What makes a Home Sell? – 2020 Update
There are more ways in 2020 to sell a home than ever before. We discussed the four major ways to sell a home in this detailed real estate podcast:
Now we want to build on that and explain the science behind the methods, what exactly makes a home sell in the U.S. in the year 2020 (and beyond).
Thankfully every year the National Association of Realtors does extensive research to determine just that, all the forces that cause a home to sell. The profile of home buyers and sellers report is so comprehensive that anything that doesn’t make the NAR list of what causes a home to sell, simply doesn’t make an impact on the real estate market at all.
What causes a home to sell?
We are going to answer this question in two parts. First, what did the home buyer use to search for their next home? And second, what does research show actually caused the buyer to purchase – what was the procuring force? (In the statistics below I’m leaving out what causes new construction homes to sell, focusing on your typical resale of a home.)
1. How do buyers search for their next home?
- 95% frequently searched online
- 64% used their real estate agent’s input
- 14% frequented open houses
- 11% looked for yard signs
- 1% everything else (print, radio, TV)
2. What caused or influenced a buyer to buy a particular home?
- 53% internet
- 31% real estate agent’s influence
- 7% yard signs and open houses combined
- 7% input of friends and family
- Less than 1% – other (print, radio, TV)
The internet, more than anything else, leads to a home sale. But do not forget that 89% of buyers used a real estate agent to make the offer on their behalf. The real estate agent is still a majority force in what causes a home to sell.
Now what about the internet leads to a home sale?
Do Facebook, Google, and other Social Media ads work? What works?
- 87% of buyers valued a full set of photos
- 85% valued detailed written description on the home
- 52% valued floor plans
- 44% valued the real estate agent’s (listing agent’s) contact information
- 42% valued virtual tours (video, 3D, etc.)
Do home buyers respond to passive advertising (like social media and Google ads)? No. Not when everything that they want is available to them on thousands of home search websites like Zillow, Realtor.com, Trulia, etc.
On those real estate search portals they are actively (not passively) searching for exactly what they want and they get all of the valuable information above that they need to make a decision on a home (full sets of photos, detailed data sheets, floor plans, real estate agent’s contact information, videos, etc).
Do not be fooled by companies that say they will list your home on Zillow and a few other sites while bypassing the MLS and providing you with useless passive banner ads and social media ads.
The MLS (multiple listing service) is Essential!
89% of home buyers use real estate agents who rely on the MLS to write up a correct home offer contract. 31% of home buyers rely on their real estate agent’s influence in picking their next home. Real estate agents do not typically use Zillow or other search portals to look for their clients, they use their local MLS. Plus, the MLS is the best originating source to display your home on tens of thousands of real estate websites, not a select few.
How we sell our client’s homes faster and for more:
- We pay extra to feature our homes on the top real estate portals like Zillow so they get more active home buyer views which leads to more showings, which results in more and better offers.
- We pay extra to put every home we sell on multiple MLS systems within the state we are selling in, whether it is Oregon or Washington, to reach that essential, influential real estate agent audience.
- We provide our homes with the valuable information home buyers are looking for in 3D tours, full sets of professional photography, floor plans and more.
- We don’t leave out the signs and open houses that still have some impact in a home sale.
- We don’t waste time and money on home selling techniques that don’t work per the comprehensive research.