One-Stop Shopping Consumer...
Transcript of One-Stop Shopping Consumer...
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©2007, Harris Interactive Inc. All rights reserved.
One-Stop Shopping Consumer Preferences
National Association of REALTORS
Presented by
Michele Salomon, Senior Research Director, Public Affairs Research
Kaylan Orkis, Research Associate, Public Affairs Research
February 2008
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Contents
Background & Objectives……………………………………………………...3
Methodology…………………………………………………………………….4
Executive Summary……………………………………………………………6
Conclusions …………………………………………………………………...10
Detailed Findings……………………………………………………………...14
Recent and Anticipated Home buying Experiences …………………………………15
Real Estate Agent Experiences…………………………………………………………. 31
Mortgage Lender Experiences…………………………………………………………...37
Affiliation Preferences……………………………………………………………………..41
One-stop shopping Awareness and Familiarity………………………………………44
One-stop shopping Preferences…………………………………………………………52
Current Housing Market………………………………………………………………….. 57
Demographics………………………………………………………………...62
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Background & Objectives
The National Association of REALTORS (NAR) commissioned Harris Interactive to conduct research among recent and future home buyers to evaluate experiences, familiarity, usage and preferences regarding one-stop shopping. This research will allow NAR to assess where consumers currently stand on the issue of one-stop shopping and to better understand how one-stop shopping influences consumer behavior when buying a home.
Objectives
� Measure awareness and usage of one-stop shopping and, where applicable, make comparisons to previous data
� Gauge knowledge of and relative preferences for one-stop shopping with affiliated and non-affiliated services
� Understand preferences for the services provided in one-stop shopping options
� Discover perceived barriers to using one-stop shopping
� Evaluate consumers’ experience with one-stop shopping among those who have used this service
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Methodology
� Audience: United States residents, 18 years or older
– Purchased a personal residence within the past 24 months (recent buyer) or plan to purchase one in the next 24 months (future buyer)*
– Used or expect to use at least one of the following services in their home buying process: real estate agent, mortgage lending, closing services, homeowner’s insurance, home inspection, home warranty
� Method: Online Survey
� Field Dates: January 7-21, 2008
� Sample Size: n = 1,446
– Recent buyers only: n = 639
– Future buyers only: n = 706
– Both, recent and future buyers: n = 101
� Survey Duration: 12 minutes
*Note: In the 2002 survey commissioned by Murray Consulting, recent buyers were defined as having purchased a home within the past 12 months
and future buyers were defined as planning to purchase a home within the next 12 months.
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Methodology
� Weighting: The data have been weighted to reflect the composition of the adult population who met the qualifications noted above.
– Figures for age, sex, race, education, household income, and region were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online.
� Margin or Error: Because the sample is based on those who agreed to participate in the Harris Interactive panel, no estimates of theoretical sampling error can be calculated.
– All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.
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Executive Summary
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Executive Summary
� Large majorities would consider using one-stop shopping and, in fact, one-stop shopping has become a more popular options over the years.
– More than nine in ten (93%) home buyers, representing recent and future buyers alike (94% and 93%, respectively) would consider using a simplified, one-stop shopping process either strongly, somewhat or a little.
– The number of recent buyers who used a one-stop shopping service increased 45% from 2002 to 2008 (20% in 2002 vs. 29% in 2008) but the vast majority still have not availed themselves of this option.
� Although most home buyers report being not at all or only somewhat familiar with the concept of one-stop shopping, over half of recent homebuyers were able to recognize that their real estate agent’s firm offered a full range of services.
– 70% say that they are not at all familiar or only somewhat familiar with the concept of one stop shopping.
– Yet almost twice as many recent buyers in 2008 report using a real estate agent whose firm offered a full range of buying services (57%) compared to 2002 (30%).
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Executive Summary
� Although there is a solid foundation of buyers who prefer using service providers that are affiliated with their real estate agent or mortgage lender, one-stop shopping does not currently play as strong of a role in influencing behavior as it could.
– One in five (22%) prefer the services to be affiliated with a real estate firm but half (50%) of home buyers do not have a preference -- service providers can either be affiliated or not affiliated with the real estate firm.
– Three in ten (29%) say knowing a service provider is affiliated with their agent or lender’s company would make them more likely to use the provider, however, just over half say that they are neither more or less likely to use a service provider if they know the provider is affiliated with their real estate firm (53%) or mortgage lender (55%).
� The perceived advantages of one-stop shopping are primarily monetary and efficiency related.
– The biggest perceived advantages are: saving money because of discounted prices (77%), increased efficiency and manageability (73%), convenience (73%) and things not falling through the cracks (73%).
– The most commonly perceived disadvantages are that consumers can’t compare rates across different providers (15%) and that one company is responsible for all aspects of the process (13%).
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Executive Summary
� Recent buyers are generally happy with their latest home buying experience but there is room for improvement.
– The average satisfaction score for overall experience of buying a home was 7.9, on a 10 point scale where 10 meant “completely satisfied.”
– Recent buyers were most satisfied with their real estate agent (8.3) and homeowner’s insurance (8.3). They were least satisfied with home warranty services (7.5).
