The Home Search – The Web is a Valuable Tool
By Jessica Lautz, Survey Research Manager and Meredith Dunn, Research Communications Representative
With new communication tools such as tablets (and androids) and smart phones, communication in 2011 moved increasingly online. Last year, the number of people worldwide using the Internet hit the 2 billion mark. The increase in popularity of online and web tools extends to the real estate business, and particularly how home buyers and sellers expect to be able to find information.
According to the 2011 NAR Profile of Home Buyers and Sellers,* 40 percent of recent buyers found their home through the Internet, compared to 37 percent of buyers in 2010 and just eight percent of buyers in 2001. Real estate websites draw serious would-be home buyers and home sellers. Also, there are many curiosity-seekers just wanting to lurk.
Popular Sites
The web site of a multiple listing service (MLS) was the most frequently used site. Because of the timing of the REALTOR®’s data entry into the MLS and the subsequent retrieval of the data by national aggregator sites, the most up-to-date information on new listings or price changes will be the local MLS website. Some national aggregator websites may update information within 15 minutes or several days’ lag time. Serious buyers and sellers would naturally be browsing through the local MLS website while curious lurkers could be checking out the national aggregator site.
A real estate agent’s website was the second most frequently reported method used to search for homes for all buyers and first-time buyers specifically, and the third-most frequent method for repeat buyers. A little less than half of all buyers used this method, which was even more popular than using a real estate company’s website. This result suggests that potential home buyers are looking to connect with an individual agent. With money tight, those real estate professionals seeking to advertise their services may get a bigger return on their investment with a presence on locally-based websites.
Social networking is not (yet) making an impact in terms of the home search, though younger people are much more likely to use social networking than are older people.
Business Generated from Websites
Although a relatively small amount of business was reported having been generated by an agent’s website in 2010 – just 3 percent – that number rose proportionately to the amount of resources agents dedicate to maintaining those sites. According to NAR’s 2011 Member Profile, those REALTORS® who put $500-$999 into their site saw 7 percent of their business directed from their website, and those that spent $1000 or more had 10 percent of their business come from their site.
For More Information
More information about the results from the latest NAR Profile of Home Buyers and Sellers is available on line. Visit www.realtor.org/research.
* In July 2011, NAR mailed out a questionnaire survey to a random sample of 80,099 recent home buyers who purchased a home between July of 2010 and June of 2011. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 7.3 percent. Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent home buyers derived from county records. Information about sellers comes from those buyers who also sold a home. All information in the Profile is characteristic of the 12-month period ending June 2011, with the exception of income data, which were reported for 2010. Due to rounding and omissions for space, percentage distributions may not add up to 100 percent.
