Despite the strong demand for purchasing homes sparked by steady job gains, record low mortgage rates and higher rents, the severe housing shortage in much of the country over the past year has accelerated price growth and kept many first-time buyers out of the market. According to the National Association of Realtors' 2017 Profile of Home Buyers and Sellers, the internet and real estate agents were the top source of information for buyers, but at the end of the day, most buyers and sellers looked to the real estate agent for help with their real estate transaction.
This year's survey found homebuyers looked to the internet (95 percent) and real estate agents (89 percent) as their two major information sources during their home search. Overall, 87 percent of buyers saw value purchasing their home through a real estate agent. Finding the right property to buy and help negotiating the terms of the sale were the top two reasons buyers wanted most from their agent. Even for those who found the home they purchased online, nearly all still closed on it with the help of an agent (88 percent).
Majority of first-time buyers indicated that the top benefits received from their agent were help understanding the buying process (83 percent); pointing out unnoticed property features or faults (60 percent); and negotiating better sales terms (51 percent).
"Realtors can help buyers, especially first-time homebuyers, navigate our extremely competitive market, where the need to be prepared and act quickly have been paramount to the success of purchasing a home," said Denise Welsh, president of the Silicon Valley Association of Realtors.
Despite market conditions heavily in their favor, most sellers also used a real estate professional to help them with their needs. Sellers' use of a real estate agent this year remained at an all-time high of 89 percent. For the third straight year, for-sale-by-owner sales dropped for the third straight year and were at their lowest share (8 percent) in the survey's history.
An overwhelming majority of sellers were satisfied with the selling process (88 percent), with most also indicating that they would definitely or probably use their agent again or recommend him or her to others (85 percent).
"Sellers realize Realtors bring value by helping them list their home on the market, marketing their home, accepting offers, negotiating the sales price and closing the deal, making sure the process of selling will go smoothly," said Welsh.
Welsh reminds consumers that not all real estate agents are Realtors. A Realtor is a licensed real estate agent who is a member of the National Association of Realtors, the world's largest professional trade association. The "Realtor" designation is used by real estate agents and brokers who must adhere to a strict Code of Ethics and actively pursue continuing education to increase their professionalism and skills.
The National Association of Realtors Code of Ethics sets Realtors apart from other real estate licensees and protects all parties to the real estate transaction; not just a Realtor's client. If a local Association of Realtors finds a Realtor in violation of the Code of Ethics, disciplinary action can be imposed.
"For a Realtor, living with the Code of Ethics means being honest and dependable, never putting your interests ahead of your client's, and speaking the truth to all parties. Realtors have the training and expertise to help the customer with all aspects of the real estate transaction," said Welsh.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.