Annual real-estate-trends-report
- 1. REAL ESTATE TECH TRENDS By Properties Online, Inc. 2016 Real Estate Tech Trends Properties Online, Inc. has compiled important statistical information for the real estate community. Statistical sources include the 2015 National Association of REALTORS ® Profile of Home Buyers & Sellers, the 2015 National Association of REALTORS Member Profile, The Realtor Technology Survey Report, The California Association of REALTORS Buyer and Seller Surveys, WAV Group Agent Responsiveness Study, RealEstateSites.com and over 3 million website visitor statistics from over 15 thousand single property websites.
- 2. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 1 REAL ESTATE TECH TRENDS R E A L E S T A T E T E C H N O L O G Y I N F O R M A T I O N A N D T R E N D S The Home Search Process Real Estate Agents continue to be a critical component in the home buyers search process. Home buyers are relying heavily on online sources and their agents to provide information, with decreasing use of some sources, such as newspapers and open houses. Home buyers typically spend 10 weeks searching for a home and preview an average of 12 properties before deciding on their purchase. The Internet has become an essential and indispensable tool in the home search process with nearly 92 percent of home buyers using it to search for homes, and 57 percent of buyers stating that the use of the Internet was the first step taken during the home buying process. How Buyers Search for Property Information Sources used in Home Search 31% 48% 1% 1% 1% 50% 59% 84% 84% 13% 20% 29% 54% 57% 48% 51% 87% 92% 0% 20% 40% 60% 80% 100% Magazine Newspaper Online Video Site Mobile Search Mobile App Open House Yard Sign Agent Internet 2015 2007
- 3. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 2 What Buyers Like What buyers deem "Very Useful?" Where Buyers Come From Where Buyer Found the Home they Purchased 22% 24% 33% 37% 34% 42% 45% 42% 84% 83% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Videos Open House info Contract Status Comps Neighborhood Info Agent Contact Info Interactive Maps Virtual Tours Detailed Property Info Photos 44% 33% 9% 6% 6% 2% 1% Internet Agent Yard Sign Friend Builder Seller Newspaper
- 4. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 3 Home Buyers & Real Estate Professionals The home buyers still rely on real estate agents and brokers to be partners as they navigate the home purchase process. The confidence and trust that buyers place in their agent translates into repeat business. Agents who satisfy buyers by providing the services that matter are likely to earn repeat business. Last year, 87% of buyers used a real estate agent, up steadily from 69% in 2001. What Buyers Want from their real estate professional Where Buyers Come From Where buyers found their Real Estate Professional 53% 12% 11% 6% 7% 4% 4% 1% 2% Help finding the right home Help negotiating terms Help negotiating price Help with paperwork Determine what comparable homes were selling for Help determining how much buyer can afford Help find and arrange financing Provide neighborhood information Other 10% 1% 1% 4% 3% 5% 3% 5% 5% 10% 12% 42% Other Seach Engine Newspaper, Yellow Pages or home book Personal Contact by agent (telephone, email, etc.) Walked into or called office Referred by another agent or broker Referred through employer or relocation company Open House Saw contact information on For Sale/Open House Sign Internet website Used agent previously to buy or sell a home Referred by friend, neighbor or relative
- 5. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 4 When the California Association of Realtors asked buyers and sellers where they found their real estate professional, the numbers for Internet increased dramatically. In California the numbers look like this: Why Buyers Chose their Agent Most Important Factors 70% of Buyers and 75% of Sellers found their Agent on the Internet 60% of Buyers Googled their Agent 74% of Sellers used Social Media 21% 23% 16% 13% 8% 7%5% 3% 1% 1% Agent is honest and trustworthy Reputation of agent Agent is a friend or family member Agent's knowledge of the neighborhood Agent has caring personality / good listener Agent is timely with response Agent seems 100% accessible because of use of technology like smart phone or tablet Agent's association with a particular firm Professional designations held by agent
- 6. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 5 Expected Response Time Vs. Actual Response Time 77% of sellers expect a response from their agent within 30 minutes. Only 24% of agents meet their expectations. 45% of sellers expect an instant reply. Only 24% of Agents reply to Sellers within 30 mins. 77% of sellers expect a reply within 30 Mins. 45% of seller expect to be contacted instantly. Only 30% of Agents reply to buyers within 1 hour. 88% of buyers expect a reply within 1 hour. 42% of buyers expect to be contacted instantly. 88% of buyers expect a response from their agent within 1 hour. Only 30% of agents meet their expectation. 42% of buyers expect an instant response from their agent.
