one-stop shopping consumer...

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©2007, Harris Interactive Inc. All rights reserved.

One-Stop Shopping Consumer Preferences

National Association of REALTORS

Presented by

Michele Salomon, Senior Research Director, Public Affairs Research

Kaylan Orkis, Research Associate, Public Affairs Research

February 2008

2

©2007, Harris Interactive Inc.

H A R R I S I N T E R A C T I V E

Contents

Background & Objectives……………………………………………………...3

Methodology…………………………………………………………………….4

Executive Summary……………………………………………………………6

Conclusions …………………………………………………………………...10

Detailed Findings……………………………………………………………...14

Recent and Anticipated Home buying Experiences …………………………………15

Real Estate Agent Experiences…………………………………………………………. 31

Mortgage Lender Experiences…………………………………………………………...37

Affiliation Preferences……………………………………………………………………..41

One-stop shopping Awareness and Familiarity………………………………………44

One-stop shopping Preferences…………………………………………………………52

Current Housing Market………………………………………………………………….. 57

Demographics………………………………………………………………...62

3



Background & Objectives

The National Association of REALTORS (NAR) commissioned Harris Interactive to conduct research among recent and future home buyers to evaluate experiences, familiarity, usage and preferences regarding one-stop shopping. This research will allow NAR to assess where consumers currently stand on the issue of one-stop shopping and to better understand how one-stop shopping influences consumer behavior when buying a home.

Objectives

� Measure awareness and usage of one-stop shopping and, where applicable, make comparisons to previous data

� Gauge knowledge of and relative preferences for one-stop shopping with affiliated and non-affiliated services

� Understand preferences for the services provided in one-stop shopping options

� Discover perceived barriers to using one-stop shopping

� Evaluate consumers’ experience with one-stop shopping among those who have used this service

4



Methodology

� Audience: United States residents, 18 years or older

– Purchased a personal residence within the past 24 months (recent buyer) or plan to purchase one in the next 24 months (future buyer)*

– Used or expect to use at least one of the following services in their home buying process: real estate agent, mortgage lending, closing services, homeowner’s insurance, home inspection, home warranty

� Method: Online Survey

� Field Dates: January 7-21, 2008

� Sample Size: n = 1,446

– Recent buyers only: n = 639

– Future buyers only: n = 706

– Both, recent and future buyers: n = 101

� Survey Duration: 12 minutes

*Note: In the 2002 survey commissioned by Murray Consulting, recent buyers were defined as having purchased a home within the past 12 months

and future buyers were defined as planning to purchase a home within the next 12 months.

5



Methodology

� Weighting: The data have been weighted to reflect the composition of the adult population who met the qualifications noted above.

– Figures for age, sex, race, education, household income, and region were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online.

� Margin or Error: Because the sample is based on those who agreed to participate in the Harris Interactive panel, no estimates of theoretical sampling error can be calculated.

– All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.

6



Executive Summary

6



7



Executive Summary

� Large majorities would consider using one-stop shopping and, in fact, one-stop shopping has become a more popular options over the years.

– More than nine in ten (93%) home buyers, representing recent and future buyers alike (94% and 93%, respectively) would consider using a simplified, one-stop shopping process either strongly, somewhat or a little.

– The number of recent buyers who used a one-stop shopping service increased 45% from 2002 to 2008 (20% in 2002 vs. 29% in 2008) but the vast majority still have not availed themselves of this option.

� Although most home buyers report being not at all or only somewhat familiar with the concept of one-stop shopping, over half of recent homebuyers were able to recognize that their real estate agent’s firm offered a full range of services.

– 70% say that they are not at all familiar or only somewhat familiar with the concept of one stop shopping.

– Yet almost twice as many recent buyers in 2008 report using a real estate agent whose firm offered a full range of buying services (57%) compared to 2002 (30%).

8



Executive Summary

� Although there is a solid foundation of buyers who prefer using service providers that are affiliated with their real estate agent or mortgage lender, one-stop shopping does not currently play as strong of a role in influencing behavior as it could.

– One in five (22%) prefer the services to be affiliated with a real estate firm but half (50%) of home buyers do not have a preference -- service providers can either be affiliated or not affiliated with the real estate firm.

– Three in ten (29%) say knowing a service provider is affiliated with their agent or lender’s company would make them more likely to use the provider, however, just over half say that they are neither more or less likely to use a service provider if they know the provider is affiliated with their real estate firm (53%) or mortgage lender (55%).

� The perceived advantages of one-stop shopping are primarily monetary and efficiency related.

– The biggest perceived advantages are: saving money because of discounted prices (77%), increased efficiency and manageability (73%), convenience (73%) and things not falling through the cracks (73%).

– The most commonly perceived disadvantages are that consumers can’t compare rates across different providers (15%) and that one company is responsible for all aspects of the process (13%).

9



Executive Summary

� Recent buyers are generally happy with their latest home buying experience but there is room for improvement.