� Further, buyers who used one-stop shopping in their latest real estate transaction are more satisfied with their home buying experience and are more likely to prefer affiliated services.
– One-stop shoppers were more satisfied with their overall experience than those who used multiple sources (8.3 vs. 7.6).
– They were also more likely to report that they would prefer service providers to be affiliated with a real estate agent when it comes to buying a home (35% vs. 18%).
� Many future buyers are not as knowledgeable about the home buying process as recent buyers and they are undecided about how they will go about getting the services they require for purchasing their next home in the next two years.
– Over one third (36%) do not consider themselves knowledgeable about the various aspects of the real estate transaction and one in three (29%) do not know if home buyers typically obtain the services necessary to complete a real estate transaction from one source or multiple sources.
– 14% are unsure of who their primary contact will be throughout the home buying process.
– One quarter (25%) are not sure if they will get the services they require from one source or multiple, independent companies.
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Conclusions
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Conclusions
� Data suggests that one-stop shopping fulfills on the promise of making the process easier for home buyers.
�Those who used only one company to handle each part of their latest real estate transaction report being more satisfied with the home buying experience and are less likely to recognize various aspects of the one-stop shopping process as disadvantages.
� Despite the relatively small percentage of home buyers that have used one-stop shopping to conduct a real estate transaction, the concept is well-received and there is a lot of opportunity to increase the proportion of transactions carried out using this kind of service.
�While most home buyers report using multiple sources to complete their recent home purchase, more than half report working with an agent that is, in fact, affiliated with a firm that provides a full range of services.
�There is a high level of interest in one-stop shopping, with large majorities indicating they would consider using one-stop shopping, that it would be easier to complete the real estate transaction and that they believe they can save money by doing so.
�The rate at which buyers are aware that their real estate firm offers a full range of services has almost doubled since 2002 but the level of usage has not increased at the same pace.
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Conclusions
� Real estate agents (and their affiliated firms) are very well poised to leverage the high level of interest and drive more business to their firms.
�Aside from word of mouth recommendations, real estate agents are the most trusted source from which to learn about one-stop shopping.
�Further, recent buyers who used one-stop shopping for their last home purchase say that a real estate agent would be their most trusted source of information, even above word of mouth recommendations.
�For half of home buyers, real estate agents are their first and primary contact throughout the process.
�Agents are better positioned than mortgage lenders in this area.
�They have a strong influence on home buyers, making recommendations for service providers that many act upon. Yet, roughly four in ten recent buyers report that agents either did not disclose that recommended services were affiliated with their firm or they did not know.
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Conclusions
� More education and transparency is needed around the concept of one-stop shopping, how it works and what the advantages are to home buyers.
�Large majorities of home buyers admit to not being familiar with one-stop shopping, however many recent home buyers are able to report that their real estate agent’s company offered a full range of home buying services.
�Half of home buyers state that they have no preference when it comes to using affiliated or non-affiliated services and a similar proportion indicate that they would not be influenced to use an affiliated service provider when buying a home. Yet, many report various advantages of one-stop shopping.
�Greater transparency may help educate home buyers and influence them to want to seek out this kind of service. Half of recent buyers who knew that their agent was affiliated with a full-service firm prior to selecting them, report that this fact had a positive impact on them.
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Detailed Findings
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Recent and Anticipated Home buying Experiences
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The majority of recent buyers bought their home more than 13 months ago and consumers who are thinking of purchasing a home within the next two years plan on doing it more than 19 months from now.
Within the
past 13-18
months
21%
Within the
past 12
months
40%
Within the
past 19-24
months
39%
Base: All Respondents (n = 1446)
Q500: Have you purchased a personal residence (e.g. house, condo, mobile home, etc.)…?
Q505 Do you expect to purchase a personal residence (e.g. house, condo, mobile home, etc.)…?
Within the
next 13-18
months
15%
Within the
next 19-24
months
55%
Within the
next 12
months
30%
Recent Buyers Future Buyers
Consumers currently living in urban areas (63%) are more likely than those who live in suburban (53%) and rural (50%) areas to expect to purchase a
home in the next two years.
Consumers currently living in urban areas (63%) are more likely than those who live in suburban (53%) and rural (50%) areas to expect to purchase a
home in the next two years.
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The majority of consumers feel confident in their ability to complete a real estate transaction, with recent buyers generally reporting more confidence than future buyers.
Base: All Respondents ( n= 1446)
Q508: Please indicate how much you agree or disagree with each of the following statements as they relate to
entering into and completing a real estate transaction.
64%
64%
71%
75%
81%
85%
69%
71%
78%
I am confident in my
ability to negotiate
different aspects of a
real estate transaction
I feel knowledgeable
about various aspects
of the real estate
transaction
I understand the
different roles that
different providers
play in completing a
real estate transaction
Total
Recent buyers
Future buyers
Strongly/Somewhat Agree (NET)
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Buyers who are extremely or very familiar with the idea of one-stop shopping are more likely to be confident in their transaction skills.
Base: All Respondents ( n= 1446)
Q508: Please indicate how much you agree or disagree with each of the following statements as they relate to
entering into and completing a real estate transaction.
