Today’s Home Buyers & Sellers Want the Professional Edge Highlights from The NATIONAL ASSOCIATION...

Today’s Home Buyers & Sellers

Want the Professional EdgeToday’s Home Buyers & Sellers

Want the Professional Edge

Highlights from The NATIONAL ASSOCIATION OF REALTORS® 2006 Profile of Home Buyers & Sellers

Highlights from The NATIONAL ASSOCIATION OF REALTORS® 2006 Profile of Home Buyers & Sellers

Collaborate with a ProfessionalCollaborate with a Professional

• Consumers prefer more traditional methods of buying & selling homes

• Buyers begin the search process online

• But it’s the real estate agent who introduces them to the home they buy

• Consumers prefer more traditional methods of buying & selling homes

• Buyers begin the search process online

• But it’s the real estate agent who introduces them to the home they buy

80% of Buyers Use the Internet to Search…80% of Buyers Use the Internet to Search…

Source: NAR 2006 Profile of Home Buyers and SellersSource: NAR 2006 Profile of Home Buyers and Sellers

Exhibit 3-9USE OF INTERNET TO SEARCH FOR HOMES, 2003-2006

42%53% 57% 59%

29%

24%22% 21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006

Frequently Occasionally

71%77% 79% 80%

Exhibit 3-17WHERE BUYERS FOUND THE HOME THEY PURCHASED, BY USE OF INTERNET(Percentage Distribution)

Used Internet to Search

Did Not Use Internet to Search

Real estate agent 35% 38%Internet 29 2Yard sign 15 15Home builder or their agent 7 11Friend, relative or neighbor 6 17Print newspaper advertisement 5 7Directly from sellers/Knew the sellers 2 7Home book or magazine 1 2


And, Real Estate Agents are the Most Frequent Way They Find

“THE Home”

And, Real Estate Agents are the Most Frequent Way They Find

“THE Home”

“One customer, well taken care of, could be more valuable than $10,000 worth of advertising.”

“One customer, well taken care of, could be more valuable than $10,000 worth of advertising.”

Jim RohnBusiness Philosopher and Author

Jim RohnBusiness Philosopher and Author

Full-Service is KingFull-Service is King

• Most sellers prefer full-service brokerage

• But discount brokerage is still an important market segment

• Most sellers prefer full-service brokerage

• But discount brokerage is still an important market segment

The agent listed the home on the

MLS and performed few if any additional services, 8%

A broad range of services and

management of most aspects of the home sale,

83%

A limited set of services as

requested by the seller, 9%


Dear Agent: Please Take Care of Everything! The SellerDear Agent: Please Take Care of Everything! The Seller

Exhibit 7-8LEVEL OF SERVICE PROVIDED BY THE REAL ESTATE AGENT(Percentage Distribution)

Help negotiating the terms of sale, 13%

Help determining w hat comparable

homes w ere selling for, 10%

Help f inding and arranging f inancing,

3%

Help f inding renters for buyer's property, *Help determining

how much buyer can afford to spend

on a home, 5%

Help w ith paperw ork, 8%

Help w ith price negotiations, 9%

Help f inding the right home to purchase,

50%

Other, 2%

Exhibit 4-7WHAT BUYERS WANT MOST FROM REAL ESTATE AGENTS(Percentage Distribution)

Dear Agent: Please Help Me Find the Right House The Buyer

Dear Agent: Please Help Me Find the Right House The Buyer


Reputation is a Terrible Thing to WasteReputation is a Terrible Thing to Waste

• More than a third of sellers say reputation is the most important factor in choosing an agent

• For buyers, honesty and trustworthiness are tops…then comes reputation

• More than a third of sellers say reputation is the most important factor in choosing an agent

• For buyers, honesty and trustworthiness are tops…then comes reputation

Exhibit 7-5MOST IMPORTANT FACTOR IN CHOOSING A REAL ESTATE AGENT TO SELL HOME(Percentage Distribution)

Reputation of real estate agent, 35%

Agent’s association with a particular firm, 6%

Agent’s knowledge of the

neighborhood, 11%

Agent is friend or family member,

15%

Agent is honest and trustworthy,

21%

Agent has a caring

personality/good listener, 5%

Professional designation(s)

held by real estate agent, 2%

Other, 5%

For Sellers: Reputation Matters MostFor Sellers: Reputation Matters Most


Agent's reputation, 23%Agent is friend or

family member, 16%

Agent's know ledge of the

neighborhood, 13%

Agent's honesty and

trustw orthiness, 25%

Agent has a caring personality/good

listener, 12%

Agent's association w ith a particular

f irm, 4%

Agent's professional

designations, 1%Other, 5%

Exhibit 4-13

MOST IMPORTANT FACTORS WHEN CHOOSING AN AGENT(Percentage Distribution)

For Buyers: Honesty and Trustworthiness Matter MostFor Buyers: Honesty and Trustworthiness Matter Most


“It takes many good deeds to build a good reputation and only one bad deed to lose it.”

“It takes many good deeds to build a good reputation and only one bad deed to lose it.”

Benjamin FranklinBenjamin Franklin

Fewer Sellers Choose to Go it AloneFewer Sellers Choose to Go it Alone

• For Sale By Owner (FSBO) transactions, down to 12% in 2006

• But only 7% were open-market FSBOs

• For Sale By Owner (FSBO) transactions, down to 12% in 2006

• But only 7% were open-market FSBOs

Exhibit 8-2FSBO AND AGENT-ASSISTED SALES, 2003-2006(Percentage Distribution)

2003 2004 2005 2006

All FSBO (for-sale-by-owner) 14% 14% 13% 12%Seller knew buyer 5 5 5 5Seller did not know buyer 9 10 8 7

Agent-assisted 83 82 85 84Other 4 4 2 3

FSBOs Trending DownFSBOs Trending Down


Get More…Get More…

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• Item #186-45-06

• $50 for Members• $125 for Non-Members• 1-800-874-6500• www.realtor.org/store

and click on the Research Tab

• Item #186-45-06

Today’s Home Buyers & Sellers Want the Professional Edge Highlights from The NATIONAL ASSOCIATION...

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