Turner's Perspective

Jeff - 9 out of 10 will buy something else.  This how many clients, in my experience, think they know the house before they walk inside, then they are disappointed or pleasantly surprised about the home.

For me, 0% have actually written an offer on what they found online themselves. Every contract I have written has been on a property that I recommended the client see.

In my area, we don't charge the buyer anything to represent them. The seller covers that cost.

Jeff - Often times buyers do tend to end up buying homes that don't exactly match the description they are looking for. I would have to say that the percentages have changed dramatically about whether or not the agent points out a property to a buyer that they should see. With the IDX property finder services that most Realtors offer it is much easier today for a buyer to find a home that matches their criteria.

The internet is a great place for buyers to begin their searches and a way for them find a Realtor, but I can't think of one client that found something online that they wrote on.  In many cases I didn't even show them those properties because many were under contract or did not have some other criteria that the buyer wanted. 

 

Interesting. . .I agree that people start online, but the last few contracts I have written for buyers have been on homes that I recommended they see.   Actually, I am finding that buyers are online, but very often agents in my area are not.  I have picked up two buyers in the last month who had been emailing other agents to no avail. . .they found me online and I responded right away.  One client even commented that she was shocked to have me get back to them so quickly. . .IK I drifted off topic, sorry!

Jeff,

I think they go on line and than drive around the neighborhoods looking for property. I had 2 buyers last year who did just that.

Jeff, I love it when a buyer has done a ton of research online. The days of having to show a billion properties is now over because they feel they have seen so much that when I say we are going to look at 5 that is usually enough and they can make a decision and feel good about it. I think online searching allows buyers to decide quicker than years ago. I have never sold a home to a buyer that they found online - I have however sold a couple of homes to people almost exclusively online - they never stepped foot inside the home until the day I handed them keys - I love the internet!!

Jeff, First time home buyers and relocation buyers rarely purchase the homes they have initially chosen online. First time home buyers are just plain  excited and only begin to get a better idea of what they really want once they begin to view a few homes. Relocation buyers begin to make trade-offs, after they have viewed the area, subdivisions, and have a rough idea of drive time to work.

{SVW Hubba}...

I am going to approach this query from the stand point that I just bought the house I live in now. I used the Internet to locate homes near water and in gated Communities...

I narrowed my search down to three homes...When I arrived at the one I really really wanted...The neighborhood looked like a dump site.

I was really disappointed because the house itself was perfect for us. But alas on the way home from seeing that house we decided to just pop into the Community where we now live...And voila...My new home was just sitting there vacant and ready for us to move in. It was a FSBO and not on the Internet.

Now I don't know if any of that helped but there you have it :)

TLW...ROAR!

I also have yet to sell a home that a client found online.  They tend to forget to look at things like railroad tracks, warehouses, busy streets, etc.  I email homes to my clients and they screen them, but I haven't had anyone find their home on their own yet.

It seems like in the market we have now, buyers will probably not find the home they want online, because they can be very particular about what they want, without the home selling the first day on market. When the market changes, maybe internet sales will be higher. I also don't understand the statement about paying the realtor. Sellers pay the realtor fees in Tennessee, So even if the buyer know the house they want, they should use a buyers agent to handle the negotiation, inspection, and appraisal processing, since it doesn't cost a penny.

The internet is a great place to begin.  At least get their idea of a home style.  We have clients that do their own internet search, then either call or e mail.  Since they never really know the area that the home they chose to see is in, ie flood zone, we get the info for them and then go and see it with them if they are really interested.  So far, they have not purchased yet, but look at all the gas we saved! 

Jeff,

I have sold to many many internet buyers.  NONE have ever bought the house they initially found on the internet.  FEW even buy in the same neighborhood....    I am very happy that the internet makes it easier for buyers.  I have worked with several out of towners and having so much information available online has reduced the amount of time a transferee needs to spend in looking for their new home AND neighborhood.

Jeff, I have never had anyone buy the home they called me on!  Whether from the internet or a yard sign, they have always gone on to look at other homes and chosen something different.  Here in Louisiana, the seller pays all commission, so the cost of using an agent doesn't enter into the equation.

I think a lot of buyers get a head start on the internet but you never know if it's the right house until you have seen it pictures can be deceiving! In New York State the home seller's pay the Realtors commission so even if the buyer thinks they already know what they want to buy it is still beneficial to use a Realtor and have the advocacy of a Buyer's Agent it's a free service for the buyer.

I am also a bit amused about the "take my Money's" portion. Somehow the buyer thinks that using a Buyer's Agent is somehow taking money out of their pocket. If that same buyer had walked into a FSBO the seller certainly would not just "hand them 2.5-3% or even reduce price.  Some buyers seem to forget that the seller has already negotiated the commission and the CO/Op.  Buyers Agency reduces and almost eliminates the Vicarious Liability of years past and they protect themselves by paying a co/op to a Buyer's Agent.  Buyer's Agent's provide a service, and as mentioned, can give the buyer valuable information and experience at no charge to them as well. It's a win-win for them. The Buyer's don't hear the horror stories we do. In the end though, it's up to them.

