The Order of MLS Listing Photographs Effect on First-Time Homebuyers’ Interest
The Order of MLS Listing Photographs Effect on First-Time Homebuyers’ Interest
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Criteria:
First-time homebuyer- an individual who has not owned a home in three years or more
Currently living in Washington state
Researcher: Skylar Gallucci
Email: gallusky000@stu.sumnersd.org
AP Teacher: Joshua Gaydos
Email: joshua_gaydos@sumnersd.org
There is a problem in the real estate industry. Despite the vast amount of resources provided to buyers through organized real estate databases, photos are being randomly ordered with varying quality on MLS listing websites. MLS listings websites are important because they lead to a higher probability of a shorter sale (Hendel et al., 2009). Random ordering has been negatively impacting both buyers and brokers because real estate agents are failing to market listings to their maximum potential. A possible cause of this problem is the recent emergence of online databases and lack of visual research. MLS listings have only recently become the industry normality for real estate agents, leading to buyers and sellers having more power in the industry (Gee, 2010; Crowston et al., 1999; Saber & Messinger, 2010). Since MLS listings are have only recently become popular, there has not been a vast amount of time for research to be performed. Perhaps a study which investigates the specific ordering sequence of listing photos through an explorative survey would remedy this situation.
How does the order of MLS listing photographs affect first-time homebuyers’ interest in Washington real estate?
Essentially, the current trend to ordering photographs is whatever each individual believes is the best method to sell the house. If there was research performed pertaining to the ordering sequence of photographs it could lead to higher buyer interest. Although the aims of this specific study are restricted by both geographical location and type of homebuyers, it opens up a pathway for many other more equipped researchers to follow this research and expand it.
At the beginning of this study, I believed that if there were three different formats of ordering MLS listing photographs- Order 1 (Kitchen, Master Bedroom, Exterior), Order 2 (Master Bedroom, Exterior, Kitchen), and Order 3 (Exterior, Kitchen, Master Bedroom). Order 3 would increase buyer's interest the most because exteriors are the first visual that an individual would see when touring the house in person.
The research was conducted using a non-experimental, descriptive design. Quantitative data was collected as a result of this design. Three different quantitative surveys were designed and distributed using a complex model. Raw quantitative data was the only data collection method necessary to investigate perceived visual preferences. Specifically, one of three surveys was randomly assigned to each participant, with the only difference being the order of the visual stimuli. Since this was not an experimental design, because a change was not being studied over time and there is no control group, there were still manipulated and responding variables. The manipulated variable served as the three different arrangements of photographs. The responding variable was homebuyer’s interest operationally defined for this study as one’s willingness to seek more information on the real estate observed. Due to the overwhelming lack of knowledge on the subject, the aim was to explore a generally new topic, and determine whether or not the effect of ordering photographs exists and is noteworthy. Pre-existing research on this topic does not exist; therefore, the questionnaire method is necessary to understand the topic.
Note: These definitions are used to define this study alone. They make vary in other studies.
First-time homebuyers- an individual who has not owned a home in three years or more
Interest- willingness to seek more information on the house
Washington State residents- anyone who resides in Washington State at the time they take the questionnaire.
The main limitations of my study were in regards to data collection. Recruitment of participants for this study was only able to take place online. Additionally, a local real estate agent helped with advertising and it was difficult to communicate the needs of the study to her. I would have been able to get in contact with more participants if COVID-19 circumstances were not impacting face-to-face communications. With safety restrictions, I could not go door-to-door recruiting the help of real estate agents to distribute my survey, therefore I only had one local real estate agent assist me.
A total of eight individuals’ answers from the surveys qualified to be part of the study. The first analysis of data, through the means of calculating averages, deemed Order 2 as having the highest on average ratings, while the second and third means of comparing data indicated that Order 1 had been ranked the highest the most times. However, all three data comparisons indicated that Order 3 consistently underperformed compared to Order 1 and Order 2 for this sample of individuals. Ultimately, this suggests that for this group of participants the order in which MLS listing photographs are displayed potentially had an affect on first-time homebuyers’ interest. However, since the data has outliers, the significance of these results cannot be determined, and therefore these results cannot be generalized to the entire population.
