ma association of realtors

Massachusetts Association of REALTORS® 2005 Profile of Home Buyers and Sellers Prepared by: NATIONAL ASSOCIATION OF REALTORS® Research Division January 2006 Introduction Housing market strength has continued to support record volumes and home price gains for the past several years. More generally, the housing market has contributed to the broader health of the national economy by fueling economic growth. An important factor underlying the strength in the housing market is the strong desire by households to own a home. First-time buyers are seeking pride of ownership while trade-up buyers are looking for a home that more closely fits their current lifestyle. Even with a strong desire for a home, low interest rates and an efficient mortgage finance system, the selection and purchase or sale of a home is a complex undertaking for both buyer and the seller. The Internet provides a multitude of resources for buyers and sellers from free credit reports to photos of homes for sale. However, matching the financial capacity and demands of home buyers with the available homes for sale at current prices is a challenging task. Real estate professionals have experience with all aspects of a typical home sale. They understand how to market unique properties and how to demonstrate the unique features of an otherwise typical home. They also know how to handle multiple offers, can provide advice on required repairs, and can coordinate many of the legal and financial aspects of the home sales transaction. Some sellers and some buyers navigate this course without a professional, but a majority of buyers and sellers believe they benefit from the experience and perspective of a real estate agent for a transaction that is important both financially and emotionally. The NATIONAL ASSOCIATION OF REALTORS ® periodically surveys homebuyers and sellers to gather detailed information on the home buying and selling process. These surveys collect information on demographics, housing characteristics and the experience of buyers and sellers in the housing market. Buyers and sellers also share information on the role of the real estate professional in home sales transactions. The results of the survey are reported in The 2005 NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers. The data in this report, based on Massachusetts home buyers and sellers, is drawn from this national survey. All information in this report is characteristic of the 12-month period ending July 2005, with the exception of income data which was reported for 2004. Throughout this report, data based on the subsample of Massachusetts home buyers and sellers is compared with the national survey results in eight sections: 1: Characteristics of Buyers 2: Characteristics of Homes Purchased 3: The Home Search Process 4: Homebuying and Real Estate Professionals 5: Financing the Home Purchase 6: Homesellers and their Selling Experience 7: Homeselling and Real Estate Professionals 8: For Sale by Owner Sellers and their Experience The primary measure of central tendency used throughout this report is the median, the middle point in the distribution of responses to a particular question or equivalently the point at which half of the responses are above and below a particular value. The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 2 of 19 MASSACHUSETTS Exhibit 1-1 AGE OF HOMEBUYERS, BY REGION (Percentage Distribution) Number of Total Respondents = 348 Less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 64 years 65 - 74 years 75 years or older Median age (years) Massachusetts 3% 38 27 15 12 3 3 38 U.S. 6% 32 24 19 11 5 2 40 Northeast 7% 34 25 16 12 6 1 39 Midwest 10% 34 23 18 8 5 2 38 South 5% 31 24 20 12 6 2 41 West 4% 29 26 20 14 5 3 42 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 3 of 19 Exhibit 1-2 HOUSEHOLD INCOME OF HOMEBUYERS, 2004 (Percentage Distribution) Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income Massachusetts U.S. 3% 4% 3 8 6 9 7 11 11 11 7 10 11 9 8 7 10 8 6 5 5 3 4 3 4 2 6 3 2 1 7 5 $87,700 $71,600 Northeast 6% 8 7 10 13 10 7 6 9 5 5 2 2 3 1 5 $71,500 Midwest 4% 10 10 14 11 11 10 8 6 2 3 2 2 2 1 5 $66,800 South 4% 8 9 11 10 9 9 7 8 5 2 4 2 3 1 5 $72,500 West 4% 7 9 10 11 10 9 7 10 7 3 2 3 3 1 5 $75,400 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 4 of 19 Exhibit 1-3 ADULT COMPOSITION OF HOMEBUYER HOUSEHOLDS (Percentage Distribution) MASSACHUSETTS Married couple Single female Single male Unmarried couple Other 2004 64% 18 4 11 3 2005 65% 15 7 11 2 U.S. Married couple Single female Single male Unmarried couple Other 1993 68% 16 10 5 * 1995 70% 14 9 6 1 1997 64% 18 11 5 2 1999 66% 18 9 6 1 2001 68% 15 7 7 3 2003 59% 21 11 8 1 2004 62% 18 8 9 2 2005 61% 21 9 7 2 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 5 of 19 Exhibit 1-4 NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD (Percentage Distribution of Households) MASSACHUSETTS One Two Three or more None 16% 17% 8% 59% NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD (Percentage Distribution of Households) MASSACHUSETTS One, 16% Two, 17% None, 59% Three or more, 8% U.S. One Two Three or more None 18% 14% 7% 61% NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD (Percentage Distribution of Households) U.S. One, 18% Two, 14% None, 61% Three or more, 7% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 6 of 19 Exhibit 1-5 RACE/ETHNICITY OF HOMEBUYERS, BY REGION (Percent of Respondents) White/Caucasian Black/African-American Asian/Pacific Islander Hispanic/Latino Other Massachusetts 88% 3 6 1 2 U.S. 83% 7 4 6 2 Northeast 88% 5 3 3 2 Midwest 90% 5 3 2 2 South 80% 10 3 7 1 West 78% 4 9 10 3 Note: Respondents were permitted to select as many races and ethnicities as they felt applicable. The percentage distribution may therefore sum to more than 100 percent. The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 7 of 19 Exhibit 1-6 PRIMARY LANGUAGE SPOKEN IN HOMEBUYER HOUSEHOLD, BY REGION (Percentage Distribution) English Other Massachusetts 93% 7 U.S. 95% 5 Northeast 96% 4 Midwest 95% 5 South 94% 6 West 94% 6 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 8 of 19 Exhibit 1-7 PERCENTAGE OF FIRST-TIME HOMEBUYERS (Percentage Distribution) MASSACHUSETTS Year 2004 2005 Percentage 43% 43% 50% PROPORTION OF FIRST-TIME HOMEBUYERS MASSACHUSETTS 45% 43% 43% 40% 35% 30% 2004 2005 U.S. Year 1993 1995 1997 1999 2001 2003 2004 2005 Percentage 41% 42% 42% 42% 42% 40% 40% 40% 50% PROPORTION OF FIRST-TIME HOMEBUYERS U.S. 45% 42% 41% 40% 42% 42% 42% 40% 40% 40% 35% 30% 1993 1995 1997 1999 2001 2003 2004 2005 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 9 of 19 Exhibit 1-9 AGE OF FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS Less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 64 years 65 - 74 years 75 years or older Median age (years) First-time Buyers 5% 63 22 7 3 --32 Repeat Buyers 2% 20 30 21 18 5 5 44 U.S. Less than 25 years 25-34 years 35-44 years 45-54 years 55-64 years 65-74 years 75 years or older Median age (years) First-time Buyers 14% 50 22 10 2 1 * 32 Repeat Buyers 1% 20 26 25 18 9 3 46 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 10 of 19 Exhibit 1-10 HOUSEHOLD INCOME OF FIRST-TIME AND REPEAT BUYERS, 2004 (Percentage Distribution) MASSACHUSETTS Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income First-time Buyers 3% 2 7 7 14 8 17 8 9 7 3 3 4 3 1 4 $80,200 Repeat Buyers 4% 3 5 7 8 7 8 8 10 6 6 4 4 8 4 9 $96,700 U.S. Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income * Less than one percent First-time Buyers 6% 13 13 15 13 10 8 6 6 2 1 2 1 1 * 2 $57,200 Repeat Buyers 3% 5 6 9 9 10 9 8 10 6 4 4 3 4 2 7 $83,200 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 11 of 19 Exhibit 1-11 RACE/ETHNICITY OF FIRST-TIME AND REPEAT BUYERS (Percent of Respondents) MASSACHUSETTS White/Caucasian Black/African-American Asian/Pacific Islander Hispanic/Latino Other All Buyers 88% 3 6 1 2 First-time Buyers 85% 4 8 2 2 Repeat Buyers 91% 2 4 1 2 U.S. White/Caucasian Black/African-American Asian/Pacific Islander Hispanic/Latino Other All Buyers 83% 7 4 6 2 First-time Buyers 77% 10 6 7 3 Repeat Buyers 87% 5 3 5 1 Note: Respondents were permitted to select as many races and ethnicities as they felt applicable. The percentage distribution may therefore sum to more than 100 percent. The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 12 of 19 Exhibit 1-12 PRIMARY LANGUAGE SPOKEN BY FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS English Other All Buyers 93% 7 First-time Buyers 88% 12 Repeat Buyers 96% 4 U.S. English Other All Buyers 95% 5 First-time Buyers 92% 8 Repeat Buyers 96% 4 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 13 of 19 Exhibit 1-13 PRIOR LIVING ARRANGEMENT (Percentage Distribution) MASSACHUSETTS All Buyers Owned previous residence Rented an apartment or house Lived with parents, relatives or friends Rented the home buyer ultimately purchased Not applicable or no change in living arrangement 48% 42 8 1 1 First-time Buyers 4% 79 15 2 -Repeat Buyers 80% 14 4 1 2 U.S. All Buyers Owned previous residence Rented an apartment or house Lived with parents, relatives or friends Rented the home buyer ultimately purchased Not applicable or no change in living arrangement 46% 41 10 1 2 First-time Buyers 4% 74 19 3 1 Repeat Buyers 73% 19 5 1 2 * Less than one percent Note: After selling their previous home, buyers may have rented a home or apartment before purchasing their next home. A first-time buyer could have acquired ownership of their previous home (as an inheritance or gift, for example) without having been the buyer of the home. Thus, a first-time buyer could have owned a home prior to their first home purchase. The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 14 of 19 Exhibit 1-14 PRIMARY REASON FOR MAKING A HOUSING CHANGE, FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS All Buyers Desire to own a home of my own Desire for more space/larger home New job in another area or corporate