 

just my .02 

Nothing will ever replace local knowledge no matter how detailed the available information is, my experience has led me to believe that internet consumers weed out undesirable properties online and then rely on the agent to find the perfect deal. On REALTORdotCOM less than 20% of the listings have multiple photos and consumers know that to be true. So A realtor is an integral part of the process ( Local Realtor That is) great post

For the most part, people shop price online and when they come to me they know nothing about neighborhoods, school systems etc.  I admit, it is confusing. PO addresses do not always correspond to municipality or school system.  There is an area that has a "White Plains" PO but its a different municipality altogether.  People often come to me with listings from this area ready to make an offer - thinking they've found a the bargain of the century!  When they realize exactly what it is that they are buying, they either come up with a more realistic plan or the rush back to their rentals.  Either way, I have yet to sell a home someone found online.  Online listings can be VERY deceptive. You can put a great deal of lipstick on a pig with an online listing. 

Jeff....Many of our clients start on line checking out property and neighborhoods and some even find a Realtor that way. I think some of the numbers may b e skewed as we also sign our clients up for specific properties that fit their needs and they see something they like on line. While a picture is worth a 1000 words it is not always the same once they get there.

This is EXACTLY why we gave over 1 million dollars in Cash Back Bonuses in 2007.  Buyers love to do the work and why shouldn't they?  We aren't emotional counselors.  Let them find what they need, we can show them the houses that they really like after they have narrowed the field and they we SHOULD split our commission with them. 

Check out my site:  www.DuffyRealtyofAtlanta.com or www.CODRealty.com - we have a new series of 14 tips and pointers on how to be number 1 in your area NOW. 

 

Rhonda... "We aren't emotional counselors." What does that mean?

I guess the publics view of what we do is sometimes a bit off. I also have not had a buyer call and say they found their home and want to meet me and buy the home.

PJ has really underestimated the homebuying process. Finding a home is just one step, then there is financing, the appraisal, inspections, repair negotiations, etc.

In my buyer experiences, none has purchased the home(s) they found online. Many times they send me MLS numbers to look up for them and the homes are already sold or under contract.

Another mistake out-of-town buyers make is applying their current market dynamics to the new market by thinking 'We're selling our 3-bedroom/2 bath 1600 sq ft home on a 1/2 acre lot for $225,000, so let's looks at homes in the new area for $250,000 and less.' Depending on their new city, $250,000 can buy anything from a closet to a mansion! Helping buyers understand a particular local market is where agents can really provide value.

I think the internet is awesome, especially for buyers to begin their search and to look at neighborhoods and statistics and school districts and everything else the internet offers at your fingertips, including homes with pictures and descriptions! Even if my client buys the exact home they found on the internet that is just the beginning. After finding the home and deciding they want to write an offer is where the work begins that they don't do and most don't have any idea of all the things they should do.

So, I say that the internet is awesome and lets the consumer find what they think they want but then all the hard work comes in after that and giving up your paycheck for that is up to you but I work hard for my money!

Let me leave you with one question - What career or job or whatever you want to call it have you had where you pay for everything you need to do your job out of your own pocket and you work hard everyday having to interview and prove yourself each time you talk with someone new and put out money to get the job done through advertising and signs etc... AND ALL OF THAT HAS HAPPENED BEFORE YOU HAVE EVER RECEIVED A PAYCHECK???

I SAY IF YOU ARE GOOD GET OUT THERE AND EARN YOUR MONEY!

Hi Jeff - love your blogs! - Ok, I think the internet makes it easier for buyers, especially visual tours and professional real estate 2 minute commercials like I've seen on UTube, but from my experience all those tools do not replace the experience of physically touring and seeing the house.  I can't tell you how many times my buyers will say, "Wow, this isn't what I expected at all.  I'll pass on this house thank you." 

I think it's happened once! It was a fluke! You just can't get the whole picture online. The photos show the best stuff...you can't see the aging mechanicals, curling roof, the busy street or the funeral home next door, or understand the floor plan. Plus, there is simply an emotional connection when you walk through the door that you can't get from photos. If a client were left to choose from what they find themselves online, they may be missing out on some great listings that fit their needs perfectly but that they passed over for one reason or another. Not all listings are available on all websites, so it depends on where they are looking. Will they pass over a house that doesn't have photos? Many newer listings do not so that could happen as well.

I've done some searching online in another State recently (mostly for fun and because I may move there someday). It's frustrating (hundreds of listings) because I don't know the nuances of the location...which is of utmost importance. I would never approach such a big purchase without the assistance of an agent who can make sure I see everything that fits my needs and weed out the ones that don't, plus educate me on the area. That knowledge is priceless.

I don't have an actualnumber but i assume it's quite low. Whether they think they know it or not they do need competent realtors to put the sale together. That's why so many FSBO's turn to real estate agents. But still in all we do have to show them our value. That is essential.

