Realty Times February 17, 2003

Who Is the Internet Consumer?
by Blanche Evans

Internet studies show that workers use their bosses' high speed Internet access to surf the Internet. While they make travel plans, shop for jeans and trade stocks, doesn't it stand to reason that they also shop for homes?

"Research firm ComScore Networks, in fact, found that, excluding auctions, 59 percent of all 2001 Web purchases in the United States were made from the workplace. Another study, by Vault.com, found that 47 percent of employees spend at least half an hour a day cruising the Web for personal reasons," writes Jeffrey Pfeffer in the February issue of Business 2.0.

While no data exists as to how many of those workers are shopping for homes on the boss' time, REALTORS(TM) can use the knowledge that consumers shop from the office to surmise that Internet homebuyers with high-speed access want rich content that is better viewed and accessed with high speed connections (like photos, virtual tours, and easy navigation to listings.)

Realtor.com offers some minor proof that this is true. "Home listings with virtual tours are 40 percent more likely to be viewed than those without," says a Realtor.com's director of communications Dan Wool.

Internet consumer behavior is interesting because the more a Realtor knows, the better he or she can market listings and services online.

One thing Realtors should know is that Internet homebuyers are on the increase. In 1996, two percent of Internet buyers used the Internet to shop for a home, according to the National Association of Realtors. In 2001, that number jumped to over 41 percent. The estimate for 2003 is as high as 70 percent, based on incremental growth; numbers will be confirmed by a year-end NAR buyer and seller report.

Privacy, convenience, rich content, and the ability to ask questions of providers are just a few reasons why people prefer the Internet to other media. Homes are among the most heavily browsed categories of shopping online. Realtor.com, which provides homes content for AOL Time Warner, says that the house and home channel is among the top three channels for AOL.com.

That information should tell us the urgency to have an Internet strategy to serve these consumers.

But in order to fine-tune an Internet strategy, we need to also know who these people are.

To find out, MSN House & Home has released its Online Home Shopper Profile, a "detailed look at the typical person who is browsing listings and looking for online real estate information at a national portal."

Age - 28 percent are 25-34 years of age; 28 percent are 35-44 years of age.

Education - 88 percent attended college: 33 percent have graduated and 20 percent hold a postgraduate degree.

Marital status - Almost 70 percent are married and 8 percent are divorced. Nearly 62 percent do not have children.

Income - Income levels vary: $25,000-$49,999 (22 percent), $50,000-$74,999 (22 percent), $75,000-$99,000 (19 percent), $100,000-$149,999 (20 percent).

Personal interests - 42 percent are interested in gardening, 33 percent are interested in home repair and renovation, and 16 percent are interested in landscaping.

Intent to move - Nearly 38 percent anticipate moving within the next year.

Home ownership - Approximately 50 percent own a single family home. That means one out of every two visitors to the site is a potential future customer.

Intent to purchase a home - Approximately 13 percent will definitely purchase a new home within one year.

First-time home buyers - Approximately 25 percent have purchased their first home, or plan to buy their first home, in the next 12 months.

Rental market - Over the past year, the number of users who pay $1,000 or more in rent has increased from 4 to 8 percent.

Furniture & home accessories purchases - Approximately 32 percent shop for furniture and home accessories online.

As a Realtor, what does this information tell you?

A large number of Internet homebuyers are using the Internet to seek information in anticipation of moving. Half already own homes. The high interest in gardening and landscaping indicates a leaning toward single family homes. One-third anticipate doing repairs which favors older home sales, as well as buying furniture and home accessories.

These are interested prospects who are trying to cover a lot of ground and who wish to maximize their time using the Internet. If you are the first Realtor to contact them, be ready to use e-mail and have a little patience with their timeframe. You may be at the beginning of the learning curve with these prospects, as nearly 40 percent anticipate a move within the next year. Maintain contact with e-mail listing updates, Market Conditions Reports, e-newsletters and other easy-to-use prospecting tools, you will be the most likely to be hired when the buyer or seller is ready to make a move.



Copyright © 2003 Realty Times. All Rights Reserved.

With an award winning staff of writers providing up to the minute real estate news and advice, thousands of REALTORS® in North America reporting daily market conditions, and a nationally broadcast television news program, Realty Times is the one-stop shop for real estate information. That's why over 10,000 real estate professionals have turned to us for their publicity needs.