The thought of buying a home may conjure up feelings of stress, excitement, and chaos. Finding the right property is the biggest obstacle for 53% of buyers. Understanding facts about real estate could help you make better investment decisions. 

The real estate industry isn’t all doom and gloom. There are plenty of interesting real estate facts that may surprise you. Did you know that open houses used to last 12 hours?

It can be useful to brush up on real estate trends if you are buying or selling a home. Here are 15 real estate fun facts that are fascinating and practical to know. 

1. The Demand for Second Homes Has Grown by 99%

Buying a second and third home is becoming a popular choice for home buyers. Since 2015, the demand for second homes has grown by 99%. The estimated total of second homes in America is 7.5 million, which accounts for 5.5% of the total housing stock. 

The state with the largest stock of second homes was Florida with 1.1 million properties. South Dakota has the smallest stock of all 50 states with 20,000 second homes on record. 

2. 1 in 10 Americans Sell Their Home Due to Paranormal Activity

Many people stated that they thought their house was haunted before they bought it. Don’t worry if you don’t have a gift for the supernatural. State disclosure laws may require that agents disclose spirit residents and hauntings to potential buyers. 

A survey conducted by Cinch Home Services revealed that 1 in 10 Americans have sold their home due to a paranormal experience. Half of these encounters occurred in homes with two floors. Many Americans will contact a religious figure to deal with their spooky residents before deciding to sell up and move on. 

3. 50% of Millennial Investors Choose to Invest in Real Estate

Millennial investors are choosing real estate over the stock market. 85% of millennials agree that real estate is a good investment. Owning bricks and mortar is a more appealing and stable asset compared to stock market shares. 

Millennials are saving 10% of their income, which is more than double what Baby Boomers would have saved. The younger generation is less focused on buying their first home, which means they spend more time saving up for a deposit. Although millennials are becoming more interested in real estate, Baby Boomers are the generation with the most real estate wealth.

4. The Average House Price in America Is $428,700

The average house price in the US has increased each year for the last four years. The median house price increased by 416% between 1980 and 2020 to $428,700. House prices and income vary from state to state, but the average monthly mortgage payment is $1,230 per month for a 30-year, fixed-rate loan.

Hawaii is the most expensive state to purchase a home with an average house price of $1,038,544.

5. Over 17 Million Americans Spend Half Their Income on Rent

The Joint Center for Housing Studies of Harvard University released a report that showed that 1 in 4 renters spend 50% of their income on housing. Many of these people will be looking at buying a home to reduce their monthly outgoings.

Fannie Mae recently announced that renters who pay on time will increase their chances of qualifying for a mortgage in the future. 

6. 34% of Buyers Were First-Time Homeowners in 2021

The National Association of Realtors (NAR) showed that the typical age of a first-time buyer was 33 years old. When asked, their main reason for buying a house was to own their home. For most people, buying a home is the biggest financial decision they will ever make.

A first-time buyer is not always someone who is buying their first home. Many prospective buyers are single parents who previously owned property with their ex-spouse. A person who has not owned a personal residence in the last three years is also classified as a first-time buyer.

7. 44% of Millennials Would Buy a Home Based On Listing Photos

Millennials are more comfortable than older generations when ordering items online. With their finger on the pulse of digital society, Millennials turn to celebrities and influencers to help them make decisions on everything from real estate to furniture.

Buying a house online is a socially distanced and acceptable way to purchase a property in 2022.

Millennials are also buying houses through Facebook and Instagram while applying for their mortgages online. Buying a house through a real estate agent can be less convenient than conducting property searches online at any time of day.

8. The US Housing Market is Worth $33.6 Trillion

The US housing market is now worth more than the GDP of the two largest global economies (the US and China). The total value of every home in America is now estimated to be worth $33.6 trillion. California makes up 21.2% of the nation’s housing value with $7.1 trillion worth of homes. 

Los Angeles has added more than a trillion dollars to its housing market since 2010. 

9. Staged Homes Sell 3 Times Faster 

Staging your home before selling it is a worthwhile expense. 85% of real estate agents report that staged homes sell three times faster than non-staged properties. Make sure that you showcase each room by clearing the space and increasing natural light. 

Buyers are looking for a property that is fresh and well-maintained. Spending time on your home’s exterior can also increase the property value.

Spraying existing doors and window frames could save you a fortune and add up to $10,000 to your home’s value. Ask your realtor what you can do for your property to add value before it goes on the market.

10. Gen X and Millennials Want Large Yards

Most millennials realize that their first house may not be their forever home. However, outdoor space is at the top of their priority list. More than two-thirds of millennials and Gen Xers want access to a large yard or outdoor space. 

A community survey by the National Association of Realtors (NAR) revealed that millennials want a larger home within a walkable community. 