relocation Desire to be closer to job, school, relatives, transit Desire for less space (children left, divorce, etc.) Retirement Desire for vacation home/investment property Other 39% 24 9 8 6 2 1 12 First-time Buyers 78% 5 6 3 1 --7 Repeat Buyers 10% 38 11 11 11 4 1 16 U.S. First-time Buyers 80% 7 3 3 * 1 * 6 Repeat Buyers 13% 29 16 12 9 5 2 14 All Buyers Desire to own a home of my own Desire for more space/larger home New job in another area or corporate relocation Desire to be closer to job, school, relatives, transit Desire for less space (children left, divorce, etc.) Retirement Desire for vacation home/investment property Other 39% 20 11 8 6 3 1 11 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 15 of 19 Exhibit 1-15 PRIMARY REASON FOR MAKING A HOUSING CHANGE, AGE (Percentage Distribution) MASSACHUSETTS All Buyers Desire to own a home of my own Desire for more space/larger home New job in another area or corporate relocation Desire to be closer to job, school, relatives, transit Desire for less space (children left, divorce, etc.) Retirement Desire for vacation home/investment property Other 39% 24 9 8 6 2 1 12 Age 18-24 50% 30 ---N/A -20 25-44 52% 26 9 6 * --7 45-64 12% 23 10 12 15 5 2 20 65 or older 6% 6 -17 33 17 -22 U.S. All Buyers Desire to own a home of my own Desire for more space/larger home New job in another area or corporate relocation Desire to be closer to job, school, relatives, transit Desire for less space (children left, divorce, etc.) Retirement Desire for vacation home/investment property Other 39% 20 11 8 6 3 1 11 Age 18-24 75% 9 4 4 * N/A 1 6 25-44 49% 23 12 6 1 * 1 8 45-64 22% 20 13 10 12 7 2 13 65 or older 6% 9 1 26 20 15 1 22 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 16 of 19 Exhibit 1-16 AGE OF HOMEBUYER, BY INTENDED USE OF HOME (Percentage Distribution) MASSACHUSETTS As Primary Residence Less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 64 years 65 - 74 years 75 years or older Median age (years) 3% 40 27 14 11 3 2 38 As Second-Home -6 18 41 24 -12 51 U.S. As Primary Residence Less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 64 years 65 - 74 years 75 years or older Median age (years) 6% 33 25 18 11 5 2 40 As Second-Home 2% 15 20 28 20 11 4 50 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 17 of 19 Exhibit 1-17 HOUSEHOLD INCOME OF BUYERS, BY INTENDED USE OF HOME, 2004 (Percentage Distribution) MASSACHUSETTS As Primary Residence Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income 4% 2 6 7 11 7 11 8 10 6 5 3 5 6 3 7 $87,900 As Second-Home -13 6 6 6 6 13 13 -6 6 13 ---13 $85,000 U.S. As Primary Residence Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income 4% 8 9 11 11 10 9 7 8 5 3 3 2 3 1 5 $71,400 As Second-Home 6% 8 10 9 7 10 10 3 10 2 2 5 4 1 2 12 $74,900 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 18 of 19 Exhibit 1-18 COMPOSITION OF SECOND-HOME BUYER HOUSEHOLDS (Percentage Distribution) MASSACHUSETTS Single male Single female Married couple Unmarried couple Other 24% 24% 47% -6% COMPOSITION OF SECOND-HOME BUYER HOUSEHOLDS (Percentage Distribution) MASSACHUSETTS Other, 6% Single male, 24% Married couple, 47% Single female, 24% U.S. Single male Single female Married couple Unmarried couple Other 6% 18% 66% 5% 5% COMPOSITION OF SECOND-HOME BUYER HOUSEHOLDS (Percentage Distribution) U.S. Other, 5% Unmarried couple, 5% Single male, 6% Single female, 18% Married couple, 66% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 1, Page 19 of 19 Exhibit 2-1 NEW AND PREVIOUSLY OWNED HOMES PURCHASED (Percentage Distribution) NEW AND PREVIOUSLY OWNED HOMES PURCHASED (Percentage Distribution) MASSACHUSETTS New 11% Previously Owned 89% 100% MASSACHUSETTS 89% 2005 80% 60% 40% 20% 11% 0% 2005 New Previously Owned NEW AND PREVIOUSLY OWNED HOMES PURCHASED (Percentage Distribution) U.S. New 24% 18% 22% 21% 28% 21% 23% Previously Owned 76% 82% 78% 79% 72% 79% 77% 100% U.S. 82% 80% 1995 1997 1999 2001 2003 2004 2005 76% 78% 79% 72% 79% 77% 60% 40% 24% 20% 28% 18% 22% 21% 21% 23% 0% 1995 1997 1999 New 2001 2003 2004 2005 Previously Owned The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 1 of 20 MASSACHUSETTS Exhibit 2-3 TYPE OF HOME PURCHASED, BY REGION (Percentage Distribution) Detached single family Townhouse/row house Apartment/condo in building with 5 or more units Duplex/apartment/condo in 24 unit structure Other Massachusetts 69% 7 11 7 5 U.S. 75% 9 7 2 6 Northeast 69% 12 6 6 6 Midwest 74% 9 8 3 6 South 79% 9 5 1 6 West 74% 8 10 1 7 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 2 of 20 Exhibit 2-4 TYPE OF HOME PURCHASED BY FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS All Buyers Detached single family Townhouse/row house Apartment/condo in building with 5 or more units Duplex/apartment/condo in 2-4 unit structure Other 69% 7 11 7 5 First-time Buyers 65% 5 16 7 7 Repeat Buyers 72% 9 8 8 4 U.S. All Buyers Detached single family Townhouse/row house Apartment/condo in building with 5 or more units Duplex/apartment/condo in 2-4 unit structure Other 75% 9 7 2 6 First-time Buyers 69% 11 9 3 7 Repeat Buyers 79% 8 5 2 5 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 3 of 20 MASSACHUSETTS Exhibit 2-5 LOCATION OF HOME PURCHASED, BY REGION (Percentage Distribution) Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area * Less than one percent Massachusetts 30% 36 21 10 2 U.S 56% 17 17 9 1 Northeast 44% 30 12 12 1 Midwest 60% 15 17 7 * South 62% 13 14 9 1 West 49% 16 24 9 2 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 4 of 20 Exhibit 2-6 LOCATION OF HOME PURCHASED, FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area All Buyers 30% 36 21 10 2 First-time Buyers 29% 34 28 8 1 Repeat Buyers 31% 38 16 11 4 U.S. Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area All Buyers 56% 17 17 9 1 First-time Buyers 52% 17 22 8 * Repeat Buyers 58% 17 13 10 2 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 5 of 20 Exhibit 2-7 LOCATION OF NEW HOME PURCHASED VS LOCATION OF HOME SOLD (Percentage Distribution) MASSACHUSETTS LOCATION OF HOME PURCHASED Suburb/ Subdivision LOCATION OF HOME SOLD Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area 20% 2 7 3 -Small town 9% 17 7 2 2 Urban/ Central city 1% 2 11 -1 Rural area 5% 1 1 5 -Resort/ Recreation area 1% -1 1 2 U.S. LOCATION OF HOME PURCHASED Suburb/ Subdivision Suburb/Subdivision LOCATION Small town OF HOME Urban/Central city Rural area SOLD Resort/Recreation area 41% 5 7 5 1 Small town 4% 8 2 2 * Urban/ Central city 4% 1 7 1 * Rural area 4% 1 1 3 * Resort/ Recreation area 1% * * * 1 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 6 of 20 Exhibit 2-8 DISTANCE BETWEEN HOME RECENTLY PURCHASED AND PREVIOUS RESIDENCE (Median Miles) Miles Massachusetts U.S. Northeast Midwest South West 10 12 9 11 13 12 MEDIAN DISTANCE BETWEEN HOME RECENTLY PURCHASED AND PREVIOUS RESIDENCE (Median Miles) 20 18 16 14 12 10 8 6 4 2 0 12 10 9 13 11 12 se tts U .S . es t th ea st M as sa ch u The 2005 National Association of Realtors® Profile of Home Buyers and Sellers N or M id So u Chapter 2, Page 7 of 20 W es t w th Exhibit 2-9 FACTORS INFLUENCING NEIGHBORHOOD CHOICE, BY LOCATION (Percent of Respondents) MASSACHUSETTS Buyers who purchased a home in: Suburb/ Subdivision 74% 50 41 34 19 21 7 4 5 7 18 15 Small town 74% 43 42 29 15 11 7 6 5 3 15 14 Urban/ Central city 68% 54 32 3 13 24 17 11 10 3 38 17 Resort/ Recreation area 25% 25 38 -38 13 13 -13 25 -38 Neighborhood quality Close to job/school Close to friends/family School district Parks/recreation facilities Shopping Entertainment venues Proximity to airport Health facilities Planned community Public transportation Other All Buyers 70% 46 40 22 15 16 9 6 6 5 19 17 Rural 61% 36 39 15 -3 3 -3 3 6 30 U.S. Buyers who purchased a home in: Suburb/ Subdivision 74% 44 37 27 21 16 14 8 5 7 6 14 Small town 63% 41 39 23 13 14 8 5 4 4 5 20 Urban/ Central city 63% 55 35 12 23 16 6 19 15 8 8 20 Resort/ Recreation area 56% 30 30 7 19 38 24 26 1 11 5 24 Neighborhood quality Close to job/school Close to friends/family School district Shopping Parks/recreation facilities Planned community Entertainment venues Public transportation Proximity to airport Health facilities Other All Buyers 68% 43 36 23 19 15 11 9 6 6 6 18 Rural 57% 27 33 19 7 8 7 3 3 4 3 33 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 8 of 20 MASSACHUSETTS Exhibit 2-10 PRICE OF HOME BY REGION (Percentage Distribution) Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price Massachusetts U.S. 1% 6% -7 -9 3 11 6 10 4 9 10 12 11 9 14 6 12 6 19 6 20 9 $352,000 $195,000 Northeast 12% 6 6 6 8 8 14 10 7 6 7 9 $212,000 Midwest 6% 7 13 12 13 11 14 8 5 3 3 4 $170,000 South West 5% 2% 10 3 10 5 14 7 11 7 9 7 11 10 9 11 6 7 5 9 5 12 6 20 $175,000 $290,000 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 9 of 20 Exhibit 2-11 PURCHASE PRICE OF HOME, NEW AND PREVIOUSLY OWNED (Percentage Distribution) MASSACHUSETTS Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price New ------3 22 8 16 19 32 $418,500 Previously Owned 1% --4 7 4 11 10 14 12 19 18 $344,000 U.S. Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price New 1% 2 6 10 12 10 16 13 9 8 6 9 $226,300 Previously Owned 7% 8 10 11 10 8 11 8 5 5 7 10 $185,000 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 10 of 20 Exhibit 2-12 PRICE OF HOME PURCHASED, FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price First-time Buyers 1% --4 10 7 11 16 19 12 13 6 $296,000 Repeat Buyers 1% --3 3 1 9 8 10 13 23 30 $405,000 U.S. Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price First-time Buyers 10% 12 14 13 11 8 10 6 4 4 4 4 $150,000 Repeat Buyers 3% 3 6 9 10 9 13 12 8 6 8 13 $235,000 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 11 of 20 MASSACHUSETTS Exhibit 2-13 PURCHASE PRICE COMPARED WITH LISTING PRICE, BY REGION (Percentage Distribution) Percent of listing price: Less than 90% 90% to 94% 95% to 99% 100% 101% to 110% More than 110% Median (purchase price as a percent of listing price) Massachusetts 9% 14 42 28 7 1 98% U.S. 7% 13 32 36 10 2 99% Northeast 9% 17 32 32 8 1 98% Midwest 9% 14 42 29 5 1 98% South 7% 14 29 38 10 2 100% West 4% 7 28 41 16 3 100% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 12 of 20 Exhibit 2-14 SIZE OF HOME PURCHASED, FIRST-TIME BUYER AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS 1,000 sq ft or less 1,001 to 1,500 sq ft 1,501 to 2,000 sq ft 2,001 to 2,500 sq ft 2,501 to 3,000 sq ft 3,001 to 3,500 sq ft 3,501 sq ft or more Median (sq ft) All Buyers 11% 24 27 15 10 6 7 1,767 First-time Buyers 20% 35 29 8 5 2 1 1,432 Repeat Buyers 5% 16 25 21 13 9 11 2,092 U.S. 1,000 sq ft or less 1,001 to 1,500 sq ft 1,501 to 2,000 sq ft 2,001 to 2,500 sq ft 2,501 to 3,000 sq ft 3,001 to 3,500 sq ft 3,501 sq ft or more Median (sq ft) All Buyers 7% 25 29 17 11 5 6 1,816 First-time Buyers 12% 36 31 12 6 2 2 1,546 Repeat Buyers 4% 18 28 21 15 7 8 2,015 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 13 of 20 MASSACHUSETTS Exhibit 2-15 HOME SIZE AND PRICE PER SQUARE FOOT, BY REGION (Median) Square feet Price per square foot Massachusetts 1,767 $211 U.S. 1,816 $109 Northeast 1,788 $123 Midwest 1,690 $103 South 1,930 $94 West 1,764 $160 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 14 of 20 Exhibit 2-16 HOME SIZE AND PRICE PER SQUARE FOOT, BY TYPE OF HOME (Median) MASSACHUSETTS Duplex/ apartment in 2-4 unit structure 1,751 $277 Apartment/ condo in building with 5 or more units 1,064 $252 Square feet Price per square foot Detached singlefamily 1,860 $206 Townhouse or row house 1,668 $224 U.S. Duplex/ apartment in 2-4 unit structure 1,702 $100 Apartment/ condo in building with 5 or more units 1,181 $163 Square feet Price per square foot Detached singlefamily 1,927 $106 Townhouse or row house 1,570 $124 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 15 of 20 MASSACHUSETTS Exhibit 2-17 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED, BY REGION (Percent of Respondents) Size of house Neighborhood quality Distance from work/school Planned expenditures Condition of house Lot size Other None, made no compromise Massachusetts 19% 10 10 12 7 4 5 33 U.S. 15% 12 11 10 6 7 3 35 Northeast 14% 13 11 9 9 7 4 34 Midwest 15% 11 13 11 5 7 4 35 South 14% 11 11 10 5 8 3 38 West 16% 13 11 11 7 7 2 33 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 16 of 20 Exhibit 2-18 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED, FIRST-TIME AND REPEAT BUYERS (Percentage of Respondents) MASSACHUSETTS Size of house Neighborhood quality Distance from work/school Planned expenditures Condition of house Lot size Other None, made no compromise All Buyers 19% 10 10 12 7 4 5 33 First-time Buyers 25% 13 12 10 6 5 3 26 Repeat Buyers 14% 8 9 13 8 4 7 38 U.S. Size of house Neighborhood quality Distance from work/school Planned expenditures Lot size Condition of house Other None, made no compromise All Buyers 15% 12 11 10 7 6 3 35 First-time Buyers 16% 16 14 9 5 5 4 31 Repeat Buyers 14% 9 10 11 9 7 3 38 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 17 of 20 Exhibit 2-19 PURCHASE PRICE, PRIMARY RESIDENCE AND SECOND HOME (Percentage Distribution) MASSACHUSETTS Primary Residence Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price 1% --4 6 4 10 11 14 12 18 20 $350,000 Non-primary Residence/ Second-Home ------14 14 7 21 29 14 $385,000 U.S. Primary Residence Less than $75,000 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 to $174,999 $175,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 or more Median price 5% 7 9 11 10 9 12 9 6 6 6 9 $194,700 Non-primary Residence/ Second-Home 11% 10 4 9 9 5 13 8 5 5 7 14 $211,600 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 18 of 20 Exhibit 2-20 TYPE OF HOME, PRIMARY RESIDENCE AND SECOND-HOME (Percentage Distribution) MASSACHUSETTS Primary Residence Detached single family Townhouse/row house Duplex/apartment/condo in 2-4 unit structure Apartment/condo in building with 5 or more units Other 70% 8 7 11 5 Non-primary Residence/ Second-Home 59% -18 18 6 U.S. Primary Residence Detached single family Townhouse/row house Duplex/apartment/condo in 2-4 unit structure Apartment/condo in building with 5 or more units Other 76% 9 2 6 6 Non-primary Residence/ Second-Home 63% 8 7 12 10 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 19 of 20 Exhibit 2-21 LOCATION OF HOME, PRIMARY RESIDENCE, VACATION HOME AND INVESTMENT PROPERTY (Percentage Distribution) MASSACHUSETTS Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area Primary Residence 31% 37 20 10 2 Second-Home 20% 33 40 -7 U.S. Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area Primary Residence 57% 17 16 9 1 Second-Home 40% 21 24 10 5 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 2, Page 20 of 20 MASSACHUSETTS Exhibit 3-1 ACTIVE HOME SEARCH (Median) Massachusetts Number of Weeks Searched 2001 2003 2004 2005 Number of Homes Seen 2001 2003 2004 2005 U.S. 7 8 8 8 Northeast 7 10 12 10 Midwest 7 8 8 8 South 7 8 8 8 West 7 6 8 6 10 10 10 9 10 10 9 9 11 9 8 8 8 10 10 11 7 9 9 9 10 12 10 9 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 1 of 19 Exhibit 3-2 SEARCH ACTIVITY, FIRST-TIME VS. REPEAT BUYERS (Median) MASSACHUSETTS First-time Buyers 11 9 Repeat Buyers 10 9 First-time Buyers 8 8 U.S. Repeat Buyers 8 10 Number of Weeks Searched Number of Homes Seen SEARCH ACTIVITY, FIRST-TIME AND REPEAT BUYERS (Median) 12 MASSACHUSETTS 11 MASSACHUSETTS 10 9 9 10 8 6 4 2 0 Number of Weeks Searched Number of Homes Seen First-time Buyers Repeat Buyers SEARCH ACTIVITY, FIRST-TIME AND REPEAT BUYERS (Median) 12 U.S. U.S. 10 8 8 8 10 8 6 4 2 0 Number of Weeks Searched Number of Homes Seen First-time Buyers Repeat Buyers The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 2 of 19 Exhibit 3-3 INFORMATION SOURCES USED IN HOME SEARCH (Percent of Respondents) MASSACHUSETTS All Buyers Real estate agent Yard sign Internet Newspaper advertisement Open house Home builder Home book or magazine Television Billboard Relocation company 91% 64 82 57 73 21 34 16 12 11 First-time Buyers 92% 65 88 60 73 19 37 19 13 13 Repeat Buyers 91% 64 78 54 73 23 33 14 12 9 U.S. All Buyers Real estate agent Internet Yard sign Open house Newspaper advertisement Home book or magazine Home builder Television Billboard Relocation company 90% 77 71 51 50 38 36 25 19 15 First-time Buyers 90% 79 70 51 51 39 30 26 19 14 Repeat Buyers 90% 77 71 52 50 37 41 24 18 16 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 3 of 19 Exhibit 3-4 WHERE BUYER FIRST LEARNED ABOUT HOME PURCHASED (Percentage Distribution) MASSACHUSETTS Real estate agent Internet Yard sign Print newspaper advertisement Friend, neighbor or relative Knew the seller Home builder or their agent Home book or magazine Other 2004 37% 23 9 12 10 5 2 1 1 2005 26% 38 10 12 9 4 1 1 -- U.S. Real estate agent Internet Yard sign Friend, neighbor or relative Home builder or their agent Print newspaper advertisement Knew the seller Home book or magazine Other * Less than one percent 1997 50% 2 17 9 3 8 4 3 * 1999 49% 4 15 8 4 8 3 3 4 2001 48% 8 15 8 3 7 4 2 3 2003 41% 11 16 7 7 7 4 1 6 2004 38% 15 16 7 7 5 5 2 4 2005 36% 24 15 7 7 5 3 1 -- The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 4 of 19 Exhibit 3-5 Proportion of buyers who first found their home on the Internet, 1997-2005 MASSACHUSETTS 2004 2005 23% 38% PERCENT OF BUYERS WHO FIRST FOUND THEIR HOME ON THE INTERNET, 1995-2004 40% 35% 30% 25% 20% 15% 10% 5% 0% 2004 2005 MASSACHUSETTS 38% 23% U.S. 1997 1999 2001 2003 2004 2005 2% 4% 8% 11% 15% 24% PERCENT OF BUYERS WHO FIRST FOUND THEIR HOME ON THE INTERNET, 1995-2004 30% U.S. 24% 25% 20% 15% 15% 11% 10% 8% 4% 2% 5% 0% 1997 1999 2001 2003 2004 2005 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 5 of 19 MASSACHUSETTS Exhibit 3-6 USE OF INTERNET TO SEARCH FOR HOMES, BY REGION (Percentage Distribution) Frequently Occasionally Not at all Massachusetts 68% 16 15 U.S. 57% 22 21 Northeast 59% 22 20 Midwest 60% 23 17 South 54% 24 22 West 58% 20 22 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 6 of 19 Exhibit 3-7 USE OF INTERNET TO SEARCH FOR HOMES, FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS First-time Buyers 77% 15% 8% Repeat Buyers 62% 17% 20% First-time Buyers 61% 21% 18% U.S. Repeat Buyers 54% 24% 22% Frequently Occasionally Not at all USE OF INTERNET TO SEARCH FOR HOMES, FIRST90% 80% 70% 60% 50% 40% 30% 20% 10% 0% MASSACHUSETTS REPEAT BUYERS TIME AND MASSACHUSETTS 77% 62% 15% 8% 17% 20% First-time Buyers Repeat Buyers Frequently Occasionally Not at all U.S. 70% USE OF INTERNET TO SEARCH FOR HOMES, FIRSTTIME AND REPEAT BUYERS U.S. 61% 54% 60% 50% 40% 30% 24% 21% 18% 22% 20% 10% 0% First-time Buyers Repeat Buyers Frequently Occasionally Not at all The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 7 of 19 Exhibit 3-8 Use of Internet to Search for Homes MASSACHUSETTS Frequently 2003 2004 2005 65% 68% Occasionally 24% 16% Frequently 42% 53% 57% U.S. Occasionally 29% 24% 22% MASSACHUSETTS to Search for Homes Use of Internet 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% MASSACHUSETTS 24% 16% 65% 68% 2004 2005 Frequently Occasionally U.S. