Why Buyers Use Realtors

As much as 20 to 30 percent of buyers are relocating from other areas or cities. They are referred directly to Realtors in the areas where they are moving. This is a high percentage of buyers that go straight to a Realtor and do not look for individual home owners selling their own homes.

Quite a number of buyers are local(25% or more), but have a home to sell before they can buy a new home. Although a handful of these may try to sell by owner initially, nearly 100% end of with a Realtor to sell their existing home and then use that Realtor to purchase a new home, limiting another group of buyers that will work directly through a Realtor to find a home.

The majority of Realtors advertise themselves to people they know or have done business with. Buyers as well as sellers are referred to them by this group of people. People are comfortable doing business with someone that has passed the test with their friends and associates. Top producing agents depend on this referral business.

Through the above three ways only; anywhere from 70 to 90 percent of the buyers make their purchase through a Realtor. This doesn't even include the buyers that Realtors pickup from various types of advertising. Realtors are able to attract a large number of buyers calling off ads and signs. Due to the high inventory of homes advertised, Realtors are able to match buyers with homes that meet their needs. Buyers rarely purchase the home they call on. The disadvantage of the "for sale by owner" is they only have one home to show the buyer. Buyers come to Realtors due to the wide selection of homes to choose from.

Buyers use Realtors in particular to get needed information about neighborhoods, tax rates and home value comparisons. Buyers also want to have representation in the transaction by a professional and to have peace of mind about their purchase. This service is free to buyers.