RE: Homebuyers Say Newspaper Ads Are Still No. 1

Dear Sirs:
I guess if I were in the newspaper business I would have a survey done that said my newspapers very effective in selling whatever.

Unfortunately the National Association of Realtor's studies indicate otherwise.

According to an NAR questionnaire of 9,800 home buyers (12% return) who purchased a home in the second half of 1997 (Source, One REALTOR Place).

"Home buyers used a variety of sources in their search process, with 82 percent using real estate agents; 51 percent, newspaper ads; 39 percent, open houses; 38 percent, yard signs; 34 percent, home books or magazines; 24 percent, friends, neighbors or relatives; and 18 percent, on-line services and the Internet."

"However, when asked where they first learned about the house they bought, 50 percent said real estate agents; 17 percent, yard signs; 9 percent, friends, neighbors or relatives; 8 percent, newspaper ads; 4 percent, open houses; 4 percent, the seller; 3 percent, home books or magazines; 3 percent, builders; and 2 percent, on-line services or the Internet."

As a practicing REALTOR® the sources people use in their home searches are important to me but most important, and where I try to allocate my advertising dollars, are the sources people find homes they actually buy. A source that only generates 8% of actual buyers doesn't seem like too good a bet to me. Would you put much money on a horse that only had an 8% change of winning?

So far in 1999 I have spent $0 on newspaper advertising, instead I use color "Homes" type magazines, direct mail, my client database, the Internet, and promotions to other REALTORS. Through April 1999 I ranked number 60 in sales volume out of our 1200 member board.

Jim Lee, CRS, ABR, GRI
jimlee@realtor.com
http://www.knoxville-realtor.com
Toll Free 1-800-662-2488
Realty Executives Associates
Knoxville, Tennessee