No matter how much you see online, you have to see a home to get the feel of it, and feelings are what we are all about, the feeling a buyer gets when in that home will determine if they buy or not.

As most of my clients are out of town buyers and have NO IDEA of the area, they naturally gravitate towards the best home for the least money - as it appears online. Obviously they dont know if its 30 miles from the beach...or on a very busy road, explaining the low price. I have not only never had a buyer make an offer on the property that selected, but they often end up in totally different neighborhoods , with different amenities.

I use it as a great starting point - I know what they like aesthetically - then learn about their lifestyle and make my own recommendations for alternate or comparable properties.

Even if I agreed with their initial choice, they never seem to end up buying it once they see it in person.  

 

Jeff, great question... I had several of my past clients call me up to say that they've either walked into an open house and fell in love or found a house on line that they want to write an offer on.  They found their house by themselves and that's great.  Finding just the right home in most instances is a partnership between the buyer and their agent.  What an agent brings to the table above and beyond is their negotiation skills, knowledge of the are and market trends, the oversight of all the transaction details and the understanding of local real estate laws.  I ensure that my buyers get the right house for the right price in the right area with minimal hassles.

Jeff, this is interesting.  We're just handling a transaction in which a client would have purchased a home they found on line and after working with us to look at a few other homes recognized that the purchase would not have been a very good deal.  The little bit of "extra" research saved a lot of money.

I don't think I've ever had a client purchase the home they initially contacted me about.  They may have liked it, but they usually find something that they like even more (for whatever reason).  I think, no matter how much they like a house they found online, they still want to know what else is out there that they may not have seen. 

Agent:  "Mr Buyer, what are you looking for in a home?"

Mr. Buyer:  "My wife and I would like a four bedroom, three bath home on an acre lot."

Agent:  "Great!!  In the local area we have several that fit this description."

 Two weeks later the couple buy a 2 bedroom, 1.5 bath condo in a senior living community because they are retired and want to "simplify" their life.

 What they want is RARELY what they buy.

daniel

Most of my buyers have shopped on line before they call me. I had one client check the Internet for what he was looking for and then questioned me for not showing him the house he found! Of course,when I showed him the home it did not meet his criteria. Anyway, I encourage all my clients to look around and if they find something, we take a look at it. So far, I have not had a client find their own home on line.

Thanks for the post.  Terrie

I have had a couple of clients who simply look online and then ask me to show them the house that they found. In both cases they have bough the home they found online. In the puget sound region we have a large and growing high tech workforce who are very comfortable in looking for things online. I think in the near future we will see even more buyers doing more of their research online and will demand that the information provided online is of better quality. I know that I am getting ready to upgrade my online appearance so that prospective buyers can have more information  available  to them.

Best,

Scott 

I cannot tell you how many times a "buyer" has called me to ask me if I will rebate a hugh chunk of my commission because:

they can find their own home.

they are an ATTORNEY so they will be their own agent.

they are pre-approved and it will be an easy sale.

What the average buyer doesn't understand is that anything can happen during a transaction and they are paying me to handle whatever comes along. 

I don't negotiate my fee for anyone.

Jeff -{Bob here} I see you are not green anymore. :-) We get most of our leads from the Internet and usually win them over because of my history in the areas that we grew up in. I usually know the areas and history and the clients love that. I know more about the flood zones than the maps show also invaluable info for the consumer. Sometimes not so great for sales but I am an extremely ethical agent. I wouldn't be able to sleep. I see your not sleeping either. lol Thought provoking post. Well done Jeff. 

Jeff:  I have found it extremely rare that a buyer actualy buys the house that they found on the internet.... it's even quite rare that they buy the house that they actually drove by.  The value of a REALTOR is not in finding the home.  The value is in assisting the buyer in making an informed decision that they will be happy with over the long term and protecting their best interest during the buying process.  There are so many things that buyers don't realize, even if they've bought and sold real estate before.  But then again, I suspect you already know this.  :-)

Jeff -I find it works both ways, if nothing else the internet does all the pre-education on the local market that we used to do. We now show a lot fewer properties before getting an offer.

I have recently sold two of my own listings as a result of people seeing the property presentation on the Internet. In the first instance they came and looked at only one property and bought it. In the second case a purchaser who found me on the Internet from halfway across the country, found a home on my web site, emailed and called to ask a number of questions, and flew out a few weeks later to look at properties.  They ended up buying the one they had selected on my web site. Ive had purchasers put in an offer to purchase conditional on their final approval after inspection once a deal was struck they then flew in to confirm the purchase after we looked at several others to ensure their choice was correct. 

Jeff, I have sold to buyers that found the house they wanted online, but it's a rare occurrence.. Since we are a relocation destination, buyers are often unfamiliar with locations/neighborhoods. We do a lot of previewing homes for buyers and sending of additional photos... Often they might miss a good house online because the photos are terrible...Shame Shame!

Anyway Jeff, The comment PJ made about "take my money"...is curious since Buyers agents get paid by the seller in every state I know of...Some might charge a retainer fee that is refunded at closing.... Although I know of no one personally that does that.

