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2. The Home Buying Process The Internet Finding and Choosing an Agent
The Financial Side of Purchasing
Buyer Grab Bag
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3. What is the first step taken by most buyers when they search for a home?

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Answer:
They look online for properties for sale (search the Internet).
Our industry-leading Internet marketing strategy means that we capture those buyers and drive them to your listings.
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5. True or False:
On average, buyers spent less time searching for homes in 2010 than they did in 2001.

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Answer:
False. In 2010, buyers spent an average of 12 weeks searching for a home as opposed to just seven weeks in More choice for buyers is one factor contributing to this increase.
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7. True or False:
When asked whether the Internet or real estate agents were a “very useful” source of information, buyers chose the Internet.

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Answer:
False. It was a tie! 81% of buyers considered both the Internet and real estate agents to be “very useful” in their home search.
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9. What action is a buyer most likely to take after seeing a home online?
Find an agent
Request more information
Walk through the home
Drive by the home

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Answer: C - Walk through the home.
45% of all buyers are likely to walk through a home after they find a home online. This means that a passive buyer, such as a web surfer, becomes an active buyer who has gotten off their couch. A buyer that gets off the couch is a good lead!
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11. What percent of homebuyers use the Internet to search for homes?
55%
71%
84%
89%

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Answer:
D - 89% of buyers use the Internet to search for homes.
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13. Buyers were asked which website features were useful
Buyers were asked which website features were useful. Which feature did the majority of buyers find “very useful”?
A. Virtual tours
B. Property photos
C. Neighborhood information
D. Interactive maps
E. Real estate agent contact information

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Answer:
B - 85% of Internet buyers found property photos “very useful” in their home search. Remember this when you take photos of your listing.
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15. What percent of buyers use social networking sites to search for homes?
D. 2%

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Answer: D - 2%
The vast majority of buyers use MLS websites, Realtor.com and real estate company websites such as Weichert.com to search for homes. Social networking sites are useful for developing relationships and securing referrals.
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17. Who visits more homes: Internet buyers or non-Internet buyers?

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Answer:
Internet buyers visit more homes than traditional buyers. The median number of homes Internet buyers visit is 15, versus six for non-Internet buyers.
Since Internet buyers are exposed to more homes online, they want to see more homes in person. Non-Internet buyers are only exposed to the homes their agent shows them or those they drive by.
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19. What percent of WLN leads actually purchased a home within 12 months of initial contact?
20%
23%
34%
10%

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Answer:
C - 34%. According to the most recent audit of WLN leads by the third-party audit firm Real IQ.
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21. What percent of WLN leads come from a Brand X listing?
75%
80%

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Answer:
C - 75% of WLN leads come from a Brand X listing.
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23. Buyers were asked to rank what they want most from their agent
Buyers were asked to rank what they want most from their agent. Which was the most important?
Negotiate terms of sale
Help finding the right home
Assist with price negotiations
Find and arrange financing

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Answer:
B - 51% of buyers said that helping find the right home to purchase was what buyers want most from their agent. Despite all the information they can get online, you still provide them with value!
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25. What is the # 1 way buyers found their real estate agent?

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Answer:
Referrals. The best way to get more business continues to be staying in touch with past clients. Remember, real estate is based on relationships.
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27. What percent of buyers will work with the first agent they interview?
D. 64%
E. 80%

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Answer:
D - 64% of buyers will work with the first agent they interview. This confirms the importance of making a strong first impression and following up.
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29. Buyers were asked to choose qualities that were “very important” for their agent to possess. Which quality ranked the highest?
Responsiveness
Negotiation skills
Honesty and integrity
Knowledge of purchase process
Communication skills

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Answer:
C - 98% of all buyers found honesty and integrity to be the most important quality their agent should possess. With such a large and emotional purchase, it’s no surprise that buyers want their agent to possess those traits.
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31. Buyers were asked to rank the benefits their real estate agent provided during the home buying process, from most to least frequently received. What ranked #1 and #2?
A. Negotiating a better price
B. Help with understanding the process
C. Narrowing the search area for buyers
D. Pointing out unnoticed features/faults

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Answer:
#1: B - Help with understanding the process (66% of buyers said they received this benefit)
#2: D - Pointing out unnoticed features/ faults of the property (53%)
#3: A - Negotiating a better price (42%)
#4: C - Narrowing the search area for buyers (18%)
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33. Buyers made this sacrifice more than any other in order to afford their home purchase (choose one):
Cut spending on luxury items
Cut spending on entertainment
Cancelled vacation plans
Got a second job
Did not need to make sacrifices

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Answer:
E - They did not need to make sacrifices.
With low prices and low rates, 54% of recent buyers have had to make fewer sacrifices. Remember the sacrifices buyers had to make just a few years ago, when it was a seller’s market?
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35. What percent of people still consider buying a home a good financial investment?
28%
54%
70%
85%
99%

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Answer:
D - 85% of all people still consider buying a home to be a good financial investment.
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37. True or False:
The majority of people consider stocks to be as good as or a better financial investment than purchasing a home.

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Answer:
False. 77% of all buyers believe buying a home to be as good as or a better investment than buying stocks.
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39. Has the number of fixed-rate mortgages increased or decreased from 2007 to 2010?

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Answer:
The number of fixed-rate mortgages has increased from 81% of buyers in 2007 to 95% of buyers in 2010.
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41. Myth or Reality:
More than half of buyers were rejected by mortgage lenders in 2010.

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Answer:
Myth. 93% of all buyers were able to qualify for a mortgage. Despite the “doom and gloom” the media presents, the fact is that buyers are able to secure mortgages.
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43. True or False:
More than half of buyers considered purchasing a home in foreclosure last year.

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Answer:
False. 56% of all buyers did not consider purchasing a home in foreclosure.
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45. First-time homebuyers make up what percentage of all homebuyers?
30%
50%
58%

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Answer:
B. 50% of homebuyers are first-time buyers. This is the largest percent of first-time buyers since Make sure that first-time buyers are included in your prospecting activities.
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47. Besides a desire to own a home of their own, what was the primary reason for the timing of the first-time buyer’s home purchase?

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Answer:
The primary reason was that homes were so affordable.
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49. For repeat buyers, what was the average distance (in miles) between a buyer’s new home and their previous residence?

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Answer:
12 miles
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51. When choosing where to live, buyers consider many factors
When choosing where to live, buyers consider many factors. Which feature was ranked most important?
A. Convenient to job
B. Quality of school district
C. Affordability of homes
D. Quality of neighborhood
E. Convenient to friends/family

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Answer:
#1: D - Quality of neighborhood
#2: A - Convenient to job
#3: C - Affordability of homes
#4: E - Convenient to friends/family
#5: B - Quality of school district
This emphasizes that buyers need you to be their neighborhood specialist.
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