REALTOR Match: The Future of Real Estate Lead Generation
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- Lucy Wilkinson
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1 JOURNEY OF DISCOVERY REALTOR Match: The Future of Real Estate Lead Generation QUANTITATIVE PRIMARY RESEARCH June 2014
2 TABLE OF CONTENTS SECTION SLIDE EXECUTIVE SUMMARY 3 BACKGROUND 4 RESEARCH FINDINGS Previous Use of a REALTOR + Likelihood to Use Again 5 Referrals Versus Online Search 6 Use and Credibility of Referral Sources 7 Online Information Sought 8 Value of Different Information Resources on REALTORS 9-10 Value of Different REALTOR Data Points Online Search Terms SECTION SLIDE RESEARCH FINDINGS (Cont d) Appeal of Online Search Results REALTOR.ca Profile of REALTOR 19 Broker Profile of REALTOR 20 Personal Website for REALTOR 21 Alternate Profile Format 22 APPENDIX Methodology 24 Respondent Profile 25-28
3 EXECUTIVE SUMMARY Background: An online survey was conducted with 250 BC Residents aged to investigate the Millennial Generation s view on searching and researching real estate Agents. Rise of Online Research: Word of mouth referrals still play an important role in Millennials finding a REALTOR, however, one-third would skip a personal referral and go directly online to search. REALTORS lacking sophistication in their online presence and online marketing will be invisible to a significant slice of the market. REALTOR vs Agent: Millennials typically search under 'real estate agent', not REALTOR, indicating low awareness of the brand and challenges to marketers who rely on REALTORS positioning such as REALTOR.ca. Low Loyalty: Just over half (55%) had previously used a REALTOR (homeowners, older, married, children, higher education and income). Of these, just over half indicate they would use the REALTOR again demonstrating relatively low loyalty compared to data for all demographics. REALTORS will need to develop new strategies to not only find Millennials but to retain their business. Family and Friends Rule: Close friends and family are the primary sources for referrals. REALTORS should be aware that referrals from parents to the next generation has a shelf life at which point the influence shifts into the hands of close friends. A Generation Trained by Yelp : Yelp and similar sites are providing Millennials with objectively based reviews and ratings for real estate Agent generated by their peers. Ratings/reviews are common search terms during their search and evaluation of an Agent. With a dearth of sources for REALTOR reviews, Millenials turn to the usual sources (e.g., Yelp) even if the information is incomplete. REALTORS would be wise to include their information on these sites and encourage their clients to rate their services. What s Your Rating: Agent specific data hold create value to Millennials, especially information related to their client s perceptions of their performance ratings, reviews, quotes, testimonials as well as years of experience. Specific performance data (e.g., # sold, average days) is also valued as it speaks to specifics on their performance. REALTORS would benefit from providing consumers with reliable customer ratings and reviews and detailed data on their performance. BCREA as an Objective Source: Millennials distrust sources of information too close to the Agent such as their person website, the broker site and in particular social media accounts. They view industry organizations (e.g., REALTOR.ca, BCREA, Regional Boards, RECBC) as more credible, even though they most likely have low awareness of these entities. BCREA has an opportunity to provide consumers with a credible, objective venue for submitting and accessing REALTOR reviews. 3
4 BACKGROUND The BCREA Journey of Discovery is a multi-phased research project aimed at gathering fact based evidence on trends occurring in the industry. The goal is to provide REALTORS, Brokers and member Boards with our research findings, while provoking discussion leading up to BCREA s strategic planning process in September REALTOR Match was one of several themes emerging from the first two phases of research. REALTOR Match explores the changing behaviour around referrals, and the implications and opportunities for REALTOR practice in a new era of lead generation. In keeping with the Journey of Discovery focus five years into the future, it was recognized that many new or recent entrants to the real estate market will be Millennials, a demographic segment exhibiting unique characteristics and behaviours compared to other segments of the population. The decision was made to focus on the Millennial generation for understanding the process for selecting a REALTOR. Additional research was required to gather information from the next generation (Millennial) of new home buyers to better understand their process for selecting a REALTOR, specifically the search to find a REALTOR and process of researching and learning about the skills and capabilities of a REALTOR.
