Consider the Source
Despite fears that the increasing availability of real estate information to consumers would eventually erode the role of the real estate agent, the reality is the opposite: Agents are as valuable as ever.
Buyers and sellers continue to seek out the help of a professional, according to NAR’s Home Buyer and Seller Generational Report 2017. Nine out of 10 sellers worked with a real estate agent to sell their home. And agents are doing a good job of getting sellers what they want: The final sales price of a home was a median 98 percent of the listing price, and the homes were on the market a median of four weeks.
There is no shortage of buyers looking to work with an agent, either: 88 percent do, and that figure is even higher with younger buyers (those younger than 36), at 92 percent. They primarily want agents to help find the right home (50 percent) but are also looking for help to negotiate the terms of the sale and with price negotiations. For those under 36, help in understanding the buying process is key (74 percent).
Trust is paramount when selecting an agent. Finding an agent that is trustworthy and honest was the most important factor for buyers. That was followed by agent experience and the reputation of the agent.
And all that helps with referrals, which are increasingly important to buyers, sellers and agents: 52 percent of younger buyers found their agent through referral from friends, neighbors or relatives, and that number is growing—it’s up from 46 percent last year. Among those 37 to 51 years old, 39 percent found their agent through referrals. On the sales side, 64 percent of recent sellers used a referral or the same agent they used in the past, and that number jumps to 74 percent for home sellers 36 and younger. The typical seller recommends their agent at least twice, and one-third of sellers recommend their agent three or more times.
Information Source | All Buyers | 36 and younger | 37 to 51 | 52 to 61 | 62 to 70 | 71 to 91 |
---|---|---|---|---|---|---|
Online website | 95 | 99 | 96 | 90 | 89 | 77 |
Real estate agent | 92 | 90 | 86 | 84 | 88 | 90 |
Mobile or tablet search device | 72 | 86 | 74 | 61 | 49 | 40 |
Open house | 50 | 51 | 63 | 46 | 45 | 43 |
Yard sign | 49 | 47 | 51 | 49 | 46 | 49 |
Online video site | 36 | 28 | 36 | 63 | 46 | 45 |
Print newspaper advertisement | 16 | 13 | 15 | 20 | 22 | 31 |
Home builder | 14 | 14 | 21 | 18 | 18 | 20 |
Home book or magazine | 12 | 10 | 12 | 15 | 3 | 16 |
Billboard | 4 | 4 | 6 | 6 | 3 | 2 |
Television | 3 | 3 | 3 | 2 | 2 | 3 |
Relocation company | 3 | 3 | 3 | 3 | 1 | 2 |