REAL ESTATEl.yimg.com/d/lib/yre/agent_select_research.pdfFind special deals, offers, or promotions...

Yahoo! Proprietary and Confidential.©2008 All Rights Reserved 1

REAL ESTATEMaximizing Agents’ Potential for Consideration

Yahoo! Proprietary and Confidential.©2008 All Rights Reserved


AGENDA

1 The Real Estate Agent Selection Cycle2 A Deeper Look at the Confirmation Process

The Information Consumers are Searching for

3 Why Agent Websites Matter4 The Feedback Loop in Real Estate Agent Selection5 Executive Summary



METHODOLOGY

Sample Size | N=501 Consumers• Recent Buyers/Sellers (251): Selected

a real estate agent, service, or home within the past 6 months

• Next Year Intenders (250): Intend to select a real estate agent, service, or home within the next year

Sample Characteristics• Bought/Sold or Plan to Buy/Sell a home• Used/plan to use at least one media

source to research real estate agents• 18 years or older• Critical industry screen

April 15th – 28th, 2008




The Real Estate Agent Selection Cycle


83% of Real Estate Consumers used an agent in their recent past purchase or sale

12%

34%

49%

5%Hired an agent to help buy ahouse/condominium

Hired an agent to help sell ahouse/condominium

Bought a house/condominiumwithout an agent

Sold a house/condominiumwithout an agent

(Base: Recent Buyers/Sellers n=251)QS3a: More specifically, which of these have you done in the last 6 months?

The majority enter the real estate market with an agentAgent or Owner Real Estate Transaction


Real Estate Agent Selection Cycle1. AwarenessConsumer typically initiates research process by asking a friend or family member for recommendations

2. ConfirmationConsumer conducts follow-up research online to confirm the recommended agent will be the right agent for their needs

4. RecommendationConsumer recommends the agent they selected to friends or family looking for an agent

3. SelectionConsumer selects an agent


(Base: Recent Buyers/Sellers Recalling Source of First Awareness n=198)Q13: Where do you remember first seeing or hearing about the agent you selected?

Where do you remember first seeing or hearing about the agent you selected?

Word of mouth plays a significant role in driving initial awareness…

74% Word of Mouth

12% Online Sources

10% Other Sources

5% Print Sources


Average consumer uses 5 sources to research; with online being critical

94% 77% 34% 29%

Conferred with Word of Mouthsources

Consulted the Internet for information

Used Print sources to gather information

Found information using Othersources

Average # of sources used: 5

(Base: Recent Buyers/Sellers n=209)QS3b: When looking for or researching information about agents, what types of resources did you turn to? Please list as many as you can think of. QS5: Earlier you mentioned you recently bought or sold a house or condominium. Here is a list of sources others have used when researching this category, please tell us which of the following sources you used to gather information while making your selection.

Sources Used Throughout Research Process


Recommendations and online search currently dominate the other sources of influence…

WoM (net): 94%

Online (net): 77%

Print (net): 34%

Other Sources (net): 29%

Average # of sources used: 5

36%

22%

3%

32%20%17%13%12%11% 9% 8%

22%13%12%17%

11% 8% 8% 5%

44%51%

88%

Recommen

dation

s

Spoke

with

rece

nt cu

stomer

Salesp

erson

Trade s

hows/e

xpos

Real E

state

Search

Online S

earch

Local S

earch

Informati

onal sit

es

Local b

usines

s site

s

Interne

t disp

lay ad

s

Email fr

om busin

ess

Interne

t Yell

ow Pages

User-g

enera

ted re

views

Busine

ss dire

ctory

Print a

ds

Yellow/W

hite pag

esMag

azines

Mailing

from busin

ess

Outdoor a

dsTV ad

s

Coupons

in th

e mail

Radio

ads

(Base: Real Estate Agent Past Selectors n=209)QS3b: When looking for or researching information about agents, what types of resources did you turn to? Please list as many as you can think of. QS5: Earlier you mentioned you recently bought or sold a house or condominium. Here is a list of sources others have used when researching this category, please tell us which of the following sources you used to gather information while making your selection.


14%

23%

35%13%

9%

1-3 hours

4-6 hours

6 to 9 hours

11-20 hours

21+ hours

(Base: Recent Buyers/Sellers Using Internet n=157)Q16: Please think about your most recent agent selection process. How much total time did you spend online doing related research? Your best estimate is fine.