– The average satisfaction score for overall experience of buying a home was 7.9, on a 10 point scale where 10 meant “completely satisfied.”

– Recent buyers were most satisfied with their real estate agent (8.3) and homeowner’s insurance (8.3). They were least satisfied with home warranty services (7.5).

� Further, buyers who used one-stop shopping in their latest real estate transaction are more satisfied with their home buying experience and are more likely to prefer affiliated services.

– One-stop shoppers were more satisfied with their overall experience than those who used multiple sources (8.3 vs. 7.6).

– They were also more likely to report that they would prefer service providers to be affiliated with a real estate agent when it comes to buying a home (35% vs. 18%).

� Many future buyers are not as knowledgeable about the home buying process as recent buyers and they are undecided about how they will go about getting the services they require for purchasing their next home in the next two years.

– Over one third (36%) do not consider themselves knowledgeable about the various aspects of the real estate transaction and one in three (29%) do not know if home buyers typically obtain the services necessary to complete a real estate transaction from one source or multiple sources.

– 14% are unsure of who their primary contact will be throughout the home buying process.

– One quarter (25%) are not sure if they will get the services they require from one source or multiple, independent companies.

10



Conclusions

10



11



Conclusions

� Data suggests that one-stop shopping fulfills on the promise of making the process easier for home buyers.

�Those who used only one company to handle each part of their latest real estate transaction report being more satisfied with the home buying experience and are less likely to recognize various aspects of the one-stop shopping process as disadvantages.

� Despite the relatively small percentage of home buyers that have used one-stop shopping to conduct a real estate transaction, the concept is well-received and there is a lot of opportunity to increase the proportion of transactions carried out using this kind of service.

�While most home buyers report using multiple sources to complete their recent home purchase, more than half report working with an agent that is, in fact, affiliated with a firm that provides a full range of services.

�There is a high level of interest in one-stop shopping, with large majorities indicating they would consider using one-stop shopping, that it would be easier to complete the real estate transaction and that they believe they can save money by doing so.

�The rate at which buyers are aware that their real estate firm offers a full range of services has almost doubled since 2002 but the level of usage has not increased at the same pace.

12



Conclusions

� Real estate agents (and their affiliated firms) are very well poised to leverage the high level of interest and drive more business to their firms.

�Aside from word of mouth recommendations, real estate agents are the most trusted source from which to learn about one-stop shopping.

�Further, recent buyers who used one-stop shopping for their last home purchase say that a real estate agent would be their most trusted source of information, even above word of mouth recommendations.

�For half of home buyers, real estate agents are their first and primary contact throughout the process.

�Agents are better positioned than mortgage lenders in this area.

�They have a strong influence on home buyers, making recommendations for service providers that many act upon. Yet, roughly four in ten recent buyers report that agents either did not disclose that recommended services were affiliated with their firm or they did not know.

13



Conclusions

� More education and transparency is needed around the concept of one-stop shopping, how it works and what the advantages are to home buyers.

�Large majorities of home buyers admit to not being familiar with one-stop shopping, however many recent home buyers are able to report that their real estate agent’s company offered a full range of home buying services.

�Half of home buyers state that they have no preference when it comes to using affiliated or non-affiliated services and a similar proportion indicate that they would not be influenced to use an affiliated service provider when buying a home. Yet, many report various advantages of one-stop shopping.

�Greater transparency may help educate home buyers and influence them to want to seek out this kind of service. Half of recent buyers who knew that their agent was affiliated with a full-service firm prior to selecting them, report that this fact had a positive impact on them.

14



Detailed Findings

14



15



Recent and Anticipated Home buying Experiences

15



16



The majority of recent buyers bought their home more than 13 months ago and consumers who are thinking of purchasing a home within the next two years plan on doing it more than 19 months from now.

Within the

past 13-18

months

21%

Within the

past 12

months

40%

Within the

past 19-24

months

39%

Base: All Respondents (n = 1446)

Q500: Have you purchased a personal residence (e.g. house, condo, mobile home, etc.)…?

Q505 Do you expect to purchase a personal residence (e.g. house, condo, mobile home, etc.)…?

Within the

next 13-18

months

15%

Within the

next 19-24

months

55%

Within the

next 12

months

30%

Recent Buyers Future Buyers

Consumers currently living in urban areas (63%) are more likely than those who live in suburban (53%) and rural (50%) areas to expect to purchase a

home in the next two years.

Consumers currently living in urban areas (63%) are more likely than those who live in suburban (53%) and rural (50%) areas to expect to purchase a

home in the next two years.

17



The majority of consumers feel confident in their ability to complete a real estate transaction, with recent buyers generally reporting more confidence than future buyers.

Base: All Respondents ( n= 1446)

Q508: Please indicate how much you agree or disagree with each of the following statements as they relate to

entering into and completing a real estate transaction.