5 Previous Use of a REALTOR Just over half of respondents have used a real estate Agent in the past. Of those who are homeowners, 92% have used an Agent but 8% have not. Those more likely to have used a real estate Agent are at a more mature life stage: older (63%), incomes $50K+ (64%), college/university degree (61%), employed (61%), and children (73%). Real Estate Agent Use Of those who have used a real estate Agent, just over half say they would use them again indicating that REALTORS will need to strategies to keep Millennial clients engaged in subsequent transactions. Use Real Estate Agent Again IF REAL ESTATE AGENT USED 45% 27% 55% 17% 56% Yes No Base: All Respondents n=257 Q1: Have you ever used a real estate Agent in the past (for searching, buying or selling)? Yes No Not Sure Base: Those who have used a Real Estate Agent n=142 Q2: Would you use this real estate Agent again?
6 Real Estate Agent Search - The People Vs Google - Searching for a Real Estate Agent Two-thirds of respondents would first ask someone for a referral when looking for a real estate Agent. One-third would go directly online to find an Agent. Those more likely to first leverage a wordof-mouth referral have previously used an Agent (75%), have incomes $50K+ (76%) and college/university degree (74%), and are homeowners (82%). The majority of those who do not own their own homes would first choose the referral route (61%), but a sizable minority (39%) first choose an online search. 33% Ask someone I knew for a referral 67% Go online and start searching Base: All Respondents n=257 Q3: Out of the following two options, which ONE would you be more likely to do first to find a real estate Agent?
7 Referral Sources First Choice versus Credibility Close friend Family member (sibling, etc) Parents Coworker Casual friend Bank, Lawyer, Accountant Neighbour 3% 2% 6% 6% 5% 8% 16% 20% 23% 32% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very Credible First Choice Base: All Respondents n=257 Q4: Thinking about gexng a referral from someone you know, who would be the first person you would go to for a referral? Q5: Sort the following sources of referrals based on how credible you perceive them to be. 61% 67% 73% Sources with higher perceived credibility (very credible) are the first choice for finding a referral: Close Friends, Family Members and Parents. Sources with lower credibility are understandably used less. While professionals are deemed credible, their motive for providing a referral usually involving a financial benefit, causes them to be used less. Those who are married and own their home are more likely to use a close friend which is more reflective of their lifestage with greater independence and separation from family. Within BC, and especially Metro Vancouver, where a significant segment of the population are immigrants or provincial migrants, family referrals may not be feasible as they would not have knowledge of an Agent in the local market.
8 Online Information Sought on Agents Online Information Wanted Count Percentage Reviews/Ratings/Testimonials % Sales Data 68 26% Specialty/Area 49 19% Reputation 47 18% Years of Experience 45 18% Listings 39 15% Commission Fees 36 14% Website/Photo 19 7% Contact info 16 6% Brokerage 15 6% Complaints 16 6% Base: All Respondents n=257 Q10: What type of information about a real estate Agent are you looking for online? (UNAIDED) Respondents were asked on an unaided basis to indicate what type of information they are seeking about an Agent during their online searchers. There open ended responses have been coded into the following categories. When searching online, almost half (46%) of respondents are looking for reviews, ratings or objective testimonials about the Agent s performance. Secondarily, respondents are looking for sales data as evidence of the Agent s performance. The next level of information mentions the Agent s specialty (region, type of property), reputation (which could be addressed by reviews), years of experience, number of listings, and commission fees. Lastly, more general information like the Agent s website, photo, contact information and brokerage come into play. Knowledge of complaints was mentioned by 6% of respondents but never specifically related to RECBC. Complaints were more in relation to the Better Business Bureau, complaints through reviews or an unknown industry oversight body.
9 Value of Information Sources REALTOR.CA 54% 38% 92% BCREA 50% 40% 90% Regional Board 48% 41% 89% RECBC 45% 42% 87% Agent Website 38% 46% 84% Brokerage Profile 25% 59% 84% Brokerage 22% 59% 81% Agent LinkedIn Agent Facebook 12% 9% 35% 42% 44% 54% Agent YouTube 6% 24% 30% Agent Twi[er 4% 24% 28% Agent Instagram 2% 18% 20% Agent Tumbler 4% 15% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very Valuable Somewhat Valuable Base: All Respondents n=257 Q20: Sort the following sources of information on the Agent based on how valuable they would be to helping you decide on whether to use the Agent?
