Connecticut Association of Realtors

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Connecticut Association of RealtorsBrand
Strategy Development Initiative
Phase 3 Connecticut Home Buyer Survey

• Final Report
• December 2004

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Contents
Page

• Why We Did This Research 3
• Background / Objectives Methodology
• Executive Summary and Implications 6
• Findings
• I. Connecticut Consumer Market 14
• Demographics, motivations for purchase
• II. Changes in Provision of Real Estate
  Services 18
• Use of real estate agents
• III. Opinions about Real Estate Agents 24
• Image of, and experience with agents the
  Realtor brand
• IV. Direction for Image Campaign Strategy 31
• Go/no-go recommendation, and why

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Why We Did This Research

• Background and Objectives
• In October of 2004, Connecticut Association of
  Realtors (CAR) engaged Marketing Leverage, Inc.
  to assist in determining the need for an image
  campaign as part of the Connecticut Associations
  communications program and to determine what the
  key elements of such a campaign should be.
• The central need was to assess potential benefits
  from developing a special Connecticut Association
  campaign in addition to the National Association
  of Realtors campaign.
• Because of the need to make a go/no-go decision
  on a Connecticut campaign, it was important to
  include a statistically credible, quantitative
  survey of the Connecticut home buyer and seller
  market.
• This research was designed around four
  objectives
• Build an information base to support a decision
  about the need for a Connecticut Association of
  Realtors Image Campaign,
• Gain an understanding of the current consumer
  market and how to best fulfill their needs in the
  purchase and sale of real estate,
• Identify emerging changes in the provision of
  real estate services to the public, and
• To set the basic direction in support of a
  communications strategy, whether or not the
  Association would decide to proceed with the
  development of an Image Campaign.

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Why We Did This Research

• Methodology
• The study had a 3-phase design
• Phase One A two-hour working session A
  conference facilitated by Marketing Leverage for
  CARs Image Working Group to contribute to the
  research design. This included a discussion of
  the buying and selling customer decision process,
  the key elements of the value proposition
  delivered by CAR members, the criteria
  identifying the need for an image campaign, and
  redrafting of a preliminary survey instrument
  developed by Marketing Leverage.
• Phase Two In-depth telephone conversations
  Five recent buyers and/or sellers who had worked
  with a member of CAR. The buyers and sellers
  were selected by members of the Image Working
  Group and interviewed by Marketing Leverage
  consultants. The purposes of these in-depth
  conversations were to corroborate the elements of
  the value proposition delivered by CAR members
  and to assess and enhance the inquiries in the
  preliminary survey instrument developed in Phase
  One.
• Phase Three Quantitative survey 200
  telephone interviews were conducted among
  individuals who had recently purchased (or sold)
  a home in Connecticut.
• The purpose of this phase was be to provide the
  statistically credible support needed for
  decisions about committing resources for an Image
  Campaign and, if justified, what directions the
  Campaign might take based on the research.
• Respondents were contacted from a random sample
  of consumers who had purchased a home in
  Connecticut in the last six months (sample
  purchased from The Warren Group, The Commercial
  Record).

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Contents

• Why We Did This Research
• Background / Objectives Methodology
• Executive Summary and Implications
• Findings
• I. Connecticut Consumer Market
• Demographics, motivations for purchase
• II. Changes in Provision of Real Estate Services
• Use of real estate agents
• III. Opinions about Real Estate Agents
• Image of, and experience with agents the
  Realtor brand
• IV. Direction for Image Campaign Strategy
• Go/no-go recommendation, and why

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Executive Summary and Implications

• Real estate agents in Connecticut are the primary
  channel by which consumers purchase or sell
  homes.
• 92 of recent home buyers/sellers report using
  the services of a real estate agent on their last
  purchase/sale.
• 8 reported not using a real estate agent.
• There is little indication of any adverse trend
  away from using real estate agents.
• 90 of home buyers/sellers said they would be
  likely to use an agent in the future for real
  estate purchases.
• 84 of home buyers/sellers said they would be
  likely to use a real estate agent in the future
  to help with real estate sales.
• Only 4 of those who had ever used an agent in
  the past did not do so on their most recent real
  estate transaction. Several of these eight
  individuals mentioned reasons unrelated to any
  negative opinions in general.
• First time buyers (26 of the total) were almost
  as likely as the overall average to report having
  used a real estate agent for their home purchase
  (87 vs. 92).
• And first time buyers were even more likely to
  indicate intended use of a real estate agent for
  their next home purchase or sale (96 vs. 90
  overall for home purchase and 98 vs. 84 for
  home sale).
• 83 of home buyers/sellers indicated they believe
  most people should use a real estate agent when
  buying a home.
• 81 believe most people should use an agent when
  selling a home.