 You say:

"The stereotypical consumer thought, "why do I need to pay so much money if I've already done all the work?" is often incorrect."  

Yes incorrect for sure.....

Ginger

 

I have had several clients who started their search on-line, none that bought the house they "found." That said I find these guys much easier to work with as they have already decided what features are most important to them in a new home, which helps me guide them in their decision.

I sold a house for a family a couple years ago. He had found that home on-line several years earlier and he found the house they were moving to in Alabama on-line. I guess he just had a knack for it.

I am currently working with two buyers that came to me through the internet.

Buyer #1:  Knew what he wanted, knew where it was, just wanted a professional to protect his interests.  He did the right thing.  This property is a bank short sale and has been a total nightmare.  I asked him the other day if he thought he would have done OK without representation.  His answer:  "No way.  Those people have been trying to roll right over me."  I am doing my job - and in HIS best interest.

Buyer #2:  She thought she knew what she wanted.  But after we sat down and discussed her situation, her needs, the neighborhoods and proximity to her new job ... she realized that she was really looking at all the wrong types of homes for her.  We have refined her search, re-focused on area and narrowed the field by quite a bit.  I am doing my job - in HER best interest.

Sometimes people think they know what they want.  Most times they really don't.  They may have an idea in their head, but what they are actually drawn to is totally different.  We, as humans, are visually stimulated and the true test for all of us is when we see something - a house, a car, a painting, etc. - "up close and personal" and discover that it may well not be what appeals to us "in person" but looked great on a computer screen.  The same holds true in reverse.

The internet is a wonderful tool, for sure.  But there is absolutely no substitute for human correspondence, the ability to seek and receive timely advice from a professional, and the peace that a buyer may feel knowing that they are not left floundering in that sea of forms that builds a real estate transaction. 

How many buyers buy the house that they called on from the sign? or bought the house at an open house? not very many as far as I am concerned, it usually takes 10 homes or so on average before they find something they want to buy, that's what I find. A lot of the time it is a home that wasn't on their list to begin with.

In my 15 years experience, I've had exactly one buyer buy a home that she found in a print ad, and one buyer who identified and purchased their home from the internet.  In each case, I was shocked that they really bought the homes because there is usually one or more previously unidentified factors that they will discover that eliminates the property when they look at it in person (things like dining room hutch won't fit on the wall, or lack of bath tub in master bath.)

Jeff, what makes the Internet good is the client thinks they have the right house picked out when they schedule a go look and see with me. It is my opportunity to bond with them in their sadness that it was not the right one at all. Then I make good mental notes and end up finding them just the perfect thing. Usually I have another one in mind. The Internet makes me look like a hero sometimes!

Jeff: The reason buyers don't buy what they see online is that they don't find listings properly presented on RealEstateshows.com! (cue loud suck up sound)  I am not certain where all this is going or what it means for our business.  Is all the listing technology just a huge lead development platform in light of the way that buyer agents are compensated?  At some point this issue must be addressed by the industry or the whole MLS/cooperation model will devolve into nothing more than a high tech version of the old MLS listing book and the bad old days of pocket listings and unrepresented buyers.

The Internet can help you narrow homes down...but you do not pick your house on line...you may eliminate a house online however.

There was only one time over several years where a buyer bought the first house they saw.  I stilled showed them some others just to make sure they were happy with that one.  Its incredibly rare.  Houses look different in person than they do online.

 

 

Jeff -

Once more, we see the consumer is king, even if they change their mind.

 

Steve 

Jeff, it would be nice if we were all robots and didn't need the individual care that goes into the home buyer, but that's just not the norm. It's not a Redfin world. I can't even begin to think of one single home buyer that ended up with the house that they found on-line. The most hysterical is when they end up saying I ONLY want a 2 story, it MUST have a pool and they end up falling in love with a 1 story with NO POOL.

Everyone is different and every transaction is different, too.  And lastly, there is more to buying and selling a house than putting up a for sale sign and finding a house on the Internet.

Oh, good luck PJ.

Jeff, I mainly work as a buyers agent.  Having said that...

In my estimation 90% of the homes that my buyer clients have purchased have come as a direct result of my finding the home for them.  

Typical scenario:   Buyer client searches on the Internet (whether on my site or another site) and we set up initial appointments.   After going out once or twice looking at several homes each time I have a much better feel for what makes their eyes light up and what makes them cringe.  I then conduct a more intensive search for them, preview homes if at all possible, until I find the one.   

In my experience it is rare that a buyer client finds the home they want to purchase on their own.  

I have had 5-6 people find a listing of mine on the internet and purchase that particular listing in the last five years. That is probably a high percentage than some.  But about 50 % of my business comes from the internet and the other from referral. 

Case in point, condo buyers up to 130K, my daughter takes them out all weekend. They kept upping their price, found one for 185K, oppss..... two more offers. They decide to go up 1500.00 over the highest and best offer.

Started out wanting ONLY a 2 bedroom, made offer on a 3. They have been on our web site for months, what they saved as a favorite they didn't buy.

