Americans don’t like to wait. They want their fries served fast, their Internet connection instantaneous and the traffic signal to remain green at least one more second. But when it comes to making a buy-or-sell decision about a home, they are going to think about it a long time.
How long? A national survey says consumers take as long as four years to collect information before they feel comfortable enough to buy or sell a home. Once a decision is made, however, consumers tend to select a real estate agent quickly — usually within three days, according to the survey by Hebert Research for HouseValues Inc.
“The Internet is enabling consumers to research and gather information well in advance of actually buying or selling,” said Ian Morris, chief executive officer of HouseValues. “This research shows that real estate agents are critical to the transaction but are chosen late in the decision-making process and very quickly. “
Morris said the purpose of the survey was to capture qualitative data that will help shed light on the steps and thought processes of potential buyers and sellers while helping real estate agents understand how to market to Internet-savvy customers.
Even before a homeowner consciously considers selling, apparently the idea of selling is kicked around subconsciously for years. Good and bad homeownership experiences are blended with what the owner likes and dislikes about their current housing and what features and amenities they would like in a new home. When these become sufficiently strong, the sell “light” comes on, and the for-sale sign soon goes up.
The sales process takes an average of 9.3 months — 5.5 months of pre-research, 1.4 months for active research and 2.4 months of active selling. The majority of sellers — 52.1 percent — take only one day to select their agent.
Buyers, like sellers, often spend as many as four years collecting experiences related to their current home and future housing needs. From the time they begin thinking about buying, it takes buyers some 16.7 months on average before the deal is done.
On average, buyers spend 7.1 months in pre-research, 5.5 months actively researching and 4.1 months in active buying. Forty-four percent of buyers take more than six months thinking about desirable homes and neighborhoods before actually searching for listings. First-time buyers are even more deliberate, taking 20.5 months on average for the entire homebuying process.
Nearly 62 percent of buyers select a real estate agent within three days of making the decision to buy. The main reasons cited for using an agent involve paperwork and legal work, negotiations and access to listings on the Multiple Listing Service. According to the survey, buyers and sellers tend to choose an agent based on experience, honesty and past relationships.