MORE BUYERS ARE DITCHING THEIR AGENTS AND SHOP ON THEIR OWN

Home Buyers go hunting alone by rejecting the services of a buyer's agent.

The buyers who purchased a property through a real estate agent just 57% had buyer representation in 2010, according to a report by the National Association of Realtors. That's down from 62% in 2009 and 64% in 2006, before the housing bust.

Also, fewer buyers are first learning about the home they purchase from real estate agents: just 37% are reporting real estate agents as their first source of information on the home they purchased, down from 50% a decade ago, according to NAR.

Bottom line: The trend is that U.S. home buyers are doing it themselves with the help of the internet and smart phones.

After years of trepidation, home buyers are finally beginning to wade back into the housing market. But as they do, many are making the surprising choice to hunt alone, rejecting the assistance of what's known in real estate as a buyer's agent. Smart home sellers that use companies like Homeowners Concept benefit the most from this trend by not having to pay a buyer's agent.

SELLER LEVELS OF MOTIVATION

Understanding Home Sellers

With nearly 55% of the homes on the market failing to sell in the first 6 months on the market, it is important for a prospective home buyer to understand that there are home sellers out there with different levels of motivation. Choosing the sellers with the highest motivation will allow the buyer to make a safe purchase in today’s real estate market.

I like to classify seller motivation levels in three distinctly different categories:

1. Considering Selling – This homeowner does not really need to sell the home. If they can get their price, they will sell. If not, they will stay in their home. This type of homeowner will not sell their home in today’s market, so home buyers who actually view the property are just wasting time.
2. Want to Sell – This homeowner has a real need to sell, but has not priced the home correctly for one of many possible reasons. Often times, this homeowner feels as if they have plenty of time to sell, so they are “starting high and will lower the price if it does not sell.” Due to the extreme glut of homes on the market, this homeowner will most likely join the ranks of the 55% “Failed To Sell” group.
3. Must Sell – This homeowner absolutely must sell the home, and the asking price of the property for sale demonstrates this. It is the best buy in its category, and all realistic home buyers view the house. This home has an excellent chance of selling, even in a difficult real estate market.