The results of this study can inspire other individuals to perform research concerning the real estate industry. There has been very little credible peer-reviewed research related to real estate, and analyzing potential buyers’ thought processes can be very impactful to sales and client satisfaction. Although this study ultimately failed to reach a generalized conclusion, it demonstrates to real estate professionals that this group of individuals, on average, ranked specific image orders higher. Therefore, more research could demonstrate a clear preferred MLS listing format that guarantees quicker sales and greater satisfaction rates. This research, if replicated and improved on, could impact the entirety of MLS listings. Ideally, if this study design were improved on, a particular order would be deemed the ordering sequence that would attract the greatest amount of buyer interest, causing it to become an industry standard across multiple MLS listing platforms.
After examining the quantitative survey results, it can be concluded that the survey results do not show that the order of MLS listing photographs affects first-time homebuyer’s interest in Washington State. Although there are differences amongst the three categories, demonstrating that for this group of participants Order 3 significantly underperformed in all categories, it cannot be determined whether the data is statistically significant since it is not approximately normally distributed. Nevertheless, there were variations in the order means that suggest if this study was replicated, using the necessary sample size, there is a potential that the results could determine that the order of MLS listing photographs affects first-time homebuyer’s interest in the property. Ultimately, this disproved my hypothesis because I believed that Order 3 would outperform the other orders, however it underperformed in all three data comparisons.
This study is oriented towards exploring a largely unexplored niche in research and therefore creates many areas to expand on. The cohort can be increased to include other states besides Washington State. Also, instead of just comparing orders with three different images, the number of images can be expanded to simulate a professionally marketed MLS listing more accurately. Additional questions can also be included asking specifically which order the participants prefer instead of comparing orders after inquiring about the house. Added questions would allow for comparing unconscious and conscious favor for the order of MLS listing photographs. It would also be beneficial to adjust the survey viewing portion to look more similar to an actual MLS listing website. On a more elementary level, pre-existing research never indicated if the serial-position effect (recency and primacy effects) can be implemented in regards to interest. It would be beneficial to potentially prove this relationship and incorporate the serial-position effect into studies on the real estate industry since this specific study assessed ordering effects as a whole. Also, eye-tracking technology could be implemented to analyze differences in focal point based on the order in which the images are presented.
Key Sources:
Crowston, K., Sawyer, S., & Wigand, R. (1999). Real estate war in cyberspace: An emerging electronic market? Information Technology & People, 14(2), 163–183. https://doi.org/10.1108/09593840110695749
Ebbinghaus, H. (1913). Memory; a contribution to experimental psychology. Internet Archive. https://archive.org/details/memorycontributi00ebbiuoft/page/18/mode/2up
Gee, H. (2010). Residential Real Estate Data on the Internet: Benefits and Limitations. Journal of Business & Finance Librarianship, 15(2), 104–122. https://doi.org/10.1080/08963560903554658
Hendel, I., Nevo, A., & Ortalo-Magné, F. (2009). The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com. American Economic Review, 99(5), 1878–1898. https://doi.org/10.1257/aer.99.5.1878
Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370–396. https://doi.org/10.1037/h0054346
National Association of Realtors. (2021). Handbook on Multiple Listing Policy. 30. https://cdn.nar.realtor/sites/default/files/documents/2021_NAR_HMLP_210112.pdf
National Association of Realtors. (2019). Real Estate in a Digital Age 2019 Report. https://cdn.nar.realtor/sites/default/files/documents/2019-real-estate-in-a-digital-age-08-22-2019.pdf
Saber, J. L., & Messinger, P. R. (2010). The impact of e-information on residential real estate services: Transaction costs, social embeddedness, and market conditions. Canadian Journal of Administrative Sciences, 27(1), 53 - 67. https://www.researchgate.net/publication/227508272_The_Impact_of_E-Information_on_Residential_Real_Estate_Services_Transaction_Costs_Social_Embeddedness_and_Market_Conditions
U.S. Department of Housing and Urban Development. (2012). HUD Archives: HOC Reference Guide -- First-Time Homebuyers (Page 3-02). https://archives.hud.gov/offices/hsg/sfh/ref/sfhp3-02.cfm#:~:text=A%20first%2Dtime%20homebuyer%20is,considered%20first%2Dtime%20homebuyers).
Washington Center for Real Estate Research. (2009). Median Home Prices: State of Washington and Counties Time Trend. Retrieved from http://realestate.washington.edu/wp-content/uploads/sites/6/2013/10/Median.Prices.time_.trend_.pdf
Washington Center for Real Estate Research. (2020). Median Home Prices: State of Washington and Counties Annual, 2013-2020. Retrieved from https://wcrer.be.uw.edu/wp-content/uploads/sites/41/2021/04/2020AnnualMedianPricesByCounty.pdf