Happens all the time. Sure, I've sold a few sight unseen but that is the exception and not the rule. 

 

great post! i think online home buying has become something similar to online dating everyones doing it!

The internet definitely gives buyers the info-tainment they enjoy while waiting for their next appointment to go with their realtor. You're right, Jeff. They usually do end up buying something else.

I have to say many times peopl see a house on-line but when they come and see it in person it is very different.  Pictures can be deceiving.  I know that many people look on line over and over but do they actual buy a house they see on line?  I do not think so.    I find as a Realtor the pictures can often fool you! That is why you should go to as many Broker Open Houses that you can.  That way you know your inventory and are not wasting your clients time. 

I have had one buyer purchase sight unseen, an investment property a couple of years ago.  I had a buyer last week who thought they had narrowed their search to 4 homes - we ended up in a different county and $100,000 higher than they thought they were going to pay.

My last buyers gave me a list of around 20 homes they found on the internet.  I narrowed that down to 1 that met their needs after weeding out the 150 year old "as is" forclosures who's glory days have long since past, the 650 sq footers on .12 acres of land that "no you won't be able to add on to down the road"s, the one with 3 layers of disinigrating roofing that you could clearly see in the pictures, and the 2 with turn of the century (and not Y2K) asbestos covered steam boilers sitting on a slabs in dirt basements.  We looked at that one house, wrote a contract, and closed last week.  Looking at on the internet is easy, knowing what your seeing isn't always. That's why we're needed.

Many buyers now do their search on line, and will let you know what they saw, and want to see.  I find that after they come out to see the home, they gear towards something else.  Typically what I have recommended to see.  I even had a client who wanted to see a home and I was not aware of the listing - well that does not happen often...

Jeff-As many others have mentioned here, buyers frequently see something on line and either call or e-mail about that listing, but typically end up buying something else. Example, I had a recent e-mail about one of my listings, and then the buyer decided that it did not fit her criteria. I'm currently working with her and showing properties that are substantially different than my listing.

Of course, we have no way of measuring how many are buying without the use of a Realtor.

Jeff, Good question and very interesting comments. I've sold quite few properties sight unseen over the Internet. Does that count?

Jeff - To answer the actual question - the percentage for me is 0%.  I have never had anyone buy the actual home that they thought they were interested in.  In fact, most of my buyers wind up buying something not even close to what they are searching for.  My favorites though are when they buy something that isn't even on the market yet when they are looking and they find out about it before the masses because of the connections that I have & deep knowledge of the area & neighborhoods.  Once not long ago, their contract was being reviewed as some people still hadn't opened their email for the day with their new listing alert.  I wonder if there were people searching without an agent that were shocked it was sold so fast?  That still is happening here in the best homes.  

I truly believe that if they really think that they can do as good of a job and save themselves some money, and are going to enjoy the process, I wish them luck.  There are always things in life we can do ourselves or choose to hire an expert for.  Its not just the actual task you are hiring for, but the expertise for it to be done properly. Personally I think its our jobs to make it look easy.  It is my job for my expertise to make your life easier so that you can sleep at night and I can worry about the details.  If it didn't look so darn easy, I don't think I would be doing a very good job, personally.

 

 

Every client we've had who thought they had found their home on the Internet was in for a rude awakening when they got to see the property in person. They ended up preferring the properties we found for them based on their criteria.

Actually, I just sold my listing to a buyer who saw it on Realtor.com - (enhanced listing).  My former broker sold a house to someone who had been on automatic email feeds for years.  When a particular house came on the market he emailed her and told her that was the one, he was ready to make an offer on it (evidently it was one he'd had his eye on before and was waiting for it to come on the market.)

But for every "easy" sale like this, there are a dozen more that required a great deal of blood, sweat, and tears.  we get paid the same whether the job is easy or hard.  I will negotiate a little on my commission if I feel it is the right thing to do - for certain reasons and it will be on my terms.

I work very hard for my paycheck.  People seem to think that it's just "Sit back and collect the paycheck" and it's not. 

I notice one thing with people:  everyone wants to make money, but they don't want anyone else to profit from THEIR money... 

The internet is a great place to start, but there is a reason that I'm constantly filling up my gas tank, and it's not because of the internet.  I really think the internet really helps people get past the lookie loo stage and into a buyer's mindset.  I can't tell you how many times a buyer has said that they found the perfect property, just to find out when we get there that it isn't near what they are looking for.  It goes the other way as well though.  I will show people properties that may not look great on the internet, but when the see it in person, it's exactly what they want.

What an interesting set of questions.  In our case here, 0% actually buy what they think they want, having seen pictures on the internet.  But they do have a pretty good idea of what they want.  That helps.

I saw that 60 minutes bit last fall where the focus was on the flat fee internet based sellers in  Washington State and the featured a couple who think they bought directly off the internet.  I bet they just did their research like everyone else.  Anyhow...I remember thinking at the time, what a huge liability this company is accepting.  I can't imagine buying a house I've never seen....

