It's fascinating to learn the thought processes and actions behind today's buyers and sellers, and every bit of information the industry can learn helps it to hone its services accordingly.

That is what makes independent surveys conducted by companies such as HouseValues, Inc. so valuable. According to a new survey of consumers by Hebert Research for HouseValues, consumers take as long as four years to "collect experiences that ultimately motivate them to buy or sell their homes," but once they decide, it only takes one to three days for them to select a real estate agent.

Guess that explains the famous quote, "timing is everything."

According to the survey, buyers and sellers collect home-related experiences for up to four years prior to the transaction. Once they begin thinking about a transaction, they are typically many months away from closing a deal.

Sellers, for example, take an average of 9.3 months from the time they begin actively thinking about a sale until the close date. Homebuyers, on the other hand, spend nearly a year and a half , or 16.7 months, thinking about purchasing a home before they actually buy.

First-time homebuyers are even more deliberate: They invest an average of 20.5 months in the entire home-buying process.

"The Internet is enabling consumers to research and gather information well in advance of actually buying or selling," said Ian Morris, chief executive officer of HouseValues. "The takeaway for real estate professionals is to be first, fast and frequent in their communication with consumers, and that often means delivering value and information many months in advance of an expected transaction."

This survey explains what many experts have been telling agents for years -- don't think of Internet consumers as less-than-serious because they are doing their own research. This also explains a lot of the frustration that many agents feel from working with online consumers. Used to buyers and sellers who phone an agent when they're ready, agents often aren't aware that the consideration and information-seeking process has already gone on for some time as consumers perform more and more of their own research.

Morris says the purpose of the survey was to capture qualitative data that will help shed light on the steps and thought processes of both potential buyers and sellers, and help real estate professionals better understand how to market to Internet-savvy customers.

For sellers, the survey revealed that:

• Before even thinking about selling, consumers can take up to four years subconsciously collecting experiences related to their home, including current and future desired requirements, features and amenities. These experiences compound to bring the home sale to the forefront of consciousness, triggering an active research phase.

• Once the research phase has been initiated, it takes sellers an average of 9.3 months to sell -- 5.5 months in a pre-research phase, 1.4 months for the active research phase, and 2.4 months for the active selling phase.

• The majority of sellers -- 52.1 percent -- take only one day to select their agent.

For buyers, the survey found that:

• Buyers, like sellers, often take up to four years collecting experiences related to their current home, and potential future needs.

• It takes buyers nearly a year and a half -- 16.4 months on average -- to buy from the time they begin thinking about a purchase.

• Once the research phase for buyers has been initiated, it takes an average of 16.7 months to buy -- 7.1 months in the pre-research phase, 5.5 months in the active research phase, and 4.1 months in the active buying phase.

• 44 percent of buyers take more than six months thinking about desirable homes and neighborhoods before actually searching for listings. The average buyer then spends more than four months searching for homes.

• First-time buyers take an average of 20.5 months on the entire home-buying process.

• 61.8 percent of buyers select their real estate agent within just one to three days.

The survey also explored the reasons why consumers choose their real estate agent.

Consumers use agents for three main reasons: paperwork/legal work; negotiations; and access to listings.

Buyers and sellers tend to choose an agent based on experience, honesty and past relationships.

"Real estate professionals need to be first, fast and frequent in their communication with Internet-savvy buyers and sellers," advises Morris, "a strategy that will help them build a bigger pipeline of business for months and years to come."

A summary of this survey is available free to real estate professionals by calling toll-free 1-866-952-5042.

Published: May 3, 2005

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