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Executive Summary and Implications

• There were very few indications of inroads by
  non-traditional competitors or changes in the
  delivery of real estate services.
• There was no mention by home buyers/sellers in
  this survey of non-traditional service providers
  or online lender involvement.
• It does not appear that agents engagements will
  decrease as a result in increased usage of the
  internet as, 1) few home buyers/sellers are
  finding their specific agent on the internet
  (5), and 2) most believe that real estate agents
  are technologically proficient.
• 88 of home buyers/sellers agreed with the
  statement Real estate agents make use of the
  latest technology.
• Comments volunteered by respondents suggest that,
  while working with a real estate agent, home
  buyers continue to look for properties - on the
  Internet, in newspapers, and through other
  channels. However, these channels are not seen
  as supplanting the agents role.
• 4. Home buyers/sellers report engaging an agent
  based on the traditional Realtor value
  proposition
• Personal attention,
• Competent, knowledgeable information source on
  real estate issues, and
• Access to a selection of homes/buyers meeting
  their needs and requirements.
• They select their specific agent primarily
  through referrals or personal connections.
• And in terms of expectations, it is important to
  them that their agent
• 1) Listen to their specific requirements,
• 2) Locate properties/buyers meeting these
  requirements,
• 3) Is patient, and
• 4) Is honest.

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Executive Summary and Implications

• Consumers are largely happy with their real
  estate agents, and the image they hold of agents
  in general is typically positive.
• Nine of ten (88) of home buyers/sellers report
  satisfaction with their real estate agent.
• Of the 12 of home buyers/sellers indicating some
  dissatisfaction with their agent, the volunteered
  comments tended to involve how the agent could
  have enhanced their performance or value to the
  process.
• Wanted more time and attention from the agent
  (lack of attention to detail, should have shown
  more homes, displayed a lack of patience with
  home buyers).
• Agent should have been more knowledgeable about
  the process.
• Lack of candor, lack of honesty, gave erroneous
  information.
• In terms of image, they assign very positive
  ratings to their agent as
• A source of real estate information and knowledge
  (97), and
• Making use of the latest technology (88).
• Home buyers/sellers gave somewhat lower ratings
  (although still positive) to
• Agent trustworthiness (76), and
• Getting the best price with the least hassle
  (69)

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Executive Summary and Implications

• However, the Realtor brand is not well
  recognized nor understood by home buyers and
  sellers.
• Home buyers/sellers did not select their specific
  real estate agent because that individual was a
  Realtor.
• Only 2 of 200 (1) said they specifically sought
  out a Realtor.
• While one-third of respondents said that being a
  Realtor is different from being a real estate
  agent, there was divergent opinion on what those
  differences were the conclusion is that they
  just dont know the difference.

Note please This question forced home
buyers/sellers to associate an attribute either
with a Realtor or with a Real Estate Agent. It
was not an assessment of Realtor performance on
the attribute.
33 say there is a difference
67 either disagreed or said they didnt know
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Executive Summary and Implications

• In terms of a go/no go decision on the value of
  a special image campaign, the evidence suggests
  Connecticut Association members are already in a
  strong position among home buyers/sellers.
• Especially when we consider that more than 3 of 4
  real estate agents in Connecticut are members of
  CAR.

Experience with Real Estate Agents
Image of Real Estate Agents
Awareness of Realtors Brand
Positive Image Expectations
High Satisfaction with Agents
Low Awareness Undifferentiated

• Agents seen as
• Knowledgeable (97).
• Embracing technology (88).
• Trustworthy (76).
• Get the best price with least hassle (69).
• Believe most people should use an agent when
  buying or selling (83 for purchase 81 for
  sale).
• Value the traditional package agents bring to the
  table i.e., personal attention and knowledge of
  the process

• 88 satisfaction with last agent used.
• 90 expect to use an agent in the future, if buy.
• 84 expect to use an agent in the future, if
  sell.
• First-time buyers were just as satisfied.
• And even more likely to use agents in the future.
• 96 for purchase
• 98 for sale

• Buyers dont look for Realtor when selecting a
  real estate agent.
• Only one-third (33) see a distinction between
  being a Realtor and real estate agent.
• Lack of agreement as to what that distinction is.
  Many have no idea.

