Today’s Home Buyers & Sellers Want the Professional Edge Highlights from The NATIONAL ASSOCIATION...
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Transcript of 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
Source: NAR 2006 Profile of Home Buyers and SellersSource: NAR 2006 Profile of Home Buyers and Sellers
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%
Source: NAR 2006 Profile of Home Buyers and SellersSource: NAR 2006 Profile of Home Buyers and Sellers
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
Source: NAR 2006 Profile of Home Buyers and SellersSource: NAR 2006 Profile of Home Buyers and Sellers
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
Source: NAR 2006 Profile of Home Buyers and SellersSource: NAR 2006 Profile of Home Buyers and Sellers
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
Source: NAR 2006 Profile of Home Buyers and SellersSource: NAR 2006 Profile of Home Buyers and Sellers
“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
Source: NAR 2006 Profile of Home Buyers and SellersSource: NAR 2006 Profile of Home Buyers and Sellers
Get More…Get More…
• $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
• $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