Front Lines: Service Provider Referrals

Buyers’ trusted source

When it comes to identifying providers of settlement and post-closing services, practitioners are buyers’ best friends.

Case in point: More than 35 percent of buyers cite a recommendation by their real estate salesperson as the most important reason for choosing a lender, according to the 2003 NAR Profile of Real Estate Services Survey. No other reason, including the lender’s reputation or loan pricing, comes close. Nor do recommendations from lenders, family members, or friends hold as much weight. Consumers’ reliance on practitioners applies to other services, too, including title insurance and inspections.

Your recommendations hold weight

Top source of service providers

Percentage of buyers who cited recommendation by salesperson as their most important reason for choosing a settlement service provider. In all cases, the salesperson was the No. 1 most important reason.*

Home warrantor 54 percent
Home inspector 51
Insect inspector 50
Title insurer 46
Settlement attorney 40
Lender 36

*Other reasons include recommendations by family/friend or lender, price, reputation of provider, and previous experience using provider’s services.

A font of lender info

Where buyers found information about the lender they chose†

Salesperson 40 percent
Internet 33
Friends or family 28
Meetings with lenders 25
Newspapers 22
Telephone 17
Direct mail 6
TV commercials 5

†Responses are rounded to the nearest percent and don’t total 100 percent because multiple responses were allowed.

Findings are based on responses from 2,703 recent homebuyers to a survey distributed in April 2003.

Source: 2003 NAR Profile of Real Estate Services Survey, NAR Research

ONLINE EXCLUSIVE
To order the 2003 Profile of Real Estate Services Survey (Item #186-60-03-RM), click here or call 800/874-6500.