2005 Internet vs. Traditional Buyers Survey - Highlights
As use of the Internet has grown in recent years, more households than ever have turned to the Internet as a resource in the homebuying process. This has become particularly important in the current market, where low interest rates and competition for available homes have contributed to record-setting sales and prices.
The results of the 6th Annual California Association of REALTORS® (C.A.R.) Internet Versus Traditional Buyers Survey revealed a continuation of prevailing trends in homebuying, such as the growing use of the Internet, and differences between Internet and traditional buyers in terms of the number of homes they view and the amount of time they devote to various stages of the home buying process. The survey also presents findings that show how first-time and repeat buyers compare with respect to both the use of the Internet and the homebuying process as a whole.
The key findings of the report are as follows:
Homebuyers who used the Internet as an integral part of the homebuying process grew from 56 percent last year to 62 percent in 2005.
Internet buyers and traditional buyers should not be viewed as two separate populations but as segments in the spectrum of a homebuying population who utilize technology in varying degrees.
Internet homebuyers devoted more time to research before working with a real estate agent, but they moved quickly once they began to work with an agent, spending just 2 weeks looking for a home with an agent, and viewing only 6.2 homes. By contrast, traditional buyers spent less time doing their own research and relied more heavily on the knowledge and expertise of an agent, spending 7 weeks searching for a home with an agent and viewing 14.5 homes.
With a wealth of information at their fingertips, Internet homebuyers generally experienced a greater sense of control during the homebuying process.
Information from the Internet has complemented – not diminished – the role played by real estate professionals, as 4 out of 5 Internet buyers used an agent in the homebuying process.
Satisfactory consumer experiences for both Internet and traditional buyers depended mainly on their agents’ quick response times, communication skills, and professional expertise.
Market-related factors that motivated homebuyers to purchase a home included the current low interest rate levels, the concern about or anticipation of future increases in interest rates, improvement in the economy, and the ability of repeat buyers to use equity gains to trade up.
First-time buyers and repeat buyers were somewhat alike in their use of the Internet to find an agent or a firm, or to learn about specific homes. First-time buyers were more likely to use the Internet to get information about home financing and to narrow their search for a given home, while repeat buyers were more likely to use the Internet to obtain specific information about neighborhoods where they were buying a home.
Both groups used a variety of sites to obtain real estate information. However, repeat buyers were slightly more inclined than first-timers to use Realtor.com, while a larger proportion of first-timers than repeat buyers reported that they used third-party sites such as HomeAdvisor and msn.com.
Agents can do more to increase client awareness of the services they provide during the course of a transaction. This may lead to greater appreciation of the services provided by the agent, and possibly greater reported satisfaction with the homebuying experience.
The 2005 Internet versus Traditional Buyers Survey is part of C.A.R.'s survey research efforts. For information about the full report or other research publications, please contact the Research and Economics staff at C.A.R.
Last edited by San Diego Real Estate : 09-13-2005 at 07:46 AM.
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