How Are Buyers and Sellers Finding Agents in 2023?

When it comes to hiring a real estate agent, there are typically hundreds, if not thousands, of options for consumers to tap. The difficulty of finding a qualified and experienced agent who's familiar with certain types of transactions can be a big challenge for consumers, which is one reason why referral programs and search portals have become so popular (and lucrative).

How are buyers and sellers finding their agents in 2023? The latest Profile of Home Buyers and Sellers from the National Association of REALTORS® (NAR) sheds some light on the situation.

Where Are Buyers Finding Their Agents?

Would it surprise you to learn that a maximum of 14% of homebuyers find their real estate agent through a search portal? According to NAR, that's the reality of the situation.

The report indicates that direct referrals (from a friend, a family member, or neighbor) are how the largest proportion of buyers (43%) find their buyer's agent. Repeat business is the second-most-popular way that agents connect with buyers: 13% of homebuyers who responded to the survey said their agent was one they'd worked with in the past.

Only 7% of homebuyers found their agent when they inquired about a specific property online. And another 7% of buyers found their agent through a website with no specific reference (such as a specific property listing).

The survey doesn't differentiate between leads generated by a broker or agent website and leads generated by a search portal. It's unlikely that the full 14% of buyers who found their agents online are using portals, but it's also impossible to tell how those leads break down between portals and websites managed by a real estate professional.

Where Are Sellers Finding Their Agents?

Just like buyers, the largest proportion of sellers find their agent through a referral from a personal connection: a friend, a family member, a neighbor. This described 39% of sellers queried for the NAR report, 43% if you include agent and broker referrals, and 44% if you add in employer or relocation company referrals.

And just like buyers, repeat business was also an important way that sellers chose their agent: 26% of sellers used the same agent as they had for a previous transaction.

Sellers seemed to have more direct in-person contact with their prospective agents than buyers did. While buyers seemed to restrict their search for an agent to referrals and the internet, a total of 10% sellers reported finding agents by way of:

• Personal contact by agent: 4%
• Visiting an open house and meeting agent: 3%
• Direct mail: 2%
• Walking into an office and the agent was on duty: 1%

Sellers also seem more likely to leverage social media than buyers. A total of 5% of sellers found their agent on an (undefined) website, and they also reported finding agents through social media (2% total). A small number of sellers (3% total) said they found an agent through outlets like the Yellow Pages, for-sale and open-house signs, or through some kind of swag-based advertising campaign (such as a fridge magnet or a calendar).

What's missing from your own campaigns to attract buyers and sellers? Are you tapping into referrals as much as you could be? Or leveraging your website and social media platforms? If your business plan for 2024 was to pour more money into search portals, it might be time to rethink that strategy.

Related Reading

• 10 Things to Do When you Receive a Referral
• How Do Real Estate Agents Get Listings?