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Executive Summary and Implications

• If it were our money, we would not initiate a
  special campaign directed at consumers at this
  point. Heres why.
• Continuation of the national campaign should
  impact positively the image of CAR members in
  Connecticut.
• Home buyers/sellers see real estate agents
  positively, perhaps in part due to this campaign,
  and more than 3 of 4 agents are members of the
  Connecticut Association of Realtors there is
  little potential gain for CAR to leverage.
• There is little or no gap between agents image
  and actual experience that would need to be
  remedied by an image campaign. Home buyer/seller
  experiences with real estate agents are
  consistent with agents positive image.
• There is little data suggesting a decline in
  usage of real estate agents vis-à-vis
  competitors.
• High proportions of buyers/sellers are using
  agents, and for those who dont, there is little
  evidence of dissatisfaction with real estate
  agents or with Realtors or interest in
  alternative sources of service.
• What home buyers seek in an agent are the core
  elements of the Realtor value proposition
• Personal attention,
• Competent knowledge source about real estate
  issues, and
• Access to a selection of homes meeting their
  needs and requirements.
• A muddy or unfocused awareness/understanding of
  what a Realtor is, may not necessarily be a bad
  thing.
• Two-thirds (67) of home buyers/sellers had no
  inclination to think real estate agents and
  Realtors were different and, in fact, both terms
  describe the bulk of individuals selling real
  estate within Connecticut.
• Where associations were made between Realtors
  and real estate agents, they tended on balance to
  favor Realtors e.g., a national professional
  association, continuing education, high ethical
  standards, large network to draw buyers,
  advocates for private ownership, and being
  up-to-date on legal issues affecting real estate
  purchase and sale.

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Executive Summary and Implications

• So if a special Connecticut image campaign is not
  undertaken, what elements of a communications
  strategy flow from this research?
• There is very little distinction in the minds of
  buyers/sellers between Realtor and real estate
  agent.
• And yet there is some perception of possible
  improvement in agent performance, focused on
  several elements of the Connecticut Association
  of Realtors value proposition.
• Personal attention,
• Competent knowledge source about real estate
  issues,
• And in terms of expectations, it is important to
  buyers/sellers that their agent
• 1) Listen to their specific requirements,
• 2) Locate properties/buyers meeting these
  requirements,
• 3) Is patient and 4) Is honest.
• Connecticut Association of Realtors members
  should be fully aware of these areas identified
  by Connecticut home buyers/sellers as key to
  their expectations of real estate agents.
  Mention of these areas will resonate with
  consumers.
• Compare these expectations to the core elements
  of the National Association campaign along with
  the areas of difference between Realtor and
  real estate agent as confirmed by the research.
  CAR members should be reinforcing those areas
  where consumers already see differences 1)
  legal knowledge, 2) continuing education, 3)
  national association, 4) large network to draw
  buyers, 5) high ethical standards, 6) private
  property advocates.
• And continue educating consumers on those areas
  were no difference was perceived
• Professional conduct.
• Knowledge of the real estate profession.
• Observation Home buyer/seller comments suggest
  a duality in the relationship with their agent
  that is consultation-based vs. commissioned-based
  buying/selling.
• Listening, locating appropriate
  properties/buyers, knowledge, patience, and
  integrity reinforce the positive
  consultation-based perception.

Each mentioned by home buyers/sellers who offered
suggestions for improvement.
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Contents

• Why We Did This Research
• Background / Objectives Methodology
• Executive Summary and Implications
• Findings
• I. Connecticut Consumer Market
• Demographics, motivations for purchase
• II. Changes in Provision of Real Estate Services
• Use of real estate agents
• III. Opinions about Real Estate Agents
• Image of, and experience with agents the
  Realtor brand
• IV. Direction for Image Campaign Strategy
• Go/no-go recommendation, and why

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Findings I. Connecticut Consumer Market
(Demographics/Motivations)

• Approximately three-quarters of home buyers were
  from Hartford, New Haven and Fairfield counties.
• Most were middle aged, especially between 30 and
  49 years of age.
• Two thirds of respondents were female.