10 Value of Information Sources Respondents were asked for the perceived value of several types of information sources. These sources were provided on an aided basis to respondents with both their acronyms and full name (e.g., BC Real Estate Association BCREA). This does not indicate their awareness of these organizations, which was not addressed in this research study, but does represent their perceived value. Objective information sources such as REALTOR.ca, BCREA, Regional Boards, and RECBC tend to be rated higher value sources than those controlled by the brokerage or the Agent which are perceived to have potential biases. Based on open ended responses, respondents perceive these information sources to be more biased requiring more scrutiny and judgement by the consumer. This represents a considerable opportunity for these types of organizations to provide value to the consumer when searching for a REALTOR and can similarly provide considerable value to REALTORS in credibly marketing their services. Despite their high use of social media, Millennials generally do not view social media accounts as a good source of information for evaluating Agents. On a relative basis, LinkedIn is the social media channel with the most value with some commenting it can be useful to review their entire job history to evaluate how committed they are to the profession. Some comments also suggested that social media sources can potentially identify red flags. While social media may be a useful tool for marketing properties, REALTORS should be aware that it is not as useful for marketing the REALTOR at the evaluation stage.
11 Value of Agent Specific Data both Customer Sacsfaccon Racngs 5 Star Racng by Clients Ability to talk to past clients Years of Experience Number of Customer Reviews Customer Quote/Tescmonials Homes Sold - Ave days Homes Sold - Original List Price Median Homes Bought - Range of sale prices Number of Deals - Homes Sold Number of First Time Buyers Served Total Number of Homes Closed Past 2 yrs Number of mulcple offer deals closed Homes Bought - Median sale price Number of Deals - homes purchased Number of homes currently listed Years with brokerage Total number of homes closed over career Brokerage Awards Number of home tours conducted 56% 43% 39% 37% 35% 35% 31% 27% 26% 24% 23% 23% 21% 19% 19% 19% 19% 19% 16% 16% 11% 27% 33% 33% 35% 35% 32% 32% 40% 37% 37% 37% 38% 39% 37% 39% 32% 37% 36% 37% 33% 32% 56% 54% 54% 51% 49% 49% 53% 67% 64% 65% 63% 60% 60% 59% 32% 68% 75% 72% 73% 72% 88% Extremely Valuable Very Valuable 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Base: All Respondents n=257 Q21: How valuable are the following types of information for selecting a real estate Agent?
12 Value of Agent Specific Data Respondents appreciate any evidence based data about a REALTOR which should encourage them to provide quantitative data about their track record as this information is largely not available on REALTOR.ca, brokerage sites or the personal websites of individual Agent. Since it is all valuable to some extent, we pay particular attention to the proportion stating the it is extremely valuable. Millennials put considerable value on client reviews but they are savvy enough to recognize that customer ratings (e.g. rating out of five stars) require context to make it credible. Firstly, the number of customer reviews is important as it ensure that are a sufficient number of reviews on which to base a rating. Secondly, the customer quotes/testimonials provide the story behind the rating whether positive or negative. Since consumers have some healthy skepticism about online ratings, the ability to talk clients proves the ratings are based on real people. REALTORS should embrace customer generated ratings to assist consumers evaluating their skills and track record. The next group of data perceived to be extremely valuable largely relates to home sales: Homes Sold (Average Days, Original List Price Median, Number of Deals, Number of current listings), Homes Bought (Range of Sale Prices, Median Sale Price, Number of Deals), First Time Buyers Served, Number of Multiple Deals The years of experience of the REALTOR is the one single data point that provides an all encompassing view of their track record. Number of deals in the past two years is slightly more important than number of deals over a career. REALTORS should emphasize their recent track record with consumers. Data related to the Broker - Brokerage, Years with the Brokerage and Awards are less valued compared to other data indicating that the individual track record of the REALTOR is what the consumer is seeking.
13 Google Search Terms to Find an Agent Q6: Pretend that you didn t get a personal referral. Instead you decided to first search online to find a Real Estate Agent. If you were to go to a search engine (e.g. Google, Firefox, Bing), what would you type in? What search words or phrases would you use? Most Common Search Terms Real Estate Agent + Geography Geography can include the broad (e.g., BC, Region) to the general (e.g., city or area of city) or very specific (e.g., Neighbourhood, Local) REALTOR is mentioned but to a considerably lesser degree than real estate Agent (16% versus 55%). Less Common Search Terms These terms tended to be used in combination with the more common terms. Reviews, Rated, Ratings, Top, Best, Experienced MLS, MLS.ca Agency Related: General (e.g., realty, agency, firm) to specific brokerages (e.g., RE/MAX, Century 21, Royal LePage)
14 Google Search Terms for Specific Agent Q11: Here you are at a blank screen. What would you type in Google to learn more about the fictional real estate Agent Robert Jones in fictional Springfield BC? Most Common Search Terms Agent Name + City/Province Those terms are also sometimes combined with Real Estate or Real Estate Agent The term REALTOR is used much less frequently than the term real estate Agent Reviews is also a common search term Base: All Respondents n=257
15 Highlighter Questions Several questions in the survey use a question type which allows respondents to virtually highlight sections of an image based on specific instructions (e.g., highlight what you like, don t like, value, etc.). The following slides provide both the original image and the highlighted image with a heat map where red areas indicate sections of the image where greater numbers of respondents highlighted. The deeper the red, the greater the number of respondents highlighting that area. Please note that all of the images are fictional based on a fictional Agent.