64%

64%

71%

75%

81%

85%

69%

71%

78%

I am confident in my

ability to negotiate

different aspects of a

real estate transaction

I feel knowledgeable

about various aspects

of the real estate

transaction

I understand the

different roles that

different providers

play in completing a


Total

Recent buyers

Future buyers

Strongly/Somewhat Agree (NET)

18



Buyers who are extremely or very familiar with the idea of one-stop shopping are more likely to be confident in their transaction skills.




62%

65%

72%

79%

80%

85%

91%

93%

96%

I am confident in my

ability to negotiate

different aspects of a


I feel knowledgeable

about various aspects of

the real estate

transaction

I understand the

different roles that

different providers play

in completing a real

estate transaction

Extremely/Very Familiar (n=146)

Familiar (n=246)

Somewhat/Not at all familiar (n=1054)Strongly/Somewhat Agree (NET)

19



Almost nine in ten recent buyers (85%) say they understand the different roles of the various providers, with just over one-third (37%) taking the strongest position possible, saying they strongly agree.




Agree (NET)

78%

85%

71%

Disagree (NET)

22%

15%

29%10%

19%

46%

26%

5%

10%

49%

37%

8%

15%

48%

30%

Strongly Disagree

Somewhat Disagree

Somewhat Agree

Strongly Agree

Total

Recent buyers

Future buyers

I understand the different roles that different providers play in completing a real estate transaction.

20



Similarly, although a large majority agree that they feel knowledgeable about the various transaction aspects, only three in ten recent buyers (29%) strongly agree.




Agree (NET)

71%

81%

64%

Disagree (NET)

29%

19%

36%10%

26%

45%

19%

6%

13%

52%

29%

8%

21%

48%

23%

Strongly Disagree

Somewhat Disagree

Somewhat Agree

Strongly Agree

Total

Recent buyers

Future buyers

I feel knowledgeable about various aspects of the real estate transaction.

21



Three-quarters of recent buyers are confident in their negotiating skills but over one-third of future buyers (36%) are not.




11%

25%

42%

22%

7%

18%

48%

27%

9%

22%

45%

24%

Strongly Disagree

Somewhat Disagree

Somewhat Agree

Strongly Agree

Total

Recent buyers

Future buyers

Agree (NET)

69%

75%

64%

Disagree (NET)

31%

25%

36%

I am confident in my ability to negotiate different aspects of a real estate transaction.

22



Large majorities of recent buyers used homeowner’s insurance (84%), mortgage lending (78%) and closing services (78%). Future buyers are slightly more likely to anticipate that they will use the services.


Q510: Which of the following services did you use the last time you purchased a home/ Which of the following

services do you anticipate using when you purchase a home? Please select all that apply.

43%

76%

80%

73%

80%

90%

39%

72%

69%

78%

78%

84%

41%

75%

76%

76%

79%

87%

Home Warranty

Real Estate Agent

Home Inspection

Closing Services (e.g.,

title insurance)

Mortgage Lending

Homeowner's Insurance

Total

Recent buyers

Future buyers

23



There is virtually no difference in the services that current buyers used or expect to use versus what they used or expected to use in 2002.


Q510: Which of the following services did you use the last time you purchased a home/ Which of the following

services do you anticipate using when you purchase a home? Please select all that apply.

41%

76%

70%

80%

86%

41%

75%

76%

79%

87%

Home Warranty

Real Estate Agent

Home Inspection

Mortgage Lending


2008 Total (n=1446)

2002 Total (n=2052)

24



A real estate agent is the most popular first (50%) and primary (48%) contact among both those who have purchased a home recently and those who plan to purchase a home in the future.


Q601: Who was your first contact when you began the home buying process and who was your primary contact

throughout the process/ Who do you think will be your first contact when you begin the home buying process

and who do you think will be your primary contact throughout the process?

8%

13%

11%

20%

48%

6%

9%

12%

23%

50%

Not sure

Other

Homebuilder

Mortgage Lender

Real Estate Agent

First Contact

Primary Contact

25



Future buyers are more likely than recent buyers to anticipate that they will contact a mortgage lender first (27% vs. 19%) and 14% are not sure who their primary contact will be.

11%

8%

10%

27%

45%

0%

12%

19%

54%

6%

9%

12%

23%

50%

15%

Not sure

Other

Homebuilder

Mortgage Lender

Real Estate Agent

Total

Recent buyers

Future buyers

14%

12%

9%

22%

43%

0%

15%

18%

52%

8%

13%

11%

20%

48%

14%

Not sure

Other

Homebuilder

Mortgage Lender

Real Estate Agent


Q601: Who was your first contact when you began the home buying process and who was your primary contact

throughout the process/ Who do you think will be your first contact when you begin the home buying process

and who do you think will be your primary contact throughout the process?

First ContactFirst Contact

Primary ContactPrimary Contact

26



Two-thirds (66%) of recent buyers obtain the required services for their recent real estate transaction from multiple sources versus a single source. A majority of future buyers (53%) also expects to do the same, but one-quarter (25%) is undecided.


