The 2005 Survey of California Home Sellers, which was conducted in the second quarter of 2005, provides insights at the individual consumer level on the experiences of recent sellers during the home selling process. The study includes findings on the growing use of the Internet during the home selling process, as well as the role household circumstances and market conditions played in the decision to sell a home. Differences between key market segments among home sellers are also described.
A better economy, great interest rates, and despite higher inventory levels, the California housing market continued on its impressive record-setting run in the first half of the year.
Detached homes were 3.3 percent ahead of the record level of 2004, and the median price pushed reached $543,100 in June 2005.
The report found an obvious link between effective communications, a satisfactory home selling experience, and client loyalty.
Key Findings
- The share of sellers using the Internet rose to 57 percent in 2005.
- Sellers used the Internet mainly to research comparable prices, get current information on the neighborhood, and to find an agent. However, 97 percent of all sellers used an agent to assist them in the home selling process.
- Sellers sold their home primarily because they wanted a larger home or a better location.
- While sellers increasingly obtained information about the market from the Internet, they continued to rely on the experience and expertise of real estate agents who guided them through the home transaction.
- 50% of all sellers was a repeat client, while a fifth of the sellers found their agent from agent mailings. Smaller numbers of sellers found their agent via referrals and the Internet.
It would appear offline direct marketing is more important than ever. - Sellers primarily selected their agent because he/she was the best prepared (31 percent) or most qualified (30 percent), or offered the lowest commission (27 percent). Agents were also chosen because the seller expected the agent to work most aggressively on their behalf, or because they appeared to be most responsive.
- Seller concerns were mostly on the home selling process & the pricing of their home and the time it would take to sell.
- Seller dissatisfaction with agents typically resulted from communications problems between the seller and agent.
- Seventy-seven percent of home sellers indicated that they would use the same agent again in a future transaction.
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