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How 40% of Buyers Find an Agent (Are You Missing Out?)

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Services for Real Estate Pros

How much homework are you really doing in your business? What, homework? We're not in junior high any more! Well, guess what, just because you are a professional in your field and know more about real estate than most people ever will, you can always learn more.

I specifically dedicate time each week to learning. Of course, I'm a big nerd, but that's beyond the point.There are always things to learn, and the simple fact of the matter is it's a really easy way to get ahead of the competition.

Where's a good place to look? Why not start with industry reports.  You can learn a ton from reports released by the big websites, the National Association of Realtors, and even your local geographical grounds. When you take some time to read some of these there is a lot of information that can be gleaned, very helpful information that you can use to get more clients. 

Let's take a look at the most recent NAR report that came out late last year, the 2014 Profile of Home Buyers and Sellers. This report covered the responses of about 6,800 people who answered over 125 questions. Now, the data:

  • 40% of buyers were referred to their agent by friends/family, but only 12% used an agent they worked with previously
  • 38% of sellers were referred to their agent by friends/family, while 22% used an agent they worked with previously
  • 56% contacted agents via the phone and 21% contacted agents via email
  • 67% of buyers spoke with only 1 agent before hiring them, 20% spoke with two agents

All right, that's a lot of facts and figures, but what does it really mean? There are a few interesting things to pull out of there. Namely, what I want to focus on the list is how buyers and sellers work with agents.

The huge thing that should stick out to you is that a lot of people use their agents via referrals. Makes sense, right?

People go with who they trust with these things, and if your co-worker or cousin just bought a house and raved about their real estate agent you'd certainly be interested if you were looking as well.

Something for you to think about as this could be an area of the market you aren't using at all. That could be a huge mistake. So the question is, how are you dealing with referrals?

Show All Comments Sort:
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

If you are not working your business for referrals and repeat business you are in for a long haul.  Thank you  for proof in the #s.  Mark

Jan 09, 2015 04:15 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Very insightful information we need as Agents touch base with our referrals if we want our business to continue to grow.

Jan 09, 2015 04:34 AM
Mark Baker
United Realty Group Wellington - Wellington, FL
Serving Palm Beach County FL

Thanks for sharing this valuable info.  Best of luck to you.

Jan 09, 2015 06:44 AM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Liz-I know these facts to be true, but thanks for bringing these to the forefront as I'm tweaking my prospecting methods.

Jan 09, 2015 12:46 PM
Bill Dean
Haggerty Team St. Louis, Mo. - Fenton, MO
William Dean - Broker, Salesperson

Absolutely True!   The biggest reason only 12% and 22% of folks  use their previous agent is we are so bad about not keeping in touch after the sale!  I do stay in touch with my clients,but not as consistently as I know I should.

This is a great reminder for me to reach out to my past clients.  Thanks

Jan 27, 2015 01:39 AM