Introduction

In 1964, 40 percent of home buyers read newspaper ads to find a home and seven percent drove
around looking for an open house. In 2014, 43 percent looked for properties online first.

The world we live in today is a digital one and searching for a home is no different. Buyers now
have apps that let them search by location and neighborhoods. Online listings have virtual tours so
viewers can look at a bunch of potential homes while narrowing down their search to a select few in
the effort to save time. Online searching maximizes the ability to compare and contrast homes on
the market by selected features. Most of this is done before a potential home buyer connects with a
real estate agent.

Also in 1964, 61 percent of home buyers contacted agents they knew. In 2014, buyers worked with
an agent 87 percent of the time to find their home, so trust in a REALTOR is still king. While the
initial process may start online, home buyers turn to the advice from a trusted real estate agent.
The difference is that home buyers are entering the process more educated about the market before
they speak to a home seller or an agent.

In addition to the home buying process, REALTORS also utilize technology in their everyday
business practices. Staying up to date with new technology is important, but also cited as one of
the biggest challenges for firms in the next two years.

Over 90 percent of real estate firms have websites, and the most common feature on their websites
were property listings. Along with web use, REALTORS are also using their mobile devices for a
multitude of different activities, with the primary being to communicate with their clients. In the
Real Estate in a Digital Age report, we examine the process home buyers go through in the initial
online search and how REALTORS are connecting with customers in the digital space.
 How Buyers Use Technology in
the Home Search Process
Section 1
Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
A Day in the Life of a Home Buyer

How Home Buyers find a home

The typical buyer used a mobile device to search for

properties online. S/he looked at websites with
photos, home listings, and information about the
home buying process. S/he then contacted an agent
and visited a median of 10 homes over 10 weeks in
2014 before purchasing a home.

The typical home buyers is a Millennial 25-35 years

old, married without children living at home, and
has a median income of $84,500.

Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
Age of Home Buyers (Percentage Distribution)

Definitions:
Generation Year Born: Median 25 to 34
Categories: Age (years) years =
Millennials/Gen 1980-1995
44 32%
Y/Gen Next:
Gen X: 1965-1979
Younger Boomers: 1955-1964
35 to 49 50 to 59
Older Boomers: 1946-1954
years = years =
Silent Generation: 1925-1945
27% 16%
Millennials make up the
largest group of first-time home
60 to 68 69 to 89
buyers at 68%, followed by years = years =
Generation X at 29%
15% 10%

Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
First Step Taken During the Home Buying
Process (Percentage Distribution)
All Buyers:
Generational Data:
43% - Looked online for properties for
sale 28% of the Silent Generation
contacted a real estate agent
first
15% - Contacted a real estate agent
17% of Millennials looked
12% - Looked online for information online for information
about home buying process
10% of Millennials talked
7% - Talked with a friend or relative with a friend or relative
about home buying process

6% - Contacted a bank or mortgage 10% of Older Boomers and

lender the Silent Generation drove
by homes and neighborhoods
6% - Drove-by homes and
neighborhoods

Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
Information Sources Used in Home Search
(Percentage Distribution)

94% of Millennials search on online

websites compared to 84% of Baby Boomers
Online and 65% of the Silent Generation
website
88%
9 out of 10 buyers of
all generations contacted
Real Mobile a real estate agent
or tablet Yard
estate website sign
agent or app 48%
87% 50% Older Boomers used a
mobile device at less than
Online half the rate of Millennials
Open
video
house
site
44% Older Boomers also used an
26%
online video site one-third more
frequently
Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
Frequency of Use of Different Information Sources
(Percentage Distribution)

Didnt
search
websites
12% Didnt
use agent
13% Used
Didnt mobile
search on device in
mobile search
device 48%
52%

Searched
websites
88% Worked
with
agent
87%

95% of Millennials
Went to
Didnt
search
Found
yard
cited using the internet open
house
yard
signs
signs
48%
whereas only 60% did Didnt go
to open
44%

