Find a home today: the tools
Today’s homebuyers have more tools than ever to find a home. However, different generations use websites as an information source to help find a home online at varying rates, including:
- 99 percent of millennials
- 90 percent of Boomers
- 70 percent of the Silent Generation
Who is using what to find a home
It’s no surprise: buyers today increasingly use digital tools to find a home. These include websites, smartphone apps and social media. In fact, new research shows that most home searches begin online, especially for younger buyers.
But digital tools aren’t the only resources home shoppers rely on to find a home. A vast majority still enlist the help of a real estate agent. And many do so early in the home search process.
Experts say agents remain an important aid who can save you time and money when home shopping. Plus, agents can help you negotiate the deal and claim the right home.
What new information reveals
The National Association of Realtors (NAR) recently published its Real Estate in a Digital Age Report. Among the findings:
44 percent of buyers search for properties for sale online as their first step.
The remaining 56 percent chose these activities as their first stage:
- Contact a real estate agent (17%)
- Look online for info about the home buying process (11%)
- Contact a bank or mortgage lender (7%)
- Talk with a relative or friend about home buying (6%)
- Drive past homes and neighborhoods (6%)
Back in 1981, the most popular first step was to read newspaper ads (22%) and turn to friends for leads (8%).
Today, three of four buyers use the Internet frequently to search for homes. The incidence was higher among those age: 37 and younger (92%). However, Internet searching is also popular with those aged 38 to 52 (86%), and 53 to 62 (82%).
Related: "New school" house hunting: How to buy a house online
The most popular information sources used in a home search are:
- Online websites (used by 93%)
- Real estate agent (86%)
- Mobile or tablet app or website (73%)
- Open house (53%)
- Yard sign (46%)
- Online video site (37%)
Three-fourths of buyers found their home using a mobile device. This includes 58 percent of millennials, 46 percent of Gen Xers, and 33 percent of younger Boomers.
The website features found most useful are: photos (87%), detailed info about properties (85%), floor plans (52%), virtual tours (46%), and real estate agent contact info (42%).
Digital resources deliver the goods
Bruce Ailion, Realtor and real estate attorney, says these results are hardly surprising.
“The vast majority of buyers use the Internet as their primary home search tool. And that makes sense. It saves buyers time. It helps them consider more properties than if they were doing a physical search,” he says.
In the past, agents would send buyers info on homes to consider.
“But now, it’s the other way around. Buyers send Realtors homes they found online to get their opinion of the property,” notes Ailion.
Consider how digital tools may help speed up the home search process. All generations—minus young and old Boomers—took eight weeks to search for a home, per the report. Boomers, who use the internet less than younger buyers, spent 10 weeks.
Another key takeaway: agents matter
Brandi Snowden, the NAR’s senior research analyst, found these survey results interesting. She says they demonstrate that, although the search process may begin online, buyers still end up turning to the expertise of a Realtor/agent.
“Agents are still essential during the home buying process,” says Snowden. “Potential buyers are still choosing to work with an agent. That’s because they can have trouble finding the right property. And agents can help.”
Per the report, locating the right home ranked highest among all buyers as the hardest step in the buying process (chosen by 56 percent).
“So it’s not surprising to see that prospective buyers are looking to their agent for help in finding the right property,” she adds.
Snowden notes that agents can help shorten your search.
“Also, they can point out unnoticed features and faults with properties. They can improve a buyer’s knowledge of search areas,” she says. “And agents can help negotiate the price and terms of sale.”
Why you might want to get an agent involved sooner
Searching online first and recruiting an agent later may seem logical. But some experts believe you might have better luck turning first to an agent.
In a fast-paced market, the freshest info has the most value. And agents have access to the newest and most accurate listing info, says Bruce Ailion.
“Recently, a buyer called me. He was looking at a property on Zillow. But he didn’t know it went under contract three weeks ago. If he would have contacted me earlier, I could have steered him right,” he says.
The good news? Agents are just as tied into digital tools as you are. In fact, over nine in 10 Realtors use email, laptops, desktops and/or smartphones daily. And 93 percent, 92 percent, and 37 percent choose to communicate with clients via email, text, and instant messaging, respectively.
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