Survey Highlights from the California Association of Realtors

2007 Internet Versus Traditional Buyers Survey:

Housing market conditions are rapidly changing in the past couple years and are affecting the behavior of buyers. Earlier this year, the CALIFORNIA ASSOCIATION OF REALTORS® conducted the annual Internet Versus Traditional Buyers Survey, which describes these changes in consumer behaviors driven in part by the slowdown in the demand of housing, as well as by the influence that the Internet has on the real estate marketplace.

Home buyers are more concerned about the direction of the housing market, are more cautious about their home buying process, and are spending more time doing research on their own before making a purchase. They spent more time considering buying and investigating homes before contacting an agent, and they spent more time previewing homes with their agent.

Many home buyers preferred the dynamic online experience that the Internet offers over the static paper experience that print advertisements offer. Only 12 percent of all home buyers looked at newspaper/magazine ads to search for a home, while more than seven of ten home buyers used the Internet as a significant part of the home buying and selection process.

The share of Internet buyers has grown from 28 percent in 2000 to 72 percent in 2007, while the share of traditional buyers declined from 72 percent in 2000 to 28 percent in 2007. Growth in the use of the Internet in the home buying and selection process has been accelerated by the growth in broadband use. The two percentage point increase from 2006 to 2007, however, was the smallest increase since the inception of this study.

The Internet played a more important role in the home buying process for younger generation groups. Three of five Gen X home buyers considered the Internet a vital tool in their home buying and selection process, compared to two of five Baby Boomers. Perhaps more noteworthy, no one in the age group of 55 and over said the Internet was significant to their process of home buying.

Despite the adjustment in behavior and attitude brought on by the change in market conditions, home buyers continued to rely on real estate agents to carry them through the process of home buying. Consistent with past years' results, nine of ten home buyers hired an agent to assist them through the home sales transaction.

With buyers being more concerned about housing market conditions, and more cautious about their home purchase, they expected quicker and more frequent communication from their agent. When asked how important the agent's response time was in their decision on the selection process, almost three quarters of all home buyers considered the agent's response time either a "very important" or an "extremely important" factor in their decision-making process.

When selecting their agents, both first-time buyers and repeat buyers considered their agent's responsiveness the most important factor, followed by their agent's aggressiveness. With the housing market slowing down, buyers also grew more price-conscious during the agent selection process, when compared to 2006.

Home buyers are expecting more from their agent: faster response time, more effective communication, more aggressive negotiation skills, and simply more "VALUE". REALTORS® who understand these changes in consumer behavior and adapt accordingly will be able to deliver their service to their clients with a maximized level of satisfaction, and be able to establish a long-term relationship with their clients.