52% from the Silent house

56%

Generation

Source: NAR 2014 Profile of Home Buyers and Sellers

 Mobile Search (Percentage of Respondents Among those Who Used Mobile Search)

58% of Millennials used an 6%

Searched
iPhone compared to only with a
Windows
18% of the Silent Generation based
and 35% for Older Boomers mobile
device

10%
46%
Searched
Search
with a
with an
different 52% iPad
tablet
Search
with an
iPhone Only 5% of Millennials search
with a windows based mobile
device versus 15% of the
27%
27% Silent Generation
Found
Search
home with
with an
a mobile
Andriod
app

Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
Value of Website Features
(Percentage Distribution Among Buyers Who Used the Internet)

Photos and online information about properties were more important to Millennials
whereas virtual tours and real estate agent contacts were more important to Baby Boomers

79% Found 41% Found

83% Found
detailed interactive
photos very
information maps very
useful
about properties useful

37% Found
40% Found
neighborhood
virtual tours
information
very useful
very useful

Virtual tours was very useful for 45% of Baby Boomers and
the Silent Generation where only useful for 36% of Millennials

Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
 Length of Search (Median)

All Buyers:

Millennials searched for 2001 7 weeks

a home on the market on
average for 11 weeks,
whereas all Baby Boomers 2005 8 weeks
and the Silent Generation
searched for 8 weeks
2009 12 weeks

51% of Millennials found 2013 12 weeks

their home on the internet
versus Baby Boomers
and the Silent Generation 2014 10 weeks
found it more frequently
through a real estate agent
or open house
Number of
Homes Viewed
10 Homes
Sources: NAR Home Buyer and Seller Generational Trends Report 2015 & 2014 Profile of Home Buyers and Sellers
Characteristics of Home Searches and Search
Activity by Use of Internet (Percentage Distribution)

24% of single females did not use the internet in their search
whereas only 15% of single males did not use the internet

Source: NAR 2014 Profile of Home Buyers and Sellers

Where Buyer Found The Home They Purchased:
2001 to 2014 Compared (Percentage Distribution)
Internet
2001 8% 2014 43%

Real estate agent

2001 48% 2014 33%

Yard sign or open house sign

2001 15% 2014 9%

Friend, relative, or neighbor

2001 8% 2014 6%

Home builder or their agent

2001 3% 2014 5%

Print newspaper advertisement

2001 7% 2014 1%
Source: NAR 2014 Profile of Home Buyers and Sellers
Most Difficult Steps of Home Buying Process
(Percent of Respondents)

Finding Finding the right property was ranked highest

the right among all generations for the MOST DIFFICULT
property STEP in home buying
53%
Under-
standing Getting a Paperwork and understanding
Paperwork the mortgage the process was more difficult
24% process
14% for Millennials than any other
16% generation

Saving for No
the down difficult 24% of Baby Boomers noted there
payment steps were no difficult steps compared to
only 9% of Millennials
12% 16%

Source: NAR Home Buyer and Seller Generational Trends Report 2015
Satisfaction in Buying Process
(Percentage Distribution)

A persons satisfaction with the home buying process grows with age!

68%
70%

59% 59%
60% 56%
52% 53%

50%

40% 37%
35%
33%
30%
28%
30%
24%

20%

9%
8% 8% 8% 7%
10%
4% 5%
4% 3% 4% 4% 3%

0%
All Buyers 34 and younger 35 to 49 50 to 59 60 to 68 69 to 89

Very Satisfied Somewhat Satisfied Somewhat Dissatisfied Very Dissatisfied

Source: NAR Home Buyer and Seller Generational Trends Report 2015
 The Utilization of Technology by
Real Estate Firms

Section 2
Sources: 2015 Profile of Real Estate Firms and 2015 Member Profile
REALTORS Everyday Use of Technology
REALTORS most often prefer to communicate with their
clients through email, at 93 percent. As well, 85 percent prefer
to communicate through text messaging, and 35 percent
through instant messaging.

Over 90 percent of REALTORS are also using e-mail,

laptops/desk tops computers, and smartphones daily.

