Did You Know? 20 Surprising Real Estate Facts
Those involved in real estate, whether they be agents, realtors, investors, renters, commercial property owners, homeowners or soon-to-be homeowners, are probably familiar with a number of different well-known facts about the industry. Facts about the housing market, statistics about home-ownership, or real estate laws are more or less common knowledge among members of the industry. Yet, while knowing these kind of facts may be helpful in some capacity, many of them are repetitive or just plain boring, and don’t allow you to take a deeper look at the culture surrounding real estate — culture which is very unique to everyone involved in the process.
Wouldn’t you like to know some interesting facts about real estate, instead? Perhaps, these facts can help you learn a little more about understanding your clients, yourself, and the industry overall.
Did you know?
1) According to the Hartford Courant, 80 percent of Americans who don’t own homes, still feel that home-ownership is part of the “American Dream.”
2) Clients showing complaints about high property taxes? Well, tell them that they are not going away anytime soon. According to an article by BallenVegas, property taxes have been around since the 13 colonies, and they aren’t going anywhere soon.
3) Are you a male realtor who feels that there aren’t many men in your industry? Well, that feeling didn’t come from nowhere! According to realtor.com, 63 percent of realtors are female, and their median age is 54.
4) Clients will need to show agents their proof of funds before they can start the process of buying a home. To do this, they might be pursuing an FHA loan, which is common, especially for first-time home-owners. Believe it or not, the Federal Housing Administration has been around since 1934.
5) Speaking of FHA loans, most people will go to their banks or a private mortgage lender to see what they are qualified for. But, if your clients are curious of other places they could turn to (and, if you’re curious as well), tell them to check out the USDA, Portfolio Mortgage, and Veteran Affairs Mortgage.
6) When it comes to renting, it’s recommended that people only spend a quarter of their monthly salary on their rent. Obviously, that’s not possible. But, want to know a more surprising fact? When buying a home, it’s recommended that you spend 3x your annual salary on a house. Consider this the next time your clients are looking way out of their budget!
7) Next time a client tells you that they stubbornly want an even bigger house, remind them that the size of an average house in a developing country is only 75 square feet. Actually, don’t tell them that, but you can say that quietly to yourself and maybe they will hear it…
8) Still think you don’t need social media to advertise your business? Maybe that’s true, but according to Realtor.com, 91 percent of realtors are using social media to some extent.
9) If you’re an agent taking your business to another state, be sure to look up any crazy real estate laws before meeting with clients. For instance, in New York, a person must report if the house they are selling is haunted. And, in Rhode Island, a property cannot be surrounded by a fence that’s more than 6 feet tall, according to Ballenvegas.com.
10) Forgot the cleaning supplies for your next showing? Don’t worry. According to the Hartford Courant, most doorknobs are self-cleaning due to the material they are made from, such as lead, brass, or aluminum.
11) The Internet provides a great tool for people to buy and sell their homes, find renters, or do a number of other things. If you feel like you’re sometimes in competition with the Internet, you may be right. According to Realtor.com, 51 percent of people find their house online, compared to 30 percent that find their future home with an agent.
13) Speaking of the Internet, with the rise of concepts like “Sold By Zillow” and wholesaling, some agents may be concerned that more sellers are able to get the job done on their own, and therefore, won’t turn to an agent for help. But, don’t worry. According to HouseLogic, the number of sellers who sold their home without a real estate agent has dropped by 8 percent. Not only that, but those sellers who tried to work alone ended up losing $35,000 on average, which they likely would have had in their pockets had they gone with an agent. In fact, according to Realtor.com, 89 percent of sellers said that they were assisted by a real estate agent in the process.
14) Even though most sellers will go to an agent, some still won’t. Want to know which marketing method is most effective for owners selling their own homes? According to Realtor.com, yard signs are the most successful at 35 percent based on the organization’s FSBO statistics.
15) Are you working too much? According to Realtor.com, realtors reported working 40 hours a week in 2017, which is, of course, the standard of most working professionals.
16) Do you work for a real estate brokerage that’s been around for a long time? According to Ballenvegas.com, yours probably hasn’t been around as long as Baird & Warner, which has been around since 1855 and is still around today.
17) Did you not complete college but you still want to become a real estate agent? Well, that shouldn’t be too difficult. According to Realtor.com, at least 30 percent of agents reportedly only had “some” college education.
18) Is it time to update the technology you’re using? Perhaps. According to Realtor.com, 52 percent of realtors are using an iPhone.
19) There’s a myth that the season when the market is the hottest is during the spring. After all, the weather is better, people are doing their spring cleaning, and it’s right before summer vacation when people want to finally be settled. But, according to Ballenvegas.com, there isn’t any correlation between the seasons and when people buy.
20) Want to know what men and women would fall in love with the most if they were still in the market for their first home? It’s not a hot tub and it’s not hardwood floors, though those ranked quite high according to Trulia.com. Instead, it was the master bath. Sixty-four percent of men and 75 percent of women agreed, which was more than any other feature.