agent through a referral from atimeframe, 20 percent to help price theirfriend, neighbor, or family member and 14 home, and 19 percent to help withpercent were repeat clients who hadmarketing the home to potential buyers.worked with their agent in the past.For 82 percent of sellers with children andFor buyers without children, they prefer81 percent of sellers without children,an agent that calls to inform them of real agents provided a broad range of servicesestate activity. For buyers with children,and managed most aspect of the homethey prefer that an agent sends property sale.info and communicates via text message.2019 Moving With Kids

Importance ofNeighborhood Factors Fifty-three percent of buyers with children in the home under the age of 18 yearssaid the quality of the school districts is an important factor when purchasing ahome and 50 percent said convenience to schools.Quality of the School District60%40%53%20%0%10%No children in homeChildren under 18 in homeConvenience to Schools60%40%50%20%6%0%No children in home2019 Moving With KidsChildren under 18 in home

Most Difficult Step WhenPurchasing Home:Finding the Right Property For all buyers, regardless of children in the home, finding the right property is themost difficult step in purchasing a home.Finding the Right Property60%40%57%55%No children in homeChildren under 18 in home20%0%2019 Moving With Kids

Home Purchase ThroughReal Estate AgentFor 87 percent of buyers without children in the home and 86 percent of buyerswith children in the home, buyers purchased their home with the help of a realestate agent. Purchased Home Through Real Estate Agent100%80%60%87%86%No children in homeChildren under 18 in home40%20%0%2019 Moving With Kids

How Buyer Found Agent For all buyers, they found their agent first by referral, then by previously workingwith the agent. Among buyers with children in the home, repeat use of agent’s was slightly morecommon at 14 percent, than among buyers without children at home, at 11percent.How Buyer Found AgentReferred by (or is) a friend, neighbor or relative41%41%11%14%Used agent previously to buy or sell a homeInquired about specific property viewed online7%7%Website (without a specific reference)6%5%Referred by another real estate agent/broker6%5%Visited an open house and met agent5%4%Personal contact by agent (telephone, e-mail, etc.)3%3%4%3%Saw contact information on For Sale/Open House sign2%2%1%1%Referred through employer or relocation companyMobile or tablet application1% 2%Walked into or called office and agent was on dutySaw the agent's social media page without a connection1%Crowdsourcing through social media/knew the personthrough social media0%0%1%0%Advertising specialty (calendar, magnet, etc.)1%Newspaper, Yellow Pages or home book ad 0%1%1%Direct mail (newsletter, flyer, postcard, etc.)0%11%12%Other0%No children in home2019 Moving With Kids20%40%Children in home60%80%100%

Communication WithReal Estate Agent For buyers without children, they prefer an agent that calls to inform them of realestate activity, or emails them. For buyers with children, they prefer that an agentsends property info and communicates via text message.Communication with Agent74%73%Calls personally to inform me of activitiesSends me postings as soon as a property islisted//the price changes//under contract69%70%Sends me property info and communicatesvia text message64%67%Can send market reports on recent listingsand sales52%53%54%52%Sends me emails about my specific needsHas a mobile site to show properties29%29%Has a website30%29%11%14%Is active on social media12%11%Active in local community/volunteerism8%8%Sends me an email newsletter5%2%Advertises in newspapers1%1%Has a blogNo children in home2019 Moving With Kids0%20%40%Children under 18 in home60%80%

Type of Home Purchased For buyers with children under the age of 18 years in the home, they purchasedlarger homes at 2,110 square feet in size with 4 bedrooms and 2 full bathrooms. Buyers without children in the home purchased smaller homes at 1,800 squarefeet in size with 3 bedrooms and 2 full bathrooms.No childrenin homeChildren under18 in home1,800 squarefeet2,110 squarefeet3 bedrooms& 2 fullbathrooms4 bedrooms& 2 fullbathrooms2019 Moving With Kids

Child Care Expenses DelayedHome Buying Process For 26 percent of buyers with children, child care expenses delayed the homebuying process. Compromises that were made by buyers with child care expenses include thecondition and size of the home, followed by price, lot size, and style of home.Children Under 18 in HomeChild careexpenses delayedpurchase26%Compromises Made byBuyers With Child Care ExpensesCondition of home31%Size of home31%Price of home24%Lot size21%Style of home21%Distance from job18%Distance from friends or family12%Quality of the schools8%Quality of the neighborhood7%Distance from school4%Other compromises not listed10%None, made no compromises2019 Moving With Kids16%0%20%40%

Seller Urgency WhenSelling Home Twenty-three percent of sellers with children in the home under the age of 18years sold their home very urgently, compared to only 14 percent of sellers withno children at home.Children Under 18 in HomeVery urgently,needed to sellhome as quicklyas possible23%Not urgently,waited for theright offer31%Somewhaturgently, had tosell homewithinreasonable timeframe46%No Children in HomeNot urgently,waited for theright offer49%Very urgently,needed to sellhome as quicklyas possible14%Somewhaturgently, had tosell homewithinreasonable timeframe37%2019 Moving With Kids

Main Reason forSelling Home For sellers with children under the age of 18 years, 25 percent sold because theirprevious home was too small, followed by a job relocation (19 percent) and achange in family situation (13 percent).Reason for Selling Home7%Home is too small25%12%Job relocation10%13%Change in family situation (e.g., marriage,birth of a child, divorce)8%8%Neighborhood has become less desirableWant to move closer to current job4%6%Want to move closer to friends or family5%18%0%Schools became lessdesirable5%Home is too large4%2%2%Can not afford the mortgage and otherexpenses of owning homeUpkeep of home is too difficult due tohealth or financial limitations1%To avoid possible foreclosure1%1%Moving due to retirement1%11%5%9%14%10%Other0%No children in home2019 Moving With Kids19%20%Children under 18 in home40%

