Fab Real Estate Blog: How do Home Buyers Find Their Home?

How do Home Buyers Find Their Home?

A new report just released by Inman News details how home buyers ultimately find their new home.  The results are not surprising:

  • 36% of all home buyers found the home they purchased through their real estate agent
  • 36% of all home buyers found the home they purchased on the internet

Just with the two items above, a whopping 72% of all recent home buyers found their new home through their agent or through their online searches.  Ninety percent of all recent buyers did utilize the internet to look at available homes and assist themselves in their home search process.

Agents often ask why I market so extensively online.  I do so because I want my clients' homes to sell.  I want those 90% of internet searches to see MY clients' homes.
Some agents ask why I also market to my colleagues.  Again, I do so because I want my clients' homes to sell.

The report continues:

  • 12% of all home buyers found the home they purchased from a yard sign.
  • 6% of all home buyers found the home they purchased through a friend, neighbor or relative

Don't want a For Sale Sign in your front yard?  You may have potentially lost out on 12% of the potential buyers.
The photo postcard mailing I send to your neighbors helps us capture an additional 6% of potential buyers for your home.

We've now tackled 90% of the market of potential buyers for your home.  Most buyers are now aware of your home. 

Where do print ads come in to play?  Only 2% of buyers located their new home through a print ad.
How about open houses?  Not even listed on the report, as while many buyers do visit open houses, they do not typically locate their via these open houses.

So, as agents, where should we focus our time, money and efforts?

I focus my efforts on those 90% of buyers.
If you're selling your home, make sure all efforts are focused on these 90% of buyers.  The odds of selling will be in your favor


Don Fabrizio-Garcia, REALTOR
Real Estate Broker & Appraiser
Nationwide Realty

203.746.1199
www.FabRealEstate.com

 

Comment balloon 8 commentsDon Fabrizio-Garcia • November 17 2009 09:20AM

Comments

Interesting statistics.  I didn't realize the print ads and Open Houses were so low on the list.  It is amazing that Realtors are still spending money on print advertising and giving up time on the weekends for Open Houses.  Is it just to keep the sellers happy?

Posted by Philip Turner, Mortgage Banker Since 1980 (MCCUE MORTGAGE COMPANY) over 8 years ago

Yes, many agents do print ads to keep sellers happy.  Others do print ads because that is what they have always done.  I dropped print ads years ago, as they just do not sell homes.

As for open houses, they also do not sell the homes, but they can be a good resource for agents to meet new buyers - who they may sell other homes to.  Some sellers still want open houses, but many now realize it is not worth the effort to vacate their home for several hours for an even that most likely will not be the cause of the sale.

Posted by Don Fabrizio-Garcia, Owner/Broker/Trainer - Fab Real Estate (Fab Real Estate) over 8 years ago

I'm fairly new to the business (coupla years now) and my brokerage just changed its name so we do print ads to put our name in front of consumers perhaps more so than to sell the homes advertised. Same goes for open houses to a certain extent. 

Otherwise, I couldn't agree more about concentrating your efforts where the buyers are.

Posted by Julia Odom, Chattanooga Homes for Sale (Select Realty Professionals) over 8 years ago

Do you have a link to the article? I couldn't find it on Inman.

Posted by Julia Odom, Chattanooga Homes for Sale (Select Realty Professionals) over 8 years ago

Julia - The Inman articles are only available for one day, unless you're a paying member.
Print ads can certainly help with branding and name recognition, but they really do not sell houses.

Posted by Don Fabrizio-Garcia, Owner/Broker/Trainer - Fab Real Estate (Fab Real Estate) over 8 years ago

Don - Inman News is a reliable source of information.  Thank you for sharing these statistics.  The statistics for the usefulness of Open Houses and print advertising continue to decline, meanwhile the statistics for the use of the Internet for buyers finding their next home continues to grow.  Thank you for sharing this information.

Posted by Gail Robinson, CRS, GRI, e-PRO Fairfield County, CT (William Raveis Real Estate) over 8 years ago

Very informational post, Don. We haven't done print advertising for 4-5 years because it doesn't work for us. We focus our energy on online advertising because it does sell homes.  Thanks for sharing these stats.

Posted by Bonnie & Terry Westbrook, Grand Rapids MI Real Estate (Westbrook Realty) over 8 years ago

I agree the internet is where we should be concentrating our efforts. 

Posted by Tammie White, Broker, Franklin TN Homes for Sale (Franklin Homes Realty LLC) over 8 years ago

Participate