real estate tech trends -...

REAL ESTATE TECH TRENDS By Properties Online, Inc.

2018 Real Estate Tech Trends

Properties Online, Inc. has compiled important statistical information for the real estate community. Statistical sources include the 2017 National Association of REALTORS ® Profile of Home Buyers & Sellers, the 2017 National Association of REALTORS Member Profile, The Realtor Technology Survey Report, The California Association of REALTORS Buyer and Seller Surveys, WAV Group Agent Responsiveness Study, RealEstateSites.com and over 3 million website visitor statistics from over 15 thousand single property websites.

REAL ESTATE TECH TRENDS

Properties Online, Inc. ©2018 | web: PropertiesOnline.com Page 1

REAL ESTATE TECH TRENDS R E A L E S T A T E T E C H N O L O G Y I N F O R M A T I O N A N D T R E N D S

The Home Search Process Real Estate Agents continue to be a critical component in the home buyers search process. Home buyers are relying heavily on online sources and their agents to provide information, with decreasing use of some sources, such as newspapers and open houses. Home buyers typically spend 10 weeks searching for a home and preview an average of 12 properties before deciding on their purchase. The Internet has become an essential and indispensable tool in the home search process with nearly 95 percent of home buyers using it to search for homes, and 54 percent of buyers stating that the use of the Internet was the first step taken during the home buying process.

How Buyers Search for Property Information Sources used in Home Search | Now Vs. 10 Years Ago

2% 3% 5%

31%

48%

19%

1%

59%

50%

1%

84% 84%

2% 3% 5%

12%15%

19%

39%

48%52%

74%

89%

95%

2007 2017

Only 15% of Buyers use the Newspaper to

Search for property, vs. 48% 10 years ago.

Huge jump in Online Video Sites and Mobile Search.



Buyers use of Internet in Home Search Process, 1995-2017

Usefulness of Information Sources What buyers deem "Very Useful?"

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15%

16%

20%

22%

27%

34%

40%

47%

56%

76%

79%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Newspaper

Home Book / Magazine

Television

Billboard

Relo Company

Yard Sign

Open House

Home Builder

Online Video site

Mobile / Tablet Search

Real Estate Agent

Online Website



Where Buyers Come From Where Buyer Found the Home they Purchased

Home Buyers & Real Estate Professionals

The home buyers still rely on real estate agents and brokers to be partners as they navigate the home purchase process. The confidence and trust that buyers place in their agent translates into repeat business. Agents who satisfy buyers by providing the services that matter are likely to earn repeat business. Last year, 87% of buyers used a real estate agent, up steadily from 69% in 2001.

What Buyers Want from their real estate professional

Internet, 49%

Agent, 31%

Yard Sign, 7% Friend, 6% Builder, 6% Seller, 2%Newspaper1%

Home Book / Magazine, 0%

Help finding the right home, 52%

Help negotiating terms, 13%

Help negotiating price, 11%

Help with paperwork, 7%

Determine what comparable homes

were selling for, 6%

Help determining how much buyer can

afford, 5%

Help find and arrange financing, 3%

Provide neighborhood information, 1%



Where Buyers Come From Where buyers found their Real Estate Professional

Why Buyers Chose their Agent Most Important Factors

11%1%1%

2%2%

4%4%

5%6%

9%12%

42%

OtherMobile or Tablet App

Newspaper, Yellow Pages or home bookWalked into or called office

Referred through employer or relocation companyPersonal Contact by agent (telephone, email, etc.)

Saw contact information on For Sale/Open House SignReferred by another agent or broker

Open HouseInternet website

Used agent previously to buy or sell a homeReferred by friend, neighbor or relative

Agent is honest and trustworthy, 19%

Reputation of agent, 17%

Agent's Experience, 17%

Agent is a friend or family member, 15%

Agent's knowledge of the neighborhood,

8%

Agent has caring personality / good

listener, 7%Agent is timely with

response, 7%

Agent seems 100% accessible because of use of technology like smart phone

or tablet, 4%

Agent's association with a particular firm,

2%

Professional designations held by

agent, 1%

Other, 4%



Importance of Real Estate Agent Skills and Qualities

Importance of Agents Response Time in the Buyers Selection Process

48% of Buyer inquiries were never responded to.

97%

93%

93%

92%

86%

83%

78%

77%

45%

2%

7%

6%

7%

13%

16%

21%

20%

46%

1%

1%

1%

1%

1%

1%

3%

9%

H O N E S T Y A N D I N T E G R I T Y

R E S P O N S I V E N E S S

K N O W L E D G E O F P U R C H A S E P R O C E S S

K N O W L E D G E O F R E A L E S T A T E M A R K E T

C O M M U N I C A T I O N S K I L L S

N E G O T I A T I O N S K I L L S

P E O P L E S K I L L S

K N O W L E D G E O F L O C A L A R E A

S K I L L S W I T H T E C H N O L O G Y

Very Important Somewhat Important Not Important

93%

7%

0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very Important

Somewhat Important

Not Important



Expected Response Time Vs. Actual Response Time

77% of sellers expect a response from their agent within 30 minutes. Only 24% of agents meet their expectations.

45% of sellers expect an instant reply.

Only 24% of Agents reply to Sellers within

30 mins.

77% of sellers expect a

reply within 30 Mins.

45% of seller

expect to be contacted instantly.

Only 30% of Agents reply to buyers within

1 hour.

88% of buyers expect a

reply within 1 hour.

42% of buyers

expect to be contacted instantly.

