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Internet A Great Lead Generator, So-so Sales Tool

The National Association of REALTORS® and its Web operation, REALTOR.com, have put out a comprehensive survey on Realtor and consumer enthusiasm for Internet home shopping, with the bottom line being that both groups appear to be widening their comfort zone for working with the new technology.

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But they haven't shelved their old methods of doing business, either.

In its final report, the Realtors combined three different surveys: One was a general sampling of potential homebuyers, the second was a sampling of visitors to REALTOR.com, the third was a poll of Realtor members and how they use the Internet.

A few key points stand out:

  • 23 percent of the general sampling of homebuyers said they had made "online searches" part of their effort to find a home. That's up from just 2 percent in 1995, a staggering increase in a very short period and a clear indication that professionals who are not on the Web already should be moving in that direction.

  • The REALTOR.com survey suggested homebuyers are using the Internet to enter the real estate process quite early. As many as 31 percent of those surveyed said they were at least 6 months away from actually making a purchase.

  • But, don't think you can cut back on your other marketing activities and just focus on the Web. In fact, the REALTOR.com survey found that consumers doing research online are even more likely to also use newspapers, yard signs, open houses, and home books ad magazines to help them in their research than those who do not use the Web.

    The Realtor surveys are important in that, after years of hype from the online community, they finally begin putting the Internet into some kind of context and ultimately should help offices allocate resources and design marketing strategies.

    For instance, the vast majority of REALTOR.com users -- 79 percent -- said the primarily reason they first went online was to look at pictures of houses. In fact, only 3 percent said they first went online for the purpose of finding an agent.

    The follow up question was equally important, essentially asking what happened as a result of going online.

    The results showed that while the Internet appears to be only a so-so "sales" tool, it is an incredible lead generator.

    Only 2 percent of the REALTOR.com visitors said they actually purchased a home they had found online, and only 5 percent said they had actually made an offer on a home they first saw online.

    But, 41 percent said they in fact visited a home they had seen online, 34 percent said they had contacted a Realtor for more information about a home seen online, 20 percent said their online visit had resulted in a phone call to a Realtor.

    Acknowledges the survey, "While most users of online databases are not using the databases to find a real estate agent, they do appear to use a (member of the Realtor organization) when they find homes that interest them."

    Among the general population of potential homebuyers, however, the Internet still is not a high profile search tool. The survey asked participants, "What sources of information are you using in your home search?"

    Came the answers: Real estate agents, 58 percent; newspapers, 35 percent; friends and neighbors, 25 percent; online, 15 percent; yard signs, 14 percent; and homes magazines, 14 percent.

  • Published: July 27, 1999

    Use of this article without permission is a violation of federal copyright laws.


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    Today's Headlines 07/27/1999 12:00:00 AM


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