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Use of Internet to Search for Homes U.S. 24% 29% 22% 42% 53% 57% 2003 2004 2005 Frequently The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Occasionally Chapter 3, Page 8 of 19 Exhibit 3-9 USEFULNESS OF INFORMATION SOURCES AMONG THOSE BUYERS THAT USED EACH SOURCE (Percentage Distribution) MASSACHUSETTS Internet Real estate agent Open house Yard sign Newspaper advertisement Home builder Home book or magazine Relocation company Television Billboard Very Useful 81% 67 62 42 42 26 20 16 11 11 Somewhat Useful 18% 25 35 45 45 32 53 42 32 25 Not Useful 2% 7 3 13 12 42 26 42 57 64 U.S. Real estate agent Internet Yard sign Open house Newspaper advertisement Home builder Home book or magazine Billboard Television Relocation company Very Useful 72% 69 49 42 29 37 24 19 11 16 Somewhat Useful 22% 27 40 45 52 36 51 32 34 31 Not Useful 6% 4 11 12 19 26 25 49 55 53 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 9 of 19 MASSACHUSETTS Exhibit 3-10 CHARACTERISTICS OF HOME SEARCHERS BY USE OF INTERNET (Percentage Distribution) U.S. Exhibit 3-10 CHARACTERISTICS OF HOME SEARCHERS BY USE OF INTERNET (Percentage Distribution) Household Compostion Married couple Single female Single male Unmarried couple Other Used Internet to Did Not Use Internet Search to Search 67% 56% 14 15 6 13 11 12 1 4 Used Internet to Did Not Use Internet Search to Search 3% 2% 44 4 27 29 15 15 8 29 1 13 2 8 36 55 Used Internet to Did Not Use Internet Search to Search 4% 2% 1 8 5 8 6 8 11 6 6 13 13 4 7 17 10 8 7 2 5 -4 2 5 2 6 4 2 6 7 8 $89,200 $85,000 Household Compostion Married couple Single female Single male Unmarried couple Other Used Internet to Did Not Use Internet Search to Search 63% 53% 19 28 8 10 8 6 1 3 Used Internet to Did Not Use Internet Search to Search 6% 6% 36 18 26 18 18 21 10 18 4 12 1 6 38 49 Used Internet to Did Not Use Internet Search to Search 3% 8% 7 13 8 13 10 15 12 9 11 7 10 7 8 6 9 7 5 3 3 2 3 2 2 2 3 2 1 1 5 4 $74,600 $56,600 Age of Buyer Household Less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 64 years 65 - 74 years 75 years or older Median age (years) Age of Buyer Household Less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 64 years 65 - 74 years 75 years or older Median age (years) Household Income (2004) Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income * Less than one percent Household Income (2004) Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 10 of 19 Exhibit 3-11 SOURCES OF INFORMATION USED BY HOME SEARCHERS (Percent of Respondents) MASSACHUSETTS Used Internet to Search Real estate agent Yard sign Open house Newspaper advertisement Home book or magazine Home builder Television Billboard Relocation company 92% 67 76 61 37 21 16 12 11 Did Not Use Internet to Search 85% 44 52 33 20 24 13 13 8 U.S. Used Internet to Search Real estate agent Yard sign Open house Newspaper advertisement Home book or magazine Home builder Television Billboard Relocation company 93% 74 55 53 41 36 26 19 16 Did Not Use Internet to Search 75% 55 33 37 22 38 18 16 11 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 11 of 19 Exhibit 3-12 HOW BUYER FIRST LEARNED HOME THEY PURCHASED WAS AVAILABLE FOR SALE (Percentage Distribution) MASSACHUSETTS Used Internet to Did Not Use Internet Search to Search Real estate agent Internet Yard sign Friend, neighbor or relative Print newspaper advertisement Knew the sellers Home builder or their agent Home book or magazine * Less than one percent 24% 44 8 8 13 3 * 1 39% 2 20 16 8 10 4 2 U.S. Used Internet to Did Not Use Internet Search to Search Real estate agent Internet Yard sign Home builder or their agent Friend/Neighbor/Relative Print newspaper advertisement Knew the sellers Home book or magazine 36% 29 15 6 6 5 2 1 36% 4 16 11 15 8 9 1 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 12 of 19 Exhibit 3-13 METHOD OF HOME PURCHASE (Percentage Distribution) MASSACHUSETTS Used Internet to Did Not Use Internet Search to Search Real estate agent Directly from builder or builder's agent Directly from previous owner whom buyer didn't know Directly from previous owner whom buyer knew Foreclosure or trustee sale Other 87% 2 6 4 1 * 71% 14 4 10 -2 U.S. Used Internet to Did Not Use Internet Search to Search Real estate agent Directly from builder or builder's agent Directly from previous owner whom buyer didn't know Directly from previous owner whom buyer knew Foreclosure or trustee sale Other 81% 11 5 2 * 1 63% 19 6 10 * 2 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 13 of 19 MASSACHUSETTS Exhibit 3-14 MEDIAN LENGTH OF HOME SEARCH (Weeks) Used Internet to search Did not use Internet to search Massachusetts 11 8 U.S. 8 4 Northeast 10 8 Midwest 10 4 South 8 4 West 8 4 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 14 of 19 Exhibit 3-15 NUMBER OF HOMES VISITED (Percentage Distribution) MASSACHUSETTS Used Internet to Did Not Use Internet Search to Search None 1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 or more Median 3% 21 22 18 12 9 15 11 12% 35 27 18 2 2 4 5 U.S. Used Internet to Did Not Use Internet Search to Search None 1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 or more Median 2% 18 26 22 10 8 13 11 13% 33 23 15 5 4 7 6 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 15 of 19 Exhibit 3-16 WHAT HOMEBUYERS WERE LOOKING FOR ONLINE (Percent of Respondents) MASSACHUSETTS Properties for sale Information about an area A real estate company A real estate agent All Buyers 97% 23 5 3 First-time Buyers 96% 24 2 4 Repeat Buyers 97% 22 7 3 U.S. Properties for sale Information about an area A real estate company A real estate agent All Buyers 95% 22 5 4 First-time Buyers 95% 21 5 4 Repeat Buyers 95% 22 4 4 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 16 of 19 Exhibit 3-17 VALUE OF WEB SITE FEATURES (Percentage Distribution of Internet Searchers) MASSACHUSETTS Very Useful 89% 86 55 41 28 26 Somewhat Useful 10% 13 28 34 38 47 Not Useful -1 7 9 11 12 Did Not Use 1% -10 16 22 14 Detailed property information Photos Virtual tours Interactive maps Real estate agent contact Neighborhood and community information U.S. Very Useful 84% 83 59 44 36 29 Somewhat Useful 14% 15 26 36 43 35 Not Useful 1% 1 6 8 9 14 Did Not Use 1% 1 10 11 13 22 Photos Detailed property information Virtual tours Interactive maps Neighborhood and community information Real estate agent contact * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 17 of 19 Exhibit 3-18 ACTIONS TAKEN AS A RESULT OF INTERNET HOME SEARCH (Percent of Respondents) MASSACHUSETTS All Buyers 82% 65 23 29 9 5 6 5 First-time Buyers 82% 64 22 31 13 8 6 2 Repeat Buyers 81% 65 23 28 6 3 6 8 Drove by or viewed a home Walked through a home viewed online Requested more information Found agent used to assist in the search or purchase of a home Pre-qualified for a mortgage online Found a mortgage lender online Applied for a mortgage online Contacted builder or developer U.S. All Buyers 75% 57 25 21 11 9 5 5 First-time Buyers 75% 56 27 23 8 11 6 7 Repeat Buyers 74% 57 23 20 12 7 5 3 Drove by or viewed a home Walked through a home viewed online Requested more information Found agent used to assist in the search or purchase of a home Contacted builder or developer Pre-qualified for a mortgage online Applied for a mortgage online Found a mortgage lender online The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 18 of 19 MASSACHUSETTS Exhibit 3-19 WEB SITES USED IN HOME SEARCH (Percent of Respondents) REALTOR.com® Multiple listing service (MLS) Web site Real estate company Web site Real estate agent Web site Local newspaper Web site Real estate magazine Web site Other Massachusetts U.S. 50% 54% 63 50 35 38 42 31 17 15 3 6 6 11 Northeast 63% 48 39 33 17 5 9 Midwest 59% 53 42 33 13 4 9 South 53% 46 36 30 14 7 12 West 42% 55 33 30 17 5 10 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 3, Page 19 of 19 Exhibit 4-1 METHOD OF HOME PURCHASE (Percentage Distribution) MASSACHUSETTS Through a real estate agent or broker Directly from the builder Directly from the previous owner Through a foreclosure or trustee sale 2004 80% 3 14 -2005 85% 3 10 1 U.S. 1995 81% 9 9 1 1997 79% 9 11 1 1999 79% 11 9 1 2001 69% 15 15 1 2003 75% 14 9 1 2004 77% 12 9 1 2005 77% 12 9 * Through a real estate agent or broker Directly from the builder Directly from the previous owner Through a foreclosure or trustee sale *Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 1 of 19 MASSACHUSETTS Exhibit 4-2 METHOD OF HOME PURCHASE, BY REGION (Percentage Distribution) Through a real estate agent or broker Directly from the builder Directly from the previous owner Knew previous owner Did not know previous owner Through a foreclosure or trustee sale *Less than one percent Massachusetts U.S. 85% 77% 3 12 10 9 5 4 5 5 1 * Northeast 83% 6 11 6 4 1 Midwest 78% 11 9 3 6 1 South 74% 15 9 3 6 * West 78% 13 7 3 4 * The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 2 of 19 Exhibit 4-3 METHOD OF HOME PURCHASE, NEW AND PREVIOUSLY OWNED HOMES (Percentage Distribution) MASSACHUSETTS All Buyers Through a real estate agent or broker Directly from the builder Directly from the previous owner Knew previous owner Did not know previous owner Through a foreclosure or trustee sale 85% 3 10 5 5 1 New Home 68% 26 ---3 Previously Owned Home 87% 1 12 6 6 1 U.S. All Buyers Through a real estate agent or broker Direct from the builder Directly from the previous owner Knew previous owner Did not know previous owner Through a foreclosure or trustee sale *Less than one percent 77% 12 9 4 5 * New Home 49% 48 1 * 1 * Previously Owned Home 86% 2 11 5 6 * The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 3 of 19 MASSACHUSETTS Exhibit 4-4 LENGTH OF SEARCH FOR BUYERS WHO USED AN AGENT, BY REGION (Median Weeks) Massachusetts 2 10 U.S. 2 8 Northeast Midwest South West 2 3 2 2 10 8 6 7 Search time before contacting an agent Length of entire search The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 4 of 19 Exhibit 4-5 LENGTH OF SEARCH FOR BUYERS WHO USED AN AGENT (Median Weeks) MASSACHUSETTS Search time before contacting an agent Length of entire search All Buyers 2 10 First-time Buyer 2 12 Repeat Buyers 2 10 U.S. Search time before contacting an agent Length of entire search All Buyers 2 8 First-time Buyer 3 8 Repeat Buyers 2 8 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 5 of 19 Exhibit 4-6 NUMBER OF REAL ESTATE AGENTS INTERVIEWED (Percentage Distribution) MASSACHUSETTS One Two Three Four Five or more All Buyers 61% 23 8 4 4 First-time Buyers 54% 25 11 5 6 Repeat Buyers 67% 21 5 4 3 U.S. One Two Three Four Five or more All Buyers 64% 20 10 3 2 First-time Buyers 58% 23 13 3 3 Repeat Buyers 69% 18 9 2 2 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 6 of 19 Exhibit 4-7 THE NUMBER OF REAL ESTATE AGENTS USED IN THE HOME SEARCH (Percentage Distribution) MASSACHUSETTS One Two Three Four Five or More 76% 14% 4% 2% 4% THE NUMBER OF REAL ESTATE AGENTS