If you are a Realtor and have not read the 2006 National Association of Realtors® (NAR) Profile of Home Buyers and Sellers then you might be barking up the wrong tree so to speak.
Photo from Inmagine
The NAR mailed an eight-page questionnaire in August 2006 to a national sample of 129,500 home buyers and sellers who purchased their homes between July 2005 and June 2006, according to county records. It generated 7,548 usable responses.
One interesting finding was how consumers find a Realtor.
- The most important factor for both buyers and sellers is word-of-mouth recommendation.
- The most important criteria in choosing an agent are reputation and trustworthiness.
- 44 percent of sellers chose agents based on a referral by a friend, neighbor or relative
- 30 percent used their agent previously
- 69 percent of sellers contacted only one agent
- Reputation and trustworthiness are the most important factors in choosing an agent
- 82 percent said they were likely to use the same agent again or recommend to others.
The biggest factors influencing neighborhood choice in order of importance are:
- quality of the neighborhood
- convenience to job
- convenience to family and friends
- neighborhood design
- convenience to shopping
- quality of the school district.
What tools and resources did buyers use in searching for a home?
- 85 percent used a real estate agent
- 80 percent the Internet (up from 77 percent in 2005)
- 63 percent yard signs
- 55 percent print or newspaper ads
- 47 percent attended open houses.
Smaller categories include a home book or magazine, home builders, television, billboards and relocation companies.
Where did buyers first learn about the home they purchased?
- 36 percent of buyers identified a real estate agent
- 24 percent the Internet
- 15 percent from yard signs
- 8 percent from a friend, neighbor or relative
- 8 percent home builders
- 5 percent a print or newspaper ad
- 3 percent directly from the seller
- 1 percent a home book or magazine.
How many buyers used the internet?
Eighty-one percent of home buyers used the Internet to search for a home purchased through a real estate agent.
What do home buyers want agents to help the with?
- find the right house
- negotiate the terms of the sale
- determine what comparable homes were selling for
- help with price negotiations
- help with paperwork
- help determine how much they could afford
- help with finding and arranging financing.
- 55 percent of buyers said agents helped them understand the process
- 40 percent said their agent pointed out unnoticed features or faults with the property
- 37 percent indicated the agent improved their knowledge of the area
- 36 percent said agents negotiated better contract terms
- 35 percent reported a shortened search process
- 29 percent said their agent negotiated a better price
Other benefits mentioned include narrowing or expanding the search area, providing a better list of mortgage lenders and providing a better list of service providers.
So after reading this report if I was a Realtor looking to build my business here’s my game plan:
- Improve my web site
- Educate myself on specific neighborhoods I am interested in selling in
- Hold open houses
- Refine my branding and image
- Build strong alliances with complementary services
- Keep in touch with my sphere of influence on a regular basis
- Keep in touch with my clients on a regular basis
- Have a call to action in all of my marketing materials
- Solicit as many testimonials as I can from clients
- Improve my web site even more