 Buyers today have been empowered by the Internet. In fact, experts say that half of all homebuyers use the Internet to some degree in their home transactions. And real estate agents, salespersons, mortgage lenders, title insurers, and others have adapted to serve the better-educated Internet consumer.
There’s no doubt that the Internet has changed the way homes are bought, sold, and financed. And though most homebuyers using the Internet are merely browsing to find a home or to assess their current home’s value, they increasingly feel they are more in control of the transaction.
As consumers find power in Internet use, they begin to expect fast service and more competitive prices. As a result, many in the real estate industry have adapted to compete for the Internet-savvy buyer’s business.
Study finds Internet buyers more prepared
They’re slower to act and don’t tour as many homes as traditional buyers, but Internet homebuyers know their stuff. The California Association of REALTORS®’ (CAR) 2002 Internet Buyer vs. Traditional Buyer survey found that Internet buyers are not only choosing their agents online (79%), but they are communicating 88% of the time with their REALTORS® via e-mail.
Internet homebuyers devoted more time to researching and investigating their homebuying options earlier in the homebuying process than traditional buyers. And Internet buyers spent an average of 5.8 weeks contemplating their home purchase before contacting a REALTOR®, almost four weeks more than the traditional buyer’s 2.1-week average.
Internet buyers also spent 4.5 weeks investigating the market before contacting an agent, almost three weeks longer than the average of 1.8 weeks spent by traditional buyers. Conversely, traditional buyers spent more than three times as much time looking for a home than Internet buyers, and viewed more than twice as many homes in person (15.2 homes) as the Internet buyer (7.5 homes.)
In the end, the time taken by Internet-using buyers results in a better understanding of the homebuying process, a clearer idea of what they want, and a higher level of satisfaction with the process and their REALTORS®. |
Person-to-person is important
Despite the convenience and unparalled research ability of the Internet, most homebuyers still want the interaction with a REALTOR® — someone they can rely on for specialized expertise and support in making such an important financial purchase as a house. The fact is REALTORS® do much more than just supply information; they coordinate among the various parties in a real estate transaction, and take care of duties that consumers either need or want someone else to perform.
The real estate industry has changed to accommodate a new generation of people who use the Internet because it is the quickest, easiest, and simplest way to get information. However, person-to-person communication is still key.
John and Mary Miller used the Internet extensively when they were searching for a home — mostly to check out neighborhoods and surf for houses online. But purchasing a home online was something they knew they wouldn’t do.
"Using the Internet for our initial research was great because we saved a lot of time," says John Miller. "But we prefer having someone who knows the market where we’re looking and the ins and outs of the homebuying process when it comes to making a purchase. It’s just peace of mind for us."
What about getting a loan online or other financial services? The reality is that only a very small fraction of buyers in the $1 trillion mortgage industry shop for and secure loans online. The real estate industry in general remains largely a face-to-face business in which consumers are still more comfortable doing business in the real world.
As a friend of mine pointed out, you can’t test a house for termites online. Somebody has got to go there and look.
However, the Internet can be a great tool for seeing what’s out there — and it’s especially valuable for first-time homebuyers new to the real estate market. By the time consumers are ready to buy, most of the legwork has already been done, and that’s a good thing. The end result is better prepared, Internet-educated consumers who act quickly and decisively, saving themselves and their REALTORS® time, trouble, and expense. |