All home buyers/sellers in the study had
purchased their home between May and August 2004,
(most had purchased their home during the months
of June and July).
Corresponds to the distribution of home purchases
during the time frame.
Males and females were similarly satisfied with
their real estate agent.
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Over 80 had home values of less than
500,000, and almost all were purchasers of
single family homes or condos.
Findings I. Connecticut Consumer Market
(Demographics/Motivations)

• Almost half of homes purchased were between
  250,000 and 500,000.

As might be expected, a disproportionate number
of high value home purchases/ sales fell into
Fairfield County.
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Findings I. Connecticut Consumer Market
(Demographics/Motivations)

• Most buyers/sellers moved within Connecticut, and
  had a variety of reasons for wanting to, or
  having to purchase a home.
• When asked what their situation was in their most
  recent purchase/sale of a home
• 27 were moving within the same town.
• 45 were moving within Connecticut (but not in
  the same town).
• 25 were moving in from an out-of-state location.
• 3 moved in from out of the country.
• Half of home buyers were first time home
  purchasers, or were purchasing due to a
  relocation. A breakdown of motivations
• Relocation 23
• Purchasing a first home 26
• Looking for a bigger or higher quality home 19
• Looking to downsize 13
• The other 20 included financial reasons, better
  location (nearer to family, work, medical
  services), divorce, and investment property.

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Contents

• Why We Did This Research
• Background / Objectives Methodology
• Executive Summary and Implications
• Findings
• I. Connecticut Consumer Market
• Demographics, motivations for purchase
• II. Changes in Provision of Real Estate Services
• Use of real estate agents
• III. Opinions about Real Estate Agents
• Image of, and experience with agents the
  Realtor brand
• IV. Direction for Image Campaign Strategy
• Go/no-go recommendation, and why

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Findings II. Provision of Real Estate Services
/ Use of Agents

• Over 90 of home buyers/sellers have used the
  services of a real estate agent for their most
  recent home purchase or sale.
• Within the last six months
• 30 had both purchased and sold a home.
• 70 had purchased a home (but not sold one).
• 92 used an agent to purchase or sell this home.
• For those who completed both a purchase and a
  sale, the large majority (84) used an agent for
  both the purchase and the sale.
• Younger home buyers/sellers used an agent in
  similar proportions as older buyers.
• 85 of 18-29 year-olds used the services of a
  real estate agent vs. 93 of older
  buyers/sellers.
• Reasons for using a real estate agent are
  explored on the following page.

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Findings II. Provision of Real Estate Services
/ Use of Agents

• Knowledge is the overriding reason consumers
  engage the services of a real estate agent.
• Knowledge
• Not enough knowledge to do it myself (24)
• Need someone who is knowledgeable about the area
  (22)
• Convenience Speed
• No time to do it myself (including convenience)
  (14)
• Quicker result (2)
• Personal connection
• Someone advised using an agent (12)
• Friend or family member is an agent (3)
• Other reasons
• Access (for purchase) and Exposure (for sale)
  (6)
• Didn't consider alternatives to using an
  agent/used agent in past (5)
• Other miscellaneous (12)

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Findings II. Provision of Real Estate Services
/ Use of Agents

• Specific agents used tended to be selected by a
  referral or because of prior connections
  rather than by advertising.
• More than one-quarter mentioned a referral from
  friends or family,
• Another 10 from a business acquaintance or bank
  or mortgage company employee.
• About 20 through personal acquaintance with the
  agents themselves.
• All forms of advertising (yellow pages, websites,
  property and personal ads) received less than 5
  mentions each.
• Only two individuals out of 200 (1) mentioned
  that they were looking specifically for a
  Realtor.

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Findings II. Provision of Real Estate Services
/ Use of Agents

• Only a very small percentage of buyers/sellers
  did not use the services of a real estate agent
  (8).
• Seventeen of the 200 respondents (8) did not use
  an agent in their most recent real estate
  transaction. They mentioned the following
  reasons (In order of frequency)
• They dont need help. See no benefit to using an
  agent. (7 mentions)
• Were purchasing FSBO property/Owner did not want
  to involve agents. (4 mentions)
• Felt the transaction would be more financially
  advantageous without agents involved. (3
  mentions)
• Used a non-agent relative to do the transaction.
  (1 mention)
• New home had its own sales team. (1 mention)
• Internet ad (1 mention)
• Over half of the 17 individuals had conversations
  with one or more agents during the process of
  purchasing (or selling) their home.
• Roughly 60 of buyers/sellers who did not use a
  real estate agent looked at available homes on
  the internet.
• Less frequently mentioned actions by
  buyers/sellers who did not use a real estate
  agent were (most of these related to the sale of
  homes)
• Placing a newspaper ad or classified (24)
• Placing home on an internet site (18)
• Placing a sign in the yard (18)
• Holding an open house (6)

