Why We Do This and

Not ThatPOWER UP YOUR PLAN

Pili MeyerABR, CIPS, CNE, GRI, SRES, VAMRES

Who are these Buyers and Sellers and What do they want?

This publication is available at www.realtor.org

After a steady decline since 2004, married couples rising as % of buyers

38% First Time Buyers

2010 = 50%

Pacific RegionMedian

Household Income$96,300

MedianAge

Buyers 44

17% bought multi-generational home

Reasons:Cost savings-27%Children over 18

moving back into house-20%

Spend more time w/aging parents-19%

Health/caretaking of aging parents-17%

Q7

What do they Want?

How do they Behave?

WHAT SELLERS MOST WANT FROM REAL ESTATE AGENTS

market

to bu

yers

sell in

a tim

e fram

e

price

compe

titively

find a

buye

r

fix up

tips to

sell fo

r more

nego

tiate

with bu

yer

pape

rwork

/insp

ectio

n

create

/post v

ideo

0

5

10

15

20

25

30

Q3

Primary Reason for Selling 6-20

Too Small

Job Relocation

Closer t

o family

Neighborh

ood deteriorati

on

Too Big

Change

in fa

mily sit

uation

Retirement

Closer t

o job

Upkeep to

o difficu

lt

Can't a

fford m

ort

1915

1310 10

86 5 4 3

How Sellers Found Their Agent 7-1

Referred

Used previo

usly

Internet W

ebsite

Open House

Referred by a

gent

Personal

contac

t

Saw co

ntact in

fo

Referred by e

mployer

Walk

in/C

all in

Direct

mail

Newspap

er

Adverti

sing s

pecialty

39

25

4 4 4 4 3 3 2 2 1

# Agents Contacted by Seller to List Home 7-3

1 2 3 4 5+0

10

20

30

40

50

60

70

Q2

3 Take-Aways for Working with Sellers

Treat your referral base, including past clients, really, really well

Be first in line

Be easy to find

0

10

20

30

40

50

60 53

12 11 8 7 3 3 1

What Buyers Want Most from RE Agents4-8

Q8

How Buyer Found the Agent They Used 4-12

Referred by f

riend, fa

mily

Used ag

ent previo

usly

Internet w

ebsite

Open House

Saw co

ntact in

fo on sign/o

pen house

Referred by a

gent

Referred by e

mployer

Walk

in/C

all in

Personal

Contact f

rom ag

ent

42

12 9 6 6 4 4 3 3

65%

20%

10%5% 1

2

3

4+

How Many Agents Were Interviewed by Buyer4-14

Q1

25%

12% of the Buyers did!!

Of Sellers previously worked with the agent they chose as Listing Agent

Written agreement

42%

Oral agreement

19%

No26%

Don't know13%

Written agreement Oral agreementNo Don't know

Did the Buyer have a written agreement with the agent?

Are You Kidding Me?

Q6

3 Take Aways for Working With Buyers

Learn how to present a Buyer’s Agreement. A lot of them think they signed one. Work those referrals Focus on what is important to them

New v Previously Owned Home Purchases 2-1

2009 2010 2011 2012 2013

18 15 16 16 16

82 85 84 84 84

New Previously Owned

Fairly static activity

Why Choose New Home?

05

101520253035 32

2514 10 6

13

Q9

Why Choose a Previously Owned Home?

Better Price Better Value More charm and character

Lack of inventory of new homes

Other

30 28

17

9

16

What does that mean? If you are marketing new homes, what will you emphasize?

What about existing homes?

Factors Influencing Neighborhood Choice 2-12

Quality

of Neig

hborh

ood

Conve

nient

to Jo

b

Overal

l Affo

rdabili

ty of

Homes

Conve

nient

to frie

nds/f

amily

Quality

of sc

hool

distric

t

Design

of ne

ighbo

rhood

Conve

nient

to sh

oppin

g

Conve

nient

to sch

ools

Conve

nient

to leis

ure ac

tivitie

s

Conve

nient

to pa

rks/re

c

Availab

il of la

rger lo

ts/ac

reage

Conve

nient

to he

alth c

are

Planne

d com

munity

Conve

nient

to pu

blic tra

ns

Conve

nient

to air

port

0

10

20

30

40

50

60

70

80

Suburb Small Town Urban Rural Resort area

What does that mean? If you are marketing a home in the suburbs, stress the quality of the schools

If you are marketing a home in a resort community, stress quality and design of the neighborhood.

