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| The Net Effect - 'Internet Versus Traditional Buyers Survey' Highlight of October 'California Real Estate' Magazine |
Web-Savvy Buyers Save Time, Buy Pricier Homes, C.A.R. Survey Reports
LOS ANGELES, Oct. 22 /PRNewswire/ -- Dot-com may now be dot-gone, but the
Internet has become a vital tool for business in general and for the real
estate industry in particular, according to a California Association of
REALTORS(R) (C.A.R.) survey reported in this month's "California Real Estate"
magazine. The association's fourth annual "Internet Versus Traditional Buyers
Survey" identified the differences between buyers who use the Internet as an
integral part of their homebuying process and those who do not.
"California Real Estate" magazine, with a monthly circulation of more than
135,000, is the official publication of C.A.R.
"The Internet has become an increasingly important tool for homebuyers in
recent years, and it continues to change the way homebuyers interact with
REALTORS(R)," said C.A.R. President Toby Bradley. "Technology and the
increasing use of the Internet have given consumers a better understanding of
and more control over the homebuying process. This has led to greater levels
of customer satisfaction and has enabled REALTORS(R) to realize greater
efficiencies from working with buyers who have a better grasp of the
homebuying process and who move more quickly through that process."
According to the "California Real Estate" magazine article, traditional
buyers fell from 72 percent in 2000 to 55 percent in 2003, while Internet
homebuyers increased from 28 percent to 45 percent. There also were
significant differences between these two market segments, according to the
C.A.R. report. With a median age of 38 years, Internet buyers, in general,
were younger than traditional buyers, whose median age was 44 years. At
$168,700, the median household income of Internet buyers exceeded that of
traditional buyers at $136,400 by nearly 25 percent.
Internet households also differed dramatically from traditional households
in terms of which household member took the lead in the homebuying process:
Nearly 90 percent of traditional buyers reported that the female head of
household took the lead in initiating the homebuying process, whereas Internet
buyers reported that the male head of household took the lead 81 percent of
the time.
The 2003 "Internet Versus Traditional Buyers Survey" also revealed that
Internet buyers were willing to spend more on their homes. The median price
of homes for Internet buyers was $462,200, nearly a third more than the
$350,000 median price tag of homes purchased by traditional buyers. 2003
marks the second consecutive year that the median home price of Internet
homebuyers exceeded that of traditional homebuyers by more than $100,000.
In addition to demographic differences, use of the Internet gave rise to
significant changes in the homebuying process itself, "California Real Estate"
magazine reported. Internet buyers spent an average of 4.4 weeks
investigating homes on their own before contacting a real estate agent,
compared to 1.7 weeks for traditional buyers. Once they began working with an
agent, Internet buyers took just two weeks to find the home they wanted,
compared to 6.7 weeks for traditional buyers. Moreover, they looked at half
as many homes, 7.1, as did traditional buyers, who looked at 15.2 homes.
"The inherent advantages technology brings to the homebuying process will
only increase as both younger individuals who grew up on the Internet become
homebuyers and as the real estate industry develops better ways to harness the
Internet as a resource for consumers and businesses alike," Bradley said.
In "Because Real Estate Is Personal," the October issue of "California
Real Estate" magazine also focuses on how local REALTOR(R) associations
throughout California are providing opportunities for REALTORS(R) to make a
difference in the communities they serve. Also in the October issue, in
"Perfecting the Journey is the Key to Success," Coldwell Banker Residential
Brokerage, Northern California President & COO Avram Goldman reveals the
philosophy he follows in his efforts to advance one of Northern California's
largest real estate brokerages. This month's "Ask an attorney" column looks
at the statute on faulty home inspections, and the monthly "First Person"
features Silicon Valley REALTOR(R) Tim Dang.
The California Association of REALTORS(R) ( http://www.car.org ) is one of
the largest state trade organizations in the United States, with more than
130,000 members dedicated to the advancement of professionalism in real
estate. C.A.R. is headquartered in Los Angeles.
SOURCE California Association of REALTORS
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CONTACT:
Media, Mark Giberson of California
Association of REALTORS, +1-213-739-8304, markg@car.org