16 Google Search Results Finding an Agent Real Estate Agent Burnaby Base: All Respondents n=257 Q8: Pretend that the image below was one of your search results. This is based on Burnaby but pretend it is for whatever region you live in. Highlight the search categories that you would click on to find an Agent. People avoid advertising which is generally positioned as the first listings on the left column and the entire right-hand side of the search results. Advertisements can be identified by the following icon. The top three search results (not ad related) which are surfaced on the left-hand side of the search are areas respondents are most likely to click on (Yelp, REW.ca and YellowPages.ca). The lower down the list the fewer people click on them which is very common online behaviour. Getting high on the list of search results in important for getting noticed online, as many do not dig through subsequent pages of search results. Yelp, REW.ca and Yellowpages are clearly marketing their properties ensuring they land high on list of searches.
17 Google Search Results Finding an Agent Real Estate Agent Burnaby A quick review of Yelp indicates severely incomplete data: only some Agents are included (116), only 24 Agents have reviews, of those 12 have only one review, the highest number of reviews is four. REW.ca has more Agents (500+) but does not contain customer ratings or other relevant data points consumers are seeking to evaluate Agents. Clearly, the concept is there but the required number of data points needs to increase for more credibility. An opportunity exists for ORE to provide objective, credible, standardized information for consumers to access when choosing a REALTOR.
18 Google Search Results Fictional Agent Robert Jones Real Estate The top three areas most respondents would click on are: Agent s LinkedIn profile, Agent s personal website and REW.ca. Open ended responses indicated that an Agent s LinkedIn profile can provide informacon on their job history and be used as a proxy to years of experience and commitment to the profession. Lesser clicked on areas include the top advercsement, and the two lower results. Base: All Respondents n=257 Q12: Pretend that the image below was one of the search results for Robert Jones. Highlight the search categories that you would click on to learn more about this real estate Agent.
19 REALTOR.ca Agent Profile Q14: Now we would like you to view our fictional Agent s profile on REALTOR.ca (previously MLS.ca). Highlight the information you find most interesting or valuable to help you in making a decision of whether to use this Agent or not. Base: All Respondents n=257 Respondents were asked to highlight informacon they would click on given a fic:onal REALTOR.ca profile for a fic:onal Agent. Informacon of most interest includes Specialces and Designacons. However, a low proporcon of REALTORS appear to have these fields populated in REALTOR.ca. Furthermore, the definicons of many of the Specialices and Designacons would be unclear to consumers. Secondary informacon of interest includes the Agent s contact informacon such as their phone, and website.
20 Brokerage Agent Profile Q16: Now we would like you to view our fictional Agent s profile on the website for the brokerage he works for. Highlight the information you find most interesting or valuable to help you in making a decision of whether to use this Agent or not. Respondents were asked to highlight information they would click on given a fictional brokerage profile for a fictional Agent. Information of most interest includes testimonials, awards and length of time living in Springfield. My Current Listings is also of interest to respondents. Base: All Respondents n=257
21 Agent Personal Website Q18: Now we would like you to view our fictional Agent s personal website. Highlight the information you find most interesting or valuable to help you in making a decision of whether to use this Agent or not. Base: All Respondents n=257 Respondents were asked to highlight informacon they would click on given a fic:onal personal website for a fic:onal Agent. It is recognized that Agents have a myriad of styles and formats for their personal websites. This was a random example Informacon of most interest includes the Agent s biography, tescmonials and properces. Also of interest is contact info, buying, selling, contact info, mortgage calculator, and buying/selling resources.
