Men and Women Buy Homes Differently? Venus and Mars again?

A recent survey of 1,000 individuals to discover how much men and women differ in the home-buying process by Coldwell Banker Real Estate LLC produced some expected results for marketers. Men and women make purchase decisions differently.

Communications Research (ICR) were commissioned to  ask the following  questions such:

1. “How long did it take for you to know that the last home you purchased was right for you?”
2. “If you found the home of your dreams but had concerns about its security, would you still be interested?”
3. “Who wears the pants in the relationship when it comes to making major financial decisions?”

Here is a summary of the results:

Women may be inclined to make up their mind more quickly than men …
When asked how long it took before they knew their home was “right” for them, almost 70 percent of women had made up their mind the day they walked into the house, vs. 62 percent of men. Conversely, significantly more men needed two or more visits: (32 percent of men vs. 23 percent of women).

Women would rather live closer to their extended family than to their job …
55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37 percent of men.

A home’s security is a deal-breaker for both men and women …
64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51 percent).

Couples say that no one “wears the pants in the relationship” in terms of major financial decisions …
When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70 percent of respondents living with their significant other said it’s actually mutual.

However, 23 percent think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26 percent vs. 20 percent, respectively).

Men and women agree on how they would use a spare room, for the most part …
When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses:
Bedroom: 25 percent
Office/Study: 15 percent
Family Room / Den: 11 percent
However, men really do want a “Man Cave”…

Interestingly, out of the 8 percent who indicated they would turn that spare room into an entertainment center, it was  men leading the charge.  In fact, four times as many men as women said they would use the extra space for recreation / entertainment.

A while back I wrote a post called Twelve Quick Insights On How Marketing Impacts Women Differently Than Men based on the book by Marti Barletta “Marketing to Women: How to Increase Your Share of the World’s Largest Market.” According to Marcia Sutter, Director Client Services of the TrendSight group “Chances are that women are the primary purchasers for virtually everything that your readers are selling. They control more than 80% of all consumer spending and represent the majority of corporate decision makers as well.” You can pick up a copy of Marti’s book and visit her website at www.trendsight.com to learn more about this lucrative market.

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So How Do People Really Search For a Home on the Internet?

I am always amazed at the assumptions web developers make about the average internet user. When I am surfing web sites that have been designed by a “professional” more often than not I get the feeling that the site has been developed above the ability of the average user.  In particular I rarely find a website with a search engine that actually crawls the site I am on to retrieve the information I am looking for, in language I understand.  Usually I know what I am looking for, but I am not sure how to describe it.

A good example of where searching fails is the average real estate web site. We know a lot of people search for homes on the internet.  Depending on the source it is reported that in 2006 more than 70% of home buyers start their home search on the internet. In 2007 the National Association of Realtors reported that 84% of home buyers use the internet as an information source.

If this is true then it stands to reason that they will eventually get to your web site where they will continue their search. If your web site is like most it will fail the searcher. A post in 1000 Watt Blog entitled “Real Estate Searches Finest Hour…” was right on the money when it exposed the problem with programmers not responding to human needs. The post accurately defines the problem with searching for homes on a web site:

1. Humans don’t search by ZIP code.
2. Humans don’t search homes from space. Or on maps filled with little blue markers.
3. Human don’t analyze comprehensive census data that pop off listings like a Crayola box of colored graphs, charts and heat maps.
4. Humans don’t understand the difference between a “Hybrid, Satellite, or List View”.
5. Humans don’t sift through 12,000 listings that “match my criteria”.
6. Humans don’t “save searches”.
7. Humans don’t want to view only 8 crappy pictures of a home.
8. Humans don’t want their search experience cluttered with advertising.
9. Human don’t benefit from poorly executed applications that include home value estimates that can never be accurate, no matter how many PhD’s are thrown at them.

So what do people want when they are searching for a home?

1. Humans drive around neighborhoods.
2. Humans meet neighbors.
3. Humans ask lots of questions.
4. Humans like to talk to the seller.
5. Humans spend time vibing the neighborhood.
6. Humans test drive the commute from prospective home to work.
7. Humans like to look at 6 homes that match their criteria, to a tee.
8. Humans require affirmation. They like to be gently nudged and influenced.

