Nearly 3 out of 4 homebuyers will use the Internet as a tool when searching for a home and those who use the Internet are more likely to use real estate professionals, according to a new survey by the National Association of Realtors (NAR). The NAR studied transactions in the first quarter of 2003 for their “Profile of Home Buyers and Sellers.” The reports shows that 71 percent of homebuyers used the Internet to research their new home during the first three months of 2003, up from just 41 percent two years ago.

NAR President Cathy Whatley, owner of Buck & Buck Inc. in Jacksonville, Fla., said earlier warnings that use of the Internet would lead to a decline in the use of real estate professionals have proved to be false. "Almost every home placed on the market today can be found on the Internet, and more buyers than ever are using the Web to search for a home," she said. "Nearly 90 percent of Internet searchers used a real estate professional, compared to 79 percent of non-Internet users."

The study found a typical homebuyer walked through 10 homes, while their search lasted eight weeks. The typical seller’s home was on the market for five weeks and was occupied for six years. The report found the typical first-time buyer is 32 years old and has a household income of $54,800 and would make a down payment of 6 percent on a home costing $136,000. The typical repeat buyer is 46 years old with a household income of $74,600 and placed a 23 percent down payment on a home costing $189,000.

Three out of four buyers purchased a home through a real estate agent or broker – up from 69 percent in 2001; 14 percent bought from a builder and 9 percent directly from an owner. Of buyers who used an agent, 63 percent chose a buyer representative. Satisfaction with the agent was high for both buyers and sellers.

Buyers frequently choose agents on the basis of a referral by a friend, neighbor or relative; 44 percent of respondents did so. The most important factor in choosing an agent was reputation, according to 47 percent of buyers. Three out of four said they'd use the agent again or recommend theirs to others.

Seller responses were fairly comparable, with more than eight out of 10 selling through a real estate agent. Forty percent chose agents based on a referral by a friend, neighbor or relative, but 62 percent said reputation was the most important factor. 85 percent said they were likely to use the same agent again or recommend to others.

Source: National Association of Realtors, 7/15/2003