The following is a summary of the results
This survey of homebuyers in five North Carolina cities [Charlotte, Greensboro, Hickory, Raleigh, and Wilson] was designed to develop a profile of the average homebuyer and to relate this profile to the services provided by real estate brokers. In each survey area, a random sample of residential properties that sold in the city or surrounding area within the same county during 1979 was selected from the Register of Deeds office and served as the basis for the survey. The survey attempted to identify the broker's role in the buyer's home-selection decision and to determine the proportion of housing transctions handled by brokers.
The average buyer in 1979 paid $56,205 for a home. This was approximately 2.2 times the buyer's annual family income. [New homes sold for an average of $61,241, while existing homes sold for an average of $53,631.] 63% of all homebuyers were previous homeowners. The majority of buyers lived previously in their county of residence prior to the purchase of a home. 86% of all buyers were married, and of these, 62% were families in which the husband and wife both worked. Buyers had an average of one child per household, but 43% of buyers had no children.
62% of buyers bought an existing home. Among buyers of existing homes, 51% reported the previous owner remained in the same county. [First-time homebuyers and buyers who were previous residents of the county were likely to spend somewhat more time searching for a home.] Among married homebuyers the responsibility of searching for a iome, in most cases, was shared by both husband and wife.
The majority of buyers purchased their home with conventional financing and only 26% obtained an FHA or VA loan. However, FHA and VA financing was much more popular among first-time homebuyers. 43% of first-time buyers obtained an FHA or VA loan.
78% of buyers reported they used the services of a real estate broker to aid them in their housing search. Most buyers selected a broker based on 1) the recommendation of a friend [33%], 2) his general reputation [22%1, or 3) other means, including neighborhood search [25%]. 73% purchased a home that was listed by a broker. [Brokers handle 82% of existing home sales and 69% of all new homes sold.] However, only 43% reportedly selected their home on the basis of the recommendation of a broker. The remaining 57% selected a home through 1) neighborhood search [32%1, 2) other means, including the recommendation of friends [17%], or 3) the newspaper [9%]. [The survey suggests that it is a mistake to overestimate the role of the broker in guiding consumers in their housing choice. Although the broker's role is important, it is not dominant. Neighborhood search and the recommendation of friends are more important information sources to homebuyers than are broker recommendations.]
Brokerage firms associated with national or regional franchises (or associations) accounted for an average of 36% of all residential housing sales. Only about 33% of all sales were listed through the local area MLS; however, MLS listings accounted for about 46% of the total market for existing homes.
Homebuyers who employed a real estate broker to aid them in their housing search were more likely to be 1) new residents of the county, 2) married, 3) have children, and 4) have somewhat higher incomes 4. than the average buyer. They were also more likely to purchase 1) an existing home, 2) one that was listed by a broker, and 3) one that was listed through MLS. First-time homebuyers were found to be no more likely than the average buyer to consult a broker when looking for a home or to buy a home listed by a broker. Homesellers who moved out of the county were more likely than others to list their home with a broker and to sell their home through MLS. Correlation analysis revealed little difference between the customers of franchised brokers and those of non-franchised brokers.
The level of satisfaction expressed by buyers with the services of real estate brokers was found to be quite high. A large majority of buyers said they would recommend the broker through whom they bought their home to a friend (88%) and would list their own home with the same broker when they sell (79%). No statistically significant differences were found in the level of buyer satisfaction based on the race, income, or sex of respondents.