Q605: Did you get the services that you required/ Do you anticipate getting the services that you require (e.g.,

real estate firm, mortgage lending, title insurance, homeowner’s insurance, home inspection, home warranty,

etc.) from one source or multiple sources?

25%

22%

53%

5%

29%

16%

26%

58%

66%

Not Sure

One Source

Multiple Sources

Total

Recent buyers

Future buyers

One real estate firm or other company with

different divisions, departments or affiliates

to handle each part of the transaction

Independent companies, one for

each part of the transaction

Recent buyers with income over $50,000 (75%) are more likely than buyers with income under $50,000 (49%) to have

used multiple sources

Recent buyers with income over $50,000 (75%) are more likely than buyers with income under $50,000 (49%) to have

used multiple sources

27



The number of recent buyers who used one-stop shopping in their latest home purchase increased 45% since 2002 (20% in 2002 to 29% in 2008).


Q605: Did you get the services that you required/ Do you anticipate getting the services that you require (e.g.,

real estate firm, mortgage lending, title insurance, homeowner’s insurance, home inspection, home warranty,

etc.) from one source or multiple sources?

20%

80%

5%

29%

66%

Not Sure

One Source

Multiple Sources

2008 Recent buyers (n=740)

2002 Recent buyers (n=687)One real estate firm or other company with

different divisions, departments or affiliates

to handle each part of the transaction

Independent companies, one for

each part of the transaction

28



Most recent buyers are generally satisfied with their last home buying experience, with 70% rating it an 8 or above. However, there is still much room for improvement with less than two in five (37%) rating it a 9 or 10.

Base: Recent Buyers ( n= 740)

Q640: Overall, how would you rate your satisfaction with the overall experience of buying your last home?

Please use a scale of 0 to 10, where ‘0’ is ‘Not At All Satisfied’ and ’10’ is ‘Completely Satisfied’.

BOTTOM 2 BOX (NET)2%

TOP 2 BOX (NET)37%

20%

17%

33%

13%

6%

6%

2%

1%

0%

1%

1%

10

9

8

7

6

5

4

3

2

1

0

Satisfaction Ratings

Completely Satisfied

Not At All Satisfied

Satisfaction ratings have remained virtually the same over time:35% rated it a 9 or 10 in 2002

Satisfaction ratings have remained virtually the same over time:35% rated it a 9 or 10 in 2002

Means Score: 7.9Means Score: 7.9

29



On average, consumers are most satisfied with the services they received from their real estate agent and homeowner’s insurance (mean score: 8.3 each), followed by home inspection (8.2).


Q645: How satisfied were you with the service you received in each of the following areas? Please use a 0 to

10 scale, where ‘0’ is ‘Not at all satisfied’ and ’10’ is ‘Completely satisfied’.

61%

55%

55%

46%

43%

39%

54%

52%

52%

38%

42%

43%

Real Estate Agent

Homeowner's

Insurance

Home Inspection

Closing Services

Mortgage Lending

Home Warranty



Satisfaction Ratings9 or 10 (NET) 2008 Mean Score

8.3

8.2

8.3

8.1

7.7

7.5

Buyers are slightly more satisfied with the services they receive today than they were in 2002

Buyers are slightly more satisfied with the services they receive today than they were in 2002

30



Recent buyers using one source had a better overall experience, as well as more satisfactory experiences in all service areas, compared to those using multiple sources.


Q645: How satisfied were you with the service you received in each of the following areas? Please use a 0 to

10 scale, where ‘0’ is ‘Not at all satisfied’ and ’10’ is ‘Completely satisfied’.

47%

70%

63%

64%

62%

56%

55%

31%

57%

54%

51%

39%

39%

33%

Overall

Experience

Real Estate

Agent

Homeowner's

Insurance

Home Inspection

Closing Services

Mortgage

Lending

Home Warranty

One source (n=236)

Multiple sources (n=459)

Satisfaction Ratings9 or 10 (NET) Mean Score

8.8 8.1

8.7 8.2

8.3 8.2

8.6 7.8

8.17.6

7.9 7.3

8.3 7.6

31



Real Estate Agent Experiences

31



32



Approximately three in five (57%) recent buyers worked with an agent whose company offered a full range of services - almost twice the number reported in 2002 (30%).

Base: Recent buyer and Used a real estate agent or a mortgage lender (n = 674)

Q610: Did your real estate agent’s company offer a full range of home buying services (for example, selection

of a real estate agent, home inspection, title insurance, home warranty, mortgage lending, etc.)?

Real Estate Agent’s Company

28%

42%

30%

11%

32%

57%

Not sure

Did not offer

full range

Offered full

range



33



Two in five (40%) were aware that the company offered a full range of services prior to engaging an agent and half (52%) of them said that this information positively impacted their selection of the agent.

