J.D. Power and Associates Reports: Importance of Extra Services Increases as Home...

J.D. Power and Associates Reports: Importance of Extra Services Increases as
Home Buyers and Sellers Seek Value From Real Estate Companies
Among Home Buyers, Keller Williams Ranks Highest in Customer Satisfaction for
a Second Consecutive Year, While Coldwell Banker Ranks Highest among Home
Sellers

WESTLAKE VILLAGE, Calif., July 30 /PRNewswire/ -- Extra services provided by
real estate companies -- such as inspections, appraisals and legal and moving
company recommendations -- have become increasingly important to home buyers
and sellers, according to the J.D. Power and Associates 2009 Home Buyer/Seller
Study(SM) released today.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)

The study, now in its second year, measures customer satisfaction of home
buyers and sellers with the largest national real estate companies. Overall
satisfaction is determined by examining three factors for the home-buying
experience: agent (47%); office (28%); and package of additional services
(25%). Four factors are examined for the home-selling experience: agent
(34%); marketing (34%); office (17%); and package of additional services
(15%).

For both buyers and sellers, the agent is still the most important driver of
overall satisfaction. However, the importance of agents has declined
substantially from 2008, while the importance of additional services has
increased considerably -- by 12 percentage points among buyers and 8
percentage points among sellers. In addition, actual usage of many of these
services has decreased from 2008, likely due to cutbacks made by real estate
companies in response to a depressed market.

Comparison of Additional Service Usage-2008 vs. 2009

Home Inspection Home Appraisal Home Warranty
--------------- -------------- -------------
2008 2009 Difference 2008 2009 Difference 2008 2009 Difference
---- ---- ---------- ---- ---- ---------- ---- ---- ----------
Home-Buyer
Segment 67% 51% -16% 53% 48% -5% 40% 35% -5%
--------- -- -- --- -- -- -- -- -- --
Home-Seller
Segment 62% 51% -11% 58% 55% -3% 46% 35% -11%
--------- -- -- --- -- -- -- -- -- ---

"In a tight market, every aspect of service offered will be scrutinized very
closely," said Jim Howland, senior director of the real estate and
construction practice at J.D. Power and Associates. "For this reason, it is
critical for real estate companies to promote the value that they bring to
buyers and sellers, not only in any additional services they offer, but also
in their agents and operations."

In the home-buyer segment, Keller Williams ranks highest for a second
consecutive year, with a score of 806 on a 1,000-point scale. Keller Williams
also performs particularly well in the agent factor. Following in the rankings
are Coldwell Banker (801) and RE/MAX (798). Coldwell Banker performs
particularly well in the office factor.

Among home sellers, Coldwell Banker ranks highest with a score of 815 and
performs particularly well in all four factors. Keller Williams follows
Coldwell Banker in the segment ranking with a score of 801.

The study finds that the proportion of first-time home buyers has increased
considerably -- to 56 percent in 2009 from 44 percent in 2008. Many of these
first-time buyers may be attracted by improved home affordability and the
perception of a strong buyer's market. This presents both challenges and
opportunities for real estate companies.

"The presence of more first-time buyers is encouraging, as it indicates that
the real estate market is returning to more normal activity, with fewer
speculators," said Howland. "However, real estate companies and agents must
carefully manage first-time buyer expectations. Although these buyers may
believe otherwise, they must still overcome the traditional barriers to
purchasing a home, such as being able to fund down payments, closing costs and
monthly payments. Solid advice and service from agents may assuage these
first-time buyers' concerns and build customer loyalty."

Additional noteworthy study findings include the following:
-- Home sellers report that, on average, 3.2 open houses were conducted
for
their property in 2009, compared with 4.5 in 2008.

-- Approximately 64 percent of home sellers used a Web site listing to
market their home in 2009, up from 61 percent in 2008.

The 2009 Home Buyer/Seller Study includes more than 3,100 evaluations from
2,801 respondents who bought or sold a home between April 2007 and June 2008.
The study was fielded between April and June 2009.

For more information, read an article or view home buyer ratings and home
seller ratings at JDPower.com.

Customer Satisfaction Index Ranking
Home-Buyer Segment J.D. Power.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Keller Williams 806 5
Coldwell Banker 801 5

RE/MAX 798 3
Century 21 795 3
Home Buyer Segment Average 791 3
Prudential 781 3

ERA 744 2
GMAC 731 2

Customer Satisfaction Index Ranking
Home-Seller Segment J.D. Power.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Coldwell Banker 815 5

Keller Williams 801 4

Home-Seller Segment Average 786 3
RE/MAX 784 3

Century 21 770 2
Prudential 753 2
NOTE: Included in the study, but not ranked due to small sample size are
ERA and GMAC.

Power Circle Ratings Legend:
5 - Among the best
4 - Better than most
3 - About average
2 - The rest

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement, Web
intelligence and customer satisfaction. The company's quality and
satisfaction measurements are based on responses from millions of consumers
annually. For more information on home building and home improvement, car
reviews and ratings, car insurance, health insurance, cell phone ratings, and
more, please visit JDPower.com. J.D. Power and Associates is a business unit
of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global
information services provider meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power
and Associates. The Corporation has more than 280 offices in 40 countries.
Sales in 2008 were $6.4 billion. Additional information is available at
http://www.mcgraw-hill.com.

J.D. Power and Associates Media Relations Contacts:
John Tews; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103;
media.relations@jdpa.com

No advertising or other promotional use can be made of the information in this
release without the express prior written consent of J.D. Power and
Associates. www.jdpower.com/corporate

SOURCE J.D. Power and Associates

John Tews; Troy, Mich., +1-248-312-4119; media.relations@jdpa.com, or Syvetril
Perryman; Westlake Village, Calif., +1-805-418-8103; media.relations@jdpa.com,
both of J.D. Power and Associates