Internet In Real Estate Business
Nowadays, people don’t accumulate information as much as they used to. Instead
they rely on the internet to help them. What is easier than punching in keywords
in a search engine only to get what they were looking for faster and more
accurately than before. It’s only natural to take advantage of the web when
looking for a new home.
According to the CAR’s "2005 Internet Versus Traditional Buyer Study", internet
homebuyers increased from 56 percent in 2004 to 62 percent in 2005. Clearly, the
web has become an integral element in house hunting for more than a half of
homebuyers.
What would be the reasons for this?
It saves time according to 63 percent of homebuyers.
People search for listings in the privacies of their own home, getting results
from practically anywhere. It’s obvious they are using the internet to preview
homes. That way, they can make an initial selection from a larger pool than from
traditional means.
According to the 2004 CAR report, internet buyers use an average of 4.8 weeks to
look for information on homes and neighborhoods, before contacting a real estate
professional, as opposed to 1.6 weeks for traditional buyers. However, once they
finished their preliminary information gathering, they spent significantly less
time with their agent and preview far fewer homes, spending 1.9 weeks, compared
to 7.1 weeks for their traditional counter-parts.
Internet searches are especially important to people looking to move in
different parts of the country. According to the same reports, internet buyers
searched for a house within a median distance of 100 miles from their residence,
as opposed to the traditional buyer – only 12 miles.
Considering all these facts, it’s no wonder that traditional buyers' numbers
have decreased from 72 percent in 2000 to 44 percent in 2004.
Internet offers a wealth of information at a touch of a button, anytime,
anywhere.
The Internet has grown so big, one can find detailed information about anything.
Brokers, agents and third-parties are able to distribute and display a wealth of
information about listings, mortgages, loans, neighborhoods. Because these
resources are available 24 hours a day, buyers are able to do searches in their
own time, using the same tool: the computer. This saves enormous amounts of
time.
People will normally want to get as much information as possible from as many
sources as possible. Therefore, realtors who will develop their websites
including specialized, insider information and detailed listings complete with
pictures, will be more likely to capture internet homebuyers.
According to the 2003 NAR survey, buyers want two features in an real estate
website: detailed property information (77 percent found it useful) and photos
of the house (78 percent found them useful). Virtual tours were appreciated by
47 percent. The impact of these features was so great, that it spurred buyers to
action. 72 percent drove to see the house they found online, and 46 percent
visited the house.
As stated before, internet shopping does not stop only to listings. According to
the same report, 18 percent found their agent online as well. It's a good bet
that detailed property presentations had a great impact in their decision.
NAR President Cathy Whatley, owner of Buck & Buck Inc. in Jacksonville, Fla.,
said warnings that online information would reduce reliance on real estate
professionals have proved to be false. "Almost every home placed on the market
today can be found on the Internet, and more buyers than ever are using the Web
to search for a home," she said.
With that in mind, let's take a look at the internet homebuyer profile.
- Buyers who like to be in control
The internet has proven to be empowering to consumers. The web has bred a news
species, which is in control of the inquiry process, all the while maintaining
anonymity. This anonymity is very important, as people generally don't like to
be rushed in making a decision, especially if it is an important, as well as
costly, one.
- According to CAR's "2005 Internet Versus Traditional Buyer Study", internet
buyers are more likely first-time buyers, younger, wealthier and better
educated.
They are also more likely to be married.
- According to 2003 American Home Guide's survey, the majority of online
shoppers are women, more than 60 percent, and 73 percent of them were younger
than 45.
- Buyers like to be as informed as possible.
Knowledge is not restricted to listings and prices. It extends to real estate
transaction details, mortgage and loan information. It is another plus for
internet-savvy realtors who can rush and fill in these blanks.
It is important for real estate professionals to speak the language of the
buyers. Keep in mind, that the younger generation has been raised while using a
computer, therefore it's natural to them to rely on the internet when searching
for information.
“While the Web is great in providing information, the survey tells us that
consumers rely on real estate professionals to provide context to their
research, and to provide services that guide them through the negotiation and
transaction process,” says NAR President Martin Edwards, Jr.
In 2001, the CAR report highlighted the fact that 78 percent of Internet
homebuyers found their agents on the Internet, not as a result of traditional
methods such as farming, referrals, advertising, or sign calls. This percentage
has surely increased.
Furthermore, having a website and conducting communications through email has
become a mark of professionalism for any business venture in today's world.
Having a website can only help.
"The Internet has complemented rather than diminished Realtors' role in the
homebuying transaction," said C.A.R. President Ann Pettijohn. "While Internet
buyers considered online information to be valuable, they ultimately turned to
Realtors both for their interpretation of that information, and for their
expertise and judgment throughout the home buying process. The expertise and
professional advice provided by Realtors creates value over and above the market
and property information itself, even when the buyers obtain that information on
their own."
Resources:
CAR Report Shows Increased Use Of Internet By Homebuyers by Blanche Evans
New Report Shows Gulf Between Internet and Traditional Homebuyers by Blanche
Evans
CAR's Internet Versus Traditional Buyer Study Shows New Trends by Blanche
Evans
CAR Report Shows Increased Use Of Internet By Homebuyers by Blanche Evans
Women Browse For New Housing More Than Men by Broderick Perkins
New NAR Survey Shows Growing Web Use in a Dynamic Housing Market