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Findings II. Provision of Real Estate Services
/ Use of Agents

• The data do not corroborate a large decline in
  the use of real estate agents in Connecticut.
• 92 used an agent during their last transaction.
• Of the seven percent that did not use an agent,
  and only half of those said that they had ever
  used an agent in the past.
• 87 of the 52 first time buyers also used a real
  estate agent.
• 90 agreed with the statement I would be likely
  to use the services of a real estate agent in the
  future if I buy a home.
• 72 Strongly agree.
• 18 Somewhat agree.
• 5 Somewhat disagree.
• 5 Strongly disagree.
• 84 agreed with the statement, I would be likely
  to use the services of a real estate agent if I
  sell a home.
• 62 Strongly agree.
• 23 Somewhat agree.
• 8 Somewhat disagree.
• 7 Strongly disagree.

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Contents

• Why We Did This Research
• Background / Objectives Methodology
• Executive Summary and Implications
• Findings
• I. Connecticut Consumer Market
• Demographics, motivations for purchase
• II. Changes in Provision of Real Estate Services
• Use of real estate agents
• III. Opinions about Real Estate Agents
• Image of, and experience with agents the
  Realtor brand
• IV. Direction for Image Campaign Strategy
• Go/no-go recommendation, and why

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Findings III. Opinions about Real Estate
Agents Image, Experience

• Real estate agents stand out as a good
  information source and as technologically
  proficient. Roughly 3 in 4 buyers/sellers see
  agents as trustworthy and able to help them get
  the best price with the least hassle.
• 97 agree that Real estate agents are a good
  source of information about buying and selling a
  home.
• 88 agree that Real estate agents make use of
  the latest technology.
• Slightly less agreement among 18-29 year olds
  (82 strongly or somewhat agree, and 36
  strongly agree).
• 76 agree that Real estate agents are
  professionals you can trust.
• 69 agree that By using a real estate agent, I
  can get the best price with the least hassle.

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Findings III. Opinions about Real Estate
Agents Image, Experience

• For the most part, respondents recent
  experiences with real estate agents have been
  very satisfactory.
• Those who used real estate agents were asked How
  satisfied were you with your real estate agent?
  Would you say you were
• Very satisfied (68)
• Somewhat satisfied (20)
• Not very satisfied (4)
• Not at all satisfied (8)
• Those 22 respondents who were less than satisfied
  mentioned the following types of problems
• Wanted more time and attention from the agent
  (lack of attention to detail, should have shown
  more homes and/or previewed the property,
  displayed a lack of patience).
• I would like more one-on-one contact with the
  agent. I always felt rushed and had a lot of
  last minute surprises.
• I would suggest that the real estate agent should
  do his or her job and not get upset when we dont
  buy the first house we looked at. I also believe
  the agent tried to charge 50 dollars an hour to
  see another house.
• Agent should have been more knowledgeable about
  the process.
• I wouldnt have involved a friend in the
  purchasing of my home. I believe she was
  inexperienced.
• Lack of candor, erroneous information, didnt
  warn us about.
• I would suggest that agents be more aware of the
  status of the home before they sell them. I am
  open to thirty thousand dollars that I must do.
  I found out that they took out a bearing wall
  with no support to make up for it.

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Findings III. Opinions about Real Estate
Agents Image, Experience

• Home buyers are looking for an agent to listen to
  their needs, to provide access to a variety of
  properties which conform to those needs, and to
  not pressure their purchase decisions.
• Respondents were asked the following open-ended
  question
• Assume for a moment that you are looking to use
  the services of a real estate agent to help you
  purchase a home.
• What would be the most important important thing
  a real estate agent could do for you?
• The most frequent response was that buyers are
  looking for real estate agents to listen
  carefully to the buyers needs and requirements
  for the home they want to purchase, then to find
  homes on the market that meet these
  needs/requirements.
• They expect the agent to be a good listener, and
  to be patient as the buyer makes decisions
  regarding properties.
• They do not like to feel rushed.
• They like agents who are flexible, knowledgeable
  and available.
• They resent spending time their own time looking
  at homes which do not confirm to their needs.
• They feel the agent should have previewed
  properties.
• They dont like to feel agents are pressuring
  them to purchase properties which do not conform
  to their needs or requirements.
• Honesty, integrity and accuracy is key in
  communication.
• Be honest with regard to the property instead of
  sticking properties down your throat for a
  commission.

