REAL ESTATE ONLINE CONSUMER TRENDS

Online Consumer Trends

Homebuyers using Internet
(according to the California Assoc. of Realtors® 2007–2008 Internet vs. Traditional Buyer Report)

Key Findings:

1. Internet buyers have grown from 28% in 2000 to 72% in 2007

2. Growth accelerated by growth in broadband use

3. Preferred dynamic online experience that Internet offers over static paper experience that print advertising offers
    a. Only 12% of homebuyers looked at newspaper/magazine ads to search for a home
    b. 7 out of 10 used Internet as significant part of home selection process

4. Multiple pictures/slide shows continue to be the online feature with highest rating among all online features, followed by Map/Directions
    a. *NOTE: NEFAR does not give address of property

5. Internet buyers pleased with their experience of using Internet during home buying process, 98% expressed above average levels of satisfaction
    a. Almost all agreed Internet helped them better understand the home buying process
    b. More than 9 out of 10 agreed that Internet helped them understand home values better
    c. 9 out of 10 agreed that the Internet put them in more control of home buying process

6. Homebuyers more patient & careful about purchase of their home
    a. More time devoted to each part of home buying process
    b. Spent more time considering buying & investigating homes before contacting agent

7. Consistent with last year’s results, 9 of 10 homebuyers hired an agent to assist them through the home sales process

8. With buyers being more concerned about housing market conditions & more cautious about their home purchase, they expected quicker & more frequent communication from their agent
    a. Agent qualifications on the other hand became secondary in the selection process, perhaps because of the lack of understanding about the value a Realtor® brings to the transaction

9. When asked why satisfied with the agent, Internet buyers cited:
    a. Always quick to respond
    b. Worked hard on their behalf

10. When asked why satisfied with the agent, Traditional buyers cited
    a. Worked hard
    b. Negotiated a good deal on their behalf

11. Internet vs Traditional Buyer's time
    a. Internet buyers spent 4.7 weeks looking for homes before contact an agent.
    b. Traditional buyers spent 1.6 weeks
    c. Once Internet buyer engages a Realtor they take only two weeks on average, to find a home compared to seven weeks for Traditional buyers.
    d. Internet buyer views 6.2 homes with a Realtor before making a selection, Traditional buyers view 14 homes.

BOTTOM LINE: Internet buyers spend less time with their agents but are more satisfied overall!


Why Internet appealing to Real Estate Consumers?

1. Efficient
    a. Cut down driving around
    b. View photos online

2. Eliminate other marketing & sales materials
    a. Newspaper, mailbox, emails full of unwanted solicitations
    b. Online – Consumer controls experience

3. Consumers can remain anonymous
    a. Avoid being solicited or sold
    b. Provides information with no strings attached

4. Immediate access to local content
    a. No drilling down from National level to local

How Real Estate Professionals can take advantage of Consumer shift to Internet

1. Must be online

2. Be local – don’t try to match regional or national sites

3. Share valuable information
    a. Consumers initially visit to research
    b. Sharing data creates a sense of reciprocity – consumers more willing to engage you and trust your motives, more likely to share their info with you

4. Create reasons to return to site
    a. Newsletters
    b. Saved searches
    c. Quarterly home valuation updates


C.A.R.'s Reports available for purchase at: http://www.rebsreports.com/rebsreports/

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