Homebuyers choose local real estate agents – increasing the power of the local MLS
Since the internet emerged to change the Real Estate industry, there have been countless theories that the role of local agents would be diminished over time. But while over 90% of homebuyers use the internet to look for a home, the surprising trend is that 87% still engage with a local real estate agent for guidance. In fact, this number has steadily grown over the past decade with the emergence of the Millennial generation and their dependence on mobile and tablet applications. And according to a recent survey from the National Association of Realtors, millennials will continue to use local real estate agents to guide them through the home purchase experience.
The most startling trend since the impact of the internet is that only 8 % (down from 9%) of recent home sales were For Sale By Owner (FSBO) sales. This is the lowest share recorded since the National Association of Realtors annual report started in 1981.
So the theories that an abundance of property listing information available instantly to anyone with access to the internet would change the value of engaging with a local agent or broker have proven false. And it appears that the local expertise and emotional support that an agent can offer to a homebuyer will continue to be the greatest and most desired value. In this crazy world of technology dominance, it’s nice to see a major industry still rooted in its tradition of “people needing people”.
According to Realtor Magazine, 74% of homebuyers consider the mortgage company referred by their agent. When your current rates are available within the MLS listing and RatePlug, it’s like you are in the room when the buyer says: “let’s make an offer.”