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Findings III. Opinions about Real Estate
Agents Image, Experience

• Sub-themes mentioned included knowledge of the
  market area, advocacy on home buyers behalf,
  oversight of the transaction, and broad and
  timely access to properties.
• Sub-themes mentioned were
• Knowledge of the area.
• I think the most important thing a real estate
  agent could do would be to know a lot about the
  area and give us objective opinions.
• Good deal/fair price/reasonable commission.
• The most important thing a real estate agent
  could do for me would be to lower his price.
• Timely access to multiple properties in price
  range.
• Find me a nice safe neighborhood.
• Get me in first to all the properties. By that I
  mean get me in before anyone else.
• Aggressive advocate on buyers behalf.
• Be in my corner and basically be an advocate for
  the buyer. They should make sure I am placed
  with a home that the agent would want to have as
  well.
• Making sure the transaction is completed
  correctly.
• Help me through the process step by step.

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Findings III. Opinions about Real Estate
Agents Image, Experience

• The term Realtor is not well differentiated
  from the term real estate agent.
• Only one-third of home buyers thought that Being
  a Realtor is different than being a real estate
  agent.
• Being a Realtor is also not a criterion
  respondents used when selecting their specific
  real estate agent.
• Only two respondents out of 200 (1) mentioned
  this.

Note please This question forced home
buyers/sellers to associate an attribute either
with a Realtor or with a Real Estate Agent. It
was not an assessment of Realtor performance on
the attribute.
33 say there is a difference
67 either disagreed or said they didnt know
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Findings III. Opinions about Real Estate
Agents Image, Experience

• The term Realtor has greater association with
  many positive statements describing real estate
  professionals.
• Respondents were asked,
• Now Im going to read several statements that
  may describe the terms real estate agent or
  Realtor. Based on anything you know or any
  impressions you have, please tell me if you
  associate the statement more with real estate
  agents or with Realtors.
• While respondents tend to associate most
  statements more with Realtors than with real
  estate agents, the differences on some statements
  are not great, and respondents volunteered
  frequently that they thought there was no
  difference.
• Most statements tend to be associated more with
  Realtors than with real estate agents.
• This bears out what we heard in the Phase 2
  In-depth interviews, regarding Realtors being
  more of something.

Analysis is based on 66 respondents who agreed
that being a real estate agent was different than
being a Realtor.
The term Realtor does not appear to connote
greater knowledge and professionalism.
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Contents

• Why We Did This Research
• Background / Objectives Methodology
• Executive Summary and Implications
• Findings
• I. Connecticut Consumer Market
• Demographics, motivations for purchase
• II. Changes in Provision of Real Estate Services
• Use of real estate agents
• III. Opinions about Real Estate Agents
• Image of, and experience with agents the
  Realtor brand
• IV. Direction for Image Campaign Strategy
• Go/no-go recommendation, and why

31
Findings IV. Direction for Image Campaign /
Communications Strategy

• A go or no-go recommendation regarding a
  Connecticut Association of Realtors sponsored
  image campaign hinges on critical analysis of
  agents image, recent experiences with agents, as
  well as awareness of the Realtors brand.
• Image of real estate agents in Connecticut is
  very positive. (Measured across four dimensions
  trustworthiness, knowledge, price/convenience,
  and use of technology)
• As CAR members form the lions share of all real
  estate agents in the state, a positive image of
  real estate agents in general, will halo the
  CAR membership.
• What customers want from real estate agents may
  or may not be consistent with how CAR promotes
  its membership.
• Actual recent experience with Connecticut real
  estate agents is positive. (Measured by
  satisfaction and likelihood of use in the
  future.)
• Positive experiences bode well for future usage
  of realtors, and for polishing the the agent
  image in a field so heavily driven by referrals.
• Awareness of the Realtor brand is low.
  (Measured by mention of Realtor brand as a
  criterion in agent selection, as well as
  distinctions drawn between Realtors and real
  estate agents.
• A campaign may be recommended if the survey shows
  remedial weaknesses in image of both Realtors
  and real estate agents, coupled positive current
  experiences with Realtors.
• The following page summarizes these key
  decision-making criteria.