Base: Real estate company offered a full range (n = 285); Aware prior to engaging an agent (n = 116)

Q625: Were you aware that your agent was affiliated with a firm that offered a full range of home buying

services prior to engaging your real estate agent, or were you made aware after selecting an agent?;

Q630: Did the fact that the firm offered this full range of services have no impact, a positive impact, or a

negative impact on your selection of a real estate agent?

Not Sure

11%Offered full

range 57%

Did not offer

full range

32%

11%

9%

39%

40%

Not sure

Was not made

aware

Was made

aware after

selecting agent

Was made

aware prior to

engaging an

agent

Positive

impact52%

No impact

48%

34



Recent buyers are slightly less likely to report being aware of their agent’s affiliation with a full service firm prior to selecting the agent in 2008, however, they are more likely to report that this had a positive impact on their selection of the agent.

12%

38%

44%

11%

9%

39%

40%

Not sure

Was not made

aware

Was made aware

after selecting

agent

Was made aware

prior to engaging

an agent



Base: Real estate company offered a full range (n = 285); Aware prior to engaging an agent (n = 116)

Q625: Were you aware that your agent was affiliated with a firm that offered a full range of home buying

services prior to engaging your real estate agent, or were you made aware after selecting an agent?;

Q630: Did the fact that the firm offered this full range of services have no impact, a positive impact, or a

negative impact on your selection of a real estate agent?

0%

56%

44%

0%

48%

52%

Negative

impact

No impact

Positive

impact

35



Recent buyers report that home warranties (34%), closing services (32%) and home inspection (32%) are the three services they usedthat are most likely to be affiliated with a real estate agent’s firm.

Base: Recent buyer and Used a real estate agent (n= 508)

Q615: Were the following services that you used affiliated with your real estate agent’s firm or not?

10%

18%

32%

32%

34%

Homeowner's

Insurance

Mortgage Lender

Closing Services

Home Inspector

Home Warranty

36



Real estate agents are most likely to recommend home inspectors (59%) and closing services (49%). Most agents who recommended a service disclosed that the service was affiliated with their company (62%).

16%

20%

23%

31%

49%

59%

None of these

Homeowner's

Insurance

Home Warranty

Mortgage Lender

Closing Services

Home Inspector

Base: Recent Buyer and Used real estate agent (n = 508); Real estate agent recommended services (n = 459)

Q620: Which of the following services that you used were recommended by your real estate agent?

Q635: Did your real estate agent tell you if the services they were recommending were affiliated with their

company or not?

Real Estate Agent’s Disclosure of Affiliation :

No, not

told if

service

was

affiliated

25%

Yes, told if

service

was

affiliated

62%

Not sure

13%

37



Mortgage Lender Experiences

37



38



Home buyers report that mortgage lenders are less likely than real estate companies to offer a full range of services (38% vs. 57%).

Base: Recent buyer and Used a real estate agent or a mortgage lender (n = 674)

Q611: Did your mortgage lender’s company offer a full range of home buying services (for example, selection of

a real estate agent, home inspection, title insurance, home warranty, mortgage lending, etc.)?

Not sure

20%

Offered full

range

38%

Did not offer

full range

42%

Mortgage lenders

39



According to recent buyers, closing services (37%) and home warranties (27%) are most likely to be affiliated with mortgage lender’s companies.

Base: Recent buyer and Used a mortgage lender ( n=544)

Q615: Were the following services that you used affiliated with your mortgage lender’s company or not?

16%

16%

17%

27%

37%

Homeowner's

Insurance

Real Estate Agent

Home Inspector

Home Warranty

Closing Services

40



Mortgage lenders are most likely to recommend closing services (39%). Almost three in five (58%) lenders told buyers whether the services they were recommending were affiliated with their company but almost one in three (28%) did not reveal this information.

46%

8%

13%

16%

20%

39%

None of these

Real Estate Agent

Home Warranty

Home Inspector

Homeowner's

Insurance

Closing Services

Base: Recent buyer and Used mortgage lender (n = 544); Mortgage lender recommended services (n = 465)

Q620: Which of the following services that you used were recommended by your mortgage lender’s company?

Q635: Did your mortgage lender tell you if the services they were recommending were affiliated with their

company or not?

Mortgage Lender’s Disclosure of Affiliation :

No, not told

if service

was

affiliated

28%

Yes, told if

service

was

affiliated

58%

Not sure

14%

41



Affiliation Preferences

41



42



Over one in five (22%) would prefer a service provider to be affiliated with the firm and 29% would prefer the providers to be independent of each other; half (50%) of buyers are indifferent in their preferences for service providers to be affiliated with a real estate firm.

Prefer service

providers to

be affiliated

with real

estate firm,

22%

No preference,

50%

Prefer service

providers to

be

independent of

real estate

firm, 29%


Q735: Which of the following best describes your preference when it comes to buying a home?