62%
65%
72%
79%
80%
85%
91%
93%
96%
I am confident in my
ability to negotiate
different aspects of a
real estate transaction
I feel knowledgeable
about various aspects of
the real estate
transaction
I understand the
different roles that
different providers play
in completing a real
estate transaction
Extremely/Very Familiar (n=146)
Familiar (n=246)
Somewhat/Not at all familiar (n=1054)Strongly/Somewhat Agree (NET)
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Almost nine in ten recent buyers (85%) say they understand the different roles of the various providers, with just over one-third (37%) taking the strongest position possible, saying they strongly agree.
Base: All Respondents ( n= 1446)
Q508: Please indicate how much you agree or disagree with each of the following statements as they relate to
entering into and completing a real estate transaction.
Agree (NET)
78%
85%
71%
Disagree (NET)
22%
15%
29%10%
19%
46%
26%
5%
10%
49%
37%
8%
15%
48%
30%
Strongly Disagree
Somewhat Disagree
Somewhat Agree
Strongly Agree
Total
Recent buyers
Future buyers
I understand the different roles that different providers play in completing a real estate transaction.
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Similarly, although a large majority agree that they feel knowledgeable about the various transaction aspects, only three in ten recent buyers (29%) strongly agree.
Base: All Respondents ( n= 1446)
Q508: Please indicate how much you agree or disagree with each of the following statements as they relate to
entering into and completing a real estate transaction.
Agree (NET)
71%
81%
64%
Disagree (NET)
29%
19%
36%10%
26%
45%
19%
6%
13%
52%
29%
8%
21%
48%
23%
Strongly Disagree
Somewhat Disagree
Somewhat Agree
Strongly Agree
Total
Recent buyers
Future buyers
I feel knowledgeable about various aspects of the real estate transaction.
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Three-quarters of recent buyers are confident in their negotiating skills but over one-third of future buyers (36%) are not.
Base: All Respondents ( n= 1446)
Q508: Please indicate how much you agree or disagree with each of the following statements as they relate to
entering into and completing a real estate transaction.
11%
25%
42%
22%
7%
18%
48%
27%
9%
22%
45%
24%
Strongly Disagree
Somewhat Disagree
Somewhat Agree
Strongly Agree
Total
Recent buyers
Future buyers
Agree (NET)
69%
75%
64%
Disagree (NET)
31%
25%
36%
I am confident in my ability to negotiate different aspects of a real estate transaction.
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Large majorities of recent buyers used homeowner’s insurance (84%), mortgage lending (78%) and closing services (78%). Future buyers are slightly more likely to anticipate that they will use the services.
Base: All Respondents ( n= 1446)
Q510: Which of the following services did you use the last time you purchased a home/ Which of the following
services do you anticipate using when you purchase a home? Please select all that apply.
43%
76%
80%
73%
80%
90%
39%
72%
69%
78%
78%
84%
41%
75%
76%
76%
79%
87%
Home Warranty
Real Estate Agent
Home Inspection
Closing Services (e.g.,
title insurance)
Mortgage Lending
Homeowner's Insurance
Total
Recent buyers
Future buyers
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There is virtually no difference in the services that current buyers used or expect to use versus what they used or expected to use in 2002.
Base: All Respondents ( n= 1446)
Q510: Which of the following services did you use the last time you purchased a home/ Which of the following
services do you anticipate using when you purchase a home? Please select all that apply.
41%
76%
70%
80%
86%
41%
75%
76%
79%
87%
Home Warranty
Real Estate Agent
Home Inspection
Mortgage Lending
Homeowner's Insurance
2008 Total (n=1446)
2002 Total (n=2052)
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A real estate agent is the most popular first (50%) and primary (48%) contact among both those who have purchased a home recently and those who plan to purchase a home in the future.
Base: All Respondents ( n= 1446)
Q601: Who was your first contact when you began the home buying process and who was your primary contact
throughout the process/ Who do you think will be your first contact when you begin the home buying process
and who do you think will be your primary contact throughout the process?
8%
13%
11%
20%
48%
6%
9%
12%
23%
50%
Not sure
Other
Homebuilder
Mortgage Lender
Real Estate Agent
First Contact
Primary Contact
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Future buyers are more likely than recent buyers to anticipate that they will contact a mortgage lender first (27% vs. 19%) and 14% are not sure who their primary contact will be.
11%
8%
10%
27%
45%
0%
12%
19%
54%
6%
9%
12%
23%
50%
15%
Not sure
Other
Homebuilder
Mortgage Lender
Real Estate Agent
Total
Recent buyers
Future buyers
14%
12%
9%
22%
43%
0%
15%
18%
52%
8%
13%
11%
20%
48%
14%
Not sure
Other
Homebuilder
Mortgage Lender
Real Estate Agent
Base: All Respondents ( n= 1446)
Q601: Who was your first contact when you began the home buying process and who was your primary contact
throughout the process/ Who do you think will be your first contact when you begin the home buying process
and who do you think will be your primary contact throughout the process?
First ContactFirst Contact
Primary ContactPrimary Contact
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H A R R I S I N T E R A C T I V E
Two-thirds (66%) of recent buyers obtain the required services for their recent real estate transaction from multiple sources versus a single source. A majority of future buyers (53%) also expects to do the same, but one-quarter (25%) is undecided.
