2006 Home Sellers Survey Bill Stewart High Performance Business Systems, Inc. June 2006 C.A.R. Business Meetings

Research Objectives Gain greater understanding of the following 1)Why they chose to use a real estate agent; 2)How and why they chose their real estate agent; 3)Desired versus actual performance by their agent; 4)Attitudes regarding commissions Identify opportunities and recommendations for REALTORS® to better serve their home seller clients, including how to best achieve client loyalty

Research Methodology Research conducted late March through mid-May 2006 Respondent criteria: –Must have sold home in California in past six months –Must have used real estate agent to sell home 150 respondents (120 via phone/30 in-person)

Respondent Profile Highlights Approximately 70/30 SoCal/NorCal split 46% Female/54% Male 52% first time sellers/48% experienced sellers Average ages: –First time sellers: 42 –Experienced sellers: 47

Age Range of Respondents

Median Selling Price $ in Thousands

Price Range of Homes Sold

Primary Versus Income/Other Home

Detailed Findings

Primary Reason for Home Sale

Consideration of Not Using an Agent

Reason For Use of an Agent

Reason For Use of an Agent First Time Sellers – Verbatims First Time Sellers said… “Never sold a home before…wanted the knowledge of an expert.” “Didn’t want to bother with all the research and all of the details.” “I was afraid of the paperwork and the liability …” “We saw our neighbor sell it on his own, and it went badly.” “REALTORS® have access to more buyers…”

Reason For Use of an Agent Experienced Sellers – Verbatims Experienced Sellers said… “Too much trouble and time…” “I always use a REALTOR®…makes it easier with their experience.” “Do not want any legal ramifications…” “I didn’t think I would get my asking price without using an agent.” “It will sell slower without an agent.”

Source for Agent Chosen

Primary Reason for Choice of Agent First Time Sellers – Verbatims First Time Sellers said… “… able to answer all of my questions upfront …” “Unique home and neighborhood that needs a good explanation to potential buyers.” “I really need to be able to talk to and trust my agent.” “We felt very comfortable with her from the start.” “He really listened to us …”

Experienced Sellers said… “An experienced REALTOR® is much simpler to deal with.” “ I was ready to do business, and so was the agent.” “ He had a great track record in the area.” “ She was very professional, and presented an excellent plan for getting prospects to see our house.” “ She was willing to take a lower commission.” Primary Reason for Choice of Agent Experienced Sellers – Verbatims

Usage of Internet in Agent Selection Process

Methods of Communication During Sale Process Adds to more than 100% due to multiple responses

Satisfaction with Communication

Overall Performance Rating for Agent

Plan to Use Same Agent in Future Note: Excludes agents impacted by geography change

Advice to Agents on How To Improve Performance -First Time Sellers – Verbatims- First Time Sellers said… “Proactively communicate and be readily available.” “Hold my hand more … over-communicate” “Get to know me as well as my house.” “Understand that most people find this process very stressful, especially because we don’t know what we are doing.” “Earn my trust and your commission.”

Experienced Sellers said… “Earn your commission by taking care of all of the details.” “Keep in touch at least weekly.” “Take my ‘emotional temperature’ more often.” “Be the market expert, especially locally.” “Be honest and truthful, above all.” Advice to Agents on How To Improve Performance -Experienced Sellers – Verbatims-

How to Become Agent for Life -Advice From Sellers- “Ask me my future goals and dreams, and provide me with opportunities to get there” “Check in with me every six months… me properties” “Stay in touch…cards, articles and other helpful information”

Opportunities & Additional Recommendations

Survey results reaffirm strong linkage between effective communication, a positive home selling experience and the opportunity for client loyalty. Important to recognize differences between first time and experienced sellers Need to recognize significant % of sellers consider not using an agent to sell their home

Opportunities & Additional Recommendations Important to recognize emotion/anxiety of home selling process Must ensure proactive and frequent communication and must respond promptly Need to continually build referral network + maintain existing referral network

Opportunities & Additional Recommendations Strong opportunity to retain clients/obtain client “loyalty for life” via… –Understanding client’s goals –& –Providing ongoing communication of opportunities & other relevant information

Thank you! Bill Stewart