e-Buyer:e-Buyer:UnderstandingUnderstanding

Real Estate e-Buyers & Real Estate e-Buyers & How to Market to ThemHow to Market to Them

A program by the A program by the Real Estate Buyer’s Agent Council, Inc.Real Estate Buyer’s Agent Council, Inc.

of the National Association of REALTORS®of the National Association of REALTORS®

Welcome to e-Buyer!

• Approved elective course for the Accredited Buyer’s Representative (ABR®) designation

• For more information, contact REBAC:

Real Estate Buyer’s Agent Council

www.REBAC.net

800-648-6224

REBAC@realtors.org2

Table of Contents

Introduction1. Understanding the e-Buyer2. Service and Value in an e-Buyer World3. Web Fundamentals4. Tools of the Trade: Advancing Your Business5. The e-Buyer Transaction6. Your Action Plan

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Until the Mid to Late 1990s

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Real estate agent was gatekeeper for everything:

Property data

Area information

Mortgage

Fast Forward to Today

Internet and e-Business have spawned:

The e-Buyer!

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Fast Forward to Today

e-Buyer uses the Internet

Find properties

Research communities

Preview properties

Examine mortgages

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Fast Forward to Today

•Internet and e-commerce have transformed e-buyers’ expectations.

•Transactions should be:1.Easy2.Quick3.Less expensive

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Fast Forward to Today

• Given current market conditions, there are fewer buyers than a year ago.

• Will Internet and U.S. economic ups and downs render the buyer's agent obsolete?

Answer: No.8

Learning Objectives

• Understand specific needs of today’s e-Buyers

• Explain how to bring service and value to e-Buyers

• Discuss how to leverage technology in today’s market

• Learn how to manage the e-Buyer transaction

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1. Understanding the e-Buyer

In this module:

• Profiling the e-Buyer• Demographics of the

real estate e-Buyer• Generational

differences

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Profiling the e-Buyer

• Younger• College educated • Higher annual incomes• Live in suburbs

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The Real Estate e-Buyer

• Married couple• Younger• Earn more money• Spend more time

searching• Visit more homes

during search

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Where Real Estate e-Buyers Look

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Most Valuable Features of Web Sites

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Power of Real Estate Web Sites

• One-third of real estate e-Buyers found online the home they purchased

• Emotional connection to property before contacting an agent

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Discussion Question 1

1. Which 3 statistics are most meaningful to your and your business?

2. Which will cause you to change an aspect of your business?

3. What changes will those be?

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Not All e-Buyers Created Equally

Generations of e-Buyers use the Internet with different frequency and for different purposes.

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Not All e-Buyers Created Equally

As we discuss generations, consider:What is unique about their communication preferences?

What specific ways can I market to these groups?

Intergenerational Market

Traditionalists (1901 – 1945)

Baby Boomers (1946 – 1964)

Generation X (1965 – 1976)

Generation Y (1977 – 1994)

Age Distribution of Home Buyers

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Traditionalists (1901- 45)

• Less likely to use Internet in home search

• More likely to rely on agent used previously

• Home-buying experience important. Previously owned 3 homes.

Their word is their bond.

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Baby Boomers (1946 – 64)

• 78 million strong (median 50 yrs.)

• Value convenience (e.g., one-stop shopping) and face-to-face communication

Image is everything.

Generation X (1965 – 76)

• 50 million strong• Grew up with instant-

gratification & quick response conveniences

• Brought e-Business into the mainstream

Time is of the essence.23

Generation Y (1977 – 94)

• 60 million up & coming consumers• Using all permutations of technology,

Gen Y stays connected 24-7.• Instant gratification buyers, they like

social aspect of shopping with friends

Possible first-time home buyers

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Exercise

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Time for an Exercise