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2009-04-09 20:46:19

One Out of Every Five Buyers is a WHAT?

 

Can you believe it? One out of every 5 buyers in today's market is an investor!!! 

This was again confirmed by the National Association of REALTORS in their latest annual study on second homes and investment purchases. They found that purchases for investment purposes accounted for more than one out of five home sales in 2008. Second homes and vacation property purchases dropped last year to 9 percent of the total market, down from 14 percent in 2006.
 
Here are some other interesting findings: 
  • 66% of what investors purchased last year was detached single family units, 22% were condos or duplexes, and only 8% of purchases were multi-units, attached townhouses, or rowhouses. (investors buy mostly single family homes, not strip malls and commercial property)

  • 54% percent of all investment properties are located within 20 miles of the investor's primary residence, and roughly two out of three were within 50 miles. (more reason why you should market to absentee owners in your area)

  • 42% of investors paid all cash for their purchases, versus 15 % for buyers of primary residences, and 31% for buyers of vacation homes. (These folks have money, financing is not an issue)

Investors are not wealthier than other buyers. Second and vacation home buyers had higher median household incomes ($97,000) compared to real estate investors ($85,000). (Joe the hard-working plumber is your target customer, not Joe the millionaire)

You have what it takes to work with real estate investors, so get up and market to them!
 
 
TReXGlobal.com  is the maker of free property management software and tax-saving web tools for real estate investors. TRexGlobal is a RealTown Approved Vendor that participates in the Seal of Approval program. Check out their FREE investor tools.
 
 

 

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