Real estate agents and computers are the most popular resources buyers use in their search for a new home, according to a Homes.com survey.
Homes.com partnered in May with YouGov to poll more than 1,000 people age 25-plus with incomes of at least $50,000 who either bought a new-build single-family home in the past two years or intend to purchase one. Six of 10 respondents said they worked with a real estate agent, while 58% used a website or computer in their search. See the full methodology.
But the relationship between agents and technology can be symbiotic, industry experts say.
Shopping for a new home can be different than searching for an existing home because new-construction buyers often start in the models and allow the homebuilder representatives to walk them through the process. However, other buyers start on their own, researching communities and homes online before teaming up with an agent to tour properties, according to Gary Lanham, a broker associate with Coldwell Banker Realty in South Florida.
"If they're new to the area, they're probably doing this simultaneously," Lanham told Homes.com.
To be sure, technology is playing a big role in the home search. Forty-three percent of the survey respondents said they used a mobile website on a smartphone or tablet; 33% searched on an app on their smartphone or tablet; 33% looked on social media; and 31% perused properties via virtual tours, Matterport 3-D views, and videos 31%.
(As for the rest of the respondents, 4% said they used none of the above, and 5% turned to other resources.)
And they're not just researching homes. Younger buyers use Internet forums to find out about a neighborhood's crime rate and school systems, said Lilly Rockwell, a broker associate with Compass in Austin, Texas.
More new construction intenders than current owners turned to social media for their search, 36% to 29%. And more of the intenders are using a website on their phone/tablet (47% to 35%) and app (38% to 29%). These differences are likely age-related, industry observers say.
Intenders are more likely to use Google Maps/Street view, watch videos and slip into interactive floor plans that previous homebuyers. In many cases, agents say, buyers are starting the homebuying process better informed.
AI is an emerging resource
It seems that first-time homebuyers are the predominant users of technology. These buyers indicated a higher use of essentially all the listed tools compared to consumers who bought homes previously, the research suggested.
Eventually, artificial intelligence will become more of a factor in the home search, predicted Lanham, who has the Residential Real Estate Council's AI certification. That training helps agents use the technology to improve efficiency and enhance client experiences.
While agents insist the industry remains dependent on personal interactions, AI can quickly analyze pricing trends and real-time buyer behavior, according to Lanham. It can also predict the features buyers prefer, allowing agents to stage homes with different furniture to give buyers a better idea of the property's potential.
"When you do a Google search, it may bring up 10 clickable websites," Lanham said, "but when you ask a question of AI, it will look at the websites Google gave you and answer in more like the tone of a conversation you would have with a person."
Agents protect clients
But technology cannot replace human expertise.
An experienced agent can spot potential problems in a home, provide a realistic repair or remodeling cost estimate and connect buyers with lenders, inspectors and other key vendors, according to Rockwell.
"When problems pop up, and they always do, we know how to troubleshoot and negotiate solutions," she said. "We understand local issues, like foundation problems, and can use our connections with other agents and our brokerage to find off-market homes or opportunities with new construction."
The process of buying and selling a home is stressful for anyone, especially for first-time buyers, and a good agent takes much of the burden off the client, observers say.
"But it's crucial to take the time to actually interview several Realtors before settling on one to help guide you," Rockwell said. "We are not all created equal."