The solution? Developing a better search engine is going to take time, but in the meantime the writer recommends the following to Realtors:

1) Describe homes in a manner that reflects how people think.

i.e. Beautiful Arts and Crafts house, close enough to the city but far enough away to enjoy crickets. Or a starlight night. A home perfect for a young family, empty nester and anyone inspired by decor. With a great flow. And a backyard perfect for planting. Sunning. And gathering your thoughts.

2) Post 50 pictures. That are clear. With a description of what every picture is.

3) Incorporate local data and write about it.

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Realtor Magazine Handouts for Customers

Realtor Magazine, the “Business Tool for Real Estate Professionals” has a complete list of handouts that are available to Realtors to customize and add to their website.

Get Ready for Homeownership
10 Ways to Prepare for Homeownership
5 Common First-Time Home Buyer Mistakes
Why You Should Work With a REALTOR®
Questions to Ask When Choosing a REALTOR®
7 Reasons to Own Your Home
Tax Benefits of Homeownership
Take the Stress Out of Homebuying

Finance Your Home
Specialty Mortgages: Risks and Rewards
Loan Types to Consider
6 Creative Ways to Afford a Home
Lender Checklist: What You Need for a Mortgage
Get Your Finances in Order: To-Do List
Budget Basics Worksheet
What You Can Do to Improve Your Credit
5 Factors That Decide Your Credit Score
How Big of a Mortgage Can I Afford?

Buyers: Find the Right Property
8 Tips to Guide for Your Home Search
How High Tech is Your Home?
5 Property Tax Questions You Need to Ask
10 Questions to Ask the Condo Board
Your Property Wish List
Tips for Finding the Perfect Neighborhood
Tips for Buying in a Tight Market
Pros and Cons of Going Condo
10 Questions to Ask Home Inspectors
What a Home Inspection Should Cover

Buyers: Prepare for Closing and Beyond
5 Things to Know About Homeowner’s Insurance
Tips for Lowering Homeowner’s Insurance Costs
5 Things to Know About Title Insurance
What’s a Home Warranty?
What Not to Overlook on a Final Walk-through
Common Closing Costs for Buyers
Moving With Pets
Closing Documents You Should Keep
17 Tips for Packing Like a Pro

Sellers: Before You Sell
Does Moving Up Make Sense?
8 Reasons Why You Should Work With a REALTOR®
12 Questions to Ask When Choosing Your REALTOR®
5 Things to do Before Putting Your Home on the Market
Understand Agency Relationships
What is Appraised Value?

Sellers: Get Ready for Showings
Simple Tips for Better Home Showings
How to Improve the Odds of an Offer
How to Hold a Successful Garage Sale
Prepare Your Home for a Virtual Tour
Low-Cost Ways to Spruce Up Your Home’s Exterior
12 Tips for Hiring a Remodeling Contractor
5 Feng Shui Concepts to Help a Home Sell

Sellers: Prepare for Closing and Beyond
Understanding Capital Gains in Real Estate
What to Leave for the New Owners
10 Tips for Moving With Pets
Moving Checklist for Sellers
Forms You’ll Need to Sell Your Home
Checklist: 17 Service Providers You’ll Need When You Sell
Open House Safety Tips
How to Prepare for the Open House
Is Your Buyer Qualified?
Tips for Pricing Your Home

If you would like some assistance adding your personal branding give me a call at 800-568-8338 or email marketingguy@shaw.ca.

If you enjoyed this article and don’t want to miss the next one click here to get my marketing posts by email as soon as they are published. You will be prompted for an email address and you are set to go.

International Home Buyers – Who, what where?

NAR’s 2007 Profile of International Home Buying Activity shows that a quarter of REALTORS® report more international business in 2006 than five years ago. Nearly one in five respondents sold a home to an international client in the past year, and one-third say they believe foreign retirees are an increasingly important market in the United States.