Recent buyers who used one-stop shopping are more likely than those who used multiple services to say that they would prefer services to be affiliated with the firm (35% vs. 18%)

Recent buyers who used one-stop shopping are more likely than those who used multiple services to say that they would prefer services to be affiliated with the firm (35% vs. 18%)

43



6%

10%

55%

22%

8%

7%

10%

53%

22%

8%

Much less likely

Less Likely

Neither more

nor less likely

More likely

Much more

likely

Affiliated with Real Estate Agent's Firm

Affiliated with Mortgage Lender's Company

Three in ten (29%) say knowing a service provider is affiliated with their agent or lender’s company would make them more likely to use the provider. A slight majority say that will not make them more nor less likely to use that provider.

Base: All Respondents

Q638: Suppose you were buying a home. Would you be more or less likely to use a service provider if you

knew that they were affiliated with you…?

More Likely (NET)

Agent 29%

Lender 29%

Less Likely (NET)

Agent 18%

Lender 16%

44



One-stop shopping Awareness and Familiarity

44



45



Consumers are divided on how they think home buyers typically obtain the services necessary to complete a real estate transaction and one in four (27%) are not sure.


Q700: To the best of your knowledge, how do home buyers typically obtain the services (real estate agents and

brokerages, mortgage companies, banks, title companies, insurance companies, inspection companies, and

more) necessary to complete a real estate transaction when buying a home?

29%

29%

42%

23%

39%

38%

27%

34%

39%

Not Sure

Multiple sources

One source

Total

Recent buyers

Future buyers

46



A large majority of consumers (70%) are only somewhat or not at all familiar with the concept of one-stop shopping, regardless of whether they have recently purchased a home or not.


Q705: How familiar are you with one-stop shopping, that is, the ability to purchase all of the necessary services

or products for buying a home from one company?

32%

35%

19%

6%

7%

33%

35%

18%

7%

6%

34%

35%

18%

6%

6%

Not at all familiar

Somewhat familiar

Familiar

Very Familiar

Extremely familiar

Total

Recent buyers

Future buyers

Top 2 Box (NET)

12%

13%

13%

Bottom 2 Box (NET)

70%

69%

68%

Recent buyers who actually used one-stop shopping are more likely to report being familiar with the service than those who used multiple sources in their last real estate transaction (28% vs. 13%)

47



Consumers who are familiar with one-stop shopping are most likely to have first learned about it from a real estate agent (31%), friends or relatives who have used one-stop shopping before (17%) or on the television or radio (16%).

Base: Familiar with one-stop shopping ( n= 392)

Q725: How did you first learn about one-stop shopping, that is, the ability to purchase all of the necessary

services or products for buying a home from one supplier? Please select all that apply.

11%

15%

19%

20%

21%

27%

15%

11%

14%

19%

17%

39%

12%

12%

14%

16%

17%

31%

Mortgage lender

Real estate firm's website

Newspaper

Television or radio

advertisement

Friend/relative/acquaintance

who has usde one-stop

shopping

Real estate agent

Total

Recent buyers

Future buyers

48



Less common sources of information include acquaintances who have heard of (but not used) one-stop shopping, homebuilders, real estate related websites (11% each) and magazine advertisements (10%).

Base: Familiar with one-stop shopping ( n= 392)

Q725: How did you first learn about one-stop shopping, that is, the ability to purchase all of the necessary

services or products for buying a home from one supplier? Please select all that apply.

20%

13%

13%

12%

17%

17%

17%

12%

11%

11%

12%

8%

20%

10%

11%

11%

11%

12%

Other

Real estate magazine

advertisement

Other real estate related

website

Home builder

Friend/relative/acquaintance

who has heard of, but not

used one-stop shopping

Local real estate brochureTotal

Recent buyers

Future buyers

49



There is an overall consensus that being able to purchase all or most of the necessary services for buying a home from one company would make the home buying process at least somewhat easier (96%).


Q710: If you could purchase all or most of the necessary services or products for buying a home from one

company, in your opinion, how much easier would that make buying a home?

Easier (NET)

96%

95%

96%

4%

30%

38%

28%

5%

33%

36%

25%

4%

31%

37%

27%

Not at all easier

Somewhat easier

A fair amount easier

A great deal amount

easier

Total

Recent buyers

Future buyers

50



Further, over nine in ten (93%) consumers would at least consider using a one-stop shopping process if they were buying a home; only 4% would not consider it at all.


Q715: Suppose you were buying a home. If a company offered to set up a simplified, one-stop shopping

process for you in which they provided all required services, how strongly would you consider this process?

Consider (NET)

93%

94%

93%

4%

3%

15%

39%

39%

2%

4%

18%

40%

36%

3%

4%

17%

40%

37%

Not sure

Would not consider at all

Consider a little

Consider somewhat

Consider strongly

Total

Recent buyers

Future buyers

51



Consideration of one-stop shopping has increased significantly since 1999 and remains high.