22 Alternate Profile Formats - Redfin Example - The Redfin example below presents only a snapshot of the data provided on each of their Agents. It is challenging to show all of the data in one image. This format provides information sought by Millennials that is not available via the current sources (e.g., REALTOR.ca, Broker profiles and Agent website profiles). Three quarters (76%) find this format valuable indicating interest in different and additional information on Agents to assist in the selection of an Agent. Searching for a Real Estate Agent 14% 28% 14% 76% Very + Somewhat valuable 58% Very Valuable Not Very Valuable Somewhat Valuable Not at all Valuable Base: All Respondents n=257 Q22. The image below provides different information about a real estate Agent. How valuable is this type of information in selecting an Agent?
23 APPENDIX Methodology Respondent Profile June 2014
24 METHODOLOGY Overview: An online survey was conducted with 257 BC Residents aged representing the Millennial Generation s view on searching and researching a REALTOR. Sample Size: A sample size of 257 results in a margin of error of ±6.1% at the 95% confidence interval. The margin of error for subsamples (e.g., home owners versus renters) will be larger as they are based on smaller sample sizes. Survey Length: The survey ranged from minutes in length. Sample Source: The online sample was provided through the Angus Reid Forum, a Canadian online sample provider. Sample Design: A balanced representative sample was drawn based on Statistics Canada data for age, gender, region, and income with in the province of British Columbia. Qualifications: Respondents were screened to ensure they were BC Residents aged Analysis: The data is analyzed based on the entire sample as well as by subsamples such as gender, age, income, etc. The data tables have been significance tested which identifies statistical differences among subsegments of Millennials.
25 Respondent Profile - Overview - Several characteristics were collected on respondents for two main purposes: 1. Analysis: Profiling variables allow us to examine results by subgroups. For example, it is possible to examine whether there are differences in attitudes and/or behaviours between male and female Millennial respondents. 2. Representativeness: The profiling variables also allow us to examine whether the sample is balanced as per the BC population of residents aged The demographic characteristics contained within BC Stats and Canada Census data are within the margin of error. List of Demographic Variables: Gender Age Region Marital Status Children Income Education Home Ownership Employment Status Technological Savviness
26 Respondent Profile - Employment Status, Income, Education - Unemployed 34% Employment Status 21% 9% 5% 13% 53% Full- cme Part- cme Student Unemployed Homemaker Employed 34% For the purposes of analyzing results by subgroups, Employment Status was categorized into two categories: Employed 66%: Full-time (53%), Part-time (13%) Unemployed 34%: Student (21%), Homemaker (5%), Unemployed (9%), 13% <$50K $100K+ Income 18% 27% 42% $50K to <$100K Refused/DK For the purposes of analyzing results by subgroups, Income was categorized into two categories excluding the refused/dk: <$50K 42% $50K+ 40%: $50,000-$99,999 (27%), $100,000+ (13%) Rebased excluding those not stating their income the split is <$50K (51%), $50K+ (49%) Base: All Respondents n=257 Uni/College Degree + HS or less Some University Education 29% University Degree 9% 12% 17% 14% 20% Some College/Tech Completed College/Tech Post Grad < Uni/College Degree For the purposes of analyzing results by subgroups, Education was categorized into two categories: <University/College Degree 46%: HS or less (12%), Some College/Technical (14%), Some University (20%) University/College Degree+ 54%: Completed College/Technical (17%), University Undergrad degree (29%), Post Graduate degree (9%)
27 Respondent Profile - Region - REGION Percentage Vancouver & Metropolitan Area 65% Vancouver Island & Coast / Victoria 12% Thompson / Okanagan 12% Cariboo 3% Kootenay 2% Nechako 2% Other 4% Base: All Respondents n=257 QS3: Which one of the following regions best represents where you live? The sample was drawn to be representative of BC Millennials. The regional proportions in the table on the left are equal to population statistics for year old BC residents as per BC Stats. For the purposes of analyzing results by subgroups, Region was collapsed into two categories in order to ensure sufficient base sizes for analysis: Vancouver & Metro Area 65% Other 35%
28 Respondent Profile - Gender, Tech Savviness, Marital Status, Age, Living Arrangements, Children - Gender Tech Savviness 7% Marital Status 2% 53% 47% 27% 54% 45% 53% Male Age Female High (10-8) Medium (7-5) Low (1-4) Living Arrangements Single Married Other Children 21% 25% 30% 24% 79% 46% 79% Homeowner Rencng Living with Parents Yes No Base: All Respondents n=257
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