While members are taking advantage of the technology that is

available to them, one of the biggest challenges firms are facing
in the next two years is keeping up with technology.

Sources: 2015 Profile of Real Estate Firms and 2015 Member Profile
 How much of a presence do REALTORS
firms have on the web? (Percentage Distribution)
Only 7% of firms do not have a web site, compared to 91% who do have
a web site.

The percentage of firms with websites increases with office size. All firms
with between 10 to 99 and 100 or more offices have websites.

Source: 2015 Member Profile

What are the most common features on
firms websites? (Percent of Respondents)
The most common feature on firms websites were property listings at 95 percent.

Commercial firms typically showed property listings (90 percent), agent and staff
photos (71 percent), and customer reviews and testimonials (40 percent).

Source: 2015 Profile of Real Estate Firms

Encouragement of Software Use
(Percent of Respondents)

Real estate firms

provide their agents
and brokers with
specific software.

Overall the most

encouraged software
was multiple listing.

At firms with four or

more offices, the two
most used were
multiple listing
(91%) and
e-signature (90%).

Source: 2015 Profile of Real Estate Firms

Challenges for Real Estate Firms
(Percent of Respondents)

46%

46 percent of all firms cited keeping

up with technology as one of the
biggest challenges facing their firm in
the next two years.

For commercial firms this increases

to 53 percent, whereas only 42
percent of firms with four or more
offices cite keeping up with
technology as a challenge.
Source: 2015 Profile of Real Estate Firms
Trends and Demographics in
REALTOR Technology Use

Section 3
Source: 2015 Member Profile
Preferred Method of Communication with
Clients (Percent of Respondents)
93 percent of members preferred to communicate with
their clients through e-mail, while only 26 percent prefer
to use postal mail.

Source: 2015 Member Profile

 How Frequently are REALTORS Using
Technology? (Percent of Respondents)

The most common

communication
technology used by
REALTORS was e-
mail, which is used
daily or nearly every
day by 96 percent of
members.

Over 50 percent of
REALTORS use
their e-mail, laptop
desktop computer,
smartphone, or cell
phone daily. * Less than 1 percent

Source: 2015 Member Profile

 Which Age Group Utilizes Real Estate
Blogs? (Percentage Distribution)
REALTORS who
were 29 years
and younger, or
between 30 and
39 were the most
likely to have a
real estate blog,
both at 15%.

The 29 and
younger age
group was also
the most likely to
plan on creating
a blog in the
future.

Source: 2015 Member Profile

Active Use of Social Media (Percentage Distribution)

Women REALTORS and sales agents are most active on social media.

Source: 2015 Member Profile

Keeping Up with Changing Trends

Section 4
Source: Center for REALTOR Technology Survey
 Todays members engage in a multitude of work
related activities using their mobile devices
(Percent of Respondents)

The top five activities that members engage in using

their mobile devices:

Over 90
percent of
REALTORS
use their mobile
devices to
communicate
with clients.

Source: Center for REALTOR Technology Survey

Expanding Technology (Percent of Respondents)

When asked about the amount of technology that their broker

currently offers, 45 percent of REALTORS said that they would
like to see the amount of technology offered expanded.
45%
Some of the top offerings that REALTORS would like to see
include:

Source: Center for REALTOR Technology Survey

Comfort Using Social Media (Percentage Distribution)

Most members feel comfortable using social media, but 7 percent of

REALTORS do not use social media.

Source: Center for REALTOR Technology Survey

Participation in Social Media (Percent of Respondents)

For real estate purposes these were the eight platforms that showed the
most participation.

Source: Center for REALTOR Technology Survey

The top reasons for using social media
(Percent of Respondents)

Source: Center for REALTOR Technology Survey

NAR RESEARCH STAFF
Jessica Lautz
Director, Survey Research and Communications

Meredith Dunn
Research Communications Manager

Authors

Brandi Snowden
Research Survey Analyst

Amanda Riggs
Research Survey Analyst

September 2015