The results are in for the Gomez.com / Realty Times weekly Internet poll for the week of December 17th. Respondents to the question "When you buy a home, when will you start working with a Realtor?" more often choose a Realtor before performing other home buying tasks, shows the poll results.

With 283 respondents, the possible answers were posted in the following percentages:

• Finding a Realtor is the first thing I'll do - 31.8 %
• After I speak to a mortgage lender/ know how much I can spend - 26.9 %
• After I've driven/ chosen my favorite neighborhoods - 23.7 %
• After I have chosen the home I want - 4.6 %
• I don't plan on working with a Realtor - 13.1 %

"It is evident that consumers follow different paths to finding and buying a home," says Nick Karris, real estate analyst with Gomez.com. "Brokers (licensees) are the most likely first point of contact for buyers, with nearly one of out three buyers consulting a broker first."

Clearly, 40 percent of buyers online "do their homework" first (research, drive neighborhoods, visit open houses, etc). This sophisticated buyer takes more initiative and gathers information independently before speaking to brokers. Web-savvy buyers involve brokers in varying degrees depending on their need for "hand holding" through the process. With 27 percent of buyers determining their budgetary constraints before speaking with a broker, broker sites can target these buyers and increase their leads by providing buyers with mortgage calculators and access to mortgage pre-approvals. The industry should also see an increase in the "one stop shopping" approach to home buying needs.

"We anticipate this trend of buyers seeking agents to grow as online brokers and mortgage firms provide added services that simplify the purchase process and empower the buyer with information," suggests Karris. "Key broker site features should include instant mortgage approvals, virtual tours, current market sales listings, and property alerts.

"Worth noting is the contrast between the low number of buyers who plan not to seek an agent (13 percent)," notes Blanche Evans, Agent News editor, "and the number who are actually represented by a licensee at the closing table - 55 percent."

"These buyers more than likely are being represented by the listing broker, and perhaps do not know that there are other forms of representation available which may be more in the buyer's best interest. What is disturbing is the fact that almost half of all home buyers close their transactions without an advocate at all. They are paying for representation in the purchase price of the home that they, in fact, are not getting.

"More than 1/4 of all home buyers turn to the Internet to shop for homes, so this signifies a real opportunity for all brokers, particularly buyers' brokers, to educate buyers in the need for representation and to promote their services on the Web," suggests Evans.

As buyers become more sophisticated navigating the complex purchase process, they will want a "menu" approach for brokerage offerings to tailor the relationship to meet their specific needs from full service to closing support, forecasts Karris. The best brokers will practice full disclosure upfront and leverage the power of the internet.

Specific examples include:

1. developing effective web sites to attract new customers
2. utilizing email to manage a larger number of existing leads
3. coordinate with online mortgage companies to accelerate speed to closing

In total, these leading brokers will use less time with each buyer to close more deals and increase total commission revenues.

Published: December 23, 1999

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