Sales of previously-owned homes provide a major boost to our nation's economy. Nationally, about 80 percent of homes sold each year are existing homes, making this sector of the industry a significant economic barometer.

Existing-home sales have a far-reaching impact that includes brokerage, property management, construction, home improvement, landscaping, banking and insurance services, and furniture and home appliance purchases. A recent study prepared for the National Association of Realtors® found that sales of existing single-family homes contributed nearly $11,000 per transaction to the gross domestic product (the total value of all the nation's goods and services).

Home sales are a major engine driving the nation's economy, and housing leads the economy out of recession and helps sustain economic growth.

The economic contribution of existing home sales can be divided into four groups: pre-move expenditures, transaction costs, moving costs and post-move expenditures.

Pre-move expenditures include seller outlays to prepare the house for sale and raise its market value. These expenses consist of structural and cosmetic repairs on the house and yard or interior upgrades. They might involve buying goods or services directly or contracting with home improvement service providers.

Transaction costs are payments for services rendered in the process of transferring ownership of an existing home. They consist of real estate agent commissions, fees paid in connection with obtaining financing and other types of settlement costs, such as attorney's fees or real estate transfer taxes.

Moving costs include both the purchase of professional moving services and the out-of-pocket expenses incurred with do-it-yourself moving.

Post-move expenditures include buyers' outlays to remodel and furnish their homes, and other expenses resulting from the purchase of a new home. Such expenditures might cover repairs on the home's structure or yard, electrical and plumbing work, or furniture and appliance purchases.

There is more to a home sale than simply moving out of one home and into another. The ripple effect of housing turnover is tremendous, and it provides a significant impact on our local economy.

The Fayette County Board or Realotrs® is one of more than 1,800 local boards and associations of Realtors® that comprise the National Association of Realtors®. As the nation's largest trade association NAR is "The Voice for Real Estate", representing nearly 750,000 members involved in all aspects of the real estate industry. The Fayette County Board of Realtors® can be contacted by calling 770-461-2401.