The Importance Of Internet For Real Estate Professionals

The Internet has become a fixture of our day to day lives. Goneare the times when a computer and a broadband connection wereluxury items. More and more people are relying on the web tolearn information about the real estate process, as well as themarket conditions, and to look at listings. Keeping this inmind, it is important for any real estate professional tounderstand why the internet is so vital to today's businessclimate, and why choosing not to get involved would diminishtheir profits and reduce their competitive edge.

NationalAssociation of Realtors (NAR) and CaliforniaAssociation of REALTORS surveys clearly show a considerableincrease in internet usage as opposed to traditionaladvertising/media. People browse for listings as well as forrealtors. Let's take a closer look at the results and theirsignificance for real estate brokers and agents.

Nowadays, people don't accumulate information as much as theyused to. Instead they rely on the internet to help them. What iseasier than punching in keywords in a search engine only to getwhat they were looking for faster and more accurately thanbefore. It's only natural to take advantage of the web whenlooking for a new home.

According to the CAR's "2005 Internet Versus Traditional BuyerStudy", internet homebuyers increased from 56 percent in 2004 to62 percent in 2005. Clearly, the web has become an integralelement 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 areusing the internet to preview homes. That way, they can make aninitial selection from a larger pool than from traditionalmeans.

According to the 2004 CAR report, internet buyers use an averageof 4.8 weeks to look for information on homes and neighborhoods,before contacting a real estate professional, as opposed to 1.6weeks for traditional buyers. However, once they finished theirpreliminary information gathering, they spent significantly lesstime with their agent and preview far fewer homes, spending 1.9weeks, compared to 7.1 weeks for their traditional counter-parts.

Internet searches are especially important to people looking tomove in different parts of the country. According to the samereports, internet buyers searched for a house within a mediandistance of 100 miles from their residence, as opposed to thetraditional buyer - only 12 miles.

Considering all these facts, it's no wonder that traditionalbuyers' numbers have decreased from 72 percent in 2000 to 44percent in 2004.

Internet offers a wealth of information at a touch of abutton, anytime, anywhere.

The Internet has grown so big, one can find detailed informationabout anything.

Brokers, agents and third-parties are able to distribute anddisplay a wealth of information about listings, mortgages,loans, neighborhoods. Because these resources are available 24hours a day, buyers are able to do searches in their own time,using the same tool: the computer. This saves enormous amountsof time.

People will normally want to get as much information as possiblefrom as many sources as possible. Therefore, realtors who willdevelop their websites including specialized, insiderinformation and detailed listings complete with pictures, willbe more likely to capture internet homebuyers.

According to the 2003 NAR survey, buyers want two features in anreal estate website: detailed property information (77 percentfound it useful) and photos of the house (78 percent found themuseful). Virtual tours were appreciated by 47 percent. Theimpact of these features was so great, that it spurred buyers toaction. 72 percent drove to see the house they found online, and46 percent visited the house.

As stated before, internet shopping does not stop only tolistings. According to the same report, 18 percent found theiragent online as well. It's a good bet that detailed propertypresentations had a great impact in their decision.

NAR President Cathy Whatley, owner of Buck & Buck Inc. inJacksonville, Fla., said warnings that online information wouldreduce reliance on real estate professionals have proved to befalse. "Almost every home placed on the market today can befound on the Internet, and more buyers than ever are using theWeb to search for a home," she said.

With that in mind, let's take a look at the internet homebuyerprofile.

- Buyers who like to be in control

The internet has proven to be empowering to consumers. The webhas bred a news species, which is in control of the inquiryprocess, all the while maintaining anonymity. This anonymity isvery important, as people generally don't like to be rushed inmaking a decision, especially if it is an important, as well ascostly, one.

- According to CAR's "2005 Internet Versus Traditional BuyerStudy", 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, themajority of online shoppers are women, more than 60 percent, and73 percent of them were younger than 45.

- Buyers like to be as informed as possible.

Knowledge is not restricted to listings and prices. It extendsto real estate transaction details, mortgage and loaninformation. It is another plus for internet-savvy realtors whocan rush and fill in these blanks.

It is important for real estate professionals to speak thelanguage of the buyers. Keep in mind, that the youngergeneration has been raised while using a computer, thereforeit's natural to them to rely on the internet when searching forinformation.

"While the Web is great in providing information, the surveytells us that consumers rely on real estate professionals toprovide context to their research, and to provide services thatguide them through the negotiation and transaction process,"says NAR President Martin Edwards, Jr.

In 2001, the CAR report highlighted the fact that 78 percent ofInternet homebuyers found their agents on the Internet, not as aresult of traditional methods such as farming, referrals,advertising, or sign calls. This percentage has surely increased.

Furthermore, having a website and conducting communicationsthrough email has become a mark of professionalism for anybusiness venture in today's world. Having a website can onlyhelp.

"The Internet has complemented rather than diminished Realtors'role in the homebuying transaction," said C.A.R. President AnnPettijohn. "While Internet buyers considered online informationto be valuable, they ultimately turned to Realtors both fortheir interpretation of that information, and for theirexpertise and judgment throughout the homebuying process. Theexpertise and professional advice provided by Realtors createsvalue 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 ByHomebuyers by Blanche Evans

New Report Shows Gulf Between Internet andTraditional Homebuyers by Blanche Evans

CAR's Internet Versus Traditional Buyer StudyShows New Trends by Blanche Evans

CAR Report Shows Increased Use Of Internet ByHomebuyers by Blanche Evans

Women Browse For New Housing More Than Menby Broderick Perkins

New NAR Survey Shows Growing Web Use in aDynamic Housing Market