The research explored the characteristics of second-home purchases in the United States made by international clients. Here are six of the top findings, which reveal important trends that will help you tap into the expanding international niche:

• Stronger preference for condos and apartments. In 2006, most international home buyers purchased single-family homes or townhomes, and like most domestic home buyers, they financed their purchase. However, they showed stronger preferences for condos/apartments when compared to U.S. home buyers; 22 percent of international buyers purchased condos/apartments, versus 12 percent of U.S. buyers.
• More pay in cash. Twenty-eight percent of foreign buyers bought their houses with cash, compared to 8 percent of U.S. buyers.
• Purchase pricier homes. The median sales price of homes purchased by international buyers was $299,500, which is significantly higher than the U.S. median of $221,900 during the same period.
• Homes used for vacation, investment. Forty-seven percent of all international buyers purchased homes exclusively for vacation, while 22 percent were motivated primarily by investment. Nearly a third of foreign buyers cited both vacation and investment as reasons for their purchase. International homeowners spent an average of 4.2 months of the year in their U.S. property in 2006.
• Buyers from Mexico most prevalent. A third of all international buyers are from Europe, but buyers from Asia and North America (outside the United States) each represent about one-fourth of the total market. Sixteen percent of all international buyers are from Latin America. By individual country, most buyers come from Mexico (13 percent), the United Kingdom (12 percent) and Canada (11 percent). (See below)
• Florida leads the pack. Foreign buyers purchase homes across the United States, but 52 percent of sales in 2006 were concentrated in three states: Florida (26 percent), California (16 percent), and Texas (10 percent). The South attracted nearly half – 49 percent – of international buyers last year, while 31 percent purchased homes in the West.

Canadian home buyers also headed to the South – 46 percent of them purchased home in that region of the U.S. Thirty-eight percent of buyers from Canada bought a property in the West, 10 percent in the Midwest and 6 percent in the Northeast. Similar to Mexican buyers, Florida was the location of choice well over a third of Canadians purchasing homes in the U.S., and California was the second most popular destination.

The U.S. real estate market is still considered a prime investment opportunity for foreign buyers and a “safe haven” in which to put their money. With the weakened U.S. dollar against foreign currencies, those currencies buy a lot more than in previous years. For example, the British Pound Sterling was worth $1.44 in 2001; by 2004 it was worth $1.83. As of mid-year 2007, the pound was worth nearly $2.00. The Euro has also increased in value against the U.S. dollar. More purchasing power for foreign buyers mean they can afford “more house” – particularly in a stabilizing U.S. housing market.

Wondering How Much That Flat Sold For in England?

There is a new service in the UK called NetHousePrices that offers a free public service that provides access to UK house prices in England, Scotland and Wales, as recorded by the Land Registry (since April 2000) and the Registers of Scotland (since May 2000). I am not aware of any service like this in the U.S. or Canada, but I think it would be a useful too

You can go to Sold Prices, enter a postal code and then refine your search from there. If you need a postal code you can use SW5 0BE . I don’t know exactly where it is, but it will give you results.

Advertising Headlines for Home Ads

Writing copy for home ads can be one of the most difficult aspects of marketing a home and finding the right headline is critical to capture the attention of the target market you are trying to reach.

Here are a few to get you going on the right track:

LANDSCAPING
Right out of Better Homes & Gardens
Think Garden!
The War of the Roses
Stop to Smell the Flowers
Made in the Shade

ACREAGE
Own your own Sanctuary
The Great Escape
Country Living at it’s Best
Giving Away the Farm

Even More Expensive House in the U.S.

On July 3rd I wrote about the most expensive house for sale in the U.S. only to wake up today and find out I am out of date and $30 million dollars low.

Now a Beverly Hills mansion that once belonged to publishing magnate William Randolph Hearst is on the market for $165 million. It is believed to be the nation’s priciest residential listing. The six-and-a-half acre estate has three swimming pools, 29 bedrooms, a movie theater, a disco and separate residence for the security staff.

According to an article in the Independent newspaper, in reality, no single residence has sold for a nine-figure sum before. The record remains the $94m which was paid for the Bel-Air home of the former telecoms mogul Gary Winnick in 2001.

July 12, 2007 – Late Breaking News -The $94 Million record is now toast with a record-breaking sale of a residential property in East Hampton (NY) for $103 million. The new U.S. record sale was supposed to be hush-hush; but, the news was quickly out that Schlumberger Oil fortune heiress Adelaide de Menil and her husband Ted Carpenter had sold the ocean front property to Ron Baron, founder of Baron Funds Investment Company.

