REAL ESTATE TECH TRENDS

By Properties Online, Inc.

2014 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.
 REAL ESTATE TECH TRENDS

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

89%
Internet

89%
Agent

51%
Yard Sign

45% 2013
Open House
2012
45% 2011
Mobile App
2010
42% 2009
Mobile Search
2008
27% 2007
Online Video Site

23%
Newspaper
15%
Magazine

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

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 REAL ESTATE TECH TRENDS

What Buyers Like

What buyers deem "Very Useful?"

Photos 83%

Detailed Property Info 79%

Virtual Tours 43%

Interactive Maps 40%

Agent Contact Info 39%

Neighborhood Info 34%

Comps 33%

Contract Status 31%

Open House info 21%

Videos 19%

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

Where Buyers Come From

Where Buyer Found the Home they Purchased

Internet
Agent
9% 6% 2% Yard Sign
5%
33% 1%
1% Friend
Builder
Seller

43%
Newspaper
Other

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 REAL ESTATE TECH TRENDS

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 2001.

What Buyers Want

from their real estate professional

3% 3%
1% Help finding the right home
2%
7% 8%
Help negotiating terms
11% Help negotiating price

Help with paperwork

12% Determine what comparable
53% 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 42%

Used agent previously to buy or sell a home 12%
Internet website 9%
Saw contact information on For Sale/Open House Sign 6%
Open House 6%
Referred through employer or relocation company 4%
Referred by another agent or broker 4%
Walked into or called office 3%
Personal Contact by agent (telephone, email, etc.) 3%
Newspaper, Yellow Pages or home book 1%
Seach Engine 1%
Other 10%

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 REAL ESTATE TECH TRENDS

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 74% of Sellers

75% of Sellers used Social
found their Agent on Media
the Internet
60% of
Buyers
Googled their
Agent

Is California a sign of what's to come?

Why Buyers Chose their Agent

Most Important Factors

Agent is honest and trustworthy

21%
Reputation of agent
16%
Agent is a friend or family member
25% 8%
Agent's knowledge of the neighborhood

Agent has caring personality / good listener 8%

4% 6%
Agent is timely with response

Agent seems 100% accessible because of use of 3%

technology like smart phone or tablet 1%
Agent's association with a particular firm 3%

Professional designations held by agent

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 REAL ESTATE TECH TRENDS

Expected Response Time Vs. Actual Response Time

77% of sellers
77% expect a response
of sellers
expect a from their agent
reply within within 30 minutes.
30 Mins.
Only 24% of
Only 24% of agents meet their
Agents reply to expectations.
Sellers within
30 mins.
45% 45% of sellers
of seller
expect to be expect an instant
contacted reply.
instantly.

88% of buyers 88%

of buyers
expect a response expect a
from their agent reply within
1 hour.
within 1 hour. Only
30% of agents
meet their Only 30% of
expectation. Agents reply to
42% buyers within
of buyers 1 hour.
expect to be
42% of buyers contacted
expect an instant instantly.
response from their
agent.

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 REAL ESTATE TECH TRENDS

Response Time
Importance of Agents Response Time in the Buyers Selection Process

Not Important 0%

Somewhat Important 7%

Very Important 94%

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

100% of buyers said that their

agents response time was Important

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

2%
4% Definitely
6%
Probably
Probably Not
15% Definitely Not
Don't Know

73%

Only 10% of buyers actually used an agent that they had used previously.

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 REAL ESTATE TECH TRENDS

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

1% 1% Referred
2% Used agent previously
4% 10%
2%
Referred through employer
3%
4%
39% Visited an open house

4% Personal contact by agent

4% Referred by another agent

25% Yard sign

Direct mail
3%
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%
19%
20%
8% 7%
10%
1%
0%
Definitely Probably Probably Not Definitely Not Don't Know

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 REAL ESTATE TECH TRENDS

Marketing Real Estate

Methods Real Estate Agent Used to Market Home

100% 93%
90% 85%
80%
70% 66%

60%
51%
50% 45%
42%
40%
30% 27%

20% 15%
12% 10% 9%
10% 6%
3%
0%

73% of
homeowners say
15% of Agents they're more
still market their likely to list with
listings in the a realtor offering
newspaper do do a video
but only 9% of
10% of Agents agents do.
still market their
listings in
Magazines.
1% of Buyers
found the home
they purchased in
the Newspaper
and less than 1%
in a Magazine.

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 REAL ESTATE TECH TRENDS

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

4% Exceptional Value
12%
8%
26% Valuable
Neutral

16% Fair Value

34% 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 49%

Respond to clients faster 49%

Make other agents look behind the times 22%

Marginal agents can't keep up 19%

To keep up with the competition 19%

Clients demand it 16%

Saves time 15%

Saves money 8%

0% 10% 20% 30% 40% 50% 60%

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 REAL ESTATE TECH TRENDS

Networking
How important are each of the following in generating lead?

100%

80%

60%

40%
Somewhat Important
Important
20% Very Important

0%

How Agents Communicate with Clients

Tools used to stay in touch

100%
90%
80%
Former Client
70%
60%
Active Client
50% Potential Clent
40%
30%
20%
10%
0%
Email Phone Call Postal Mail Text Message Blog

Only 18% of agents touch base

with past clients on a monthly basis

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 REAL ESTATE TECH TRENDS

Customer Inquiries Generated from Website

How many website inquiries do you get a year?

4% 5%
None
8%
1 to 5 inquiries 28%
6 to 10 inquiries 9%
11 to 20 inquiries
21 to 50 inquiries 12%
51 to 100 inquiries
More than 100 inquiries 36%

The median number of inquiries is 4 per year.

64% of Realtors have a website.
Business Generated from Realtors Website
What percentage of business came from your website last year?

None
16% 12%
1% to 5 %
8% 6% to 10%
11% to 25%
5%
26% 26% to 50%
More than 50%

32%

Agents who spend $1,000 or more to maintain their website

generate on average 17% of their business from their website.

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 REAL ESTATE TECH TRENDS

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

Direct Traffic
29% Referred by another Website
43% 17% Search Engines
Social
10%
Other

1%

Referring Websites
Break down of Top Referring Websites

Facebook
Realtor.com

74% 12% Zillow

7% Trulia
4%
Oodle
twitter
Linkedin
>1% 1%
1% 1%
>1% Pinterest
iPropertySearch
>1%
homes.com

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 REAL ESTATE TECH TRENDS

Search Engines Traffic

Which Search Engine Sends the Most Traffic?

1%
Google
15%
10% Yahoo

74%
Bing

AOL

Browsers Used
Top Browsers Used in Internet Search

1% Safari
5% Chrome
8%
Explorer
Firefox
21% 41% Android
Other

24%

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 REAL ESTATE TECH TRENDS

Social Media Traffic

Facebook
Linkedin

98% Twitter
ActiveRain
YouTube
Google +

1%
>1%
>1% 1%
>1%

Mobile Traffic
50% 46%
45%
40%
35% 30%
30%
25%
20%
15% 12% 10%
10%
5% 2%
0%
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 95403
tel: 800.826.5123
e-mail: info@propertiesonline.com
web: PropertiesOnline.com

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