REAL ESTATE TECH TRENDS

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1 By Properties Online, Inc Real Estate Tech Trends Properties Online, Inc. has compiled important statistical information for the real estate community. Statistical sources include the 2013 National Association of REALTORS Profile of Home Buyers & Sellers, the 2013 National Association of REALTORS Member Profile, The 2012 Realtor Technology Survey Report, The California Association of REALTORS Buyer and Seller Surveys, RealEstateSites.com and over 3 million website visitor statistics from over 15 thousand single property websites.

2 REAL ESTATE TECH TRENDS REAL ESTATE TECHNOLOGY INFORMATION AND TRENDS 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 12 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 90 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 Internet Agent 89% 89% Yard Sign Open House Mobile App Mobile Search Online Video Site Newspaper 23% 27% 5 45% 45% 42% Magazine 15% 0% 20% 30% 40% 50% 60% 70% 80% 90% 100% Properties Online, Inc web: PropertiesOnline.com Page 1

3 What Buyers Like What buyers deem "Very Useful?" Photos Detailed Property Info 79% 83% Virtual Tours Interactive Maps Agent Contact Info 40% 39% 43% Neighborhood Info Comps Contract Status 33% 3 3 Open House info Videos 2 19% 0% 20% 30% 40% 50% 60% 70% 80% 90% Where Buyers Come From Where Buyer Found the Home they Purchased Internet 33% 9% 6% 5% 2% Agent Yard Sign Friend Builder Seller 43% Newspaper Other Properties Online, Inc web: PropertiesOnline.com Page 2

4 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, 89% of buyers used a real estate agent, up steadily from 69% in What Buyers Want from their real estate professional 1 7% 8% 3% 3% 2% Help finding the right home Help negotiating terms Help negotiating price 12% 53% Help with paperwork Determine what comparable homes were selling for Help determining how much buyer can afford Help find and arrange financing Provide neighborhood information Other Where Buyers Come From Where buyers found their Real Estate Professional Referred by friend, neighbor or relative Used agent previously to buy or sell a home Internet website Saw contact information on For Sale/Open House Sign Open House Referred through employer or relocation company Referred by another agent or broker Walked into or called office Personal Contact by agent (telephone, , etc.) Newspaper, Yellow Pages or home book Seach Engine Other 12% 9% 6% 6% 3% 3% 42% Properties Online, Inc web: PropertiesOnline.com Page 3

5 When the California Association of Realtors asked buyers and sellers where they found their real estate professional, the numbers for Internet increased dramatically. In California the numbers look like this: 70% of Buyers and 75% of Sellers found their Agent on the Internet 60% of Buyers Googled their Agent 7 of Sellers used Social Media Is California a sign of what's to come? Why Buyers Chose their Agent Most Important Factors Agent is honest and trustworthy Reputation of agent Agent is a friend or family member Agent's knowledge of the neighborhood 25% 2 16% 8% Agent has caring personality / good listener Agent is timely with response 6% 8% Agent seems 100% accessible because of use of technology like smart phone or tablet Agent's association with a particular firm Professional designations held by agent 3% 3% Properties Online, Inc web: PropertiesOnline.com Page 4

6 Expected Response Time Vs. Actual Response Time 77% of sellers expect a reply within 30 Mins. 45% of seller expect to be contacted instantly. Only 2 of Agents reply to Sellers within 30 mins. 77% of sellers expect a response from their agent within 30 minutes. Only 2 of agents meet their expectations. 45% of sellers expect an instant reply. 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. 88% of buyers expect a reply within 1 hour. 42% of buyers expect to be contacted instantly. Only 30% of Agents reply to buyers within 1 hour. Properties Online, Inc web: PropertiesOnline.com Page 5

7 Response Time Importance of Agents Response Time in the Buyers Selection Process Not Important 0% Somewhat Important 7% Very Important 9 0% 20% 30% 40% 50% 60% 70% 80% 90% 100% Repeat Business Would buyer use real estate agent again or recommend to others? 100% of buyers said that their agents response time was Important 6% 2% Definitely Probably 15% Probably Not Definitely Not Don't Know 73% Only of buyers actually used an agent that they had used previously. Properties Online, Inc web: PropertiesOnline.com Page 6

