Internet rewrites the rules of real estate

Labor Day is behind us and we look toward autumnal delights. In
the words of Albert Camus,
”
Autumn is a second spring when every leaf is a flower.
”
What can we say about the traditional fall real estate market?
Generally it is a great market. Kids are back in school, the Ghost
of Christmas Future is not yet rattling his chains and the weather
tends to be fabulous in California.
Labor Day is behind us and we look toward autumnal delights. In the words of Albert Camus, “Autumn is a second spring when every leaf is a flower.”

What can we say about the traditional fall real estate market? Generally it is a great market. Kids are back in school, the Ghost of Christmas Future is not yet rattling his chains and the weather tends to be fabulous in California.

People always ask me, “How’s the market?” I reply, “It’s great. But I’m never too busy for any referrals you may send my way for people buying or selling real estate!” But let’s be a little more specific about our market.

This past week we’ve seen a drop in the amount of inventory in both San Benito and southern Santa Clara counties. Santa Clara’s numbers were more static than San Benito’s where there were more sales, more closed escrows and more reductions in inventory due to expiration, withdrawal or cancellation.

So suddenly we seem to have more buyers. Where do they come from? Enquiring minds want to know.

According to the California Association of Realtors (CAR), which conducted a study this year, the Internet is the number one source for home purchase/sale information. Let’s look at how the Internet has changed the relationship between clients and their Realtors.

First let’s look at the demographics of the Internet buyer versus the traditional buyer. According to CAR (taken directly from their published report):

– More than nine out of 10 Internet buyers were married, while nearly eight of 10 traditional buyers were married.

– Seventy-three percent of Internet buyers had at least a four-year college degree and 11 percent completed post-graduate work.  By comparison, 72 percent of traditional buyers held a college degree and 5 percent completed post-graduate work. 

– Internet buyers had an annual income of $184,900, compared with $148,910 for traditional buyers.

– Internet buyers spent an average of 5.8 weeks considering buying a home before contacting a Realtor, nearly three times more than traditional buyers, who spent two weeks in this stage of the home-buying process.

– Internet buyers spent 2.2 weeks looking for the home they ultimately purchased, compared with 7.1 weeks for traditional buyers.

– Fifty-four percent of Internet buyers said the information that they gathered from the Internet was less useful than that provided by their Realtors; none considered the information gathered from the Internet to be more useful than that obtained from their Realtors.

– All first-time buyers typically spent 5.3 weeks considering buying a home and 4.3 weeks investigating homes for sale before contacting a Realtor. They then spent 3.2 weeks previewing eight homes with their Realtor. 

– All repeat buyers spent 3.3 weeks considering buying a home and nearly three weeks investigating homes for sale on their own. They spent 5.4 weeks previewing 13 homes with their Realtor.

“The Internet is changing the dynamics between buyers and their agents, as well as the way business is conducted throughout the real estate industry. However, while the Internet has become an important research tool for home buyers, it has only enhanced the Realtor’s role in the transaction,” said CAR President Vince Malta. “Buyers continue to rely on their Realtor for help with interpreting the information gathered from the Internet and to guide them through the home-buying process.”

I remember when I first got into the real estate business 10 years ago. Some nay-sayers told me it was an impossible industry to break in to, that I would never be a success in it. Others said the day of the Realtor was past, and the Internet would replace the role of the Realtor.

Well, until the Internet comes up with a way of transmitting the odor of cat urine to your PC or of evaluating a property’s cachet in terms of location, schools and aesthetics, a Realtor will be an essential part of home selection. And until the Internet can replace the information garnered by years of buying and selling homes in a specific area, the Realtor is here to stay. The rules and regulations and legal ramifications of each document used in a transaction is complex, and the Realtor is an essential conductor in the symphony of selling and buying.

You’ll never know what heights to which you might climb, or what dreams you might realize, until you have information. And that’s exactly what your local (not Internet!) agent can give you- good, solid, usable information. A Realtor can help you ready your home for sale, using the network of painters, handymen, flooring contractors, etc. developed by years in the industry. A Realtor can put you in touch with a creative and ethical lender to help you clean up your spotty credit and find the most favorable terms. A Realtor can act as your guide in the sometimes-overwhelming climate of change in which you’ll find yourself when you’re contemplating a move.

You need a trusted advisor in this process. It’s never too early to establish a relationship with a reputable local Realtor.

And be kind to your Realtor.