Q715: Suppose you were buying a home. If a company offered to set up a simplified, one-stop shopping

process for you in which they provided all required services, how strongly would you consider this process?

Consider (NET)

94%

95%

75%

3%

22%

17%

40%

18%

2%

3%

12%

36%

47%

3%

4%

17%

40%

37%

Not sure

Would not consider at all

Consider a little

Consider somewhat

Consider strongly

2008 Total buyers (n=1446)



52



One-stop Shopping Preferences

52



53



Of those who would consider using one-stop shopping, the following are the services that are most preferred to be affiliated: closing services (73%), home inspection (63%), and home warranty (57%).

Base: Would consider one-stop shopping ( n= 1349)

Q720: If you were buying a home, which of the following services would you prefer to have offered by providers

affiliated with your real estate firm? Please select all that apply.

12%

43%

53%

57%

63%

73%

None of these


Mortgage Lender

Home Warranty

Home Inspector

Closing Services

54



Word of mouth from someone who has used it before (65%) is the most trusted source of information regarding one-stop shopping. Half (48%) would most trust a real estate agent, 32% the internet and 31% a mortgage lender.


Q730: Which three information sources would you trust the most to provide

you with information about one-stop shopping, that is, the ability to purchase

all of the necessary services or products for buying a home from one supplier?

Tier 1 Tier 2 Tier 3 Tier 4

Recent buyers who used one-stop shopping are more likely to say that the source they trust the most is

their real estate agent (58% vs. 46%)

65%

48%

32% 31%

22%

14% 12%9%

5% 6% 4%10%

5%

Used one-stop shopping

Real estate agent

Internet

Mortgage lender

Company's website

Home builder

Newspaper

Heard of (not used) one-stop shopping

Real estate magazine

Local real estate brochure

TV or radio ad

OtherNone

55



The biggest perceived advantage of one-stop shopping is monetary related – saving money if the companies offer discount prices. Close behind is increased efficiency and convenience.

71%

73%

73%

73%

77%

15%

15%

13%

15%

12%

5%

4%

6%

3%

3%

0% 20% 40% 60% 80% 100%

Advantage Neither Disadvantage

Having agents and other service providers working

together to ensure completion of the transaction

Preventing things from falling through the cracks

Having just one person to contact, making the process easier to manage and more

convenient

Base: All respondents (n= 1445)

Q740: For each of the following items please indicate if you think one-stop

shopping (getting all services from one firm) is an advantage or

disadvantage when purchasing all of the necessary services or products for

buying a home.

Making the home-buying process more efficient and

manageable

Saving money if companies offer these services at

discount prices

56



The biggest perceived barrier is not having the ability to compare rates across a variety of providers, but only 15% cite this as adefinite disadvantage. Three in ten (30%) see getting one standard level of service as neither advantageous nor disadvantageous.

50%

56%

64%

64%

70%

70%

30%

20%

17%

13%

20%

16%

9%

15%

3%

6%

13%

8%

0% 20% 40% 60% 80% 100%

Advantage Neither Disadvantage

Getting one standard level of brand-named service

Having one company be responsible for the entire

process

Having all agents and other service providers equally invested in the outcome

Base: All respondents (n= 1445)

Q740: For each of the following items please indicate if you think one-stop

shopping (getting all services from one firm) is an advantage or

disadvantage when purchasing all of the necessary services or products for

buying a home.

Having the ability to compare rates across a variety of

providers

Having knowledge about the local community

Having the ability to direct complaints to one source

Recent buyers who used one-stop shopping are less likely to see

these as disadvantages of one-stop shopping

Recent buyers who used one-stop shopping are less likely to see

these as disadvantages of one-stop shopping

57



Current Housing Market

57



58



The recent sub prime mortgage crisis seems to have impacted consumers’ optimism about obtaining credit; 80% say it will be more difficult than last year for people with poor credit to get a mortgage.


Q800: Compared to last year, how difficult do you think it is for people with the following types of credit to get a

mortgage?

6%

3%

4%

8%

11%

69%

5%

4%

9%

22%

44%

16%

6%

16%

12%

45%

15%

6%

Not Sure

Much less

difficult

Somewhat less

difficult

No more or less

difficult

Somewhat more

difficult

Much more

difficult

Good Credit

Average Credit

Poor Credit

More Difficult (NET)

Good Credit 21%

Average Credit 60%

Poor Credit 80%

Less Difficult (NET)

Good Credit 29%

Average Credit 13%

Poor Credit 6%

59



Top 2 Box

25%

28%

Compared to last year, just over one third (35%) thinks it will be more difficult for them to get a mortgage, 19% believe it will be easier and approximately half (47%) think it will be no more or less difficult.


Q805: Compared to last year, how difficult do you think it would be for you to get a mortgage?

