National Association of Realtors – Home Buyer & Seller Survey Shows Rising Use of Internet, Reliance on Agents

Technology is transforming how Americans buy and sell homes in unexpected ways, including how they work with real estate agents and brokers, according to one of the largest surveys of real estate consumers ever conducted. Nine out of 10 home buyers use a real estate agent in the search process.

Buyers who use the Internet in searching for a home are more likely to use a real estate agent than non-Internet users, and consumers rely on professionals to provide context, negotiate the transaction and help with the paperwork. The survey shows 81 percent of buyers who use the Internet to search for a home purchase through a real estate agent. We find that the level of for-sale-by-owners is on a sustained decline and is now at a record low. A clear downtrend in FSBOs has been seen since that market share experienced a cyclical peak of 18 percent in 1997. Only 13 percent of sellers conducted transactions without the assistance of a real estate professional in 2005, and 39 percent of those FSBO transactions were “closely held” between parties who knew each other in advance.

The median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200. While many unrepresented sellers are motivated to save on paying a commission, we think the price difference speaks for itself.

Owners without professional assistance also have problems in understanding and completing paperwork, prepping the home for sale, getting the right price and selling within the time planned.

Agents know best how to prepare a home and maximize value; agents provide broader exposure to the market and are more likely to generate multiple bids.