Going against the grain here (and as a listing agent in this case), but I just closed a transaction a couple of weeks ago in which out of state buyers saw a virtual tour of my listing online, decided it was the right house for them, drove down to see it, signed an offer and were on their way back home, before I had even seen the offer.  I'm sure they looked at other houses, but the one they picked out online was the one they bought.

(I learned at the closing table how they found the home, as it turns out the wife had been a subscriber to one of my blogs for several months, and she did a great job of explaining to my client how much my blog and marketing efforts helped them to make their decision . . . don't think she could have done a better job promoting me if I'd paid her!)

Anyway, this may be a rare instance, but it can happen.  Mostly we get it narrowed down to a couple of neighborhoods or a handful of houses "shopping" online, then make a selection from those.

Interesting discussion . . . will be enlightening to see how many have had this experience.

Many people think they kowwhat they want until they start looking then many things change.  They sometimes fall in love wih a home that is different then their first criteria.

The common vote seems to be that people won't sign contracts over something seen online and not in person. We have had quite a few investors, some of whom are out of the country, that buy online without seeing the property, and then go on to hire a property management company to do the 'dirty work' for them. That doesn't happen often but it isn't unheard of. Usually it all comes down to the interests of the client as well as the disclosure we offer on our properties. The more *honest* information given the more likely a buyer is willing to trust you without seeing a property in person. 

Jeff - NAR says that 25% of all buyers find the house the buy online. that stat has remained constant for the last 2 years. Don't know what it will be for '07 because it is not out yet.

Almost all of our online buyers get something else other than their original interest, especially those who think they have found "the one."

Have not paid attention to twitter other than I need to...

Truth is an online buyer using their own agent costs that buyer nothing. If they go to list agent directly, chances are the home will cost more than using their own agent, plus the list agent will take the full pop in most cases too.

It's a decent discussion, am sure. But 85% of the time buyers have their own agent, and a good buyers agent will save them money, and protect them substantially through the process. Just about every time we earn our fee at the negotiation stage for the buyer alone. The last one got of real note got a house overlisted at $1.79M for $1.25M, and there is no way that would have ever happend if the buyer tried it directly.

good question you bring up here.

best 

 

PS. Oh yes, RSS shows is also something I need to get up and running. That I've been putting off way too long. Have anybody who will call me, and shame me into it? And learning it asap too? 

Seems to us that most buyers search for homes on line before they contact an agent -- they likely also use the Internet for a lot of their decisions on finding an agent. But the agent still offers a lot, comparable info, community info, etc. Buyers are not usually buying totally on line without any help from an agent -- at least not what we see.

I always find it interesting what out of town buyers like before they get to town (based on pictures), and then they get here and I show them them really good stuff.  They never buy the "one" from online, homes are more than just a few pictures.

Jeff, you have a great question, and I see you've got some pretty interesting responses.  Buyers have the right to change their mind from one property to another.  I am split in your question because I have seen it both ways.  The important thing to remember is that if it wasn't for Realtors posting their listing to the internet, they probably wouldn't have found it.  We provide a great service to the public.

I was looking at listings on the internet for a vacation home. While I didn't pick the exact condo that I wanted on line, I did pick the exact development (out of many choices).  I would have chosen my exact condo if the Realtor had only posted muiltiple photos :)

Jeff, you just "nudged" me to check out twitter...  It's amazing what people say, isn't it?

Hi Jeff - I've had one buyer in all these years actually buy the house they contacted me on from finding it online.  It was my own listing, and they found it on a site where I'd enhanced it to stand out.  Did they buy that one - they did, but only after looking at all other possibilities to make sure that was the one they really wanted.  And I showed them a number of other homes before coming back to the first one.  All of the other properties we looked at were homes I found for them based on their needs and wants, and we ended up back at the first one, which was the perfect home for them.

Not sure that actually answers what you wanted to find out, as they found it online on a site where I put it and where I made it stand out.

Ann

I have buyers email to see a particular group of listings all the time.  I try to figure out the common denominators and pick out additional listings.  The ones I pick out are often the ones they like the best.  And if I had a nickle for every time I heard "It sure didn't look like that on the Internet!", well, I'd have a lot of nickels.

Here's a stat from a recent Washington Realtors buyer profile survey.  In Washington, 37% of buyers stated they first learned of the house they purchased through the internet, not their agent.  So, apparently, it does happen quite a bit...that's one out of three!

None of my buyers have purchased a home they initially saw.  They've all purchased homes that came up through my searches for them.

HOWEVER, the house that I purchased, I saw it online first, then I called my buyers agent to see it and we wrote it up that day. (I bought before I became an agent)

The internet is a wonderful tool that puts a lot of power in the consumer's hands.  That being said, I don't go perform surgery after reading webmd.com, and I don't think most people could successfully get a RE transaction to close in the best possible manner without the help of a Realtor.

