More consumers seek agent assistance for real estate

“What we find is that competition is alive and well, fueled by the growth in technology, and that consumers largely prefer more traditional methods of buying and selling homes,” said NAR Chief Economist David Lereah, in a news release.

According to the survey, which is based on more than 7,500 responses from a random sample of U.S. consumers, 80 percent searched for homes online, up 3 percent from 2005. Local multilist service Web sites were the most popular Internet resource, used by 53 percent of buyers.

Most buyers – 85 percent – indicated, however, that they worked with a real estate agent to find a home. Other methods included open houses, televisions, billboards and newspapers.

Findings indicate that most sellers (83 percent) prefer full-service brokerage, with professionals handling all aspects of the transaction.

Even so, limited services (which may include discount brokerage) and minimal services are important market segments (9 percent and 8 percent, respectively) also provided by NAR members, enabling sellers to take more active roles in the real estate process.

“Our sense is that professionals will continue to experiment with business models and that the lion’s share of consumers will continue to opt for full-service brokerage, but there’s room for all ethical business practices in this industry,” said NAR President Thomas M. Stevens in the release.

For sale by owner

There appears to be a relationship between a modest rise in limited and minimal services and a decline in unassisted sellers, according to the report.

“Limited and minimal brokerage services cater largely to owners who would prefer to sell on their own but recognize they need some level of professional help,” Stevens said. “These services generally are a good match for certain consumers, and help to explain a decline in owners selling purely on their own.”

For-sale-by-owner transactions show a record-low market share of 12 percent, down 13 percent from 2005. FSBO transactions reached a cyclical peak of 18 percent in 1997, but have been declining since. The FSBO record since NAR began tracking such transactions 25 years ago was 20 percent, set in 1987.

The survey also found that the median home price for sellers who used agents is 31.9 percent higher than a home sold directly by an owner – $247,000 vs. $187,200.

The typical home buyer is 41 years old, earned $71,800 and purchased a 1,815-square-foot home for $214,000. A record 22 percent of buyers are single women, 9 percent are single men and 61 percent are married couples.

The number of first-time buyers dropped to 36 percent of respondents, compared to 40 percent in the previous three years. The median age of a first-time buyer is 32, with a median income of $58,300. First-time buyers purchased homes for $165,000, and they plan to stay in that home for six years. The median down payment by first-time buyers was 2 percent, but 45 percent purchased with no money down.

The typical repeat buyer is 47 years old, earned $81,900, purchased a home for $249,000 and plans to stay in that home for nine years.