More Than Half of Buyers Use the Internet when Buying a Home

LOS ANGELES, June 29 /PRNewswire/ -- More than half of all consumers now use the Internet when buying a home, according to a survey released today by the California Association of REALTORS® (C.A.R.). The "2004 Internet Versus Traditional Buyer Study" also revealed that, compared to traditional buyers, Internet buyers spent more than twice as much time gathering information prior to contacting a REALTOR®. However, they moved much more quickly once they began to work with a REALTOR®, spending significantly less time with their REALTOR® and previewing far fewer homes compared to traditional buyers.

"The Internet has complemented rather than diminished REALTORS®' role in the homebuying transaction," said C.A.R. President Ann Pettijohn. "While Internet buyers considered online information to be valuable, they ultimately turned to REALTORS® both for their interpretation of that information, and for their expertise and judgment throughout the homebuying process. The expertise and professional advice provided by REALTORS® creates value over and above the market and property information itself, even when the buyers obtain that information on their own.

"Internet buyers were more inclined to view their relationship with their REALTORS® as a partnership," she said. "They looked for speed and efficiency, and they valued timely communications. Traditional buyers, on the other hand, looked for more personal interaction and relied on their REALTORS® to lead them through the process."

For the first time since C.A.R. has been conducting the "Internet Versus Traditional Buyer Study," more than half of the respondents were classified as Internet buyers. The share of buyers using the Internet reached 56 percent in 2004, and has risen steadily from 28 percent in 2000, the first year of the survey. By comparison, traditional buyers have made up a declining share of all buyers, down from 72 percent in 2000 to 44 percent in 2004.

The average number of homes previewed by Internet homebuyers has decreased steadily in the past four years, while that of traditional buyers has changed very little over the same period. The upfront research conducted by Internet buyers has given them a better sense of market conditions compared to traditional buyers, enabling them to act more quickly to find, bid on, and close escrow on the home of their choice.

     Highlights of the "2004 Internet Versus Traditional Buyer Study" include:
     *  Internet buyers spent an average of 5.9 weeks considering the purchase
        of a home before contacting a REALTOR(R), compared to 2.1 weeks for
        traditional buyers.
     *  Internet buyers spent an average of 4.8 weeks investigating homes and
        neighborhoods prior to contacting a REALTOR(R), compared to 1.6 weeks
        for traditional buyers.
     *  Having done significantly more research than their traditional buyer
        counterparts, Internet buyers spent less time looking for a home once
        they began working with a REALTOR(R), spending just 1.9 weeks on
        average, compared to 7.1 weeks for a traditional buyer.
     *  The typical Internet buyer also visited fewer homes with their
        REALTOR(R) than the typical traditional buyer.  Internet buyers
        visited an average of 6.1 homes with their REALTOR(R), whereas a
        typical traditional buyer visited 15.4 homes with their REALTOR(R).
     *  Internet buyers tended to be younger than traditional buyers with a
        mean age of 38.5 years, compared to 43.5 years for traditional buyers.
     *  Internet buyers had higher incomes and were better educated than
        traditional buyers.  The median income of an Internet buyer in 2004
        was $168,540 while that of a traditional buyer was $142,470.
        Moreover, while most homebuyers in both groups had at least a
        four-year college degree, 14 percent of Internet buyers had completed
        post-graduate work compared to 5 percent of traditional buyers.
     *  Internet buyers were three times more likely to be first-time buyers
        than traditional buyers, with 23 percent of Internet respondents
        reporting that they were first-time buyers compared to 7 percent of
        traditional buyers.
     *  Internet buyers often conducted their home searches from afar, with a
        median distance of 100 miles between the homes they purchased and
        their previous residences, compared to 12 miles for the traditional
        buyer.  More than four out of five traditional buyers purchased homes
        within 25 miles of their prior residence.