Connecticut Association of Realtors ® Brand Strategy Development Initiative

Connecticut Association of Realtors®Brand Strategy Development Initiative Final Report December 2004 Phase 3: Connecticut Home Buyer Survey

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 V. Appendix: Agent Trustworthiness 36 Contents Page

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 Association’s 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.

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 CAR’s 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).

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 V. Appendix: Agent Trustworthiness Contents

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 everused 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.”

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 agent’s 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.

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 reportsatisfaction 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%)

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 don’t 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 didn’t know

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 High Satisfaction with Agents Positive Image; Expectations Low Awareness; Undifferentiated • 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 • 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 • Buyers don’t 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.

Executive Summary and Implications • If it were our money, we would not initiate a special campaign directed at consumers at this point. Here’s 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 don’t, 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.

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. • Not listening, bringing inappropriate properties or buyers, showing impatience, providing incorrect information, or lack of honesty/candor reinforce the negativecommissioned-based perception. Each mentioned by home buyers/sellers who offered suggestions for improvement.

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.

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.

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.

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.

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%)

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.”

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 don’t 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%)

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.

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.”

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 don’t 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 wouldn’t have involved a friend in the purchasing of my home. I believe she was inexperienced. • Lack of candor, erroneous information,” “didn’t 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. …

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 buyer’s 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 don’t 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.”

Findings – III. Opinions about Real Estate Agents – Image, Experience Sub-themes mentioned included knowledge of the market area, advocacy on home buyer’s 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 buyer’s 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.

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 didn’t know

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 I’m 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.

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 lion’s 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 it’s 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.

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 High Satisfaction with Agents Positive Image; Expectations Low Awareness; Undifferentiated • 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 • 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 • Buyers don’t 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.

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. Here’s 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 don’t, 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.

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. • Not listening, bringing inappropriate properties or buyers, showing impatience, providing incorrect information, or lack of honesty/candor reinforce the negativecommissioned-based perception. Each mentioned by home buyers/sellers who offered suggestions for improvement.

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.

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."

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).

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 N=5 Dissatisfied, and not trustworthy N=17 Satisfied, but not trustworthy N=20 Respondents who were ‘very’ or ‘somewhat dissatisfied’ with their recent experience with a real estate agent. N=22 Respondents who thought agents in general were not trustworthy. N=37 (37=42-5 who did not give a satisfaction rating)

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 (Base=Respondents 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.

Connecticut Association of Realtors ® Brand Strategy Development Initiative