32
Findings IV. Direction for Image Campaign /
Communications Strategy

• In terms of a go/no go decision on the value of
  a special image campaign, the evidence suggests
  Connecticut Association members are already in a
  strong position among home buyers/sellers.
• Especially when we consider that more than 3 of 4
  real estate agents in Connecticut are members of
  CAR.

Experience with Real Estate Agents
Image of Real Estate Agents
Awareness of Realtors Brand
Positive Image Expectations
High Satisfaction with Agents
Low Awareness Undifferentiated

• Agents seen as
• Knowledgeable (97).
• Embracing technology (88).
• Trustworthy (76).
• Get the best price with least hassle (69).
• Believe most people should use an agent when
  buying or selling (83 for purchase 81 for
  sale).
• Value the traditional package agents bring to the
  table i.e., personal attention and knowledge of
  the process

• 88 satisfaction with last agent used.
• 90 expect to use an agent in the future, if buy.
• 84 expect to use an agent in the future, if
  sell.
• First-time buyers were just as satisfied.
• And even more likely to use agents in the future.
• 96 for purchase
• 98 for sale

• Buyers dont look for Realtor when selecting a
  real estate agent.
• Only one-third (33) see a distinction between
  being a Realtor and real estate agent.
• Lack of agreement as to what that distinction is.
  Many have no idea.

33
Findings IV. Direction for Image Campaign /
Communications Strategy

• If it were our money, we would not initiate a
  special campaign directed at consumers at this
  point. Heres why.
• Continuation of the national campaign should
  impact positively the image of CAR members in
  Connecticut.
• Home buyers/sellers see real estate agents
  positively, perhaps in part due to this campaign,
  and more than 3 of 4 agents are members of the
  Connecticut Association of Realtors there is
  little potential gain for CAR to leverage.
• There is little or no gap between agents image
  and actual experience that would need to be
  remedied by an image campaign. Home buyer/seller
  experiences with real estate agents are
  consistent with agents positive image.
• There is little data suggesting a decline in
  usage of real estate agents vis-à-vis
  competitors.
• High proportions of buyers/sellers are using
  agents, and for those who dont, there is little
  evidence of dissatisfaction with real estate
  agents or with Realtors or interest in
  alternative sources of service.
• What home buyers seek in an agent are the core
  elements of the Realtor value proposition
• Personal attention,
• Competent knowledge source about real estate
  issues, and
• Access to a selection of homes meeting their
  needs and requirements.
• A (muddy/unfocused) awareness/understanding of
  what a Realtor is, may not necessarily be a bad
  thing.
• Two-thirds (67) of home buyers/sellers had no
  inclination to think real estate agents and
  Realtors were different and, in fact, both terms
  describe the bulk of individuals selling real
  estate within Connecticut.
• Where associations were made between Realtors
  and real estate agents, they tended on balance to
  favor Realtors e.g., a national professional
  association, continuing education, high ethical
  standards, large network to draw buyers,
  advocates for private ownership, and being
  up-to-date on legal issues affecting real estate
  purchase and sale.

34
Findings IV. Direction for Image Campaign /
Communications Strategy

• So if a special Connecticut image campaign is not
  undertaken, what elements of a communications
  strategy flow from this research?
• There is very little distinction in the minds of
  buyers/sellers between Realtor and real estate
  agent.
• And yet there is some perception of possible
  improvement in agent performance, focused on
  several elements of the Connecticut Association
  of Realtors value proposition.
• Personal attention,
• Competent knowledge source about real estate
  issues,
• And in terms of expectations, it is important to
  buyers/sellers that their agent
• 1) Listen to their specific requirements,
• 2) Locate properties/buyers meeting these
  requirements,
• 3) Is patient and 4) Is honest.
• Connecticut Association of Realtors members
  should be fully aware of these areas identified
  by Connecticut home buyers/sellers as key to
  their expectations of real estate agents.
  Mention of these areas will resonate with
  consumers.
• Compare these expectations to the core elements
  of the National Association campaign along with
  the areas of difference between Realtor and
  real estate agent as confirmed by the research.
  CAR members should be reinforcing those areas
  where consumers already see differences 1)
  legal knowledge, 2) continuing education, 3)
  national association, 4) large network to draw
  buyers, 5) high ethical standards, 6) private
  property advocates.
• And continue educating consumers on those areas
  were no difference was perceived
• Professional conduct.
• Knowledge of the real estate profession.
• Observation Home buyer/seller comments suggest
  a duality about the relationship with their agent
  that is, consultation-based vs.
  commissioned-based buying/selling.
• Listening, locating appropriate
  properties/buyers, knowledge, patience, and
  integrity reinforce the positive
  consultation-based perception.

