Despite a market slowdown and repeated attempts by Internet-only companies to wrest business away, real estate industry still has a firm hold on home sellers and buyers in the United States.

In the September 2006 survey of consumers, the Discover Small Business Watch found that traditional real estate agents did well with home buyers, and exceedingly well with home sellers.  The survey shows that people selling their homes see much more value in having personal help when seeking buyers. Sixty-one percent of home sellers said they would prefer the services of an agent versus only 4 percent who said they would prefer an online service to help sell their homes.

Online services fared much better with buyers. Only half (49 percent) of buyers said they would prefer a real estate agent for their home search, while 22 percent would rather use an online service.  The news comes despite a shift in the real estate market, with the National Association of Realtors reporting Monday the first year-over-year drop in home prices in 11 years.

Yet trust remains a crucial quality for home sellers. In the September 2006 survey, 47 percent of respondents said they would choose someone they “know and trust” over other qualities when they sell their homes.  A real estate agent’s sales record was the second-most influential factor with 16 percent, while a referral was third with 11 percent.

But the results don’t define a clear line of demarcation between brick-and-mortar real estate agents versus online real estate companies. It is, in fact, difficult to draw a clear line.   A recent survey published by the National Association of Realtors found that 77 percent of Americans used the Internet to search for homes in 2005.

The next-largest source of information was the yard sign, which was mentioned by 71 percent of respondents.  But the survey also found that eight out of 10 buyers who used the Internet to find a home used an agent to help complete the transaction.

The NAR survey found that 63 percent of people who did not use the Internet used an agent to close the deal.  The survey found that non-Internet users are more likely to purchase directly from an owner or a builder and knew of the opportunity in advance.

The percentage of the selling price of the house which they receive as payment has also been the subject of much discussion.

NAR and its 1.3 million members have faced increasing onslaughts from discount brokers, referral services, and online firms, but the industry has managed to adapt to the Internet at its own pace.

  Edwina Baniqued