Technology is changing the way in which North Carolinians buy, sell and research homes, including how they work with real estate agents and brokers, according to the North Carolina Association of REALTORS® Profile of Home Buyers and Sellers.

The Profile is a survey conducted by the National Association of REALTORS® evaluating the demographics, searching processes, values and other characteristics of N.C. homebuyers and sellers.

Use of the Internet to research homes has exploded over the last several years. During 2005, 75 percent of all N.C. homebuyers used the Internet in their home search. Nationally, 77 percent used the Internet in their search an increase from only 2 percent in 1995 when first measured. Additional resources used by North Carolinians in researching homes include yard signs (70 percent), traditional newspaper advertising (43 percent) and open houses (38 percent).

Despite the usefulness of the Internet, consumers still find REALTORS® a valuable resource in the home search process. Ninety-two percent of N.C. homebuyers use real estate agents as an information source during the home search process, making real estate agents the most widely used source, even over the Internet. These findings show that recent hype about technology's potential to replace REALTORS® in the home sale transaction is looking less likely everyday.

Former NAR President, Tom Stevens, believes that full service real estate cannot be successfully transferred online. "The housing market today contrasts sharply with predictions a decade ago that the Internet would ‘disintermediate' real estate agents, including speculation that NAR membership would fall in half," Stevens said. "In reality, it's grown dramatically - selling real estate is not like selling a book or buying an airline ticket."

So now that we know how N.C. consumers search for a home, how do they choose a REALTOR®? Most buyers (39 percent) find a REALTOR® through referral from a friend, neighbor or relative; 11 percent found their agent on the Internet; 8 percent use an agent from a previous transaction; and 7 percent were referred to their agent through an employer or relocation company.

Reputation was cited by 42 percent of N.C. homebuyers as the most important factor in choosing an agent, followed by the agent's knowledge of the neighborhood at 28 percent. Additionally, nine out of ten buyers found several other qualities desirable in an agent including: knowledge of the purchase process, responsiveness and knowledge of the market.

"Word-of-mouth recommendation is the most common way to learn about real estate professionals," said Paul Bishop, NAR's senior economist. "The most important criteria, whether you're buying or selling, are the individual agent's reputation and their knowledge of the local market."

The best news of all: N.C. REALTORS® are satisfying customers. In North Carolina, 85 percent of buyers said they would use their agent again or recommend them to others. Compared to the national level of client satisfaction, North Carolina is exactly on par. Nationally, 85 percent of buyers said the same.

The recent increase in Internet-based real estate business models hasn't replaced the REALTOR®. In fact, REALTORS® are still the best home sellers around. Nationally, the survey reported that the median home price for sellers who use an agent is 16 percent higher than a home sold directly by an owner, $230,000 vs. $198,200 respectively. "While many unrepresented sellers are motivated to save on paying a commission, we think the price difference speaks for itself," stated Stevens. "Owners without professional assistance also have problems in understanding and completing paperwork, prepping the home for sale, getting the right price and selling within the time planned."

Wondering About Today's Client?

According to the N.C. Profile, married couples make up the largest share of home buyers, accounting for 61 percent of transactions in 2005 and 62 percent in 2004. Surprisingly, single women make up the next largest purchasing group at 2 percent of transactions, while single males make up only 9 percent of transactions. In 2004, single women made up 18 percent of buyers and single men were 8 percent.

Additionally, the typical N.C. home seller is older than the typical national home seller. The median age for an N.C. home seller is 50 years old, while nationally the median age for home sellers is 47 years old. Ninety-five percent of N.C. home sellers are Caucasian while only 85 percent of N.C. homebuyers are Caucasian. Nationally, 90 percent of home sellers are Caucasian and 83 percent of homebuyers are Caucasian.

Overall, even though consumers might begin their research on the Internet, when it comes time to make a purchase, buyers use a real estate professional. According to the survey, 81 percent of buyers who use the Internet to search for a home actually purchase through a real estate agent, while 63 percent of non-Internet users buy through an agent. Twenty percent of non-Internet users purchase their home directly from a builder or a builder's agent.

In closing... REALTORS® are satisfying clients everywhere and they do make a significant difference in the home sale transaction!

We hope you have found this post useful and encourage you to please contact us with any questions, comments and all of your real estate needs.
 
Thanks in advance.

With our highest regard,

Wayne and Lynda Gomillion
"The Pinehurst Home Team"

"The friendship and referrals of those we serve is the foundation of our success.