Base: All Respondents ( n= 1446)
Q605: Did you get the services that you required/ Do you anticipate getting the services that you require (e.g.,
real estate firm, mortgage lending, title insurance, homeowner’s insurance, home inspection, home warranty,
etc.) from one source or multiple sources?
25%
22%
53%
5%
29%
16%
26%
58%
66%
Not Sure
One Source
Multiple Sources
Total
Recent buyers
Future buyers
One real estate firm or other company with
different divisions, departments or affiliates
to handle each part of the transaction
Independent companies, one for
each part of the transaction
Recent buyers with income over $50,000 (75%) are more likely than buyers with income under $50,000 (49%) to have
used multiple sources
Recent buyers with income over $50,000 (75%) are more likely than buyers with income under $50,000 (49%) to have
used multiple sources
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H A R R I S I N T E R A C T I V E
The number of recent buyers who used one-stop shopping in their latest home purchase increased 45% since 2002 (20% in 2002 to 29% in 2008).
Base: All Respondents ( n= 1446)
Q605: Did you get the services that you required/ Do you anticipate getting the services that you require (e.g.,
real estate firm, mortgage lending, title insurance, homeowner’s insurance, home inspection, home warranty,
etc.) from one source or multiple sources?
20%
80%
5%
29%
66%
Not Sure
One Source
Multiple Sources
2008 Recent buyers (n=740)
2002 Recent buyers (n=687)One real estate firm or other company with
different divisions, departments or affiliates
to handle each part of the transaction
Independent companies, one for
each part of the transaction
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H A R R I S I N T E R A C T I V E
Most recent buyers are generally satisfied with their last home buying experience, with 70% rating it an 8 or above. However, there is still much room for improvement with less than two in five (37%) rating it a 9 or 10.
Base: Recent Buyers ( n= 740)
Q640: Overall, how would you rate your satisfaction with the overall experience of buying your last home?
Please use a scale of 0 to 10, where ‘0’ is ‘Not At All Satisfied’ and ’10’ is ‘Completely Satisfied’.
BOTTOM 2 BOX (NET)2%
TOP 2 BOX (NET)37%
20%
17%
33%
13%
6%
6%
2%
1%
0%
1%
1%
10
9
8
7
6
5
4
3
2
1
0
Satisfaction Ratings
Completely Satisfied
Not At All Satisfied
Satisfaction ratings have remained virtually the same over time:35% rated it a 9 or 10 in 2002
Satisfaction ratings have remained virtually the same over time:35% rated it a 9 or 10 in 2002
Means Score: 7.9Means Score: 7.9
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On average, consumers are most satisfied with the services they received from their real estate agent and homeowner’s insurance (mean score: 8.3 each), followed by home inspection (8.2).
Base: Recent Buyers ( n= 740)
Q645: How satisfied were you with the service you received in each of the following areas? Please use a 0 to
10 scale, where ‘0’ is ‘Not at all satisfied’ and ’10’ is ‘Completely satisfied’.
61%
55%
55%
46%
43%
39%
54%
52%
52%
38%
42%
43%
Real Estate Agent
Homeowner's
Insurance
Home Inspection
Closing Services
Mortgage Lending
Home Warranty
2008 Recent buyers (n=740)
2002 Recent buyers (n=687)
Satisfaction Ratings9 or 10 (NET) 2008 Mean Score
8.3
8.2
8.3
8.1
7.7
7.5
Buyers are slightly more satisfied with the services they receive today than they were in 2002
Buyers are slightly more satisfied with the services they receive today than they were in 2002
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H A R R I S I N T E R A C T I V E
Recent buyers using one source had a better overall experience, as well as more satisfactory experiences in all service areas, compared to those using multiple sources.
Base: Recent Buyers ( n= 740)
Q645: How satisfied were you with the service you received in each of the following areas? Please use a 0 to
10 scale, where ‘0’ is ‘Not at all satisfied’ and ’10’ is ‘Completely satisfied’.
47%
70%
63%
64%
62%
56%
55%
31%
57%
54%
51%
39%
39%
33%
Overall
Experience
Real Estate
Agent
Homeowner's
Insurance
Home Inspection
Closing Services
Mortgage
Lending
Home Warranty
One source (n=236)
Multiple sources (n=459)
Satisfaction Ratings9 or 10 (NET) Mean Score
8.8 8.1
8.7 8.2
8.3 8.2
8.6 7.8
8.17.6
7.9 7.3
8.3 7.6
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Real Estate Agent Experiences
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Approximately three in five (57%) recent buyers worked with an agent whose company offered a full range of services - almost twice the number reported in 2002 (30%).
Base: Recent buyer and Used a real estate agent or a mortgage lender (n = 674)
Q610: Did your real estate agent’s company offer a full range of home buying services (for example, selection
of a real estate agent, home inspection, title insurance, home warranty, mortgage lending, etc.)?
