These statistics may blow your mind. They almost blew mine just the other day when I saw this White Paper Report published by Tranzact Information Services, LLC.
If I stopped you on the street and asked you, “What’s the average FICO score in the United States?” What would you say?
Think about it and think very carefully. Our national unemployment rate is 8.9% (February 2011). In California, the unemployment rate is 12.7% (January 2011). With the flurry of distressed properties on the market, I would have to assume that people are having trouble making ends meet—paying their bills and making their mortgage payments.
So, I was pleasantly surprised with this report on Credit Score Distribution from FICO, July 2010.
Check it out:
|FICO® 8(BEACON® 09)||% of Population|
Are you surprised to see that according to FICO, in the middle of last year, almost 20 percent of the population of the United States had a credit score between 750 and 799? The truth is that this was very surprising and pleasing to me.
What does this mean for real estate aficionados?
Well, it means quite a lot. If you are working in the residential retail market, it means that there are actually a good amount of buyers our there who have a pretty nice credit score. Now, if those folks were in the market to purchase property, then we would be in business.
That’s where the marketing comes into play. What new and innovative things are you doing to market to these buyers with most excellent credit scores? I’ve got my own thoughts and ideas on this one. It’s one thing to have a bunch of short sale listings in the pipeline. But, it sure is awfully nice to be working with a few buyers as well. After all, maybe those buyers can purchase your short sale listings. 😉