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Toward an Understanding of Real Estate Homebuyer Internet Search behavior: An Application of Ocular Tracking Technology

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  • Michael Seiler
  • Poornima Madhavan
  • Molly Liechty

Abstract

This paper examines the eye movements of homebuyers searching for homes for sale on the Internet. Total dwell time (how long a person looks at the photo), fixation duration (time spent at each focal point), and saccade amplitude (average distance between focal points) significantly explain someone's opinion of the home and its value. The sections that are viewed first are the photo of the home, the quantitative description section, distantly followed by the real estate agent remarks section. Finally, charm pricing, the marketing technique where agents list properties at slightly less than round numbers, works in opposition to its intended effect. Given that homebuyers dwell significantly longer on the first home they view, and since charm pricing typically causes a property to appear towards the end of a search when sorted by price from low to high, we question the wisdom of using a charm pricing marketing strategy.

Suggested Citation

  • Michael Seiler & Poornima Madhavan & Molly Liechty, 2012. "Toward an Understanding of Real Estate Homebuyer Internet Search behavior: An Application of Ocular Tracking Technology," Journal of Real Estate Research, Taylor & Francis Journals, vol. 34(2), pages 211-242, January.
    • Handle: RePEc:taf:rjerxx:v:34:y:2012:i:2:p:211-242
    DOI: 10.1080/10835547.2012.12091333
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    Cited by:

    1. Eli Beracha & ZhaoZhao He & M. Babajide Wintoki & Yaoyi Xi, 2022. "On the Relation between Innovation and Housing Prices – A Metro Level Analysis of the US Market," The Journal of Real Estate Finance and Economics, Springer, vol. 65(4), pages 622-648, November.
    2. Eli Beracha & Michael J. Seiler, 2015. "The Effect of Pricing Strategy on Home Selection and Transaction Prices: An Investigation of the Left-Most Digit Effect," Journal of Housing Research, Taylor & Francis Journals, vol. 24(2), pages 147-161, January.
    3. Ran, Tao & Yue, Chengyan & Rihn, Alicia, 2015. "Are Grocery Shoppers of Households with Weight-Concerned Members Willing to Pay More for Nutritional Information on Food?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-18, November.
    4. Cardella, Eric & Seiler, Michael J., 2016. "The effect of listing price strategy on real estate negotiations: An experimental study," Journal of Economic Psychology, Elsevier, vol. 52(C), pages 71-90.
    5. Haghbayan Sara & Malek Mohammad Reza & Tashayo Behnam, 2020. "Visual Description of the Indoor Space of Real Estate in Crowd-Sourcing Environments," Real Estate Management and Valuation, Sciendo, vol. 28(3), pages 91-103, September.
    6. David Koch & Gunther Maier, 2015. "The influence of estate agencies’ location and time on Internet," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(2), pages 147-171, October.
    7. Matheus Fernando Moro & Anny Key Souza Mendonça & Dalton Francisco Andrade, 2023. "COVID-19 pandemic accelerates the perception of digital transformation on real estate websites," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2165-2181, June.
    8. Eli Beracha & Michael Seiler, 2014. "The Effect of Listing Price Strategy on Transaction Selling Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 49(2), pages 237-255, August.
    9. Kreppmeier, Julia & Laschinger, Ralf & Steininger, Bertram I. & Dorfleitner, Gregor, 2023. "Real estate security token offerings and the secondary market: Driven by crypto hype or fundamentals?," Journal of Banking & Finance, Elsevier, vol. 154(C).
    10. Michael J. Seiler, 2014. "Measuring the Impact of Eminent Domain Partial Takings: A Behavioral Approach," International Real Estate Review, Global Social Science Institute, vol. 17(2), pages 137-156.
    11. Sheen Low & Fahim Ullah & Sara Shirowzhan & Samad M. E. Sepasgozar & Chyi Lin Lee, 2020. "Smart Digital Marketing Capabilities for Sustainable Property Development: A Case of Malaysia," Sustainability, MDPI, vol. 12(13), pages 1-40, July.
    12. Kimberly F. Luchtenberg & Michael J. Seiler & Hua Sun, 2019. "Listing Agent Signals: Does a Picture Paint a Thousand Words?," The Journal of Real Estate Finance and Economics, Springer, vol. 59(4), pages 617-648, November.
    13. Zarqa Shaheen Ali & Jiachen Song, 2022. "Digital Platforms and Real Estate Industry during COVID-19," International Real Estate Review, Global Social Science Institute, vol. 25(4), pages 499-523.
    14. Kreppmeier, Julia & Laschinger, Ralf & Steininger, Bertram & Dorfleitner, Gregor, 2023. "Real Estate Security Token Offerings and the Secondary Market: Driven by Crypto Hype or Fundamentals?," Working Paper Series 23/6, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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