88% of buyers expect a response from their agent within 1 hour. Only 30% of agents meet their expectation.

42% of buyers expect an instant response from their agent.



Repeat Business Would buyer use real estate agent again or recommend to others?

Only 12% of buyers actually used an agent that they had used previously.

How do Buyers want to be contacted? Question: What was your preferred method of communicating with your agent?

Definitely74%

Probably15%

Probably Not6%

Definitely Not5%

Don't Know2% Top 5 Reasons for

Satisfaction with Agent:

1. Response time2. Listened to needs3. Helped find best home4. Worked hard5. Did a good job

facilitating transaction

0%

10%

20%

30%

40%

50%

60%

Telephone Email Text Message In Person Social Media

Preferred Actual



Home Sellers & Real Estate Professionals 89% of Sellers used an agent to sell their home last year, up from 79% in 2001. Referrals from friends and family continue to be among the most important factors when home sellers choose a real estate agent. In general, marketing in print media, such as real estate magazines and newspaper advertisements dropped significantly last year.

Where Sellers Come From Method used to find Real Estate Agent

Repeat Business Would seller use real estate agent again or recommend to others?

Referred, 41%

Used agent previously, 23%

Internet website, 5%

Personal contact by agent, 5%

Visited an open house, 4%

Referred by another agent, 3%

Yard sign, 2%

Direct mail, 2%

Referred through employer, 2%

Walk in, 1%

Other, 10%

67%

18%

7% 7%2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Definitely Probably Probably Not Definitely Not Don't Know



Marketing Real Estate Methods Real Estate Agent Used to Market Home

87%

68%

51%

51%

50%

45%

44%

17%

11%

10%

5%

10%

9%

3% 1% 3%

73%

68%

50%

82%

54%

82%

82%

53%

20%

15%

15%

10%

28%

20%

Buyers Response Agents Response

1% of Buyers found the home

they purchased in the Newspaper

and less than 1% in a Magazine.

5% of Agents still market their

listings in Magazines.

10% of Agents still market their

listings in the newspaper

73% of homeowners say

they're more likely to list with

a realtor offering to do a video but

only 11% of agents do.



Technology & The Real Estate Agent The demographic characteristics of Realtors have not changed significantly in recent years. The median or typical REALTOR is a 53 year old white female who attended college and is a homeowner. 63% of agents are female leaving 37% male.

Value of Broker Supplied Technology

45% of agents and associate brokers would like their broker to expand the amount of technology provided. 62% of agents would like their MLS to expand

the technology and services offered.

How Technology Gives an Advantage Over Other Real Estate Agents

28%

34%

15%

6%

4%

12% Exceptional Value

Reasonable

Neutral

Not Enough

Poor

No Technology Provided by Broker

8%

15%

16%

19%

19%

22%

49%

49%

0% 10% 20% 30% 40% 50% 60%

Saves money

Saves time

Clients demand it

To keep up with the competition

Marginal agents can't keep up

Make other agents look behind the times

Respond to clients faster

Stay competitive



Networking How important are each of the following in generating lead?

How Agents Communicate with Clients Preferred method used to stay in touch

Only 18% of agents touch base with past clients on a monthly basis

Somewhat Important

Important

Very Important

100%

80%

60%

40%

20%

0%

93% 91%

26%

85%

31%

0%10%20%30%40%50%60%70%80%90%

100%

Email Phone Call Postal Mail Text Message IM



Customer Inquiries Generated from Website How many website inquiries do you get a year?

The median number of inquiries is 1 per year.

Business Generated from Realtors Website What percentage of business came from your website last year?

Agents who spend $1,000 or more to maintain their website generate on average 5x more leads than those who spend $500 or less.

None, 49%

1 to 5 inquiries, 30%





More than 100 inquiries, 2%

48%

26%11%

8%5%

3%

None1% to 5 %6% to 10%11% to 25%26% to 50%More than 50%



Website Traffic Report In the 90s, the telephone was the primary source of contact between a client and real estate professional. Today, the Internet has replaced the telephone as the first point of contact. Web traffic on broker and agent websites confirms this.

Where Traffic is Coming From? Source: Listings Unlimited Property Websites | 2,362,515 visitors

Referring Websites Break down of Top Referring Sources (excludes social networks)

Social, 68%

Direct Traffic, 23%

Referred by another Website, 7%

Search Engines, 1%

Other, 1%

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

MLS

Google

Century 21

Realtor.com

Remax

Email

homes.com

Trulia

Loopnet



Browsers Used Top Browsers Used in Internet Search

Traffic by Device Type How did visitors access the Property Website …

Safari (App), 45%

Android, 22%

Chrome, 14%

Safari, 13%

Explorer, 2%Firefox, 2%

Other, 2%

0%

20%

40%

60%

80%

100%

120%

2010 2014 2017

Mobile Desktop Tablet



Mobile Traffic

Mobile Traffic now accounts for 81% of the total traffic to Listings Unlimited.

Top 5 Social Network Referrers For referring traffic to the Single Property Websites

1. Facebook 2. Linkedin 3. Instagram 4. Twitter 5. Pinterest

Contact Information Properties Online, Inc 1820 Empire Industrial Ct., Suite C Santa Rosa, CA 95403

tel: 800.826.5123 e-mail: [email protected] web: PropertiesOnline.com

58%

14%8%

2%

18%

0%

10%

20%

30%

40%

50%

60%

70%

iPhone iPad Samsung Motorola Other

http://www.propertiesonline.com/

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