11. 67% of Buyers Want a Detached Home

The majority of home buyers do not want neighbors. A report by the National Association of Home Builders revealed that 67% of buyers are interested in a single-family, detached home. 15% of buyers would like a townhouse and 8% want to buy a multi-family condo.

Detached homes offer privacy and the possibility of extending without upsetting neighbors. A detached house also has more curb appeal, which can be handy if you plan on moving again in the future. 

12. Buyers Will Pay More for Smart Home Devices

78% of home buyers said they would pay more for a home with smart devices installed. Smart home technology makes a house more convenient while saving time and money. Women are also twice as like to desire home security systems as men.

Multi-functional smart hubs are the most popular devices with video doorbells and smart lighting following closely behind. 

13. The Average Home Purchase Takes 51 Days

According to ICE Mortgage Technology, it takes an average of 51 days to close a loan on a home purchase. Getting pre-approved for your mortgage can shorten this time and improve your chances of a better mortgage rate.

Keeping a close eye on your finances and preparing documents can also save time and speed up the home buying process.

14. 42% of Buyers Believe Real Estate is a Better Investment Than Stocks

Although the return is not as good as the stock market, real estate is a lower-risk investment for many Americans.

A survey conducted by the NAR revealed that 42% of home buyers feel more comfortable investing their money in real estate over shares in the stock market. Stocks can be more volatile than real estate making them the less preferable choice for investors. 

15. 1 in 5 Realtors Live in California

There are approximately 1,564,537 realtors in the USA as of October 2021. California is home to more realtors than any other state in the US.

With interest rates at an all-time low, the housing market in California is booming. California is a popular location for home buyers who want a slice of the beachfront lifestyle at an affordable price.

Buying a home in California has so many perks for prospective buyers, too. The Bakersfield real estate market is a popular place to find affordable housing in California. Bakersfield is known for its agriculture and energy production with beautiful, warm summers.

Find More Helpful Facts About Real Estate

Fine-tuning your real estate knowledge can be beneficial if you are selling your home. These useful facts about real estate can help you discover what people are looking for when buying a home. If you are thinking of selling your home, getting a price estimation online could be an easy first step.

Do you want to sell your home without the hassle? A trusted iBuyer could make an instant offer for your home in minutes with no obligation. Get in touch with iBuyer to get an instant and accurate estimate for your home.

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It takes an average of 22 days for a house to sell, but various factors can affect that time. For example, a real estate open house has a lot to do with the time it takes to sell a home. It may also affect the price of the property, among other things. 

But how do open houses work? Why would you bother to have an open house in the first place and is it worth it? How can you know if an open house is the right option for you?

Keep reading and learn more about open houses and why some people have them while some don’t. 

What You Need to Know About Open Houses

How does an open house work, you might ask? Having an open house isn’t all that different from selling your house in an ordinary fashion. The main difference is that an open house involves potential buyers visiting the house in person. 

This differs from ordinary home listings because most ordinary listings allow potential buyers to only view the house through photos or videos online. However, an open house allows for a variety of people to walk through the listed house at a specific time. In most cases, the home seller does not set up the open house. 

Rather, the seller’s real estate agent is in charge of the open house and making sure that everything is set up. There are many open house tips to follow, but the most important is making sure that the house looks great before any potential buyers arrive.

Of course, the house will only be able to look a certain way because the home seller will still likely be living in the house at the time. 

While a real estate agent usually takes care of setting up an open house, the home seller may also be in charge of this duty. This usually happens in the case of selling a home by the owner. You can also do this when working with a service that will help you sell your home.

The Details

Whatever the case, the point is to allow potential homebuyers into the house so they can see whether they might like the house to live in. Open houses are not as popular as they used to be. They used to be more popular during the economic depression of 2008. 

This is because open houses can help a house sell particularly fast, especially if you have many different people visiting your home. Open houses still happen today, of course, but they are less common. Even so, they still offer many important benefits to both the potential buyers and the seller of the home involved. 

But how does an open house work and what should you expect when you have one? After all, you will still likely be living in your home when you have an open house, so what should you do to make sure that your house is prepared?

How Does a Real Estate Open House Work?

If you read any open house guide, you will find that the first step of any open house is to set up a time for potential buyers to visit. Your real estate agent will help you set up the best time, but if you don’t have one, you can set up the time yourself or work with a home selling service to help you. You will need to think of what day to hold the open house. 

Weekends are by far the most popular time for open houses. This is because you will receive more potential buyers due to the fact that work schedules will not get in the way of people visiting your house. Setting up the time is also important. 

Mid-day is a very good time to have an open house. By that time, most people are available to travel to see a house for sale. This is in contrast to the mornings or evenings when people may have other plans.

