Since internet buyers (IB) do most of their home searching and researching BEFORE calling an agent, they are more efficient buyers who won’t take up a lot of your time and resources. Realtor studies show they are also more satisfied with their agents and overwhelming say they would use the same agent in the future.
The Efficient Buyer Saves Resources
Here are some interesting comparisons:
- IB spend 2.2 weeks, on average, with their agent before buying, while the non-internet buyer (so called traditional buyer) spent 7.1 weeks with their agents.
- IB previewed 6.7 homes while the traditional buyer previewed a whopping 15.4
- 81% of IB stay with the first agent they choose to contact
In addition:
- traditional buyers interview about 3 agents, IB only 1
- distance between old and new home: 25 miles for traditional, 242 for IB
- IB have higher satisfaction rates with their agents: 4.3 v 3.3, on a scale where 5 is “surpassed expectations”
- Most IB are first time home buyers and Gen-X vs. Boomers and repeat buyers
The Internet Buyer Will Come Back
We all know the story. You work your butt off for a client and never hear from them again. Well, according to the report, internet buyers WILL come back: 97% of internet buyers would use the same agent on their next transaction versus only 50% of traditional buyers.
So, it seems the internet buyer is the more resourceful, more efficient client, who likes working with their agent, holds that agent in high regard and will use them again. In short, the perfect client. But they are not pushovers. They expect you to be as efficient as they are. Time response to inquiries is critical to the internet buyer. So, use auto-responders for your email (some are better than others—we’ll give you a good one in a future post), return calls the same day and use the tech skills you’ve learned.
Where Internet Buyers Look For Agents
It comes as no surprise that a whopping 92% of internet buyers find their agents on the web, 63% via search engines. Therefore, you must be where the buyers are looking: online. You MUST market and promote YOURSELF and YOUR BRAND on the internet. Having your own blog will bring the search engine traffic, which includes those valuable internet buyers, directly to YOU. Putting your profile on your blog, as well as in internet directories, will also help buyers choose you.
Other Findings
- Late closure of their escrow is a common complaint of traditional and internet buyers (so prepare your clients for this possibility)
- First time home buyers have the highest expectations of their agents
- Internet is valued as a source of information about the home buying process & not a substitute for using an agent. 9 out of 10 buyers hire an agent to buy a home.
- No group found internet information more useful than that obtained from agents.
Sources: C.A.R. Highlights from 2006 Internet v. Traditonal Buyers Survey*; Michael E. Parker, Online Marketing: Internet Buyers v. Traditional Home Buyer Study, Broker-Agent News.
*The 2006 C.A.R. homebuyer study was done by Leslie Appleton-Young, Chief Economist & VP of the California Association of Reators.
Actually for “floor time” calls, it’s remarkable the number of callers that don’t have an email address. It’s like we’re screening for low tech buyers.
Internet buyers for the win!
The time savings, generally, with an internet buyer are a huge plus for any agent, since your time is a limited commodity. I was surprised about the high satisfaction ratings. Do you think the tech savy buyer just feels more comfortable with a tech savvy agent?
Nah, we just have more to talk about during the car rides…
Me: Uhm, how about that Sellsius blog, huh?
Them: Yeah, that sure is a nice blog.
Me: Yeah, but I’m sexier.
Awkward silence…….
This is great stuff! Think about what’s happening in the head of a buyer. They can find out anything they want and look at homes without every speaking with an agent. When they need to “touch the paint”, they’ve already made their decision that this is the area, type of home and the agent they were looking for. Most Internet buyers have been to several different websites and have interviewed many different agents online. When an Internet Buyer calls you up and says I want to look for homes, you can just about guarantee they won’t be using another agent because they’ve already seen their options and they’ve chosen you. I believe this is one of the reasons for the spike in happy Internet buyers.
The difference between a Traditional buyer and an Internet buyer is rooted in access to information and knowledge. A traditional buyer may not know a thing about where to move and what they’re looking for, so they need a little more help from the agent. Thus causing more work for the agent. The Internet Buyer doesn’t ask the agent, they ask the Internet and do the research on their own. They are no longer dependent upon the agent to get basic real estate information. The Internet has eliminated many basic tasks that are usually provided with a traditional buyer. Making it easier for the buyer and the agent. Causing the buyer to be happy right along with the agent. More information + less hassle + less time = win-win.
We love internet buyers. I disagree with your comment that they only interview one agent - I think they do their “interviewing” online before they contact an agent.
The one agent stat came from the C.A.R. study. We didn’t buy it either. Your conclusion makes more sense. You gotta watch those statisticians and their semantics.
Studies like these just reinforce the fact that everyone who blogs already knows. Better internet presence has many rewards.
Keep blogging!
You make some good points about IB’s in your blog. Having an informed buyer will save you time and energy in the long term of the transaction. We have seen here at Move.com that IB’s know what they want when it comes to finding a home.
hi scott - there is a striking resemblance between you and dustin luther
Maybe that’s why Scott and Dustin both work at move.com?
” Nah, we just have more to talk about during the car rides…
Me: Uhm, how about that Sellsius blog, huh?
Them: Yeah, that sure is a nice blog.
Me: Yeah, but I’m sexier.
Awkward silence……. ”
That may be one of the funniest comments I’ve ever read
> Nah, we just have more to talk about during the car rides…
Me: Uhm, how about that Sellsius blog, huh?
Them: Yeah, that sure is a nice blog.
Me: Yeah, but I’m sexier.
Awkward silence…….
Me: Uhm, how about that Sellsius blog, huh?
Them: Yeah, that sure is a nice blog.
Me: Yeah, but I’m sexier.
Awkward silence…….
…that may be one of the funniest comments I’ve ever read
Great stuff! Looks like those stats on internet buyers are from mostly MLS / IDX sites. Where portals are still used and MLS is still in a minority position, capture rate is much lower and customers email muliple agents at the same time. That being said, the early bird catches the worm.
I’ve been looking for a home myself lately and I will be honest and say that I almost only look online. It’s just so easy and convenient, it would be dumb not to look on the web.