REAL ESTATE TECH TRENDS - Properties Onlinepropertiesonline.com/Reports/Real-Estate-Tech-Trends.pdf · 12%. 41%. Other. Newspaper, Yellow Pages or home book. Mobile or Tablet App

REAL ESTATE TECH TRENDS By Properties Online, Inc.

2020 Real Estate Tech Trends

Properties Online, Inc. has compiled important statistical information for the real estate community. Statistical sources include the 2019 National Association of REALTORS ® Profile of Home Buyers & Sellers, the 2020 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

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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 9 properties before deciding on their purchase. The Internet has become an essential and indispensable tool in the home search process with nearly 93 percent of home buyers using it to search for homes, and 56 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. 11 Years Ago

2% 3% 5%

31%

48%

19%

1%

59%

50%

1%

84%84%

3%3% 5% 7%

11%15%

35% 39%

51%

73%

87%93%

2007 2019

Only 11% 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, 1995-2019

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

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

14%

17%

18%

21%

27%

33%

40%

44%

57%

78%

82%

87%

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

Television

Newspaper

Home Book / Magazine

Billboard

Relo Company

Yard Sign

Open House

Home Builder

Online Video site

Real Estate Agent

Mobile / Tablet Search

Online Website



Method of Home Purchase 2001 - 2019 Majority of buyers use a real estate agent or broker when purchasing a home.

69%

75%

77%

77% 77%

79%81%

77%

83%

89%

89%

88% 88% 87%

88%

86%87%

89%

15%

14%12%

12%

13%12%

10%8% 6% 7% 6% 7% 7%

8%6% 7% 7%

5%

15%

9% 9% 9% 9%7%

6% 5% 5%4%

5% 5% 5% 5% 5% 6% 6% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Through a real estate agent or broker

Directly from builder or builders agent

Directly from the previous owner



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. Real estate agents remain a vital part of the home search process and are the second most frequented information source for home buyers, after the internet. 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, 89% of buyers used a real estate agent, up steadily from 69% in 2001. 55% of buyers who used the internet during their home search process ultimately found the home that they purchased through the internet. 71% of buyers who used their mobile device to search found their home through a mobile application.

What Buyers Want from their real estate professional

Internet, 52%

Agent, 29%

Yard Sign, 6%

Friend, 6%

Builder, 4%Seller, 3%

Newspaper *

Help finding the right home, 52%

Help negotiating terms, 12%

Help negotiating price, 11%

Help with paperwork,

8%

Determine what comparable homes were selling for, 6% Help determining

how much buyer can afford, 4%

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%

*1%

2%4%

3%6%

5%5%

7%12%

41%

OtherNewspaper, Yellow Pages or home book

Mobile or Tablet AppAgents Social Media

Direct MailWalked 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 HouseWebsite (without a specific reference)

Inquired about a specific property viewed onlineUsed agent previously to buy or sell a home

Referred by friend, neighbor or relative

Agent is honest and trustworthy, 19% Reputation of agent,

16%

Agent's Experience, 16%

Agent is a friend or family member, 14%

Agent's knowledge of the neighborhood, 8%

Agent has caring personality / good

listener, 8%

Agent is timely with response, 6%

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

phone or tablet, 5%

Agent's association with a particular firm, 2%

Professional designations held by agent, 1%

Active in local community/volunteerism,

1%

Other, 4%



Importance of Real Estate Agent Skills and Qualities

Satisfaction with Real Estate Agent Skills and Qualities

97%

93%

93%

90%

88%

83%

80%

76%

46%

3%

6%

6%

9%

11%

16%

18%

21%

47%

1%

1%

1%

1%

1%

1%

3%

8%

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

88%

89%

90%

88%

86%

76%

87%

83%

83%

9%

8%

8%

10%

11%

19%

11%

14%

16%

3%

3%

2%

2%

3%

5%

2%

3%

2%

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 Satisfied Somewhat Satisfied Not Satisfied



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.

15% 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.

15% of seller

expect to be contacted instantly.

Only 30% of Agents reply to buyers within

1 hour.

62% of buyers expect a

reply within 30 mins.

11% of buyers

expect to be contacted instantly.

62% of buyers expect a response from their agent within 1 hour. Only 30% of agents meet their expectation.

40% of buyers expect to be responded to within 30 minutes.



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 Not5%

Definitely Not4%

Don't Know1% 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%

5%

10%

15%

20%

25%

30%

35%

40%

Telephone Email In Person Other

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 over the past few years.

Where Sellers Come From Method used to find Real Estate Agent

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

Referred39%

Used agent previously27%

Internet website 4%

Personal contact by agent 5%

Visited an open house 3%

Referred by another agent 3%

Yard sign 2%Direct mail 1%

Referred through employer 2%

Walk in 2%Newspaper, Yellowpages 0%

Social Media 0%Other 12%

73%

14%7% 5%

1%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%

65%

53%

53%

51%

45% 51

%

23%

10%

10%

5% 6% 4% 4%

1% 3%

Less than 1% of Buyers found the

home they purchased in the Newspaper

and less than 1% in a Magazine.

4% of Agents still market their

listings in Magazines.

5% 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 10% 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 55 year old white female who attended college and is a homeowner. 64% of agents are female leaving 36% 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%

91% 89%94%

37%

25%

14%

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

100%

Email Phone Call Text Message IM Postal Mail Video Chat



Customer Inquiries Generated from Website How many website inquiries do you get a 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 4x more leads than those who spend $100 or less.

None, 54%

1 to 5 inquiries, 29%





More than 100 inquiries, 2%

53%

25%

11%

6%3%

2%None

1% 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 | 9,514,030 website views

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

Social

Direct

Referral

Search

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Zillow

MLS

Google

Realtor.com

Email

Trovit

Apartments

Loopnet



Browsers Used Top Browsers Used in Internet Search on Desktop

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

Chrome17%

Safari In-App40%

Safari 20% Andriod

18%Firefox

1%

Explorer1%

Edge1%

Other2%

0%

20%

40%

60%

80%

100%

120%

2010 2014 2020

Mobile Desktop Tablet



Mobile Traffic

Mobile Traffic now accounts for 82% of the total traffic to Listings Unlimited.

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

1. Facebook 2. YouTube 3. Instagram 4. LinkedIn 5. Twitter 6. Pinterest

Contact Information Properties Online, Inc 1057 College Ave Santa Rosa, CA 95404

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

57%

2%

18%

2%

19%

0%

10%

20%

30%

40%

50%

60%

iPhone iPad Samsung Motorola Other

http://www.propertiesonline.com/

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REAL ESTATE TECH TRENDS - Properties Onlinepropertiesonline.com/Reports/Real-Estate-Tech-Trends.pdf · 12%. 41%. Other. Newspaper, Yellow Pages or home book. Mobile or Tablet App