FEB 16, 2001

Homes listed on the Internet take longer to sell but bring more money when they are purchased, according to a study by two University of Texas-San Antonio professors who researched more than 50,000 transactions in the Dallas-Fort Worth area.

In a study done for Texas A&M University's Real Estate Center, James Ford and Ronald C. Rutherford conclude that homes listed on the Internet take 6 percent longer to sell, about three days, than houses not listed on the Internet.

They also conclude that Internet-listed homes sell for about 14 percent more than houses not listed on the web, according to the Real Estate Center's Online News.

The researchers surveyed real estate professionals on how they use the Internet. Ford and Rutherford found that more than 90 percent of respondents have a website. Of these, 43 percent have been in operation for more than two years. Website content includes listing information (80 percent), mortgage calculators (54 percent), virtual tours (45 percent) and mortgage qualifying (43 percent).

More than 93 percent of the respondents place at least some Multiple Listing Service (MLS) listings on the Internet site maintained by the regional or local MLS, and 88 percent place all listings on that site. Only 2 percent say they never put listings on the Internet.

Of the 1999 home sales studied, 92.6 percent of the houses were listed on the Internet. Smaller, older, non-listed (FSBO), rental and foreclosed homes without a pool or fireplace are less likely to be listed on the web. Homes listed with an agent who has less than three years experience also are less likely to be listed on the web, the researchers found.

Hey Folks, in January of 2006, the National Association of Realtors (NAR) said, "Technology is transforming how Americans buy and sell homes." According to one of the largest surveys of real estate consumers ever conducted, use of the Internet to search for a home has risen dramatically over time, increasing from only 2 percent of buyers in 1995 to 77 percent in 2005; up from 74 percent in 2004. The 2005 NAR Profile of Home Buyers and Sellers is based on more than 7,800 responses to a questionnaire mailed to a large national sample of consumers.

The NAR said the findings underscore the complexity of the home-buying process. "The real estate industry today bears little resemblance to the way we did business 10 years ago. It is hard to find another industry that has adopted technology so readily to its customers. Realtors have invested a lot of time and money in building information technology, and because of these efforts, more consumers than ever are using the Internet in their home search."

It's no wonder that those who sell their home through the Internet net more. And personally, let's see....a few additional days to sell for 14 percent more....

Hmmmm, makes me wonder about those who are "selling by owner" and have not spent the TENS of THOUSANDS of investment dollars on equipment, publicity and advertising that it costs a very good Realtor to get on-line effectively. In fact, according to the NAR, "the level of for-sale-by-owners (FSBO) is on a sustained decline and is now at a record low. In addition, a growing share of FSBO properties are not placed on the open market; they're private transactions." So, how does paying a 6% commission for a 14% increase in realized gain sound to you? I'm not great at math, but 8% more money in your pocket would sound pretty darned good to me!

Catch you later!

Drew