USED IN THE HOME SEARCH (Percentage Distribution) MASSACHUSETTS Four, 2% Three, 4% Two, 14% Five or More, 4% One, 76% U.S. One Two Three Four Five or More 79% 15% 4% 1% 1% THE NUMBER OF REAL ESTATE AGENTS USED IN THE HOME SEARCH (Percentage Distribution) U.S. Four, 1% Three, 4% Five or More, 1% Two, 15% One, 79% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 7 of 19 Exhibit 4-8 HOW BUYER FOUND REAL ESTATE AGENT USED (Percentage Distribution) MASSACHUSETTS All Buyers Referred by (or is) a friend, neighbor or relative Visited open house and met agent Used agent previously to buy or sell a house Personal contact by agent (telephone, etc.) Saw contact information on For Sale sign Walked into/called office and agent was on duty Internet site Referred through employer or relocation company Referred by another real estate broker Newspaper/Yellow Pages/home book ad Advertising specialty (calendar, magnet, etc.) Direct mail (newsletter, flyer, letter, postcard) Other 41% 11 12 4 8 3 8 2 3 1 --9 First-time Buyers 47% 10 2 4 7 5 12 2 2 1 --10 Repeat Buyers 35% 12 21 3 8 2 4 3 4 1 --8 U.S. All Buyers Referred by (or is) a friend, neighbor or relative Used agent previously to buy or sell a house Internet site Visited open house and met agent Saw contact information on For Sale sign Walked into/called office and agent was on duty Referred through employer or relocation company Referred by another real estate broker Personal contact by agent (telephone, etc.) Newspaper/Yellow Pages/home book ad Direct mail (newsletter, flyer, letter, postcard) Advertising specialty (calendar, magnet, etc.) Other 44% 11 7 7 6 4 4 3 3 2 1 1 6 First-time Buyers 54% 3 9 6 6 6 2 3 2 2 1 1 7 Repeat Buyers 38% 17 7 7 7 4 5 3 3 2 1 0 6 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 8 of 19 Exhibit 4-9 WHAT BUYERS WANT MOST FROM REAL ESTATE PROFESSIONALS (Percentage Distribution) MASSACHUSETTS Help find the right home to purchase Help with the price negotiations Help with paperwork Determine what comparable homes were selling for Help determining how much buyer can afford to spend on a home Help find and arrange financing Help find renters for buyer's property Other 57% 13% 12% 8% 2% 1% -6% U.S. 59% 10% 10% 9% 5% 3% 1% 3% WHAT BUYERS WANT MOST FROM REAL ESTATE PROFESSIONALS (Percentage Distribution) MASSACHUSETTS Other, 6% Help determining how much buyer can afford to spend on a home, 2% Help find and arrange financing, 1% Help find the right home to purchase, 57% Determine what comparable homes were selling for, 8% Help with paperwork, 12% Help with the price negotiations, 13% WHAT BUYERS WANT MOST FROM REAL ESTATE PROFESSIONALS (Percentage Distribution) U.S. Help find and arrange financing, 3% Help determining how much buyer can afford to spend on a home, 5% Determine what comparable homes were selling for, 9% Help find renters for buyer's property, 1% Other, 3% Help find the right home to purchase, 59% Help with paperwork, 10% Help with the price negotiations, 10% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 9 of 19 Exhibit 4-10 WHAT BUYERS WANT MOST FROM REAL ESTATE PROFESSIONALS (Percentage Distribution) MASSACHUSETTS Help find the right home to purchase Help with the price negotiations Help with paperwork Determine what comparable homes were selling for Help determining how much buyer can afford to spend on a home Help find and arrange financing Help find renters for buyer's property Other First time Buyers 59% 13 11 11 2 2 -2 Repeat Buyers 56% 13 13 6 2 1 -8 U.S. Help find the right home to purchase Help with the price negotiations Help with paperwork Determine what comparable homes were selling for Help determining how much buyer can afford to spend on a home Help find and arrange financing Help find renters for buyer's property Other First time Buyers 57% 11 10 7 7 5 0 2 Repeat Buyers 60% 10 10 10 4 2 1 3 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 10 of 19 Exhibit 4-11 MOST IMPORTANT FACTORS IN CHOOSING AN AGENT (Percentage Distribution) Reputation of real estate agent Agent’s association with a particular firm Professional designation(s) held by agent Agent’s knowledge of the neighborhood Other MASSACHUSETTS 36% 6% 5% 28% 24% U.S. 41% 7% 4% 24% 24% MOST IMPORTANT FACTORS IN CHOOSING AN AGENT (Percentage Distribution) MASSACHUSETTS Other, 24% Reputation of real estate agent, 36% Agent’s knowledge of the neighborhood, 28% Professional designation(s) held by agent, 5% Agent’s association with a particular firm, 6% MOST IMPORTANT FACTORS IN CHOOSING AN AGENT (Percentage Distribution) U.S. Other, 24% Reputation of real estate agent, 41% Agent’s knowledge of the neighborhood, 24% Professional designation(s) held by agent, 4% Agent’s association with a particular firm, 7% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 11 of 19 Exhibit 4-12 QUALITIES BUYERS PREFERRED IN THEIR REAL ESTATE AGENT (Percentage Distribution) MASSACHUSETTS Very Important Knowledge of purchase process Responsiveness Knowledge of real estate market Communication skills People skills Negotiation skills Knowledge of local area Skills with technology 96% 94 92 82 75 80 75 36 Somewhat Important 4% 6 7 18 24 15 21 45 Not Important * * 1 -1 5 4 18 U.S. Very Important Knowledge of purchase process Responsiveness Knowledge of real estate market Communication skills Negotiation skills People skills Knowledge of local area Skills with technology 94% 93 92 82 82 80 79 40 Somewhat Important 6% 7 7 17 16 19 19 46 Not Important * * 1 1 2 1 2 13 *Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 12 of 19 Exhibit 4-13 AGENT QUALITIES CONSIDERED 'VERY IMPORTANT' BY FIRST-TIME AND REPEAT BUYERS (Percentage Distribution) MASSACHUSETTS All Buyers Knowledge of purchase process Responsiveness Knowledge of real estate market Communication skills People skills Negotiation skills Knowledge of local area Skills with technology 96% 94 92 82 75 80 75 36 First-time Buyers 97% 94 90 77 73 81 70 31 Repeat Buyers 95% 94 93 86 77 79 79 40 U.S. All Buyers Knowledge of purchase process Responsiveness Knowledge of real estate market Communication skills Negotiation skills People skills Knowledge of local area Skills with technology 94% 93 92 82 82 80 79 40 First-time Buyers 94% 93 89 83 83 82 75 41 Repeat Buyers 94% 93 94 82 81 79 81 40 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 13 of 19 Exhibit 4-14 AGENT REPRESENTATION DISCLOSURE (Percentage Distribution) MASSACHUSETTS Disclosure Statement Signed? Yes, at first meeting Yes, when contract written No Don't know All Buyers 40% 26 18 15 First-time Buyers 40% 26 20 14 Repeat Buyers 40% 27 17 16 U.S. Disclosure Statement Signed? Yes, at first meeting Yes, when contract written No Don't know All Buyers 30% 28 22 20 First-time Buyers 23% 30 26 21 Repeat Buyers 35% 27 19 19 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 14 of 19 Exhibit 4-15 BUYER REPRESENTATIVE ARRANGEMENT WITH REAL ESTATE AGENT (Percentage Distribution) MASSACHUSETTS Yes, written arrangement Yes, oral arrangement No arrangement Don't know All Buyers 47% 20 26 7 First-time Buyers 50% 22 19 9 Repeat Buyers 43% 19 32 6 U.S. Yes, written arrangement Yes, oral arrangement No arrangement Don't know All Buyers 43% 20 26 12 First-time Buyers 40% 22 24 13 Repeat Buyers 44% 18 27 11 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 15 of 19 Exhibit 4-16 HOW REAL ESTATE AGENT WAS COMPENSATED (Percentage Distribution) MASSACHUSETTS All Types of Representation Paid by seller Paid by buyer and seller Paid by buyer only Percent of sales price Flat fee Other Don't know Other Don't know 70% 5 17 15 1 -1 3 6 Type of Agent Representation Seller or Seller and Buyer Buyer Only 71% 4 17 14 1 -2 3 5 67% 5 18 16 1 --2 8 U.S. All Types of Representation Paid by seller Paid by buyer and seller Paid by buyer only Percent of sales price Flat fee Other Don't know Other Don’t know *Less than one percent 61% 10 19 16 2 * 2 3 7 Type of Agent Representation Seller or Seller and Buyer Buyer Only 63% 10 19 16 2 * 1 3 6 58% 12 18 14 1 * 3 3 9 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 16 of 19 Exhibit 4-17 SATISFACTION WITH REAL ESTATE AGENT KNOWLEDGE AND EXPERTISE (Percentage Distribution) MASSACHUSETTS Knowledge of purchase process People skills Knowledge of real estate market Responsiveness Communication skills Knowledge of local area Skills with technology Negotiation skills Very Satisfied 83% 70 76 76 72 72 66 62 Somewhat Satisfied 14% 25 20 18 22 23 29 28 Not Satisfied 4% 5 4 5 6 4 6 10 U.S. Knowledge of the purchase process Knowledge of real estate market Knowledge of local area Communication skills Responsiveness People skills Skills with techonology Negotiation skills Very Satisfied 85% 82 80 79 80 80 72 70 Somewhat Satisfied 12% 16 17 17 15 16 24 23 Not Satisfied 3% 2 3 4 5 4 4 7 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 17 of 19 Exhibit 4-18 BENEFITS PROVIDED BY REAL ESTATE AGENT DURING HOME PURCHASE PROCESS (Percent of Respondents) MASSACHUSETTS Helped buyer understand the process Pointed out unnoticed features/faults Shortened buyer's home search Negotiated better contract terms Negotiated a better price Improved buyer's knowledge of search areas Expanded buyer's search area Provided better list of mortgage lenders Narrowed buyer's search area Provided better list of service resources None of the above All Buyers 60% 39 32 29 25 27 14 11 13 15 14 First-time Buyers 72% 38 31 24 23 30 15 14 11 16 15 Repeat Buyers 50% 40 33 34 26 24 13 9 15 13 14 U.S. Helped buyer understand the process Pointed out unnoticed features/faults Shortened buyer's home search Negotiated better contract terms Improved buyer's knowledge of search areas Negotiated a better price Expanded buyer's search area Narrowed buyer's search area Provided better list of mortgage lenders Provided better list of searvice resources None of the above All Buyers 59% 48 39 36 35 29 18 18 15 15 9 First-time Buyers 74% 49 35 38 33 29 20 16 17 17 9 Repeat Buyers 48% 48 41 34 36 29 17 19 14 14 9 