Robyn Seymour - Gen X Buyers Are More Efficient Buyers according to Surveys

About 77% of all homebuyers make use of the Internet in some way to access information while buying their home when compared to 2% in 1995 according to the survey conducted by the National Association of Realtors in 2005. With these dramatic innovations changing the real estate landscape are published in major papers throughout the nation, many realtors are getting caught up in the media alarmist hype and seeing these events as intimidating rather than as positive changes that are going to make their jobs easier as they represent this new wave of knowledgeable and efficient internet buyers.

What the survey didn’t clearly define, and had to be read between the lines, is that internet usage is higher amongst Gen X’ers (those born between 1963 and 1978) and now some Gen Ys (those born between 1979 – 1999) as opposed to traditional buyers. Since this age group is very familiar with the internet and other techno-gadgets they are more likely to do most of their home searching and research before calling an agent, as a result they are more efficient buyers who won’t take up a lot of an agent’s time and resources.

Realtor studies show they are also more satisfied with their agents and an overwhelming number say they would use the same agent in the future. According to the report, internet buyers will come back: 97% of internet buyers would use the same agent on their next transaction versus only 50% of traditional buyers. Based on the amount of marketing and lead generation a realtor needs to do to gain a client in the first place those percentages are a great return for their investment.

Here are some interesting comparisons:

Internet Buyers spend 2.2 weeks, on average, with their agent before buying, while the non-internet buyer (referred to as the traditional buyer) spent 7.1 weeks with their agents; Internet Buyers previewed 6.7 homes while the traditional buyer previewed a whopping 15.4; 81% of Internet Buyers stay with the first agent they choose to contact; traditional buyers interview about 3 agents, Internet Buyers only 1; distance between old and new home: 25 miles for traditional, 242 for Internet Buyer; Internet Buyers have higher satisfaction rates with their agents: 4.3 vs. 3.3, on a scale where 5 is “surpassed expectations” and most Internet Buyers are first time home buyers and Gen-Xrs vs. Baby Boomers (those born between 1946 and 1960) and repeat buyers. The average age for a first-time buyer is 32.

So, according to the findings above it appears that the internet buyer is the more resourceful, more efficient client, who likes working with their agent, holds that agent in high regard and will use them again. It appears to me that these are the marks of the ideal client. However, an agent shouldn't assume that they are gullible and naive; the study also suggests they have high expectations for their agents and expect that their agent will be as efficient as they are. Professional full-time agents who know their local real estate market and are excellent salespeople shouldn’t have much to worry about.

Another finding was that Internet buyers expect prompt answers to their questions. Time response to inquiries is critical to the internet buyer, so an agent must have a slew of technology tools to meet their communication needs Furthermore; it comes as no surprise that a whopping 92% of internet buyers find their agents on the web, 63% via search engines. Therefore, an agent must be where the buyers are looking: online.

In addition, further findings in the study defined their expectations. Late closure of their escrow is a common complaint of traditional and internet buyers (so prepare your clients for this possibility); First time home buyers have the highest expectations of their agents; Internet is valued as a source of information about the home buying process & not a substitute for using an agent. Nine out of 10 buyers hire an agent to buy a home; No group found internet information more useful than that obtained from agents.

While many articles are proclaiming the demise of the real estate sales profession, it’s not a reality yet however, with more real estate technology tools and online real estate information proliferating everyday; it does strongly suggest that a realtor’s skill set has to change dramatically to stay competitive. That will depend on the ability and resourcefulness of the agent. The need and motivation to make those changes will remain to be seen with the average age of realtors at 55.