13%

21%

47%

12%

7%

Much more

difficult

Somewhat more

difficult

No more or less

difficult

Somewhat less

difficult

Much less

difficult

More Difficult (NET)

35%

Less Difficult (NET)

19%

60



Top 2 Box

25%

28%

The majority of consumers (62%) think that getting a mortgage through a real estate firm would make them neither more nor less likely to be approved; 29% think this would make them more likely to be approved.


Q810: Given the current housing and mortgage market conditions, do you think having the option to get a

mortgage through your real estate agent’s company would make it more likely or less likely that you would be

approved?

3%

6%

62%

23%

6%

Much less likely

Somewhat less

likely

Neither more

likely nor less

likely

Somewhat more

likely

Much more likely

Less Likely (NET)

10%

More Likely (NET)

29%

61



Just over two in five (42%) blame mortgage lenders or brokers for being primarily at fault for the current subprime mortgage crisis. Tied at a distant second are the homeowners/borrowers and the government (16% each).


Q820: Who do you think is primarily at fault for the current subprime mortgage crisis?

12%

2%

3%

9%

16%

16%

42%

Not sure

Other

Homebuilders

Wall Street or large

financial institutions

Homeowners/borrowers

Government

Mortgage lenders or

brokers

62



Demographics

62



63



Current Housing Situation

7%

3%

14%

8%

12%

15%

15%

17%

9%

8%

5%

12%

75%

Total

7%

*

*

8%

14%

19%

19%

22%

10%

1%

3%

4%

88%

Recent b

uyers

75%

25%

2%

3%

5%

10%

16%

64%

19%

53%

28%

Total

68%

32%

1%

3%

7%

10%

2%

77%

22%

52%

25%

Recent b

uyers

80%

20%

2%

3%

4%

11%

28%

52%

17%

51%

32%

Future buyers

Home Value

Number of years in current home

Decline to answer

Not sure

Not Applicable

$500,000 or more

$300,000 – $499,999

$200,000 – $299,999

$150,000 – $199,999

$75,000 – $149,000

Under $75,000

15+ years

10-14 years

5-9 years

Less than 5 years

8%

6%

25%

7%

9%

11%

12%

14%

9%

2%

7%

19%

61%

Future buyers

No

YesNeighborhood association

Other type

Multi-family home

Mobile home

Condominium

Apartment

Single-family home

Rural

Suburban

Urban

Housing type

Location type

64



Demographics

11%

3%

24%

10%

16%

34%

2%

*

2%

*

*

*

3%

11%

13%

71%

Recent

buyers

11%

4%

26%

11%

21%

25%

1%

*

2%

*

1%

*

2%

13%

15%

67%

Total

11%

5%

28%

11%

26%

17%

1%

-

2%

*

1%

*

4%

14%

14%

65%

Future

buyers

24%

33%

24%

18%

7%

5%

4%

6%

12%

6%

15%

13%

17%

13%

47%

53%

Total

21%

37%

23%

19%

11%

7%

6%

7%

14%

8%

13%

13%

14%

8%

47%

53%

Recent

buyers

College (e.g., B.A., B.S.)26%Midwest

27%

31%

16%

4%

3%

2%

6%

11%

4%

16%

12%

21%

21%

44%

56%

Future

buyers

Education

Race

Graduate school (e.g., M.S., M.D., Ph.D.)

Some graduate school, but no degree

Associate's degree

Some college, but no degree

High school or equivalent (e.g., GED)

Some high school

Less than high school

Decline to answer

Other race

Mixed racial background

Native American or Alaskan native

Asian or Pacific Islander

Black/ African American (Net)

Hispanic

White

West

South

EastRegion

65 and over

60 - 64

55 - 59

50 - 54

45 - 49

40 - 44

35 - 39

30 - 34

25 - 29

18 - 24

Female

Male

Age

Gender

65



Demographics

7%

2%

2%

8%

66%

16%

10%

5%

16%

2%

3%

7%

7%

63%

Recent

buyers

8%

2%

1%

7%

55%

27%

9%

12%

11%

2%

3%

8%

11%

62%

Total

9%

2%

1%

7%

44%

38%

9%

18%

7%

1%

3%

8%

13%

62%

Future

buyers

7%

8%

4%

13%

14%

19%

14%

9%

6%

5%

Total

7%

8%

4%

14%

17%

22%

12%

8%

5%

3%

Recent

buyers

Living with partner

7%

8%

3%

13%

14%

17%

15%

10%

6%

7%

Future

buyers

Marital Status

Employment Status

Widowed

Separated

Divorced

Married

Single, never married

Homemaker

Student

Retired

Not employed and not looking for work

Not employed, but looking for work

Self-employed

Employed part time

Employed full time

Decline to answer

$150,000 or more

$125,000 to $149,999

$100,000 to $124,999

$75,000 to $99,999

$50,000 to $74,999

$35,000 to $49,999

$25,000 to $34,999

$15,000 to $24,999

Less than $15,000Income

one-stop shopping consumer...

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