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 18 of 19 Exhibit 4-19 USE OF REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS (Percent distribution) MASSACHUSETTS Definitely Probably Probably Not Definitely Not Don't Know 58% 22% 10% 8% 3% WOULD BUYER USE ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS (Percentage Distribution) 70% 60% 50% 40% 30% MASSACHUSETTS 58% 22% 20% 10% 10% 0% Definitely Probably Probably Not 8% 3% Definitely Not Don't Know U.S. Definitely Probably Probably Not Definitely Not Don't Know 66% 19% 6% 7% 2% WOULD BUYER USE ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS (Percentage Distribution) 70% 60% 50% 40% 30% 20% 10% 0% Definitely Probably Probably Not Definitely Not Don't Know 66% 19% 6% 7% 2% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 4, Page 19 of 19 Exhibit 5-1 PERCENT OF BUYERS WHO FINANCED THEIR HOME PURCHASE MASSACHUSETTS All Buyers First-time Buyers Repeat Buyers 92% 99% 87% U.S. All Buyers First-time Buyers Repeat Buyers Northeast Midwest South West 92% 96% 89% 90% 93% 91% 92% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 5, Page 1 of 5 Exhibit 5-2 PERCENT OF HOME FINANCED (Percentage Distribution) MASSACHUSETTS Less than 50% 51% to 60% 61% to 70% 71% to 80% 81% to 90% 91% to 95% 96% to 99% 100% (entire purchase price) Median percent financed All Buyers 12% 6 8 24 16 16 6 12 81% First-time Buyers 3% 3 1 20 16 25 12 20 94% Repeat Buyers 20% 9 13 26 15 10 1 6 74% U.S. Less than 50% 51% to 60% 61% to 70% 71% to 80% 81% to 90% 91% to 95% 96% to 99% 100% (entire purchase price) Median percent financed All Buyers 9% 3 5 24 13 10 7 28 87% First-time Buyers 4% 1 2 13 12 13 12 43 98% Repeat Buyers 13% 4 8 32 14 7 4 18 79% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 5, Page 2 of 5 Exhibit 5-3 PERCENT OF HOME FINANCED BY REGION (Median) All Buyers First-time Buyers Repeat Buyers Massachusetts 81% 94% 74% U.S. 87% 98% 79% Northeast 83% 92% 77% Midwest 89% 97% 78% South 90% 99% 80% West 84% 100% 78% Percent of Home Financed, by Region (Median) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 94% 81% 74% 98% 87% 79% 92% 83% 77% 97% 89% 78% 99% 90% 80% 100% 84% 78% es t as sa ch us et ts So ut h U .S . st N or th ea M All Buyers First-time Buyers M id w Repeat Buyers The 2005 National Association of Realtors® Profile of Home Buyers and Sellers W es t Chapter 5, Page 3 of 5 Exhibit 5-4 SOURCES OF DOWNPAYMENT (Percent of Respondents who Have Made a Downpayment) MASSACHUSETTS Savings Equity from previous home Gift from friend or relative Sale of stocks or bonds Loan from financial institution Loan from friend or relative IRA Pension fund/401(k) Inheritance Other sources All Buyers 59% 41 15 8 6 7 2 3 3 5 First-time Buyers 83% 2 26 10 6 10 2 7 7 3 Repeat Buyers 41% 70 7 6 5 5 1 1 1 5 U.S. Savings Equity from previous home Gift from friend or relative Sale of stocks or bonds Loan from financial institution Pension fund/401(k) Loan from friend or relative Inheritance IRA Other All Buyers 50% 43 11 6 6 5 5 3 2 7 First-time Buyers 68% 4 23 8 7 7 9 5 4 11 Repeat Buyers 40% 66 5 5 5 4 2 2 1 5 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 5, Page 4 of 5 Exhibit 5-5 HOME PURCHASE IS A GOOD FINANCIAL INVESTMENT (Percentage Distribution) MASSACHUSETTS All Buyers 91% 3 6 First-time Buyers 91% 2 7 Repeat Buyers 90% 3 6 Yes No Don't Know * Less than one percent U.S. Yes No Don't Know All Buyers 94% 1 5 First-time Buyers 94% 1 5 Repeat Buyers 94% 2 5 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 5, Page 5 of 5 Exhibit 6-1 AGE OF HOMESELLERS, BY REGION (Percentage Distribution) Less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 64 years 65 - 74 years 75 years or older Median age (years) Massachusetts -20 33 18 18 5 6 44 U.S. 1% 20 25 24 17 9 3 47 Northeast 2% 20 25 21 20 10 2 47 Midwest 1% 24 27 25 11 10 3 45 South 1% 20 24 24 17 10 4 47 West 1% 18 24 26 20 7 4 48 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 1 of 23 Exhibit 6-2 HOUSEHOLD INCOME OF HOMESELLERS, 2004 (Percentage Distribution) Less than $25,000 $25,000 - $34,999 $35,000 - $44,999 $45,000 - $54,999 $55,000 - $64,999 $65,000 - $74,999 $75,000 - $84,999 $85,000 - $94,999 $95,000 - $104,999 $105,000 - $114,999 $115,000 - $124,999 $125,000 - $134,999 $135,000 - $149,999 $150,000 - $174,999 $175,000 - $199,999 $200,000 or more Median income Massachusetts U.S. 4% 3% 3 4 6 5 7 8 9 9 7 10 9 9 4 9 9 11 7 6 4 5 5 4 3 3 9 4 4 2 11 7 $97,300 $85,200 Northeast 5% 3 3 8 10 11 9 6 9 5 8 3 2 5 3 10 $86,500 Midwest 3% 5 6 9 8 11 11 11 9 3 5 3 2 2 2 9 $81,500 South 3% 4 5 8 10 9 10 9 11 6 4 6 3 5 2 5 $86,400 West 4% 4 7 9 8 9 7 8 12 10 4 3 3 4 1 7 $87,000 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 2 of 23 Exhibit 6-3 ADULT COMPOSITION OF HOMESELLER HOUSEHOLDS (Percentage Distribution) MASSACHUSETTS Married couple Single female Single male Unmarried couple Other 2004 76% 12 4 6 2 2005 72% 17 5 5 2 U.S. Married couple Single female Single male Unmarried couple Other 2004 74% 15 5 5 1 2005 71% 17 6 3 1 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 3 of 23 Exhibit 6-4 NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD (Percentage Distribution of Homeseller Households) MASSACHUSETTS One Two Three or more None 15% 19% 11% 55% NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD (Percentage Distribution of Households) MASSACHUSETTS One, 15% Two, 19% None, 55% Three or more, 11% U.S. One Two Three or more None 18% 14% 7% 61% NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD (Percentage Distribution of Households) U.S. One, 18% Two, 14% None, 61% Three or more, 7% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 4 of 23 Exhibit 1-5 RACE/ETHNICITY OF HOMESELLERS, BY REGION (Percent of Respondents) White/Caucasian Black/African-American Asian/Pacific Islander Hispanic/Latino Other Massachusetts 93% 2 3 -2 U.S. 90% 4 3 4 1 Northeast 95% 2 2 2 1 Midwest 94% 3 2 1 1 South 88% 4 3 5 1 West 85% 4 5 7 2 Note: Respondents were permitted to select as many races and ethnicities as they felt applicable. The percentage distribution may therefore sum to more than 100 percent. The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 5 of 23 Exhibit 1-6 PRIMARY LANGUAGE SPOKEN IN HOMESELLER HOUSEHOLD, BY REGION (Percentage Distribution) English Other Massachusetts 100% -- U.S. 97% 3 Northeast 98% 2 Midwest 98% 2 South 96% 4 West 97% 3 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 6 of 23 Exhibit 6-07 TYPE OF HOME SOLD (Percent of repeat buyers) MASSACHUSETTS Detached single-family 67% Townhouse or row house 9% Duplex/ Apartment/ Condo in 2-4 unit structure 11% Apartment/ Condo in a building with 5 or more units 9% Other 4% U.S. 79% 8% 2% 6% 5% TYPE OF HOME SOLD (Percentage Distribution) Apartment/ Condo in a building with 5 or more units, 9% MASSACHUSETTS Other, 4% Detached singlefamily, 67% Duplex/ Apartment/ Condo in 2-4 unit structure, 11% Townhouse or row house, 9% TYPE OF HOME SOLD (Percentage Distribution) Apartment/ Condo in a building with 5 or more units, 6% Duplex/ Apartment/ Condo in 2-4 unit structure, 2% U.S. Other, 5% Detached singlefamily, 79% Townhouse or row house, 8% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 7 of 23 Exhibit 6-8 TYPE OF HOME SOLD (Percentage Distribution) MASSACHUSETTS Detached single-family Other 2004 72% 28 2005 67% 33 U.S. Detached single-family Other 1991 75% 25 1993 84% 16 1995 86% 14 1997 83% 17 1999 81% 19 2001 74% 26 2003 79% 21 2004 82% 18 2005 79% 21 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 8 of 23 Exhibit 6-09 LOCATION OF PREVIOUSLY OWNED HOME (Percentage Distribution) Suburb/ Subdivision Urban/ Central city Small town Rural Area Resort/ Recreation area MASSACHUSETTS 38% 23% 25% 9% 5% U.S. 56% 17% 15% 9% 3% LOCATION OF HOME SOLD (Percentage Distribution) MASSACHUSETTS Resort/ Recreation area, 5% Rural Area, 9% Suburb/ Subdivision, 38% Small town, 25% Urban/ Central city, 23% LOCATION OF HOME SOLD (Percentage Distribution) U.S. Rural Area, 9% Resort/ Recreation area, 3% Suburb/ Subdivision, 56% Small town, 15% Urban/ Central city, 17% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 9 of 23 Exhibit 6-10 TYPE OF HOME SOLD BY LOCATION (Percentage Distribution) MASSACHUSETTS Suburb/ Subdivision Detached single-family Townhouse or row house Apartment/ Condo in a building with 5 or more units Duplex/ Apartment/ Condo in 2-4 unit structure Other 79% 11 5 2 4 Small town 73% 8 5 8 5 Urban/ Central city 43% 9 14 31 3 Rural area 71% 7 14 -7 Resort/ Recreation area 57% -14 29 -- U.S. Suburb/ Subdivision Detached single-family home Townhouse or row house Apartment/condo in a building with 5 or more units Duplex/apartment/condo 2-4 family structure Other 83% 9 4 1 3 Small town 85% 5 5 1 4 Urban/ Central city 64% 13 13 4 7 Rural area 79% 2 1 -17 Resort/ Recreation area 69% 7 13 3 8 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 10 of 23 Exhibit 6-11 SIZE OF HOME PURCHASED COMPARED TO HOME RECENTLY SOLD (Percentage Distribution) MASSACHUSETTS 1,000 sq ft or less 3 1 -1 --Size of Home Purchased 1,001 sq ft to 1,501 sq ft to 2,001 sq ft to 2,501 sq ft to 1,500 sq ft 2,000 sq ft 2,500 sq ft 3,000 sq ft 5% 5% 1% 1% 5 7 4 3 2 4 7 3 3 2 5 3 1 4 1 2 1 3 1 1 More than 3,000 sq ft 1% 1 6 4 3 6 1,000 sq ft or less Size of 1,001 to 1,500 sq ft Home Sold 1,501 to 2,000 sq ft 2,001 to 2,500 sq ft 2,501 to 3,000 sq ft More than 3,000 sq ft U.S. 1,000 sq ft or less 1 1 * * * * Size of Home Purchased 1,001 sq ft to 1,501 sq ft to 2,001 sq ft to 2,501 sq ft to 1,500 sq ft 2,000 sq ft 2,500 sq ft 3,000 sq ft 3% 2% 1% * 5 10 5 4 4 9 7 5 2 4 5 3 1 2 2 2 1 2 2 2 Trading Down * Less than one percent Trading Up More than 3,000 sq ft * 1 4 3 3 5 1,000 sq ft or less Size of 1,001 to 1,500 sq ft Home Sold 1,501 to 2,000 sq ft 2,001 to 2,500 sq ft 2,501 to 3,000 sq ft More than 3,000 sq ft The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 11 of 23 Exhibit 6-12 SIZE OF HOME PURCHASED COMPARED TO HOME RECENTLY SOLD, BY AGE OF SELLER (Median square feet) MASSACHUSETTS