I think I have only had that happen once... a buyer called and knew exactly what she wanted... we went and saw the home, got an accepted offer and closed.  We didn't see any others.  She was a long time resident here and knew her neighborhoods.  As you say, most often they select a few, and we end up seeing more in the same category, or even something completely different.  It's a rare thing to have a buyer know exactly what they want, especailly if they are coming from someplace else.

It amazes me that the consumer thinks that picking the house is the actual work. The work starts AFTER the buyer chooses their house! If they only knew how much stress we go through, trying to stay on top of every timeline, to hold THEIR transaction together!

Almost all will buy something else.  My goal always isto set up a consultation with them and take the time to discuss their needs, wants and goals.  After this process It generally only takes a few times out to find the perfect home, and most of the time it was never on their list from the internet.  As a professional real estate sales associate, I am in the market everyday and see what the market is doing and am aware of the best deals out there.  I also have the skill & knowledge to ask the seller's (fsbo) or their agent the right questions so that the buyers that I work with can get the home for the best price. Our knowledge & skill is worth for more than the commission that I earn to my buyers in terms of real dollars. 

Michael 

Gee, if they are ready to put an offer in on something that is a nice home, I'll write the offer for them.  But if they have any doubts, or it's a nasty house in a nasty neighborhood, I'll certainly counsel them to look at some different options!

Interesting post, and comments!   I have actually sold a home on-line.  Believe me, no one was more amazed than me!

I have had one of my staged homes purchased with no walk-through.  It was a special circumstance (buyer simply couldn't make it into town, and it was a quick transfer).  This home had been staged for some time, with Broker's Opens, Open Houses, and other marketing tools utilized.  A week before the seller was to finally change out he carpet, the buyer viewed the house on line, sent in their Realtor, and the house was sold!'

Many professional Home Stagers have received specific training on photographing their client's staged homes, and offer them to the Realtors in the staging package.  We also find that homes with virtual tours tend to sell more quickly, and have more showings.  So, an effective on-line presentation will certainly impact on the final selling price, and market time.  The best way of improving that on-line presentation (in my humble opinion) is to utlize a qualified, professional, home stager!

I have not met anyone who found the house on line and bought it.

Almost never.  I do have one buyer's agent stalking me because of some online marketing I did for another agent (to attract my own buyers.)  She is more of a PITA than some of these already-represented buyers.

My daughter and her fiance live 2.5 hours apart. They just purchased their first home. They sat in their respective current homes, went to the same websites, clicked through listings, giving the thumbs up or thumbs down in a matter of seconds and found 2 or 3 properties to look at the following weekend. They phoned the Realtor, booked an appointment to view and purchased one of those 3 three properties viewed. Each house had been Staged by a professional and were presented very well on line. The ones that were not Staged did not even get a look.

My question is....do Realtors realize how many clients they do not even get to speak to, see, or advise as their listings do not present well on the internet? Clients do start their searches on line , that is a fact of life today. How does a Realtor get a client to call in to arrange a viewing , maybe realize that is not the house for them and build a relationship with the Realtor to find the property that is right for them?

I would  suggest  marketing their product for sale in a professional manner on line. This is accomplished by using a Professional Home Stager and having photos and video with music by a professional to market the property.

It was interesting  to see this buying process in action as this is how I market my Home Staging service to Realtors and homewoners. I realized just how organized and informed young people are today. They have no qualms about using the internet to make their largest personal investment.

As mentioned in an earlier post, gone are the days of driving prospective clients around showing after showing wasting your time and marketing dollars. Clients come preapproved, knowing what they want in a property and expect everything to fall in to place in an orderly manner. 

Michelle Finnamore CSP  michelle@advantagestaging.ca    www.advantagestaging.ca 

Almost exclusively my clients are "in love" with one house and find that the pictures did not do it justice and purchase something else that I have introduced to them.  Sometimes it's a different area they never thought about or something else.

The day a person can really virtually walk through they may not need us, but until then they often do.

I usually let them lead the way on the first day.  We sit down and go over which ones I think will be good and which ones they think will be good.  I tell them that I will show them everything they want to see, but I will be telling them my opinions on them all.  (some say not to do that, but I disagree).  I'd say that 4 out of 5 times they will say that they wish they had not wasted their time driving to the homes that I told them to stay away from...

Most of my guys start off thinking they want something they say online, then they buy something totally different that I pull off a tree.  I love to do that!

They are few and far between on really purchasing that home that they shopped for on the internet. More times than not, I end up finding the home for them than them finding it on the internet.

 

Considering that as listing agents we are paid to take the most flattering photos possible....I've worked with many a client who came from the internet, who was highly disappointed that their ideal house was just a dressed-up pig.  and we all know that you can put lipstick on a pig, but it's still a pig.

Speaking of just myself, I thought I found our house online. But when we viewed it here, it DEFINITELY wasn't the house for us. Pictures can be a great tool, but there's nothing like going to see the area and the home.

Sometimes what you see online is nothing to what you see in the house.  I have known many agents who use photo shop.  While they may start their search..it does in fact help to narrow down the search.