8 Home Sellers & Real Estate Professionals 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 Referred 2% 3% 3% 2% 25% 39% Used agent previously Referred through employer Visited an open house Personal contact by agent Referred by another agent Yard sign Direct mail Internet website Walk in Newspaper, Yellow Pages, or Home Book Advertising collateral Other Repeat Business Would seller use real estate agent again or recommend to others? 70% 65% 60% 50% 40% 30% 20% 0% 19% 8% 7% Definitely Probably Probably Not Definitely Not Don't Know Properties Online, Inc web: PropertiesOnline.com Page 7

9 Marketing Real Estate Methods Real Estate Agent Used to Market Home 100% 90% 93% 85% 80% 70% 66% 60% 50% 40% 5 45% 42% 30% 27% 20% 0% 15% 12% 9% 6% 3% 15% of Agents still market their listings in the newspaper of Buyers found the home they purchased in the Newspaper and less than in a Magazine. of Agents still market their listings in Magazines. 73% of homeowners say they're more likely to list with a realtor offering do do a video but only 9% of agents do. Properties Online, Inc web: PropertiesOnline.com Page 8

10 Technology & The Real Estate Agent The demographic characteristics of Realtors have not changed significantly in recent years. The median or typical REALTOR is a 57 year old white female who attended college and is a homeowner. 57% of agents are female leaving 43% male. Value of Broker Supplied Technology 8% 12% 26% Exceptional Value Valuable Neutral 16% 3 Fair Value Poor Value No Technology Provided by Broker 49% of agents and associate brokers would like their broker to expand the amount of technology provided. 65% of agents would like their MLS to expand the technology and services offered. How Technology Gives an Advantage Over Other Real Estate Agents Stay competitive Respond to clients faster 49% 49% Make other agents look behind the times Marginal agents can't keep up To keep up with the competition Clients demand it Saves time 22% 19% 19% 16% 15% Saves money 8% 0% 20% 30% 40% 50% 60% Properties Online, Inc web: PropertiesOnline.com Page 9

11 Networking How important are each of the following in generating lead? 100% 80% 60% 40% 20% Somewhat Important Important Very Important 0% How Agents Communicate with Clients Tools used to stay in touch 100% 90% 80% 70% 60% 50% 40% 30% 20% 0% Phone Call Postal Mail Text Message Blog Former Client Active Client Potential Clent Only 18% of agents touch base with past clients on a monthly basis Properties Online, Inc web: PropertiesOnline.com Page 10

12 Customer Inquiries Generated from Website How many website inquiries do you get a year? None 1 to 5 inquiries 6 to 10 inquiries 9% 8% 5% 28% 11 to 20 inquiries 21 to 50 inquiries 12% 51 to 100 inquiries More than 100 inquiries 36% Business Generated from Realtors Website What percentage of business came from your website last year? The median number of inquiries is 4 per year. 6 of Realtors have a website. 26% 16% 12% 32% 8% 5% None to 5 % 6% to 1 to 25% 26% to 50% More than 50% Agents who spend $1,000 or more to maintain their website generate on average 17% of their business from their website. Properties Online, Inc web: PropertiesOnline.com Page 11

13 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: RealEstateSites.com 43% 29% 17% Direct Traffic Referred by another Website Search Engines Social Other Referring Websites Break down of Top Referring Websites Facebook Realtor.com 7 12% 7% > > > Zillow Trulia Oodle twitter Linkedin Pinterest ipropertysearch homes.com Properties Online, Inc web: PropertiesOnline.com Page 12

14 Search Engines Traffic Which Search Engine Sends the Most Traffic? 15% Google 7 Yahoo Bing AOL Browsers Used Top Browsers Used in Internet Search 2 8% Safari 5% Chrome Explorer 4 2 Firefox Android Other Properties Online, Inc web: PropertiesOnline.com Page 13

15 Social Media Traffic 98% Facebook Linkedin Twitter ActiveRain YouTube Google + > > > Mobile Traffic 50% 45% 40% 35% 30% 25% 20% 15% 5% 0% 46% 30% 12% 2% iphone ipad Samsung Motorola Other Mobile Traffic now accounts for 42% of the total traffic to Real Estate Sites. Contact Information Properties Online, Inc 1820 Empire Industrial Ct., Suite C Santa Rosa, CA tel: web: PropertiesOnline.com Properties Online, Inc web: PropertiesOnline.com Page 14

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