Size of home sold 18 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 to 74 years 75 years or older 1,640 1,636 2,189 1,951 2,334 2,376 Size of home purchased 2,168 2,157 2,251 1,709 2,334 1,834 Difference 528 522 63 -242 0 -542 U.S. Size of home sold 18 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 to 74 years 75 years or older 1,523 1,773 1,859 2,060 2,041 1,926 Size of home purchased 2,110 2,357 2,130 1,978 1,851 1,720 Difference 587 583 271 -82 -190 -206 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 12 of 23 Exhibit 6-13 PRIMARY REASON FOR SELLING PREVIOUS HOME (Percentage Distribution) MASSACHUSETTS Sellers' age: All Recent Home Sellers Want a larger home Change in family situation Job-related move Want to move closer to friends or family members Want a smaller home Home is difficult or expensive to maintain Neighborhood has become less desirable Retirement Other 34% 9 15 6 9 6 7 -14 65 or older 6% --25 38 13 --19 18-44 46% 10 21 3 1 1 6 -12 45-64 26% 9 11 6 11 11 9 -17 U.S. Sellers' age: All Recent Home Sellers Want a larger home Job-related move Change in family situation Want to move closer to friends or family members Neighborhood has become less desirable Want a smaller home Home is difficult or expensive to maintain Retirement Other 22% 21 13 9 9 8 4 3 10 65 or older 7% * 9 28 9 19 6 6 16 18-44 33% 28 13 4 9 2 3 * 8 45-64 16% 20 15 9 9 11 5 4 10 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 13 of 23 Exhibit 6-14 TENURE IN PREVIOUS HOME (Percentage Distribution) MASSACHUSETTS Duplex/ apartment in 2-4 unit structure -18 18 18 6 12 6 24 6 Apartment/ condo in building with 5 or more units 8% 23 15 -31 15 8 -7 Mobile/ manufactured home ---100 ----6 Less than 1 year 1 to 2 years 3 to 4 years 5 to 6 years 7 to 10 years 11 to 15 years 16 to 20 years 21 years or more Median All Types 2% 13 21 17 17 12 3 13 6 Cabin/ cottage ---100 ----6 Townhouse/ Detached row house single home -8 54 15 -23 --4 2% 11 19 19 20 10 3 16 6 Other -50 25 --25 --2 U.S. Duplex/ apartment in 2-4 unit structure * 10 20 18 23 7 13 9 7 Apartment/ condo in building with 5 or more units 4% 32 25 13 13 8 2 4 4 Mobile/ manufactured home 5% 16 31 16 8 18 5 1 4 Less than 1 year 1 to 2 years 3 to 4 years 5 to 6 years 7 to 10 years 11 to 15 years 16 to 20 years 21 years or more Median All Types 3% 15 21 16 17 11 6 10 6 Cabin/ cottage -26 43 6 6 11 10 -4 Townhouse/ Detached row house single home 4% 16 27 21 11 11 5 5 5 3% 14 20 15 19 11 6 11 6 Other * 11 15 12 19 16 6 19 9 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 14 of 23 Exhibit 6-15 NUMBER OF HOMES PREVIOUSLY OWNED (Percentage Distribution) MASSACHUSETTS One Two Three Four Five or more Median 16% 42 16 9 17 2 U.S. One Two Three Four Five or more Median 13% 30 25 14 17 3 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 15 of 23 Exhibit 6-16 DISTANCE BETWEEN HOME RECENTLY PURCHASED AND PREVIOUS RESIDENCE (Median Miles) Massachusetts 2005 12 U.S. 15 Northeast 10 Midwest 14 South 18 West 16 MEDIAN DISTANCE BETWEEN HOME RECENTLY PURCHASED AND PREVIOUS RESIDENCE (Median) 20 18 16 14 12 10 8 6 4 2 0 18 15 12 10 16 14 U .S . So ut h t N or th ea s id w es t se tts ch u The 2005 National Association of Realtors® Profile of Home Buyers and Sellers M as sa M W es t Chapter 6, Page 16 of 23 Exhibit 6-17 TASKS PERFORMED IN THE SELLING PROCESS (Percentage Distribution) MASSACHUSETTS Did myself without assistance 16% 8 10 1 8 6 6 9 12 15 6 9 17 Assisted by Paid another real estate professional for Task not agent assistance performed 80% 3% 1 67 1 24 86 1 4 84 77 66 74 82 80 76 52 79 72 3 -1 3 6 3 3 4 8 8 11 13 19 14 4 4 6 24 2 4 Don't know ---1 2 8 4 1 1 1 15 1 -- Determine listing price Hold open house Schedule showings with buyers Enter property in Multiple Listing Service Advertise property in newspaper, magazines, etc. Contact buyers by mail, phone, etc. Place home on Internet Review sales contracts/purchase offers Negotiate with buyers Coordinate appraisal, home inspection, etc. Pre-qualify buyers for mortgage Manage paperwork, contracts, etc. Attend closing U.S. Did myself without assistance 21% 8 13 1 7 6 3 10 13 11 5 9 17 Assisted by Paid another real estate professional for Task not agent assistance performed 75% 3% 1% 51 1 40 77 2 8 79 3 16 64 55 71 80 79 77 55 80 71 2 2 3 4 2 5 4 7 6 25 29 19 5 5 6 22 3 5 Don't know * 0 0 1 2 8 4 1 0 1 14 1 1 Determine listing price Hold open house Schedule showings with buyers Enter property in Multiple Listing Service Advertise property in newspaper, magazines, etc. Contact buyers by mail, phone, etc. Place home on Internet Review sales contracts/purchase offers Negotiate with buyers Coordinate appraisal, home inspection, etc. Pre-qualify buyers for mortgage Manage paperwork, contracts, etc. Attend closing * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 17 of 23 Exhibit 6-18 METHOD USED TO SELL HOME (Percentage Distribution) Sold home using an agent or broker Seller used agent/broker only Seller first tried to sell it themselves, but then used an agent For-sale-by-owner (FSBO) Seller sold home without using a real estate agent or broker First listed with an agent, but then sold home themselves Sold home to a homebuying company Other Massachusetts 88% 85 3 11 11 --1 U.S. 85% 81 4 13 11 1 1 2 Northeast 83% 79 4 14 14 * * 2 Midwest 87% 82 6 11 8 2 1 1 South 80% 76 3 17 15 2 1 2 West 92% 89 3 7 6 1 * 1 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 1 of 1 Exhibit 6-19 METHOD USED TO SELL HOME (Percentage Distribution) MASSACHUSETTS Sold home using an agent or broker For-sale-by-owner (FSBO) Sold it to a home buying company Other 2004 90% 8 -2 2005 88% 11 -1 U.S. Sold home using an agent or broker For-sale-by-owner (FSBO) Sold to home buying company Other 1991 77% 19 4 * 1993 82% 17 1 * 1995 81% 15 2 2 1997 80% 18 1 1 1999 77% 16 2 5 2001 79% 13 1 7 2003 83% 14 1 3 2004 82% 14 1 3 2005 85% 13 1 2 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 19 of 23 Exhibit 6-20 SALES PRICE COMPARED WITH LIST PRICE (Sales price as a percent of list price) Less than 90% 90% to 94% 95% to 99% 100% 101% to 110% More than 110% Median (sales price as a percent of listing price) Massachusetts 11% 14 44 23 8 1 U.S. 5% 11 39 30 12 3 Northeast 6% 14 34 33 10 2 Midwest 6% 14 46 24 9 1 South 4% 11 42 29 10 4 West 4% 7 29 35 20 5 98% 99% 99% 98% 99% 100% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 20 of 23 Exhibit 6-21 NUMBER OF WEEKS RECENTLY SOLD HOME WAS ON THE MARKET (Percentage Distribution) Less than 1 week 1 to 2 weeks 3 to 4 weeks 5 to 6 weeks 7 to 8 weeks 9 to 10 weeks 11 to 16 weeks 17 or more weeks Median weeks Massachusetts 5% 29 11 6 7 4 15 22 6 U.S. 9% 28 13 7 8 4 14 17 4 Northeast 9% 32 15 5 7 4 15 13 4 Midwest 9% 21 11 4 7 5 16 26 8 South 8% 30 12 9 8 4 13 15 4 West 12% 29 16 5 7 4 14 14 4 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 21 of 23 Exhibit 6-22 SATISFACTION WITH THE SELLING PROCESS (Percentage Distribution) MASSACHUSETTS Very Satisfied All Sellers Sold using real estate agent/broker Tried myself but, used agent later Sold without agent/broker First listed with agent, then sold myself Other 65% 62 60 93 0 100 Somewhat Satisfied 23% 25 20 7 --Somewhat Dissatisfied 9% 9 20 ---Very Dissatisfied 3% 3 ----- Satisfaction with Selling Process (Percentage Distribution) MASSACHUSETTS Somewhat Dissatisfied, 9% Very Dissatisfied, 3% Very Satisfied, 65% Somewhat Satisfied, 23% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 22 of 23 Exhibit 6-22 SATISFACTION WITH THE SELLING PROCESS (Percentage Distribution) U.S. Very Satisfied All Sellers Sold using real estate agent/broker Tried myself but, used agent later Sold without agent/broker First listed with agent, then sold myself Other 65% 65 33 80 45 53 Somewhat Satisfied 23% 23 34 16 45 18 Somewhat Dissatisfied 7% 7 18 2 7 7 Very Dissatisfied 6% 5 16 3 2 22 Satisfaction with Selling Process (Percentage Distribution) U.S. Somewhat Dissatisfied, 7% Very Dissatisfied, 6% Very Satisfied, 65% Somewhat Satisfied, 23% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 6, Page 23 of 23 Exhibit 7-1 NUMBER OF AGENTS CONTACTED BEFORE SELECTING ONE TO ASSIST WITH SALE OF HOME Percentage Distribution) MASSACHUSETTS One Two Three Four Five or more 74% 16 8 2 -- NUMBER OF AGENTS CONTACTED BEFORE SELECTING ONE TO ASSIST WITH SALE OF HOME (Percentage Distribution) 80% 70% 60% 50% 40% 30% 20% 10% 0% One Two Three Four Five or more 74% MASSACHUSETTS 16 8 2 0 U.S. One Two Three Four Five or more 74% 17 7 2 1 NUMBER OF AGENTS CONTACTED BEFORE SELECTING ONE TO ASSIST WITH SALE OF HOME (Percentage Distribution) 80% 70% 60% 50% 40% 30% 20% 10% 0% One Two Three Four Five or more 74% U.S 17 7 2 1 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 1 of 10 Exhibit 7-2 METHOD USED TO FIND REAL ESTATE AGENT, ALL SELLERS (Percentage Distribution) MASSACHUSETTS Referred by (or is) a friend, neighbor or relative Used agent previously to buy or sell a home Visited open house and met agent Personal contact by agent (telephone, etc.) Saw contact information on For Sale sign Newspaper/Yellow pages/home book ad Walked into/called office and agent was on duty Direct mail (newsletter, flyer, letter, postcard) Referred through my employer/relocation company Internet site Referred by another real estate broker Advertising specialty (calendar, magnet, etc.) 38% 31 9 3 4 3 2 1 3 1 6 -- U.S. Referred by (or is) a friend, neighbor or relative Used agent previously to buy or sell a home Personal contact by agent (telephone, etc.) Visited open house and met agent Saw contact information on For Sale sign Referred by another real estate broker Referred through my employer/relocation company Direct mail (newsletter, flyer, letter, postcard) Walked into/called office and agent was on duty Internet site Newspaper/Yellow pages/home book ad Advertising specialty (calendar, magnet, etc.) 43% 28 5 4 4 3 3 3 2 2 2 1 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 2 of 10 Exhibit 7.03 DID SELLER USE THE SAME REAL