Real Estate Agent’s Company
28%
42%
30%
11%
32%
57%
Not sure
Did not offer
full range
Offered full
range
2008 Recent buyers (n=740)
2002 Recent buyers (n=687)
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H A R R I S I N T E R A C T I V E
Two in five (40%) were aware that the company offered a full range of services prior to engaging an agent and half (52%) of them said that this information positively impacted their selection of the agent.
Base: Real estate company offered a full range (n = 285); Aware prior to engaging an agent (n = 116)
Q625: Were you aware that your agent was affiliated with a firm that offered a full range of home buying
services prior to engaging your real estate agent, or were you made aware after selecting an agent?;
Q630: Did the fact that the firm offered this full range of services have no impact, a positive impact, or a
negative impact on your selection of a real estate agent?
Not Sure
11%Offered full
range 57%
Did not offer
full range
32%
11%
9%
39%
40%
Not sure
Was not made
aware
Was made
aware after
selecting agent
Was made
aware prior to
engaging an
agent
Positive
impact52%
No impact
48%
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H A R R I S I N T E R A C T I V E
Recent buyers are slightly less likely to report being aware of their agent’s affiliation with a full service firm prior to selecting the agent in 2008, however, they are more likely to report that this had a positive impact on their selection of the agent.
12%
38%
44%
11%
9%
39%
40%
Not sure
Was not made
aware
Was made aware
after selecting
agent
Was made aware
prior to engaging
an agent
2008 Recent buyers (n=740)
2002 Recent buyers (n=687)
Base: Real estate company offered a full range (n = 285); Aware prior to engaging an agent (n = 116)
Q625: Were you aware that your agent was affiliated with a firm that offered a full range of home buying
services prior to engaging your real estate agent, or were you made aware after selecting an agent?;
Q630: Did the fact that the firm offered this full range of services have no impact, a positive impact, or a
negative impact on your selection of a real estate agent?
0%
56%
44%
0%
48%
52%
Negative
impact
No impact
Positive
impact
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H A R R I S I N T E R A C T I V E
Recent buyers report that home warranties (34%), closing services (32%) and home inspection (32%) are the three services they usedthat are most likely to be affiliated with a real estate agent’s firm.
Base: Recent buyer and Used a real estate agent (n= 508)
Q615: Were the following services that you used affiliated with your real estate agent’s firm or not?
10%
18%
32%
32%
34%
Homeowner's
Insurance
Mortgage Lender
Closing Services
Home Inspector
Home Warranty
36
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Real estate agents are most likely to recommend home inspectors (59%) and closing services (49%). Most agents who recommended a service disclosed that the service was affiliated with their company (62%).
16%
20%
23%
31%
49%
59%
None of these
Homeowner's
Insurance
Home Warranty
Mortgage Lender
Closing Services
Home Inspector
Base: Recent Buyer and Used real estate agent (n = 508); Real estate agent recommended services (n = 459)
Q620: Which of the following services that you used were recommended by your real estate agent?
Q635: Did your real estate agent tell you if the services they were recommending were affiliated with their
company or not?
Real Estate Agent’s Disclosure of Affiliation :
No, not
told if
service
was
affiliated
25%
Yes, told if
service
was
affiliated
62%
Not sure
13%
37
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Mortgage Lender Experiences
37
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
38
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Home buyers report that mortgage lenders are less likely than real estate companies to offer a full range of services (38% vs. 57%).
Base: Recent buyer and Used a real estate agent or a mortgage lender (n = 674)
Q611: Did your mortgage lender’s company offer a full range of home buying services (for example, selection of
a real estate agent, home inspection, title insurance, home warranty, mortgage lending, etc.)?
Not sure
20%
Offered full
range
38%
Did not offer
full range
42%
Mortgage lenders
39
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
According to recent buyers, closing services (37%) and home warranties (27%) are most likely to be affiliated with mortgage lender’s companies.
Base: Recent buyer and Used a mortgage lender ( n=544)
Q615: Were the following services that you used affiliated with your mortgage lender’s company or not?
16%
16%
17%
27%
37%
Homeowner's
Insurance
Real Estate Agent
Home Inspector
Home Warranty
Closing Services
40
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Mortgage lenders are most likely to recommend closing services (39%). Almost three in five (58%) lenders told buyers whether the services they were recommending were affiliated with their company but almost one in three (28%) did not reveal this information.
46%
8%
13%
16%
20%
39%
None of these
Real Estate Agent
Home Warranty
Home Inspector
Homeowner's
Insurance
Closing Services
Base: Recent buyer and Used mortgage lender (n = 544); Mortgage lender recommended services (n = 465)
Q620: Which of the following services that you used were recommended by your mortgage lender’s company?
Q635: Did your mortgage lender tell you if the services they were recommending were affiliated with their
company or not?
Mortgage Lender’s Disclosure of Affiliation :
No, not told
if service
was
affiliated
28%
Yes, told if
service
was
affiliated
58%
Not sure
14%
41
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Affiliation Preferences
41
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
42
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Over one in five (22%) would prefer a service provider to be affiliated with the firm and 29% would prefer the providers to be independent of each other; half (50%) of buyers are indifferent in their preferences for service providers to be affiliated with a real estate firm.
