Survey on Decision Criteria of Buyers of Residential Buildings

1. Survey on Decision Criteria of Buyers of Residential Buildings 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 1

2. About the survey • Aim: • Which factors were important for the buying decision of a property? • Are there any differences in these factors depending on the household type or the educational background of the purchaser or the size of the district where the property was bought? • A questionnaire was sent to all purchasers of single family houses or two family houses in mainly rural areas of Hesse, Germany • November 2012 until April 2013 • At the moment about 2200 questionnaires are evaluated 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 2

3. Questions in the Questionnaire Use of property: own use and/or rent Age of people who are going to live in the house Highest educational achievement in the household Administrative district of the property Size of the district Information that the purchasers had when they bought the property Important factors for the decision to buy that property Inspection of the property before the purchase Number of properties that were inspected before property was bought Negotiation of the purchase price 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 3

4. Results: Own Use / Renting Not specified (1 %) Own useandrenting (4 %) Renting (19 %) Own useonly (75 %) Based on: 2199 questionnaires 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 4

5. TypesofHouseholds (1/3) • Families with growing children (two persons between 19 and 65 years and at least one person under 19 years) • Families with grown-up children (two persons between 31 and 65 years and at least one person between 19 and 30 years) • Young couple without children (two persons between 19 and 51 years) • Older couples without children (two persons between 51 and 60 / one person between 31 and 50 years and one between 51 and 60 years) • (prospective) senior citizen households (two persons above 65 years / one above 65 years and one between 51 and 65 years) 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 5

6. TypesofHouseholds (2/3) • Single parents with growing children (one person between 19 and 65 years and at least one person under 19 years) • Household with more than two generations (at least one person under 19 years, at least one person between 19 and 65 years and at least one person who is older than 65 years) • Young single person household (one person between 19 and 30 years) • Older single person household (one person between 31 and 65 years) • Single senior citizen household (one person who is older than 65 years) 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Prof. Dr.-Ing. H. J. Linke / Dr.-Ing, T. Köhler | 6

7. TypesofHouseholds (3/3) Single seniorcitizenhouseholds: <1 % Oldersingleperson households: 7 % Not assignable: 7 % Young singlepersonhouseholds: 1 % Familieswithgrowing children: 37 % Householdwithmorethan twogenerations: 5 % Single parentswith growingchildren: 2 % (Prospective) seniorcitizen households: 3 % Eldercoupleswithout children: 8 % Familieswithgrown-up children: 6 % Young coupleswithoutchildren: 24 % Based on 1647 questionnaires 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Prof. Dr.-Ing. H. J. Linke / Dr.-Ing, T. Köhler | 7

8. Educational Background Hauptschulabschluss (Certificateofsecondary education): 6% Not specified: 4 % Other educational background: 6% Realschulabschluss (secondaryschool certificate): 23 % Completed studies: 37 % Abitur (qualificationforuniversityenterance): 23 % Based on 1647 questionnaires 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 8

9. Size ofDistrict Numberofinhabitants 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 9

10. Factors on Buying Decision (for properties that are used by the owner) 5. Proximity to the workplace 6. Quiet location 7. Proximity to areas of recreation 8. Own garden 9. Proximity to friends and relatives 10. Social milieu of the surrounding 11. Broadband 12. Energetic condition of the building 13. Small requirement of reconstruction 14. Living area, number of rooms 15. Emotional reference 1. Height of the purchase price 2. Connection to busses and trains 3. Proximity to kindergarten and schools 4. Proximity to shops 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 10

11. Comparison to the Forsa-Study 2011 of Allianz Deutschland AG 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Prof. Dr.-Ing. H. J. Linke / Dr.-Ing, T. Köhler | 11

12. Conclusion • Especially important for the buying decision are • The height of the purchase price • A quiet location • A garden for his/her own • A good social milieu of the surrounding • The living area and the number of rooms • Also important are • The proximity of kindergarten and schools • Proximity to shops • Proximity to friends and relatives • Small requirements of reconstructions • Differences between this study and the Forsa-Study might depend on: • Forsa asked people who planed to buy, this study asked people who actually bought: preferences might change during this period of time • This survey interviewed people mainly in rural areas, the survey of Forsa asked people in all regions 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Prof. Dr.-Ing. H. J. Linke / Dr.-Ing, T. Köhler | 12

13. Factors on Buying Decision and Educational Background 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 13

14. Factors on Buying Decision and Size of District 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 14

15. Factors on Buying Decision and Type of Household (1/2) 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 15

16. Factors on Buying Decision and Type of Household (2/2) 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Dipl.-Ing. Marisa Röder-Sorge | 16

17. Conclusion • Factors differ between the different types of households, the educational background and the size of the district where the property was bought • So far, assumptions that you would make instinctively have proven to be true: • Families with growing children tend to buy houses with a garden, attach value to a good social milieu of the surrounding and want to have kindergartens and schools nearby. • (Prospective) senior citizen households attach more value than the other types of households to a good connection to busses and trains and to shops nearby. They do not need to live close to their workplace. • People with a lower educational background attach less importance to a good social milieu of the surrounding, perhaps because they cannot afford to buy in these areas. • In districts with less than 500 inhabitants, purchasers tend to attach more value to the height of the purchase price than in districts with more inhabitants. Perhaps, people with less money tend to buy in these areas because it is cheaper there. If the purchase price is such an important factor, other factors like e.g. the proximity to shops etc. are automatically less important 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Prof. Dr.-Ing. H. J. Linke / Dr.-Ing, T. Köhler | 17

18. Thankyouforyourattention! Questions? 2. Juli 2013 | Institut für Geodäsie | Fachgebiet Landmanagement | Prof. Dr.-Ing. H. J. Linke / Dr.-Ing, T. Köhler | 18