ESTATE AGENT FOR THEIR HOME PURCHASE (Percentage Distribution among those who Used an Agent to Purchase a Home) MASSACHUSETTS Yes No 56% 44% DID SELLER USE THE SAME AGENT FOR THEIR HOME PURCHASE? (Percentage Distribution among those who Used an Agent to Purchase a Home) MASSACHUSETTS No, 44% Yes, 56% U.S. Yes No 53% 47% DID SELLER USE THE SAME AGENT FOR THEIR HOME PURCHASE? (Percentage Distribution among those who Used an Agent to Purchase a Home) U.S No, 47% Yes, 53% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 3 of 10 Exhibit 7-04 MOST IMPORTANT FACTOR IN CHOOSING A REAL ESTATE AGENT TO SELL HOME (Percentage Distribution) MASSACHUSETTS Reputation of real estate agent Agent’s knowledge of the neighborhood Agent’s association with a particular firm Professional designation(s) held by real estate agent Other 60% 20% 5% 3% 13% U.S. 57% 17% 6% 3% 17% MOST IMPORTANT FACTOR IN CHOOSING A REAL ESTATE AGENT TO SELL HOME (Percentage Distribution) Professional designation(s) held by real estate agent, 3% MASSACHUSETTS Other, 13% Reputation of real estate agent, 60% Agent’s association with a particular firm, 5% Agent’s knowledge of the neighborhood, 20% MOST IMPORTANT FACTOR IN CHOOSING A REAL ESTATE AGENT TO SELL HOME (Percentage Distribution) U.S. Professional designation(s) held by real estate agent, 3% Other, 17% Reputation of real estate agent, 57% Agent’s association with a particular firm, 6% Agent’s knowledge of the neighborhood, 17% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 1 of 2 Exhibit 7-5 WHAT SELLERS MOST WANT FROM REAL ESTATE PROFESSIONALS (Percentage Distribution) MASSACHUSETTS Help find a buyer for my home Help me to price it competitively Help me to sell the house within my time frame Tell me how to fix up my home to help sell it for more Help me with negotiation and dealing with buyers Help with paperwork/inspections/preparing for settlement Help me see homes available for me to purchase Other 34% 22 24 7 6 2 2 2 U.S. Help find a buyer for my home Help me to sell the house within my time frame Help me to price it competitively Tell me how to fix up my home to help sell it for more Help with paperwork/inspections/preparing for settlement Help me with negotiation and dealing with buyers Help me see homes available for me to purchase Other 28% 27 17 12 7 5 3 1 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 6 of 10 Exhibit 7-6 METHODS REAL ESTATE AGENT USED TO SELL HOME (Percent of Respondents who used a Real Estate Agent to Sell) Listing on the Internet Yard sign Open house Newspaper advertisement Real estate magazine Direct mail (flyers, postcards, etc.) Television Other Massachusetts U.S. 83% 84% 73 79 76 57 76 50 32 33 16 20 2 5 10 10 Northeast 87% 66 61 59 32 12 5 9 Midwest 88% 82 67 58 32 18 10 8 South 83% 82 50 46 38 21 5 11 West 81% 79 57 43 27 25 3 11 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 7 of 10 Exhibit 7-07 HOME LISTED ON MULTIPLE LISTING SERVICE (Percentage Distribution) MASSACHUSETTS HOME LISTED ON MULTIPLE LISTING SERVICE Yes No Don't know 89% 5% 6% No, 5% (Percentage Distribution) MASSACHUSETTS Don't know, 6% Yes, 89% U.S. HOME LISTED ON MULTIPLE LISTING SERVICE Yes No Don't know 89% 6% 5% No, 6% (Percentage Distribution) U.S Don't know, 5% Yes, 89% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 8 of 10 Exhibit 7-8 HOW REAL ESTATE AGENT WAS COMPENSATED (Percentage Distribution) MASSACHUSETTS Paid by seller Percent of sales price Flat fee Per task fee Other Don't Know Paid by buyer and seller Paid by buyer only Other Don't Know 87% 83 3 -1 -6 2 5 -- U.S. Paid by seller Percent of sales price Flat fee Per task fee Other Don't Know Paid by buyer and seller Paid by buyer only Other Don't Know 79% 75 4 * * 1 9 5 5 2 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 9 of 10 Exhibit 7-9 WOULD SELLER USE REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS? (Percentage Distribution) MASSACHUSETTS Definitely Probably Probably Not Definitely Not Don't Know/ Not Sure 65% 17% 9% 8% 2% WOULD SELLER USE REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS? (Percentage Distribution) 70% 60% 50% 40% 30% 20% 10% 0% Definitely Probably Probably Not Definitely Not Don't Know/ Not Sure 65% MASSACHUSETTS 17% 9% 8% 2% U.S. Definitely Probably Probably Not Definitely Not Don't Know/ Not Sure 63% 19% 8% 8% 2% WOULD SELLER USE REAL ESTATE AGENT AGAIN OR RECOMMEND TO OTHERS? (Percentage Distribution) 70% 60% 50% 40% 30% 20% 10% 0% Definitely Probably Probably Not Definitely Not Don't Know/ Not Sure U.S. 63% 19% 8% 8% 2% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 7, Page 10 of 10 Exhibit 8-1 CHARACTERISTICS OF FSBO VS. AGENT-ASSISTED SELLERS (Median) MASSACHUSETTS Median age Median income FSBO 48 $115,000 Agent-assisted 44 $95,800 U.S. Median age Median income FSBO 48 $84,400 Agent-assisted 46 $86,600 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 1 of 10 Exhibit 8-2 TYPE OF PREVIOUS HOME, FSBO VS AGENT-ASSISTED SALE (Percentage Distribution) MASSACHUSETTS Detached single-family home Townhouse or row house Duplex/Apartment/Condo in 2-4 family structure Apartment/Condo in a building with 5 or more units Mobile/manufactured home Other FSBO 50% 13 25 6 6 -- Agent-assisted 70% 8 10 9 -4 U.S. Detached single-family home Townhouse or row house Duplex/Apartment/Condo in 2-4 family structure Apartment/Condo in a building with 5 or more units Mobile/manufactured home Other FSBO 76% 7 3 4 7 3 Agent-assisted 80% 9 2 6 1 3 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 2 of 10 Exhibit 8-3 LOCATION OF PREVIOUS HOME, FSBO VS AGENT-ASSISTED SALE (Percentage Distribution) MASSACHUSETTS Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area FSBO 38% 13 31 6 13 Agent-assisted 39% 26 22 10 4 U.S. Suburb/Subdivision Small town Urban/Central city Rural area Resort/Recreation area FSBO 57% 15 15 9 5 Agent-assisted 57% 15 17 9 2 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 3 of 10 Exhibit 8-4 SELLING PRICE COMPARISON MASSACHUSETTS Median selling price of previous home FSBO $347,500 Agent-assisted $369,900 U.S. Median selling price of previous home FSBO $198,200 Agent-assisted $230,000 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 4 of 10 Exhibit 8-5 MOST IMPORTANT REASON FOR SELLING HOME AS FSBO (Percentage Distribution) MASSACHUSETTS Did not want to pay commission fee Did not want to deal with an agent Sold it to a relative/friend/neighbor Buyers contacted me directly Agent was unable to sell home Other 57% -21 14 --- U.S. Did not want to pay commission fee Sold it to a relative/friend/neighbor Did not want to deal with an agent Buyers contacted me directly Agent was unable to sell home Have own real estate license Other 53% 22 8 9 3 2 3 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 5 of 10 Exhibit 8-6 RELATIONSHIP BETWEEN SELLER AND BUYER PRIOR TO THE TRANSACTION (Percentage Distribution) MASSACHUSETTS Seller knew buyer Sold it using a licensed real estate agent or broker Seller first tried to sell it themselves, but then used an agent Sold it without ever using a real estate agent or broker Seller first listed with an agent, but then sold it themselves Other * Less than one percent 3% -25 -50 Seller did not know buyer 97% 100 75 -50 U.S. Seller knew buyer Sold it using a licensed real estate agent or broker Seller first tried to sell it themselves, but then used an agent Sold it without ever using a real estate agent or broker Seller first listed with an agent, but then sold it themselves Other 3% 9 39 26 27 Seller did not know buyer 97% 91 61 74 73 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 6 of 10 Exhibit 8-7 METHOD USED BY FSBO SELLERS TO MARKET HOME (Percent of Respondents) MASSACHUSETTS Yard sign Newspaper advertisement Open house Friends/neighbors/relatives Listing on the Internet Direct mail (flyers, postcards, etc.) For-Sale-By-Owner magazine Other 54% 54 46 38 46 --8 U.S. Yard sign Friends/neighbors/relatives Newspaper advertisement Open house Internet Direct mail (flyers, postcards, etc.) For-Sale-By-Owner magazine Other 61% 46 37 29 17 3 4 12 The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 7 of 10 Exhibit 8-8 MOST DIFFICULT TASK FOR FSBO SELLERS (Percent of Respondents) MASSACHUSETTS Preparing/fixing up home for sale Understanding and completing paperwork Getting the price right Having enough time to devote to all aspects of the sale Attracting potential buyers Helping buyer obtain financing Selling within the length of time planned Other 21% 29 -7 --7 36 U.S. Understanding and completing paperwork Preparing/fixing up home for sale Getting the price right Selling within the time planned Attracting potential buyers Having enough time to devote to all aspects of the sale Helping buyer obtain financing Other 17% 16 14 13 9 8 3 20 * Less than one percent The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 8 of 10 Exhibit 8-9 THE BUYER OF FSBO HOME ASSISTED BY A REAL ESTATE AGENT (Percentage of Distribution) MASSACHUSETTS Yes No Don't know 14% 86% -- THE BUYER OF FSBO HOME ASSISTED BY A REAL ESTATE AGENT (Percentage Distribution) MASSACHUSETTS Yes, 14% No, 86% U.S. Yes No Don't know 19% 77% 3% THE BUYER OF FSBO HOME ASSISTED BY A REAL ESTATE AGENT (Percentage Distribution) U.S Don't know, 3% Yes, 19% No, 77% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 9 of 10 Exhibit 8-10 HOW FSBO SELLERS WILL SELL THEIR CURRENT HOME (Percentage of Distribution) MASSACHUSETTS Sell Themselves 53% Use a Real Estate 13% Agent Don't Know/ Not 33% Sure HOW FSBO SELLERS WILL SELL THEIR CURRENT HOME (Percentage Distribution) MASSACHUSETTS Don't Know/ Not Sure, 33% Sell Themselves, 53% Use a Real Estate Agent, 13% U.S. Sell Themselves 53% Use a Real Estate 14% Agent Don't Know/ Not 34% Sure HOW FSBO SELLERS WILL SELL THEIR CURRENT HOME (Percentage Distribution) U.S. Don't Know/ Not Sure, 34% Sell Themselves, 53% Use a Real Estate Agent, 14% The 2005 National Association of Realtors® Profile of Home Buyers and Sellers Chapter 8, Page 10 of 10