Prefer service
providers to
be affiliated
with real
estate firm,
22%
No preference,
50%
Prefer service
providers to
be
independent of
real estate
firm, 29%
Base: All Respondents (n = 1446)
Q735: Which of the following best describes your preference when it comes to buying a home?
Recent buyers who used one-stop shopping are more likely than those who used multiple services to say that they would prefer services to be affiliated with the firm (35% vs. 18%)
Recent buyers who used one-stop shopping are more likely than those who used multiple services to say that they would prefer services to be affiliated with the firm (35% vs. 18%)
43
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
6%
10%
55%
22%
8%
7%
10%
53%
22%
8%
Much less likely
Less Likely
Neither more
nor less likely
More likely
Much more
likely
Affiliated with Real Estate Agent's Firm
Affiliated with Mortgage Lender's Company
Three in ten (29%) say knowing a service provider is affiliated with their agent or lender’s company would make them more likely to use the provider. A slight majority say that will not make them more nor less likely to use that provider.
Base: All Respondents
Q638: Suppose you were buying a home. Would you be more or less likely to use a service provider if you
knew that they were affiliated with you…?
More Likely (NET)
Agent 29%
Lender 29%
Less Likely (NET)
Agent 18%
Lender 16%
44
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
One-stop shopping Awareness and Familiarity
44
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
45
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Consumers are divided on how they think home buyers typically obtain the services necessary to complete a real estate transaction and one in four (27%) are not sure.
Base: All Respondents ( n= 1446)
Q700: To the best of your knowledge, how do home buyers typically obtain the services (real estate agents and
brokerages, mortgage companies, banks, title companies, insurance companies, inspection companies, and
more) necessary to complete a real estate transaction when buying a home?
29%
29%
42%
23%
39%
38%
27%
34%
39%
Not Sure
Multiple sources
One source
Total
Recent buyers
Future buyers
46
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
A large majority of consumers (70%) are only somewhat or not at all familiar with the concept of one-stop shopping, regardless of whether they have recently purchased a home or not.
Base: All Respondents ( n= 1446)
Q705: How familiar are you with one-stop shopping, that is, the ability to purchase all of the necessary services
or products for buying a home from one company?
32%
35%
19%
6%
7%
33%
35%
18%
7%
6%
34%
35%
18%
6%
6%
Not at all familiar
Somewhat familiar
Familiar
Very Familiar
Extremely familiar
Total
Recent buyers
Future buyers
Top 2 Box (NET)
12%
13%
13%
Bottom 2 Box (NET)
70%
69%
68%
Recent buyers who actually used one-stop shopping are more likely to report being familiar with the service than those who used multiple sources in their last real estate transaction (28% vs. 13%)
47
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Consumers who are familiar with one-stop shopping are most likely to have first learned about it from a real estate agent (31%), friends or relatives who have used one-stop shopping before (17%) or on the television or radio (16%).
Base: Familiar with one-stop shopping ( n= 392)
Q725: How did you first learn about one-stop shopping, that is, the ability to purchase all of the necessary
services or products for buying a home from one supplier? Please select all that apply.
11%
15%
19%
20%
21%
27%
15%
11%
14%
19%
17%
39%
12%
12%
14%
16%
17%
31%
Mortgage lender
Real estate firm's website
Newspaper
Television or radio
advertisement
Friend/relative/acquaintance
who has usde one-stop
shopping
Real estate agent
Total
Recent buyers
Future buyers
48
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Less common sources of information include acquaintances who have heard of (but not used) one-stop shopping, homebuilders, real estate related websites (11% each) and magazine advertisements (10%).
Base: Familiar with one-stop shopping ( n= 392)
Q725: How did you first learn about one-stop shopping, that is, the ability to purchase all of the necessary
services or products for buying a home from one supplier? Please select all that apply.
20%
13%
13%
12%
17%
17%
17%
12%
11%
11%
12%
8%
20%
10%
11%
11%
11%
12%
Other
Real estate magazine
advertisement
Other real estate related
website
Home builder
Friend/relative/acquaintance
who has heard of, but not
used one-stop shopping
Local real estate brochureTotal
Recent buyers
Future buyers
49
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
There is an overall consensus that being able to purchase all or most of the necessary services for buying a home from one company would make the home buying process at least somewhat easier (96%).
Base: All Respondents ( n= 1446)
Q710: If you could purchase all or most of the necessary services or products for buying a home from one
company, in your opinion, how much easier would that make buying a home?
Easier (NET)
96%
95%
96%
4%
30%
38%
28%
5%
33%
36%
25%
4%
31%
37%
27%
Not at all easier
Somewhat easier
A fair amount easier
A great deal amount
easier
Total
Recent buyers
Future buyers
50
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Further, over nine in ten (93%) consumers would at least consider using a one-stop shopping process if they were buying a home; only 4% would not consider it at all.
Base: All Respondents ( n= 1446)
Q715: Suppose you were buying a home. If a company offered to set up a simplified, one-stop shopping
process for you in which they provided all required services, how strongly would you consider this process?
Consider (NET)
93%
94%
93%
4%
3%
15%
39%
39%
2%
4%
18%
40%
36%
3%
4%
17%
40%
37%
Not sure
Would not consider at all
Consider a little
Consider somewhat
Consider strongly
Total
Recent buyers
Future buyers
51
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Consideration of one-stop shopping has increased significantly since 1999 and remains high.