Each mentioned by home buyers/sellers who offered
suggestions for improvement.
35
Contents

• Why We Did This Research
• Background / Objectives Methodology
• Executive Summary and Implications
• Findings
• I. Connecticut Consumer Market
• Demographics, motivations for purchase
• II. Changes in Provision of Real Estate Services
• Use of real estate agents
• III. Opinions about Real Estate Agents
• Image of, and experience with agents the
  Realtor brand
• IV. Direction for Image Campaign Strategy
• Go/no-go recommendation, and why

36
Appendix. Detailed Analysis on Agent
Trustworthiness

• As a result of Working Group questions, we
  analyzed the issue of trustworthiness against
  answers to several other questions, to explore
• Possible relationships between agent
  trustworthiness and demographics.
• The relationships between agent trustworthiness
  and satisfaction with their real estate agent.
• Possible relationships between agent
  trustworthiness and opinions regarding use of
  real estate agents in the future.

Note Results presented in this Appendix are
based on 42 respondents (out of 200) who either
strongly or somewhat disagreed with the statement
Real estate agents are professionals you can
trust. Since these results are based on small
numbers of respondents, implications are
therefore tentative.
37
Appendix. Detailed Analysis on Agent
Trustworthiness (cont.)

• The perception of agent untrustworthiness was not
  greatly associated with any specific demographic.
  However, some interesting variations are noted
  below.

Possible lesser perception of trustworthiness
among older individuals.
New Haven county had a disproportionate
percentage of favorable ratings (12 of the low
trustworthiness ratings vs. 20 overall).
42 respondents who somewhat or strongly
disagreed with the statement "Real estate agents
are professionals you can trust."
38
Appendix. Detailed Analysis on Agent
Trustworthiness (cont.)

• Level of satisfaction with the recent experience
  with a real estate agent may play out in
  respondents image of real estate agents as
  trustworthy however, image of trustworthiness of
  real estate professionals transcends recent
  experience.
• Most of those who were dissatisfied with the
  agent used most recently also disagreed with the
  statement real estate agents are professionals
  you can trust. (77)
• 41 strongly disagree
• 36 somewhat disagree
• Implication Perceived lack of trustworthiness of
  their own real estate agent may be a key factor
  in coloring respondents image of agents as a
  whole.
• Of the four image statements (good information
  source, best price with least hassle, up-to-date
  on technology, trustworthiness), variation in
  trustworthiness had the strongest association
  with similar variation in satisfaction.
• Implication Ability to trust an agent may be
  importantly associated with overall satisfaction.
• However, of the individuals who disagreed with
  the statement real estate agents are
  professionals you can trust, more than half were
  satisfied with their most recent experience with
  an agent. (54)
• Implication A big factor driving the perception
  of agents as not trustworthy may also be based on
  something other than the most recent experience
  either some prior experiences perhaps or things
  respondents have read and heard.
• The graphic on the following page illustrates the
  convergence of negative recent real estate agent
  experiences and image of agents as untrustworthy
  (in general).

39
Appendix. Detailed Analysis on Agent
Trustworthiness (cont.)
The graphic below illustrates the text on the
previous page, based on the intersection of
respondents scores in two areas Dissatisfaction
with agent, and Perception of agents in general
as untrustworthy.
Note Only 20 out of 161 respondents were
satisfied with their own agent and thought that
agents as a whole were untrustworthy.
Dissatisfied, but trustworthy N5
Dissatisfied, and not trustworthy N17
Satisfied, but not trustworthy N20
Respondents who were very or somewhat
dissatisfied with their recent experience with a
real estate agent. N22
Respondents who thought agents in general were
not trustworthy. N37 (3742-5 who did not give
a satisfaction rating)
40
Appendix Detailed Analysis on Trustworthiness
(cont.)

• Relative to other image or satisfaction
  deficiencies, untrustworthiness does not
  disproportionately affect buyers/sellers
  opinions regarding whether people should use real
  estate agents, or whether respondents themselves
  will use an agent in the future.

Percentage Agreement on 4 statements regarding
use of real estate agents (BaseRespondents
giving low ratings on each satisfaction/ image
item)
About half of respondents who gave unfavorable
ratings on both satisfaction and trustworthiness
still responded positively to the four statements
regarding use of agents.