Most consumers spend a significant amount of time online searching for agents…

Mean Hours: 12Median Hours: 5

Number of Hours Spent Researching Agent-Related Information Online(Among those who research online)


(Base: Recent Buyers/Sellers n=209)Q10: How many agents did you visit/speak with in your selection process?Q10b: When ultimately selecting an agent, how many did you seriously consider paying for or doing business with?

Consideration sets are reasonably high in this market…Agents Contacted and Seriously Considered

36%

27%

7%

31%

7%

35%56%

1%

1234+

Contacted Seriously Consider

Average # of Agents Contacted: 2.2 Average # of Agents

Seriously Considered: 1.5


(Base: Recent Buyers/Sellers – Researched Online n=159 | Didn’t Research Online n = 50)Q10: How many agents did you visit/speak with in your selection process?Q10b: When ultimately selecting an agent, how many did you seriously consider paying for or doing business with?

…and online channel opens up the consideration set for agents even furtherAgents Contacted and Seriously Considered By those who researched and didn’t research online

69%

47%52%

32%

Researched Online Didn't Research Online

Contacted More Than 1 Agent

Seriously Considered More Than 1 Agent


There are some slight differences between those looking for a buyer’s agent vs. a seller’s agent

Bought a home with an agent

Sold a home with an agent

Word of Mouth 93% 95%

Online 77% 76%

Print 28% 42%

Sources Used Throughout Research

ProcessOther 24% 35%

Mean Hours Spent 13.42 10.03

# of Agents Contacted More than 1 57% 76%

# of Agents Seriously Considered More than 1 31% 61%

(Base: Real Estate Agent Past Selectors – Bought a home with an agent n=124, Sold a home with an agent n=85)/ Indicates percentage is significantly higher/lower than Sold a home with an agent at 95% confidence

QS3b/QS5/Q10/Q10b/Q16

Differences Between Buyers and Sellers



A Deeper Look at the Confirmation Process: The Information Consumers are Searching for


Multitude of Sources


WOM ONLINE TRADITIONAL• Recommendations• Spoke with recent customer• Salesperson• Trade shows/expos

• Real Estate Related Search• Online Search Local Search• Informational sites• Real Estate Agent sites• Internet display ads• Email from Agents• Internet Yellow Pages• User-generated reviews• Business directory

• Newspaper or Magazine Ads• Yellow/White pages• Magazines• Mailing from business• Outdoor ads• TV ads• Coupons in the mail• Radio ads


Learn about agents I didn’t know existed

Find special deals, offers, or promotions from

an agentLocate a specific

agent

Learn about the agent’s

reputation and read reviews

Online 45% 41% 45% 38%

Word of Mouth 34% 20% 50% 62%

Print 38% 25% 38% 29%

Other Sources 34% 15% 39% 12%

Purpose for Using Each Resource

At a high level, online provides introduction to new agents, specific deals, and helps to locate agents

(Base: Recent Buyers/Sellers – Those Using Each Source; Online (net) n=159, WoM (net) n=181, Print (net) n=65, Other Sources (net) n=59)Q8: Now, thinking specifically about how you used each of these resources while researching agents, please indicate what purpose(s) you used each one for.

/ Indicates percentage is significantly higher/lower than Average of Sources with sufficient base sizes at 95% confidence


Learn about agents I didn’t know existed

Find special deals, offers, or promotions from

an agentLocate a specific

agent

Learn about the agent’s

reputation and read reviews

Search Engines 40% 26% 41% 30%

Real Estate Search 32% 25% 25% 24%

Local Search/IYP 31% 19% 39% 28%

Informational Sites 31% 29% 7% 31%

Real Estate Agent Sites 26% 11% 40% 17%

Recommendations 29% 17% 50% 63%

Magazine Ads 27% 29% 20% 32%

Mailing from Business 33% 19% 33% 19%

(Base: Recent Buyers/Sellers – Those Using Each Source; Search Engines n=90, Real Estate Related Search n=106, Local Search n=67, Informational sites n=42, Real Estate Agent sites n=35, Recommendations n=158, Spoke with recent customer n=74, Magazine ads n=41, Mailing from business n=36)

/ Indicates percentage is significantly higher/lower than Average of Sources with sufficient base sizes at 95% confidenceQ8: Now, thinking specifically about how you used each of these resources while researching agents, please indicate what purpose(s) you used each one for.