Base: All Respondents ( n= 1446)
Q715: Suppose you were buying a home. If a company offered to set up a simplified, one-stop shopping
process for you in which they provided all required services, how strongly would you consider this process?
Consider (NET)
94%
95%
75%
3%
22%
17%
40%
18%
2%
3%
12%
36%
47%
3%
4%
17%
40%
37%
Not sure
Would not consider at all
Consider a little
Consider somewhat
Consider strongly
2008 Total buyers (n=1446)
2002 Total buyers (n=2052)
1999 Total buyers (n=801)
52
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
One-stop Shopping Preferences
52
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
53
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Of those who would consider using one-stop shopping, the following are the services that are most preferred to be affiliated: closing services (73%), home inspection (63%), and home warranty (57%).
Base: Would consider one-stop shopping ( n= 1349)
Q720: If you were buying a home, which of the following services would you prefer to have offered by providers
affiliated with your real estate firm? Please select all that apply.
12%
43%
53%
57%
63%
73%
None of these
Homeowner's Insurance
Mortgage Lender
Home Warranty
Home Inspector
Closing Services
54
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Word of mouth from someone who has used it before (65%) is the most trusted source of information regarding one-stop shopping. Half (48%) would most trust a real estate agent, 32% the internet and 31% a mortgage lender.
Base: All Respondents ( n= 1446)
Q730: Which three information sources would you trust the most to provide
you with information about one-stop shopping, that is, the ability to purchase
all of the necessary services or products for buying a home from one supplier?
Tier 1 Tier 2 Tier 3 Tier 4
Recent buyers who used one-stop shopping are more likely to say that the source they trust the most is
their real estate agent (58% vs. 46%)
65%
48%
32% 31%
22%
14% 12%9%
5% 6% 4%10%
5%
Used one-stop shopping
Real estate agent
Internet
Mortgage lender
Company's website
Home builder
Newspaper
Heard of (not used) one-stop shopping
Real estate magazine
Local real estate brochure
TV or radio ad
OtherNone
55
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
The biggest perceived advantage of one-stop shopping is monetary related – saving money if the companies offer discount prices. Close behind is increased efficiency and convenience.
71%
73%
73%
73%
77%
15%
15%
13%
15%
12%
5%
4%
6%
3%
3%
0% 20% 40% 60% 80% 100%
Advantage Neither Disadvantage
Having agents and other service providers working
together to ensure completion of the transaction
Preventing things from falling through the cracks
Having just one person to contact, making the process easier to manage and more
convenient
Base: All respondents (n= 1445)
Q740: For each of the following items please indicate if you think one-stop
shopping (getting all services from one firm) is an advantage or
disadvantage when purchasing all of the necessary services or products for
buying a home.
Making the home-buying process more efficient and
manageable
Saving money if companies offer these services at
discount prices
56
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
The biggest perceived barrier is not having the ability to compare rates across a variety of providers, but only 15% cite this as adefinite disadvantage. Three in ten (30%) see getting one standard level of service as neither advantageous nor disadvantageous.
50%
56%
64%
64%
70%
70%
30%
20%
17%
13%
20%
16%
9%
15%
3%
6%
13%
8%
0% 20% 40% 60% 80% 100%
Advantage Neither Disadvantage
Getting one standard level of brand-named service
Having one company be responsible for the entire
process
Having all agents and other service providers equally invested in the outcome
Base: All respondents (n= 1445)
Q740: For each of the following items please indicate if you think one-stop
shopping (getting all services from one firm) is an advantage or
disadvantage when purchasing all of the necessary services or products for
buying a home.
Having the ability to compare rates across a variety of
providers
Having knowledge about the local community
Having the ability to direct complaints to one source
Recent buyers who used one-stop shopping are less likely to see
these as disadvantages of one-stop shopping
Recent buyers who used one-stop shopping are less likely to see
these as disadvantages of one-stop shopping
57
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Current Housing Market
57
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
58
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
The recent sub prime mortgage crisis seems to have impacted consumers’ optimism about obtaining credit; 80% say it will be more difficult than last year for people with poor credit to get a mortgage.
Base: All Respondents (n = 1446)
Q800: Compared to last year, how difficult do you think it is for people with the following types of credit to get a
mortgage?
6%
3%
4%
8%
11%
69%
5%
4%
9%
22%
44%
16%
6%
16%
12%
45%
15%
6%
Not Sure
Much less
difficult
Somewhat less
difficult
No more or less
difficult
Somewhat more
difficult
Much more
difficult
Good Credit
Average Credit
Poor Credit
More Difficult (NET)
Good Credit 21%
Average Credit 60%
Poor Credit 80%
Less Difficult (NET)
Good Credit 29%
Average Credit 13%
Poor Credit 6%
59
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Top 2 Box
25%
28%
Compared to last year, just over one third (35%) thinks it will be more difficult for them to get a mortgage, 19% believe it will be easier and approximately half (47%) think it will be no more or less difficult.
Base: All Respondents (n = 1446)
Q805: Compared to last year, how difficult do you think it would be for you to get a mortgage?
