A recent market study by Builder Homesite Inc. (BHI) concluded that “shoppers are reluctant to navigate the homebuying process on their own and intend to work with a Realtor. The vast majority (84 percent) intend to use a Realtor (when shopping for both new homes and resales), recognizing the many areas in which they provide assistance.”
To the question, “Why do you intend to use a Realtor?” respondents gave these reasons:
- Help negotiate terms/price (70 percent).
- Find home with your specifications (68 percent).
- Coordinate viewings/appointments (66 percent).
- Draft offers and contracts (65 percent).
- Assistance navigating the purchase process (63 percent).
- Knowledge of marketing conditions (63 percent).
- Determine what comparable homes sell for (61 percent).
- Buyer Information on available properties (61 percent).
- Reference for inspectors, brokers, buyers, others (53 percent).
- Knowledge about the neighborhood (51 percent).
A couple of observations. Although “Help negotiate price” is the reason most often given for using a Realtor, it is a misleading indicator if you relate it to purchases of new homes. Homebuilders, with few exceptions, do not negotiate price, especially in a rising market. If one buyer negotiates a better deal, that can destroy the pricing integrity of an entire community.
BHI is a consortium of 32 of the largest production builders in America. The study surveyed 984 potential buyers or shoppers, most of whom expected to spend $150,000 to $500,000 for a resale or a new home.
David Fletcher, a licensed real estate broker and lifetime achiever, is founder ofEMentoru, a company dedicated to helping real estate agents and homebuilders help each other make sales. Contact him by phone or text at 407-234-2349, or by email at davidf@ementoru.com.