I have had a buyer purchase through me sight unseen...does it happen often...no...do I see it happening more...yes...but the reality is our job is much bigger than P.J. portrays.....finding a house is simple but finding the right house to call home and actually closing on it...now that is an accomplishment.

If only our jobs were that simple..

Great post.

I think the important part for Realtors here is that you have obtained a new client through the internet.

Whether or not they buy the place they saw online, or one you introduced them is irrelevant.

IT MATTERS THAT YOU HAVE A PRESENCE ONLINE AND THAT YOU ARE CAPTURING THE NEARLY 90% OF BUYERS THAT USE THE INTERNET IN THEIR PROPERTY SEARCHES.

www.AgentStealth.com

 

I think they start on the internet and do the research and then end up purchasing something else about 90-95% of the time. WE offer knowledge and experience that can't be found on the internet alone!! Thanks goodness or we would be unemployed and outdated!!

Although some Internet shoppers may feel they have found their new home themselves, it's really no different than the days before computerized listings when you would allow the buyers to look through the MLS book. The only difference is the medium and the perception that they may have done it without us. In reality, we have always provided the listings in the first place.

The interesting thing about the internet is the fact that it takes all confrontation away, that the buyer used to have to deal with when contacting a Realtor.  Now, they can just hop on the internet and see pictures and information without having to talk to anyone.  The buyer still has to rely on the fact that the listing agent took pictures of everything, and didn't leave out a picture of something that was less desirable.  I have had buyers say, "I found the perfect house online last night", and then we get to the house and, "oh, I didn't know that was there."

You can only see so much on the internet, or at least as much as the listing agent decides to show you.

Did anyone ever consider that these internet buyers could not do their research without the help of a Realtor?  Think of it this way.  The Realtors create a trade association.  The Realtors create MLSs.  The Realtors go get the listings to put in the MLS.  These buyers would not have much to look at with out Realtors!

The "raw data" or houses has been available for consumers for a number of years.  I think that a good amount of research done a head of time especially with out of town buyers does help people make a decision more quickly. 

I had a client a few years ago that wanted to put an offer on a home based on what they had seen on the internet.

I went to see the home and asked them if they would like pictures of the home and its surrounding area. 

They decided to wait until they came to town after seeing the pictures. They did not buy the home but bought one very different to the home that they liekd online. Some pictures can really flatter a home that looks nothing like its physical presence :)

i believe tha the final decision rests on actually seeing the home and getting a feel for it, including the neighborhood  thet is something they cant put on the internet. 

Jeff:  I've had a couple that bought one of my listings that they found online--however, they did take a look at several others before going back to that one!  In general, the VAST majority do see something online only to find that they don't like the neighborhood or the location's proximity to the city.  Regardless of the fact that those Buyers found the listings online and puchased the first one that they saw, our jobs are not complete when they FIND it--that is the EASY part!  The Sellers are paying the Buyers Agents here in NC and the Buyers are getting the advantage of our experience, knowledge and guidance for FREE!  I don't feel as though they should complain--it's not often that you get so much for FREE!!

 

Jeff, I have been fortunate a few times to sell the home my buyers found on the internet. Many more times, however, they didn't buy the one they "wanted" online. Great post! elizabeth

Intriguing post, Jeff, and a great response with lots to ponder. The buyers I have worked with all seem to appreciate the value of the information in helping them to research areas, consider different homes (while ruling out some) and finding those they wish to tour. So often what you see is NOT what you get. I have had folks comment on how much more prepared they are, and how much time they saved in their actual physical search by going on-line first. Obviously the information on-line comes, in large part, from agents themselves. If our only value was in helping folks to identify a home, as it was in the past when agents controlled the MLS books, then I can see Pj's point, But there is so much more.

Jeff 

Geez.  I sound like a broken record.

"IT DON'T TAKE NO RHODES SCHOLAR TO FIND A (*^%$^* HOUSE TO BUY."

It's what happens next that separates the experienced buyer's agents from the rest of the industry.

 

Lenn... just keep beating the drum. :) Broken record or not, somehow the message needs to get through.

Most of the time, the first houses that the buyers choose online are just a starting point. The buyers don't always know the ins-and-outs of particular neighborhoods (HOAs, Mello Roos taxes, schools, lot sizes, freeway access), and quite often they're looking at websites that don't have the most up-to-date info since they're not MLS driven (Point2). 

I have clients who were really wanting to buy a short sale home that they found online and is near their current home, even after I told them that there were already several good offers on that home. I showed them this home, then took them to another home practically around the corner that they had not seen online, and they immediately fell in love with it. They would likely have never found this home if I hadn't brought it to their attention.

York County Pennsylvania Real Estate here !

 

Great blog! I am happy when consumers are proactive I think they like to know that they have a part in the process. Generally speaking NO they do not buy the home they had picked via an internet search. It empowers them to know they can help.

 

Dawn :)

most prospects would probably only use the internet as a research medium when they want to buy properties. buying / choosing / making up their mind online ... probably far and few. perhaps if they have already seen other similar units in an apartment block and know of the layout and configuration, buyers might attempt to offer online