Homebuyer Trends Real Estate Agents Need to Know

To compete in today’s housing market, real estate professionals require up-to-date data. They must also know who and when to target. The Orchard Marriage or Mortgage Report, which was released earlier this month, revealed some intriguing trends concerning relationship stages and family planning.

Real estate agents can use the information from Orchard’s survey to target specific demographics and develop smart marketing strategies.

So, what can real estate agents learn about their likely homebuyers from the survey’s findings?

3 Homebuyer Trends

1. For many homebuyers, it’s mortgage first, marriage second

One of the most important takeaways from Orchard’s report is about the purchasing habits of couples who aren’t married yet or don’t plan on getting married at all. A whopping 58% of unmarried couples said they would consider buying a house before getting married, and 37% said they would want both names on the home title. 51% of married couples, on the other hand, prefer to have both names listed.

In terms of timing, buying a home may occur sooner than expected in a relationship. 25% of Americans would look into buying a home with a partner they’ve been dating for six months. While that may surprise many of us, a more surprising 10% of Northeast residents would consider saying “I do” to purchasing a home with a partner they’ve known for less than six months. On the West Coast, however, that figure drops to 3%.

And what about a possible separation or divorce? In the event of a divorce, half of all couples, married and unmarried, say they would sell the house and divide the equity equally. However, 27% of married people would prefer to stay in the house and buy out their partner’s share in the event of divorce.

While the mortgage-first, marriage-second trend is becoming more common, Realtors cannot abandon cohabitors who are not in romantic relationships. 26% of Americans want to own a home with one or more family members, and 6% want to buy a home with a platonic friend.

2. Expectant parents have their own homebuying trends

Knowing there is one on the way can have serious consequences for life plans, including home buying. Indeed, 88% of parents expressed increased interest in purchasing a home after learning they were expecting a child. During the first trimester of pregnancy, 24% of expectant parents said they were already looking at home listings, with an additional 38% starting their search by the second trimester.

For parents expecting multiples, such as twins or triplets, 97% said their interest in home buying increased, and 4 out of 5 parents looked at listings before their due date or adoption date. And as families expand, so does their desire for more space.

A startling 39% of American parents who have home-buying regrets believe they do not have the right size home for their current needs, and 15% believe that having one or more children would be enough to justify upgrading to a larger home. Two more children would be the tipping point for 29% of parents in terms of needing more space, and one-third of parents would upgrade their home size if three children joined their family.

However, home size isn’t the only consideration for expectant parents. Access to extended family members in close proximity was ranked as the most important consideration for parents, with 92% agreeing it was very important. Furthermore, 81% cited neighborhood diversity as an important consideration when deciding where to raise a family.

Realtors can use this information to match their clients with the right listings, and they can be proud that 86% of parents who bought a home believe they made the right decision. These parents believe they made a sound investment and take pride in their homeownership status.

3. Singles still aspire to be homeowners 

Although singles were not frequent homebuyers a decade ago, the tide is turning. Today’s realtors should get to know their single customer base and learn how to best serve them. Especially the single women in their neighborhood.

Only 37% of men reported casually viewing online house listings, compared to 50% of women. Additionally, compared to 69% of males, 75% of women who are hoping to buy a home have saved $20k or more for a down payment. Additionally, compared to just 41% of males, 51% of women have applied for a mortgage or home loan.

Getting to know the single female home buyer could be a wise move for Realtors. It has been reported that single, divorced, or widowed women are 2.5x more likely than men at a similar stage in life to have savings for a down payment, and 38% of divorced women currently own or hope to own property in the future.

Knowing the wants and needs of first-time homebuyers can help you as a Realtor, whether they are unmarried couples, expectant and new parents, or house-hunting singles. Realtors can target potential homeowners with the right data and arrive prepared with listings that match each type of buyer.