24%

24%20%

11%

22%

Children 18+ moving home

Cost Savings

Health/Care Taking Ag-ing Parents

To spend time with Ag-ing Parents

Other

Reasons 14% of buyers purchase multi-generational home

Where Buyers Found the Home They Bought3-16

Intern

et

Real E

state

Agent

Yard sig

n/OH

Builder/

agen

t

Friend

, relati

ve

Directly

from se

ller

Newspa

per a

d0

5

10

15

20

25

30

35

40

45

50

47

33

9 5 4 1 10

37

179

19

84

Used internet Did not use it

Looke

d onlin

e for

home

Contac

ted ag

ent

Looke

d onlin

e for

info

Drive by

homes

Contac

t lend

er/ba

nk

Talk w/fri

end o

r relati

ve

Open H

ouse

Contac

t build

er0

5

10

15

20

25

30

35

40

45 42

1714

7 6 5 3 2

First Steps Taken in the Home Buying Process

Information Sources Used by Buyers

Online

Agent

Yard Sign

s

Open H

ouse

Mobile/

tablet

app

Mobile/

tablet

search

engin

e

Online v

ideo s

ite

Print n

ewspa

per

Builder

Home b

ook

0102030405060708090

100 89 89

51 45 45 4227 23 17 15

Used

Q10

Information Sources Used by Buyers & Their Usefulness

Online

Agent

Yard Sign

s

Open H

ouse

Mobile/

tablet

app

Mobile/

tablet

search

engin

e

Online v

ideo s

ite

Print n

ewspa

per

Builder

Home b

ook

0102030405060708090

100 89 89

51 45 45 4227 23 17 15

81 78

31 4060 65

4618

4816

Used Useful

81% = Internet

78% = Real Estate Agent

60% = mobile or tablet app

65% = mobile or tablet search engine

The Top 4 Useful Tools

Drove b

y or v

iewed

home

Walked

throu

gh ho

me see

n onlin

e

Found

agen

t

Reque

sted m

ore inf

o

Looke

d for

loan in

fo or

gen'l

tips

Pre-qu

alified

for m

ortga

ge

Contac

ted bu

ilder/d

evelop

er

Applied

for m

ortga

ge on

line

Found

mort

gage

lende

r onlin

e0

10

20

30

40

50

60

70

80

Actions Taken as a Result of Internet Home Search 3-13

Does this help you decide where to spend your marketing dollars?

How does this help you respond to the Seller who asks for a full page ad in the Wall Street Journal?

Mobile phone and tablet apps and search engines are #3&4 in usefulness.

# Agents Contacted by Seller to List Home 7-3

66%

19%

11%3%1%

NE Midwest South West

7 7 7 7

12

10 10

12

2001 2013

Length of Search in Weeks by Region

2008 2009 2010 2011 2013

10

12 12 12 12How many homes did they view?

Q5

How did the Buyer and Seller feel about the process?

Typical Seller

97% of List Price

Median time on market 5 Weeks

38% sellers’ home on market less than 2 weeks

Satisfaction with Real Estate Agent Skills 4-21

Honesty & Integrity

Knowledge of process

Knowledge of market

People skills

Responsiveness

Communication skills

Knowledge of local area

Skills with technology

Negotiation skills

0 10 20 30 40 50 60 70 80 90 1008787

8684

838282

7773

9

11

13

13

13

14

15

20

21

3

2

2

3

4

4

2

3

6

Not Satisfied Somewhat Satisfied Very SatisfiedQ4

Satisfaction with the Selling Process 6-39

56%29%

10%4%

Very satisfied

Somewhat sat-isfied

Somewhat dissatisfied

Very dissatis-fied

Satisfaction with the Buying Process 3-20

57%34%

7% 2%Very satisfied

Somewhat satis-fied

Somewhat dissatisfied

Very dissatisfied

Would Buyer Use the Agent Again or Recommend? 4-21

73%

15%

6%4%2%

Definitely

Probably

Probably not

Definitely not

DK

That’s

88%

25%

12% of the Buyers did!!

Of Sellers previously worked with the agent they chose as Listing Agent

Always ask for referrals Do you know

anyone who wants to buy or sell real

estate?