Of course, you can always experiment with different days and times to have open houses. You may even decide to have several open houses. If you really want to sell your house as fast as possible, several open houses may be a good idea. 

After all, it will give a variety of people a chance to see your house and decide whether they like it. This is because seeing a home in person is very important. Seeing a home through pictures and videos may make it seem very nice, but some potential buyers may not like what they see once they visit in person (or they may like what they see very much).

What You Need to Know

After deciding on a time and day for your open house, you will need to make sure you advertise your open house. If you don’t make it known to a large group of people that you’re having an open house, then you shouldn’t be surprised when no one shows up. For example, online advertisements are very popular and effective for open houses. 

Most people use the internet, so people interested in buying a house will surely come across these online ads for your open house. Besides relying on online ads alone, advertising the open house on social media is also a very good idea. After all, there are millions of people who use social media on a regular basis. 

While you won’t have millions of people visiting your house, social media can certainly make sure you have a decent group of people coming to view your home for sale. In some cases, flyers may also be useful. Placing them in areas around your neighborhood may pique the interest of those in the local area. 

However, physical advertisements won’t be able to get much farther than your local area, so keep that in mind if you plan on using flyers or other physical advertisements. 

How to Prepare for an Open House

As mentioned before, advertising and setting up a time to have the open house are both very important options for preparing for the open house. However, they are not the only options. After all, you will need to make sure that your house looks as nice as possible when people come to visit. 

If your house looks dirty or cluttered, it will not be very appealing to those coming to the open house. Of course, while your furniture will not come with the house, it can be difficult for potential buyers to visualize what the house might look like when it is stuffed with furniture and other objects.

For that reason, when you prepare your home, you will want to make sure that it is as sleek and streamlined as possible. 

Since you are preparing to sell your house and move, decluttering before you have the open house is a great idea. That way, you can get rid of whatever you don’t need and whatever you don’t want to take with you when you move out. Doing this will free up the house’s floor space and make it look much more open and attractive to those who come to visit. 

You should also make sure that the house is clean. If you find that there are stains on the walls or floors, you should have those cleaned before throwing an open house. After all, if the majority of your house is in good shape but there are large stains or spots of dirt, the attractiveness of your property will plummet. 

More Preparation

Few people want to deal with stubborn stains and other aspects that might be hard to fix. But if you fix these problems beforehand, there shouldn’t be much for your potential buyers to worry about. Adding a few extra details for the buyers, in particular, can also be very helpful.

For example, setting out a tray of snacks or drinks can make potential buyers feel much more welcome in the home. It will also give them a better first impression and they may be more likely to buy the property if they already feel welcome in the house. Saying hello to potential buyers is also important. 

If you have a real estate agent, the agent will likely do this for you. However, if you’re doing an open house on your own or with a property service, then you may have to do the greeting yourself. Again, the goal is to make sure that the buyers feel as welcome as possible. 

If the buyers get a bad first impression of your home for whatever reason, you will find that it will be very difficult to sell your home.

You should also be prepared to answer any questions from potential buyers.

They may have questions about the age or condition of the house, the structure, and so on, so you should have your answers prepared so you can be as helpful as possible. 

The Benefits of Having an Open House

You might be wondering why you should bother to have an open house when you sell a home in the first place. After all, an open house requires more work on your part since you need to make your home look as presentable as possible for potential buyers. As it turns out, there are many benefits of having an open house.

The main benefit is that your home will sell much faster when you have an open house. This only makes sense because more people will have the chance to see your house in person and decide whether the house feels like a good fit. It is much harder for buyers to determine whether they like a house through pictures or videos alone. 

Having an open house is also a great way to increase the visibility of the house, especially when you first put it up for sale. With that initial boost of visibility, there is also an increased chance that the property will sell faster. It will also make it easier for potential buyers to make a decision. 

What to Know

After all, an open house not only involves the potential buyer viewing the property itself but also gives the buyer a chance to look at the neighborhood and surroundings as well.

If your house is in a good neighborhood, you may have an even better chance of selling your house in a short period of time. An open house will also give your house the opportunity to show off certain features it may have. 

For example, your house may have a new roof or a pool, or something else that might be attractive to potential homebuyers. Of course, an open house will also allow potential buyers to see certain defects your home may have. Of course, this is in the nature of an open house. 

However, your house should preferably have more benefits than defects to attract potential buyers. 

All About Open Houses

A real estate open house is not anything complicated. It involves allowing potential buyers into your house at a specific time so they can walk through the house and decide whether or not they would like to consider buying it. An open house is beneficial for several reasons such as increasing your home’s visibility and even shortening the time it’s on the market. 

If you want to sell your home, an open house may be the answer. However, you can sell it even faster with a service like iBuyer.com. To learn more about the process, create an account by submitting your address here.

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