Knoxville Real Estate Insider - Generational Trends

Issue #002

15 Jun

In this Knoxville Insider Issue…

🌤️ Real Estate Edition - Generational Trends in Home Buying and Selling

❔ Answers to Reader-Submitted Real Estate Questions
 

Generational Trends in Home Buying and Selling

This year, the share of Generation Z buyers and sellers aged 18 to 24 made up just 3% of buyers and 2% of sellers. Like young millennials, they purchase older homes more often than other buyers.

Millennial buyers aged 25 to 33 years (younger millennials) and buyers aged 34 to 43 years (older millennials) make up the largest share of home buyers at 38%; older millennials at 21%, and younger millennials at 17% of the share of home buyers. Convenience to their job and commuting costs were both more important to buyers in this group.

Buyers aged 44 to 58 (Generation X) made up 4% of recent home buyers. This group remains one of the highest-earning home buyers, with a median income of $126,900 in 2023. With this extra income, buyers aged 44 to 58 purchased the second-largest homes at a median of 1,940 square feet.

For the report, buyers aged 59 to 68 (younger baby boomers) and buyers aged 69 to 77 (older baby boomers) were broken into two separate categories as they have differing demographics and buying behaviors. Buyers aged 59 to 68 made up 19% of recent buyers and buyers aged 69 to 77 represented 12% of recent buyers. Baby boomers purchased for an array of reasons: primarily, the desire to be closer to friends and family due to retirement, and the desire for a smaller home.

Buyers aged 78 to 98 (the Silent Generation) represented one of the smallest shares of buyers at just 4%. They typically purchase to be closer to friends and family.

Real Estate Q & A

Thank you to our readers for submitting the questions below!

Question 1: How can I research an individual realtor’s sales for the past year? I want to choose a realtor who is strong in my area based on sales of that realtors’ listings AND sales as a buyer’s agent. (submitted by Carol)

Zillow is probably the easiest way to research a REALTOR. You can use the link below to look up any agent using the area/city and their name. When their profile pops up, you can see how many sales they have had in the past 12 months, any reviews and total sales (with links to the homes they have listed). All this information (except for the reviews) is from the agent’s local MLS.

I would advise you to research and ask lots of questions when you interview your potential REALTOR. Occasionally, a successful REALTOR has a team, and you may not deal directly with that agent. Always ask the agent that you interview if they will be the one working with you. Many times, another team member will do the “groundwork” and walk you through the process and the “known” agent will mentor your agent. Don’t be confused, this isn’t a bad deal as you have a seasoned agent on your team advising your representative, but just know your point of contact will be the team member and not the big name.

Question 2: We are new to Tennessee. Does a buyer pay a realtor commission in addition to the seller in Tennessee? (submitted by Raylene)

When a list agent and seller negotiate their listing agreement, they agree to a total commission percentage. A portion of that total commission can be paid to the buyer’s agent if the seller chooses to pay a buyer agent commission. This commission break down is written into and agreed upon in the sellers Exclusive Right to Sell which is signed by the sellers and list agent. Sellers decide if they are willing to pay a Buyer Agent commission. If sellers choose not to offer a Buyer Agent commission, the buyer agent will refer to the Buyer’s Representative Agreement (which would have been negotiated/signed between buyers and their agent prior to showing properties), and the buyer would ONLY pay the buyer agent’s commission.

This Real Estate Edition Issue brought to you by Barbara Newton

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