- 7. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 6 Response Time Importance of Agents Response Time in the Buyers Selection Process 48% of Buyer inquiries were never responded to. Repeat Business Would buyer use real estate agent again or recommend to others? Only 10% of buyers actually used an agent that they had used previously. 94% 7% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very Important Somewhat Important Not Important 72% 16% 5% 5% 2% Definitely Probably Probably Not Definitely Not Don't Know
- 8. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 7 Home Sellers & Real Estate Professionals 89% of Sellers used an agent to sell their home last year, up from 79% in 2001. Referrals from friends and family continue to be among the most important factors when home sellers choose a real estate agent. In general, marketing in print media, such as real estate magazines and newspaper advertisements dropped significantly last year. Where Sellers Come From Method used to find Real Estate Agent Repeat Business Would seller use real estate agent again or recommend to others? 42% 24% 3% 3% 4% 4% 3% 1% 4% 1% 1% 1% 9% Referred Used agent previously Referred through employer Visited an open house Personal contact by agent Referred by another agent Yard sign Direct mail Internet website Walk in Newspaper, Yellow Pages, or Home Book Advertising collateral Other 67% 17% 7% 7% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% Definitely Probably Probably Not Definitely Not Don't Know
- 9. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 8 Marketing Real Estate Methods Real Estate Agent Used to Market Home 89% 69% 51% 51% 50% 40% 12% 11% 11% 10% 9% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1% of Buyers found the home they purchased in the Newspaper and less than 1% in a Magazine. 10% of Agents still market their listings in Magazines. 11% of Agents still market their listings in the newspaper 73% of homeowners say they're more likely to list with a realtor offering do do a video but only 9% of agents do.
- 10. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 9 Technology & The Real Estate Agent The demographic characteristics of Realtors have not changed significantly in recent years. The median or typical REALTOR is a 57 year old white female who attended college and is a homeowner. 58% of agents are female leaving 42% male. Value of Broker Supplied Technology 45% of agents and associate brokers would like their broker to expand the amount of technology provided. 62% of agents would like their MLS to expand the technology and services offered. How Technology Gives an Advantage Over Other Real Estate Agents 28% 34% 15% 6% 4% 12% Exceptional Value Reasonable Neutral Not Enough Poor No Technology Provided by Broker 8% 15% 16% 19% 19% 22% 49% 49% 0% 10% 20% 30% 40% 50% 60% Saves money Saves time Clients demand it To keep up with the competition Marginal agents can't keep up Make other agents look behind the times Respond to clients faster Stay competitive
- 11. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 10 Networking How important are each of the following in generating lead? How Agents Communicate with Clients Preferred method used to stay in touch Only 18% of agents touch base with past clients on a monthly basis Somewhat Important Important Very Important 100% 80% 60% 40% 20% 0% 93% 91% 26% 85% 31% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Email Phone Call Postal Mail Text Message IM
- 12. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 11 Customer Inquiries Generated from Website How many website inquiries do you get a year? The median number of inquiries is 3 per year. 66% of Realtors have a website. Business Generated from Realtors Website What percentage of business came from your website last year? Agents who spend $1,000 or more to maintain their website generate on average 3x more leads than those who spend $500 or less. 32% 33% 10% 6% 6% 3% 5%None 1 to 5 inquiries 6 to 10 inquiries 11 to 20 inquiries 21 to 50 inquiries 51 to 100 inquiries More than 100 inquiries 40% 28% 14% 9% 5% 3% None 1% to 5 % 6% to 10% 11% to 25% 26% to 50% More than 50%
- 13. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 12 Website Traffic Report In the 90s, the telephone was the primary source of contact between a client and real estate professional. Today, the Internet has replaced the telephone as the first point of contact. Web traffic on broker and agent websites confirms this. Where Traffic is Coming From? Source: RealEstateSites.com Referring Websites Break down of Top Referring Websites 37% 30% 24% 8% 1% Social Direct Traffic Referred by another Website Search Engines Other 59% 27% 6% 2%1%>1%>1% Other Google Zillow Bing Trulia homes.com Yahoo MSN Trovit Realtor.com
- 14. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 13 Search Engines Traffic Which Search Engine Sends the Most Traffic? Browsers Used Top Browsers Used in Internet Search 72% 16% 9% 2% 1% Google Bing Yahoo AOL Other 50%34% 9% 4% 1% 1% Safari Chrome Explorer Firefox Android Other
- 15. REAL ESTATE TECH TRENDS Properties Online, Inc. ©2016 | web: PropertiesOnline.com Page 14 Social Media Traffic Mobile Traffic Mobile Traffic now accounts for 61% of the total traffic to Real Estate Sites. Contact Information Properties Online, Inc 1820 Empire Industrial Ct., Suite C Santa Rosa, CA 95403 tel: 800.826.5123 e-mail: [email protected] web: PropertiesOnline.com 99% 1% 1% >1% >1% >1% Facebook Linkedin Twitter ActiveRain YouTube Google + 58% 14% 8% 2% 18% 0% 10% 20% 30% 40% 50% 60% 70% iPhone iPad Samsung Motorola Other