13%
21%
47%
12%
7%
Much more
difficult
Somewhat more
difficult
No more or less
difficult
Somewhat less
difficult
Much less
difficult
More Difficult (NET)
35%
Less Difficult (NET)
19%
60
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Top 2 Box
25%
28%
The majority of consumers (62%) think that getting a mortgage through a real estate firm would make them neither more nor less likely to be approved; 29% think this would make them more likely to be approved.
Base: All Respondents (n = 1446)
Q810: Given the current housing and mortgage market conditions, do you think having the option to get a
mortgage through your real estate agent’s company would make it more likely or less likely that you would be
approved?
3%
6%
62%
23%
6%
Much less likely
Somewhat less
likely
Neither more
likely nor less
likely
Somewhat more
likely
Much more likely
Less Likely (NET)
10%
More Likely (NET)
29%
61
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Just over two in five (42%) blame mortgage lenders or brokers for being primarily at fault for the current subprime mortgage crisis. Tied at a distant second are the homeowners/borrowers and the government (16% each).
Base: All Respondents (n = 1446)
Q820: Who do you think is primarily at fault for the current subprime mortgage crisis?
12%
2%
3%
9%
16%
16%
42%
Not sure
Other
Homebuilders
Wall Street or large
financial institutions
Homeowners/borrowers
Government
Mortgage lenders or
brokers
62
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Demographics
62
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
63
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Current Housing Situation
7%
3%
14%
8%
12%
15%
15%
17%
9%
8%
5%
12%
75%
Total
7%
*
*
8%
14%
19%
19%
22%
10%
1%
3%
4%
88%
Recent b
uyers
75%
25%
2%
3%
5%
10%
16%
64%
19%
53%
28%
Total
68%
32%
1%
3%
7%
10%
2%
77%
22%
52%
25%
Recent b
uyers
80%
20%
2%
3%
4%
11%
28%
52%
17%
51%
32%
Future buyers
Home Value
Number of years in current home
Decline to answer
Not sure
Not Applicable
$500,000 or more
$300,000 – $499,999
$200,000 – $299,999
$150,000 – $199,999
$75,000 – $149,000
Under $75,000
15+ years
10-14 years
5-9 years
Less than 5 years
8%
6%
25%
7%
9%
11%
12%
14%
9%
2%
7%
19%
61%
Future buyers
No
YesNeighborhood association
Other type
Multi-family home
Mobile home
Condominium
Apartment
Single-family home
Rural
Suburban
Urban
Housing type
Location type
64
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Demographics
11%
3%
24%
10%
16%
34%
2%
*
2%
*
*
*
3%
11%
13%
71%
Recent
buyers
11%
4%
26%
11%
21%
25%
1%
*
2%
*
1%
*
2%
13%
15%
67%
Total
11%
5%
28%
11%
26%
17%
1%
-
2%
*
1%
*
4%
14%
14%
65%
Future
buyers
24%
33%
24%
18%
7%
5%
4%
6%
12%
6%
15%
13%
17%
13%
47%
53%
Total
21%
37%
23%
19%
11%
7%
6%
7%
14%
8%
13%
13%
14%
8%
47%
53%
Recent
buyers
College (e.g., B.A., B.S.)26%Midwest
27%
31%
16%
4%
3%
2%
6%
11%
4%
16%
12%
21%
21%
44%
56%
Future
buyers
Education
Race
Graduate school (e.g., M.S., M.D., Ph.D.)
Some graduate school, but no degree
Associate's degree
Some college, but no degree
High school or equivalent (e.g., GED)
Some high school
Less than high school
Decline to answer
Other race
Mixed racial background
Native American or Alaskan native
Asian or Pacific Islander
Black/ African American (Net)
Hispanic
White
West
South
EastRegion
65 and over
60 - 64
55 - 59
50 - 54
45 - 49
40 - 44
35 - 39
30 - 34
25 - 29
18 - 24
Female
Male
Age
Gender
65
©2007, Harris Interactive Inc.
H A R R I S I N T E R A C T I V E
Demographics
7%
2%
2%
8%
66%
16%
10%
5%
16%
2%
3%
7%
7%
63%
Recent
buyers
8%
2%
1%
7%
55%
27%
9%
12%
11%
2%
3%
8%
11%
62%
Total
9%
2%
1%
7%
44%
38%
9%
18%
7%
1%
3%
8%
13%
62%
Future
buyers
7%
8%
4%
13%
14%
19%
14%
9%
6%
5%
Total
7%
8%
4%
14%
17%
22%
12%
8%
5%
3%
Recent
buyers
Living with partner
7%
8%
3%
13%
14%
17%
15%
10%
6%
7%
Future
buyers
Marital Status
Employment Status
Widowed
Separated
Divorced
Married
Single, never married
Homemaker
Student
Retired
Not employed and not looking for work
Not employed, but looking for work
Self-employed
Employed part time
Employed full time
Decline to answer
$150,000 or more
$125,000 to $149,999
$100,000 to $124,999
$75,000 to $99,999
$50,000 to $74,999
$35,000 to $49,999
$25,000 to $34,999
$15,000 to $24,999
Less than $15,000Income