This is the first in a series of reports on Lessons Learned from the 2009 NAR Profile

In 2008, I wrote a series of posts about the lessons learned from the 2007 NAR Profile of Home Buyers and Sellers.  I’m going back over those posts and comparing them with the 2009 NAR Profile report.

Methodology

In case you’re not familiar with this report, here’s a brief summary of how the results were generated.  NAR obtained the names and addresses from Experian’s national database of recent home buyers.  They then sent an 8-page questionnaire to 120,000 (down from 150,000 in 2007) of those people identified as home buyers between July 2008 and June 2009.  That mailing yielded 9,138 (only down a few hundred from 2007) valid responses.

The majority of the report deals with home buyers.  The information about home sellers comes from those home buyers who also sold a home.  Therefore, the sample size for the seller information is smaller than the buyer information.

I recognize that no survey of this type should be taken literally.  However, it is one of the few opportunities we have for reviewing this type of information, and I think there is merit in looking at the results from a global perspective.

The Lessons Learned Series

Rather than organizing this information based on the statistics, we’ll look at the statistics in terms of the insight they provide and how you can structure your marketing to utilize those insights. 

Any statistics cited in this series come from the NAR Profile of Home Buyers and Sellers 2009.  Statistics shown in brackets [ ] are from the 2007 report for comparison purposes.

Real Estate Marketing Insight:   Getting Chosen as a Buyer/Seller Agent

The most common way for both buyers 44% [43%] and sellers 40% [41%] to find an agent is when a friend, neighbor or relative refer someone.   This fact reinforces the importance of 1) staying top of mind with your past clients and sphere of influence, and 2) asking for referrals.

Some of the least common ways of finding an agent is through the newspaper or Yellow Pages  – less than 1% [<1%] for buyers and 2% [<1%] for sellers.  Direct mail is used less than 1% [< 1%] by buyers, but 3% [3%] by sellers.  That’s something to consider when sending direct mail to a farm area, for example.  Your print and direct mail messages may be more effective if you target sellers.

Selecting an Agent – Buyers

Buyers rated the factors they use when selecting an agent like this:

• 31%   [28%]  Honest and trustworthy
• 23%   [22%]   Reputation of agent
• 15%   [17%]   Agent is a friend or family member
• 11%   [12%]   Agent’s knowledge of the neighborhood
• 10%   [10%]   Agent is a good listener with a caring personality
• 3%     [4%   ]   Agent’s association with a particular firm
• 1%     [1%   ]    Professional designations held
• 4%     [5%  ]    Other

The changes between 2007 and now are small, but still interesting.  Looks to me like buyers are more cautious in choosing a REALTOR®. 

• They’re depending more on their own assessment of the agent’s honesty and trustworthiness, and the agent’s reputation. 
• They care less about whether the agent is a friend or family member or what firm the agent is associated with.

If I had to guess, I wonder if that change has anything to do with the Bernie Maddoffs of the world, for example.  Are Buyers a bit dissolutioned with taking referrals at face value or being impressed by the brokerage an agent is associated with?  They seem to be more concerned with finding an honest agent.

Buyers look like they’re getting a bit more sophisticated in their selection criteria.  And, for most agents, if a buyer is less likely to work with Uncle Fred because he got his license 5 years ago when he sold his own home — that’s good news!

Take a look at the list above and compare it to your marketing message. 

• Are you finding ways to illustrate your honesty, trustworthiness, reputation, knowledge of the neighborhood and listening skills?  
• Are you using your association with your broker and your designations as added benefits rather than the key reasons why someone should choose you as their representative?

You’ll also notice that awards (Million Dollar Club, Top Producer, etc.) aren’t even on the list.  Maybe they’re included somewhere in the miscellaneous 4%, but these ratings provide a clear message as to the factors buyers think are the most important.