This is the fifth in a series – see all the posts
NAR’s 2007 Profile of Home Buyers and Sellers contains some revealing insight into the relationship between home buyers/sellers and the agents they work with. We’re all aware that some people have very little respect for real estate professionals as a group. However, the statistics don’t reflect that.
To Use an Agent or Not
Interestingly enough, the profile indicates that 79% of the home buyers surveyed bought their home with the help of a real estate agent. And, 80% worked with just one agent during their home search. So, while you might have run into buyers who get multiple agents looking for their next home, it may not be the norm.
Should You Ask For a Buyer Representation Agreement?
Forty-three percent of buyers had a written Buyer Representation arrangement with their agent. And, more repeat buyers had a written arrangement than first-time home buyers. Certainly that indicates that as a home buyer gains experience, they realize how important buyer representation is.
If you’re hesitant to ask your clients to sign an agreement, take heart in the knowledge that it’s not that unusual. Since there are often spirited discussions on this topic, take a look at how the numbers came out:
| Type |
All Buyers |
First-Time Buyers |
Repeat Buyers |
| Written Arrangement |
43% |
41% |
45% |
| Verbal Arrangement |
19% |
21% |
18% |
| No Arrangement |
26% |
24% |
27% |
| Don’t Know |
11% |
14% |
9% |
The other interesting thing to note is that overall, 11% of buyers had no idea whether they’d signed an agreement or not! I guess a bit better education on the subject is required.
Usefulness of the Relationship
Buyers benefit from working with an agent in a number of ways:
Benefit |
Percent of Respondents |
| Helped buyer understand the process |
57% |
| Pointed out unnoticed features/faults with property |
47% |
| Improved buyer’s knowledge of search areas |
40% |
| Negotiated better sales contract terms |
38% |
| Provided a better list of service providers |
37% |
| Shortened buyer’s home search |
35% |
| Negotiated a better price |
32% |
| Provided a better list of mortgage lenders |
21% |
| Narrowed buyer’s search area |
18% |
| Expanded buyer’s search area |
18% |
For a profession that isn’t always respected, that’s a pretty long list of ways in which buyers find working with a professional beneficial!
A Great Lesson Learned
From a real estate marketing perspective, one of the most telling things to come out of the survey is this:
Most buyers and sellers say they would use the same real estate agent again. . .
But, most of them don’t!
Here’s how the numbers came out:
|
Would “Definitely” Use Agent Again or Recommend to a Friend |
Found Real Estate Agent by Working with an Agent Used in the Past |
|
| Buyers |
62% |
23% |
| Sellers |
68% |
11% |
That says a lot about the importance of keeping in touch with past clients. You’ve already “closed” the sale, but to take advantage of that fact, you need to stay top of mind with your past clients. It’s always less expensive to retain a client than it is to find a new one.
The challenge in real estate is that the interval between transactions is counted in years, not days or months. Think about how many times you’ve worked with past clients, and the processes you have in place to stay in touch with past clients. Any room for improvement?