Purpose for Using Each Resource

Search engines tend increase consideration sets, while recommendations are important for location and reputation


(Base: Recent Buyers/Sellers – Those Using Search Engines n=90)Q22: What types of keywords did you type into the search engines to generate results?

What types of keywords did you type into search engines to generate results?

76%

37%

34%

31%

30%

29%

City and/or zip code

General category keywords re: agents

Specific business name

Type of agent/service interested in

Type of home interested in

General category keywords re: homes

Consumers search in very distinct ways for real estate information; most use geo‐modifiers


Quadrant 1 illustrates the areas which are both heavily researched and most influential to the selection

Quadrant Analysis Explanation

TOPICS RESEARCHED

IMP

OR

TAN

CE

OF

TOP

ICS

SE

LEC

TIO

N

Topics less researched but still influential to selection

Topics less researched and least influential to selection

Topics researched but less influential to selection

2

34

Topics most researched and most influential to selection

1


Reputation and expertise of area is most important

TOPICS RESEARCHED FOR AGENT SELECTION

IMPO

RTA

NC

E(T

OP

2 B

OX

)

(Base: Recent Buyers/Sellers n=209; Level of experience/years in industry n=85, Familiarity/specialization in my area of interest n=82, References from previous buyers n=71, Rate of commission n=72, Average selling price n=68, Recent selling/buying record n=64, Contact information n=49, List of services available n=32,)Q6: Which of the following topics did you research before selecting an agent?Q7: How important were each of these factors in helping you decide on the agent you selected?

References from previous buyers

Recent selling/buying record

Average selling price

Level of experience/ years in industry

Contact information

List of services available

Familiarity/specialization in my area of interest

Rate of commission

When looking for agents…


Showing listing details and photos is critical

Photos or visuals

Features/ amenities of

the home

Asking price

Detailed information about the property

Houses recently sold in surrounding areaHome loan rates

and information

Home insurance plans

Information about neighborhoods and communities

Appraisal and inspection information

TOPICS RESEARCHED FOR PROPERTY SELECTION

IMPO

RTA

NC

E(T

OP

2 B

OX

)

(Base: Recent Buyers/Sellers n=209; Level of experience/years in industry n=85, Familiarity/specialization in my area of interest n=82, References from previous buyers n=71, Rate of commission n=72, Average selling price n=68, Recent selling/buying record n=64, Contact information n=49, List of services available n=32,)Q6: Which of the following topics did you research before selecting an agent?Q7: How important were each of these factors in helping you decide on the agent you selected?

When looking for properties…



Why Personal Real Estate Websites Matter


How did you reach the majority of the realtor’s sites you visited?

74%used a search engine

16%

86% of those who visited a realtor’s personal website chose a realtor with a website

Did you choose an agent with a personal website & How did you reach a real estate agent website? Among those who visited a realtors website

There is an opportunity to influence consumers with personal and property websites

Visited Realtor Personal Websites

(Base: Recent Buyers/sellers – Those Using Search Engines n=90, Those Using Real Estate Agent sites n=35)Q18: Earlier you mentioned you used Real Estate Agent websites while searching for your agent. How did you reach the majority of those websites?Q20: Did the [INSERT VERTICAL RESPONDENT IS ASSIGNED TO: “service or agent/doctor/ contractor/school/lawyer”] you ultimately chose have a website? (Please select one score per statement.)


(Base: Recent Buyers/Sellers – Those Using Real Estate Agent sites n=35)Q19: Below are statements others have made about their experience using Real Estate Agent websites. Please read each of the statements and give a score between 5 and 1, where a ‘5’ means you ‘strongly agree’ with the statement and a ‘1’ means you ‘strongly disagree’ with the statement.

49%

31%

29%

26%

23%

11%

Increased my perception of the agent

Only used it to find the agent’s contact information

Sealed my decision, I chose the agent after seeing their site

Didn’t have a site so I decided against the agent

Answered all my questions, fully informative

Was an unappealing site, so I decided against the agent

How your website can impact consumer thinking…(Top 2 Box - Among those who visited a realtors website)

Having a website increases consumers’ perceptions and trust of agents


(Base: Recent Buyers/Sellers – Those Choosing Agents with a Site n=30)Q20b: Thinking about the agent you chose, please indicate the ways in which you used their website.

