2006 Internet vs Traditional Buyers Survey - Highlights

2006 INTERNET VS TRADITIONAL BUYERS SURVEY - SURVEY HIGHLIGHTS:

Use of the Internet continues to grow as online access has become easier, faster, and cheaper for users in recent years. In the area of real estate, the Internet has gone beyond serving as an information gathering tool for home buyers. It is changing both the dynamics between buyer and agent and the way the industry does business.

The results of the 7th Annual California Association of REALTORS (C.A.R.) Internet vs Traditional Buyers Survey provides some insights to the changes that have been taking place among consumers in the real estate market, driven in part by the increased use of the internet. In addition, the survey also presents findings on how consumer groups with distinct characteristics differ from each other in behavior during the home buying process.

KEY FINDINGS:

-The typical buyer is now an Internet buyer. Homebuyers who used the Internet as an integral part of the home buying process increased significantly in the past six years from 28 percent of all buyers in 2000 to 70 percent in 2006, as high-speed Internet access became increasingly popular.

-Socioeconomic differences between Internet buyers and traditional buyers have become less apparent as more buyers use the Internet, but the two groups continued to behave differently when it came to the home buying process. Internet buyers devoted more time researching on their own before meeting with an agent compared to traditional buyers, but they spent less time working with an agent, during which they viewed significantly fewer homes before making a purchase.

-Buyers reported that the Internet provided a greater sense of control, especially with real estate Web sites becoming more consumer-friendly. More than nine of ten Internet buyers indicated that the Internet helped them better understand the home buying process and put them in more control of that process.

-Although the Internet has become an important research tool for home buyers, most considered it an information resource rather than a substitute for a real estate agent. Nine of ten homebuyers hired an agent to assist in the home buying process.

-Internet buyers were generally more satisfied than traditional buyers on every aspect of the home buying process. Home buyers were satisfied with their agent primarily because of their agent's quickness in response and hardworking ethics. One common source of dissatisfaction shared by both Internet buyers and traditional buyers was the late closures of their escrows.

-The Internet played a more important role in the home buying process for first-time buyers and Gen Xers than repeat buyers and Baby Boomers.

-First-time buyers placed a high expectation on their agent's responsiveness, not only in the agent's selection process, but also throughout the entire home buying experience.

-In the future, agents who want to maintain their competitive edge will need to become familiar with the ever growing array of online consumer home buying tools, broaden their online presence, and enhance their communication with clients through the use of the latest Web trends such as blogs and podcasts.

Article provided by California Association of Realtors.