AP Aerial view of the property.

Open House Canceled
There will be no open houses for the merely curious. Buyers expressing serious interest will be screened by Mr Shapiro before they are let through the gates. His rule of thumb: spending $165m should not dent their personal worth by more than 10 per cent.

 

Trends in the Luxury Home Market

The Luxury Home Council recently released the The 2007 Membership Survey of Luxury Housing Market Trends*

While the survey is excellent and the information useful I thought I might uncover a few secrets here that might change the way I recommend marketing to high end clients, but there were really no surprises.

If you only read the following stats then you will benefit from having the secret of real estate success reinforced; spend your time and money marketing to your sphere of influence:

• 75% 0f Realtors come into contact with a luxury home buyer for the first time through a Referral or recommendation
• 55% of business luxury home business comes from personal referrals
• 70% of luxury home buyers select their Realtor for their integrity and honesty
• 67% of luxury home buyers select their Realtor for their knowledge of the market

Following are selected results from the survey:

Who is buying luxury homes?
40-50 age group (48%)
50-65 age group (44%).
These are the “Baby Boomers” that have reached their peak earning years and are now benefiting from a rising stock market and historically high home prices.

What do they do for a living?
Entrepreneur 51%
Large Business Executive 46%
Medical Doctor 24%
Retired 24%

When the Realtors were asked to select what services luxury home buyers are most interested in receiving from you (you may choose more than one):

Help in finding a home 86%
Help managing the transaction 56%
Expert counsel during negotiation 43%
Advice on purchasing a luxury home 34%
Assistance with paperwork 28%
Help understanding the process 13%
Help locating jumbo financing 9%
(This does not seem any different than regular folks.)

Guess How Many Houses Are Sold Each Year in Canada?

Between 2004 and 2006 an average of 476,063* homes changed hands annually through the Multiple Listing Service® of real estate Boards across Canada.

According to the Economic Impact of MLS Home Sales in Canada commissioned by the Canadian Real Estate Association (CREA) and conducted by Altus Clayton- Division of Altus Group Limited for release June 12, 2007, it is estimated that a total of $32,200 in ancillary spending (i.e., spending by purchasers on items other than the actual house and land) was generated by the average housing transaction in Canada. Per transaction ancillary spending varied somewhat by region, ranging from $20,325 in Atlantic Canada to $40,450 in B.C.

(17 of the houses that changed hands)

The total annual economic impact is estimated at $15.3 billion per year. Based on the U.S. having 10 times the population I would bet that $ 153 billion is a fair guess on the impact on the U.S. economy. Stay tuned for more research.

In B.C, the expenditures were broken down as follows:

General household purchases** – $ 1,275
Furniture and Appliances – $ 3,725
Moving Costs – $ 1,650
Renovations – $ 8,750
Services i.e financial, legal, appraisal etc – $ 21,400
Taxes (excluding GST) – $ 3,600

Total – $ 40,450
* According to The Canadian Real Estate Association
**Bedding, towels, lighting fixtures, tools, blinds etc

Most Expensive Property For Sale in the U.S.

The most expensive property for sale in the United States is the Hala Ranch, asking price is $ 135 million, located northwest of Downtown Aspen, Colo. The current owner is the family of Prince Bandar bin Sultan, the former ambassador to the United States form Saudi Arabia.

Joshua Saslove, principal of Joshua Inc., which has the sales listing, has received more than 1,000 requests to tour the house since it went on the market last October, but only 11 of them have been granted. To qualify, a potential buyer must be a billionaire.

At 56,000 square feet, Hala is bigger than the White House. It operates with a staff of 12 who keep busy with 15 bedrooms and 16 baths. It has a private barbershop and beauty salon just off the master suite and enough space for a party of 450 people.

One drawback is the kitchen is in the basement and outfitted for the convenience of professional chefs. I would miss slipping down to the kitchen to make a grilled cheese sandwich at midnight.

Where does the asking price come from? Saslove estimates that an acre of land in this area is worth $9 million and Hala sits on 95 of them.

By the way the total value of listings on the Joshua Inc web site is $ 486, 890,000 for 23 listings. The other 22 listings average almost $ 16 million each.