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Buy a home through your home computer
If you're thinking about buying or selling a home, a good place to start your search is on your home computer.
A recent study by the California Association of Realtors (C.A.R.) finds that Internet homebuyers are twice as satisfied with the home buying experience than traditional buyers.
The C.A.R., which conducted the landmark study entitled "Internet vs. Traditional Buyers" in fourth quarter 2000, found that Internet home buyers typically find their Realtors online, while traditional buyers usually find a Realtor through happenstance - the Realtor 'farms' their neighborhood or they call to get information on a "For Sale" sign.
According to the study, traditional homebuyers looked at 15.1 homes with a Realtor before making a purchase, while Internet home buyers looked at only 7.9 homes with a Realtor prior to buying.
The reason, says Gary Thomas, C.A.R. president, is that Internet buyers spend more time doing their "homework" on the Internet. Internet buyers spent 6.3 weeks researching the real estate market vs. traditional buyers who spent just 2.2 weeks prior to contacting a Realtor.
"By the time Internet buyers contact a Realtor, they have a good understanding of what they want -they know where they want to live. They've investigated neighborhoods and they know how much they can afford and what their mortgage options are," Thomas said. The C.A.R. study found that, overall, Internet homebuyers are "completely satisfied" with the home buying process (96%) vs. traditional home buyers (44%).
Internet homebuyers are also more "completely satisfied" with their Realtors (73%) than traditional buyers (34%). Internet buyers typically purchased a more expensive home ($403,752) than did traditional buyers ($321,950). And, not surprisingly, Internet buyers achieved a higher level of education than traditional buyers. Internet buyers contacted an average 4.6 Web sites (excluding mortgage Web sites) as part of their home-buying process.
The most popular real estate portals are Realtor.com and HomeAdvisor.com. These sites provide valuable information on the home buying and selling process, along with all the homes listed on the national Multiple Listing Service (MLS). Internet buyers can view homes in any community they wish online, 24 hours a day. They can remain anonymous and not feel pressured by a real estate agent. But if they want a home's address, that's another matter. That's the main drawback to the national sites: addresses of homes in San Diego (or elsewhere) are not provided. The Internet homebuyer will have to contact a real estate agent to obtain them.
One real estate portal that does provide addresses of all San Diego County homes on the MLS is www.HouseRebate.com. In addition, the site provides information on the home buying and selling process as well as discounts to homebuyers and sellers in the form of cash rebates.
Homebuyers can also find additional listings that aren't on the MLS by perusing large national sites such as Century21.com, ColdwellBanker.com and Prudential.com. These sites show their own listings including addresses, but not other broker's addresses. Through the power of the Internet, the knowledge base has switched to the consumer, and with that knowledge comes power: the power to demand discounts on real estate commissions. Previously, this knowledge base was only available to licensed Realtors. Now, homebuyers can expect to be rewarded for their online time spent researching potential properties. At the HouseRebate.com site, for example, buyers simply register and then they can view addresses of every home, condominium and residential income property in the San Diego area on their computer screen. They'll see all the specs previously available only to licensed Realtors, along with photos and asking prices. Homebuyers can specify the city, Zip code, price range, number of bedrooms and baths, size of garage, square footage of house and square footage of lot. They can also check off as many options as they would like such as pool, den, bonus room or storage. After the buyer submits a request, they can view a list of homes online with complete information, including photographs, that meet their criteria. They'll also receive daily automatic e-mail notification of new listings that meet their criteria. They can drive by and inspect from the street any property without the pesky presence of a Realtor. Homebuyers will probably get a call from one of the site's Realtors, but they can easily tell them, "don't call us, we'll call you" when and if they're ready. And, regardless of what online site they use, homebuyers can choose any real estate firm to continue their transaction, including traditional brick-and-mortar firms.
A big advantage of online discount brokerage firms is that buyers can now obtain rebates up to 1.5% of the purchase price of their home. Traditional Realtors generally do not offer rebates to the buyers. For sellers, discount brokerage firms offer to list homes for up to 4.5% vs. the traditional 6% commission. With the average home price in San Diego County now over $400,000, such discounts are worth considering. The 1.5% savings amounts to $6,000 for a $400,000 home and $9,000 for a $600,000 home.
Another San Diego-based real estate site provides an opportunity for "FSBO" (For Sale by Owner) sellers to list their property on the MLS. www.EfreeMLS.com will list any property on the MLS for a flat fee of $299 vs. 3%, which is one-half of the traditional Realtor fee. EfreeMLS rebates the $299 to the seller if they then buy a property through their service. For homeowners not looking to buy or sell, but who just want a good reading on the value of their home, the HouseRebate.com site is an excellent resource for sales comps: just enter your Zip code and the last 100 sales for that Zip appear.
Online real estate portals also offer lots of educational links for homebuyers, including information on community schools, a glossary of real estate terminology in layman's terms, and tips on preparing your home for sale. Many have links to mortgage lenders, moving companies, and furniture stores.
And, armed with this information, you can walk into a brick-and-mortar real estate firm and ask about discounts, as well. Coldwell Banker is even getting into the discount brokerage business with Blue Edge Realty. Currently the company is testing the model on the East Coast and it is not currently available in San Diego County.
About the Author
Kris Grant is a free-lance writer based in Coronado, California. Telephone (619) 437-8987 Cell Phone (619) 252-5525 email: KrisCorona@aol.com
Written by: Kris Grant
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