Method Seller Used toFind Agent For sellers with children under the age of 18 years in the home, 42 percent foundtheir agent by referral compared to 37 percent of sellers without children.How Seller Found Agent37%42%Referred by (or is) a friend, neighbor or relative22%26%Used agent previously to buy or sell a home4%4%Website (without a specific reference)6%3%3%3%3%2%Personal contact by agent (telephone, e-mail, etc.)Visited an open house and met agentReferred by another real estate agent/broker2%2%2%2%Saw contact information on For Sale/open House signDirect mail (newsletter, flyer, postcard, etc.)2%2%Referred through employer or relocation companyNewspaper, Yellow Pages or home book ad1%1%Crowdsourcing through social media/knew the personthrough social media0%1%3%1%Walked into or called office and agent was on dutyAdvertising specialty (calendar, magnet, etc.)Saw the agent's social media page without a connection0%1%0%0%14%10%Other0%No children in home2019 Moving With Kids20%Children under 18 in home40%60%

What Sellers Want MostFrom Agent For sellers with children in the home under the age of 18, 21 percent want helpselling within a specific timeframe, and 20 percent want help to price their homecompetitively.What Sellers Want from Agent19%21%Help sell the home within specific timeframe19%20%Help price home competitively20%19%Help seller market home to potential buyersHelp seller find ways to fix up home to sell itfor more13%15%Help find a buyer for home12%5%7%Help with negotiation and dealing with buyersHelp with paperwork/inspections/preparingfor settlement4%3%2%1%Help seller see homes available to purchaseHelp create and post videos to provide tourof my home1%0%2%2%Other0%No children in home2019 Moving With Kids16%20%Children under 18 in home40%

Level of Service Provided BySellers Real Estate Agents Among sellers with children in the home, 82 percent of agents provided a broadrange of services and managed most aspect of the home sale.Children Under 18 in HomeAgent listed myhome on theMultiple ListingService or Internetsites and performedfew if any additionalservices7%Agent provideda broad range ofservices andmanaged mostaspects of homesale82%No Children in HomeAgent provideda broad range ofservices andmanaged mostaspects of homesale81%2019 Moving With KidsAgentperformed alimited set ofservices asrequested11%Agentperformed alimited set ofservices asrequested9%Agent listed myhome on theMultiple ListingService orInternet sitesand performedfew if anyadditionalservices10%

Negotiating CommissionRate or Fee With Agent For all sellers, negotiating the commission rate was initiated by the real estateagent most often, followed by the seller bringing up the topic and the agent waswilling to negotiate their commission or fee.Negotiating Commission Rate46%Real estate agent initiated discussion ofcompensation44%21%Client brought up the topic and the realestate agent was willing to negotiate theircommission or fee19%16%Client did not know commissions or feescould be negotiated19%11%Client did know commissions and fees couldbe negotiated but did not bring up the topic14%6%Client brought up the topic and the realestate agent was not willing to negotiate theircommission or fee5%0%No children in home2019 Moving With Kids20%40%Children under 18 in home60%

MethodologyData from this report was taken from the National Association of REALTORS (NAR) 2018 Profile of Home Buyers and Sellers. In July 2018, NAR mailed out a129-question survey using a random sample weighted to be representative ofsales on a geographic basis to 155,250 recent home buyers. The recent homebuyers had to have purchased a primary residence home between July of 2017and June of 2018. A total of 7,191 responses were received from primaryresidence buyers. After accounting for undeliverable questionnaires, the surveyhad an adjusted response rate of 4.6 percent.Respondents had the option to fill out the survey via hard copy or online. Theonline survey was available in English and Spanish.Consumer names and addresses were obtained from Experian, a firm thatmaintains an extensive database of recent home buyers derived from countyrecords. Information about sellers comes from those buyers who also sold ahome.All information in this Profile is characteristic of the 12-month period endingJune 2018, with the exception of income data, which are reported for 2017. Insome sections comparisons are also given for results obtained in previoussurveys. Not all results are directly comparable due to changes in questionnairedesign and sample size. Some results are presented for the four U.S. Censusregions: Northeast, Midwest, South, and West. The median is the primarystatistical measure used throughout this report. Due to rounding and omissionsfor space, percentage distributions may not add to 100 percent. 2019 National Association of REALTORS All Rights Reserved.May not be reprinted in whole or in part without permission of the NationalAssociation of REALTORS .For reprint information, contact [email protected] Moving With Kids

The National Association of REALTORS is America’s largest trade association,representing over 1.3 million members, including NAR’s institutes, societies andcouncils, involved in all aspects of the real estate industry. NAR membershipincludes brokers, salespeople, property managers, appraisers, counselors and othersengaged in both residential and commercial real estate.The term REALTOR is a registered collective membership mark that identifies areal 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 facilityfor professional development, research and exchange of information among itsmembers and to the public and government for the purpose of preserving the freeenterprise system and the right to own real property.NATIONAL ASSOCIATION OF REALTORS RESEARCH GROUPThe Mission of the NATIONAL ASSOCIATION OF REALTORS Research Group is toproduce timely, data-driven market analysis and authoritative business intelligence to servemembers, and inform consumers, policymakers and the media in a professional and accessiblemanner.To find out about other products from NAR’s Research Division, cs.NATIONAL ASSOCIATION OF REALTORS Research Group500 New Jersey Avenue, NWWashington, DC [email protected] Moving With Kids

Real Estate Agent. 87%. 86%. 0%. 20%. 40%. 60%. 80%. 100%. No children in home. Children under 18 in home. Purchased Home Through Real Estate Agent. 2019 Moving With Kids For 87 percent of buyers without children in the home and 86 percent of buyers with children in the home, buyers purchased their ho