Information Looked for on Real Estate Business Sites Among those who visited a realtors website

67%

53%

47%

40%

27%

20%

7%

Photos/visuals

Contact information

Learn more about their services

Get approximate costs

Read reviews and testimonials

Look for special deals or promotions

Schedule an appointment

The large majority use these websites to look at photos of properties and get an overview of service…


(Base: Recent Buyers/Sellers – Those Choosing Agents with a Site n=30, Using Online n=159)Q27: Thinking about agents you researched online and didn’t choose, what are your reasons for not choosing them?

Didn’t offer what I wanted

Didn’t offer enough information online

Didn’t follow up on questions or requests

Too expensive

Didn’t have enough experience

Read bad reviews about them

Of all the agents you researched online and didn’t choose, what were reasons why?

Reasons for Rejecting Agents Researched Online

… and of agents rejected, a big reason was not enough comprehensive information

37%

36%

26%

25%

16%

12%



The Feedback Loop in the Real Estate AgentSelection Cycle


Communication with Agent

85%In Person

56%On the Phone

12%Online*

*Note: Base size for Online too small to report how final decision was influenced by online interactions(Base: Recent Buyers/Sellers n=209, Those Responding – In Person n=178, On the Phone n=116)Q11: Which of the following did you do when you ultimately selected your agent?Q11b: Please indicate which of the following interactions were most useful in your decision-making.

While online is critical to research, in person interaction is typically needed to close a deal

77% said “My final decision was influenced mainly by my In Person interactions”

74% said “I got the most information to help me make my final decision In Person”

27% said “My final decision was influenced mainly by my interactions On the Phone”

32% said “I got the most information to help me make my final decision On the Phone”


(Base: Recent Buyers/Sellers n=209)Q10: How many agents did you visit/speak with in your selection process?Q10b: When ultimately selecting an agent, how many did you seriously consider paying for or doing business with?

The large majority (72%) will recommend their agent, with more than half converting a friend

21%

20%

28%

17%

15%None

4 or more

3

2

1

Recommendations

56% Will convert at least one friend Those who research online are +52% more likely to convert at least 1 friend versus those who don’t

Convincing Friends and Family – The Cycle Continues


Today 1 in 10 will use review sites to find out more about agents – this number will continue to increase

30

9%

91%

Did not use toinformation onreal estateagents

Used to findinformation onreal estateagents

(Base: Total n=400, Those Using UGC Websites n=61)QS3b: When looking for or researching information about colleges, what types of resources did you turn to? Please list as many as you can think of.QS5: Earlier you mentioned you recently selected a school. Here is a list of sources others have used when researching this category, please tell us which of the following sources you used to gather information while making your selection.Q25: Thinking about the user-generated reviews/review site(s), please indicate how strongly you felt it influenced your final decision. Please give a score between 5 and 1, where a ‘5’ means you ‘strongly agree’ with the statement and a ‘1’ means you ‘strongly disagree’ with the statement.

Strongly influenced their decision44%

User Generated Content and Usage


Executive Summary• The large majority of buyers/sellers (>80%) enlist the services of an agent

to help navigate the complexities of the real estate market

• Consumers typically consider ~2+ agents before making a selection• Consumers don’t always select what their friends/family tell them or who they’ve

worked with in the past

• Word of mouth and online resources are most central to agent selection• Consumers typically gain awareness of prospective agents through recommendations

from friends and family• Most consumers then want confirmation, and gather additional information online to

ensure the selected agent will best meet their needs• Delivering a high quality experience is essential as word of mouth drives an agent’s

business



• Agents can influence their selection by maximizing their online presence with websites and effective media investments

• Be easy to find - Search engines and real estate-related search sites are the most popular online resources for learning about and locating agents; consumers cannot research agents they cannot find

• Communicate rational benefits that matter - Consumers want agents with specialized experience and credit general, real estate-related, and local search engines, along with local business sites, for providing relevant information

• Convey trustworthiness - Local business sites and positive references from previous buyers found online can increase consumers’ perceptions of agents

• Agents have the opportunity to increase awareness and consideration consumers by bringing their recommendations and referrals online

• In the future, consumers may be more inclined to consult a more credible user-generated review, making agents less dependent on traditional offline word of mouth recommendations


Executive Summary continued


THANK YOUFor more information, please contact:

[email protected]


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