The 2003 National Association of Realtors Survey of Real Estate Services also shows that buyer use of real estate services varies with the type of home that's bought, the age of the home, and the frequency of Internet use.

The report reveals that first-time buyers use some real estate services more frequently than repeat buyers do, probably because first-timers are unfamiliar with the home-purchase process and have different needs when financing a home. For example, 85 percent of first-time buyers chose to use the services of a home inspector, compared to 80 percent of repeat buyers.

In searching for homeowners insurance, first-time buyers received multiple rate quotes more frequently (59 percent) than repeat buyers (41 percent). About two-thirds (65 percent) of first-timers used mortgage insurance services, compared to about half (52 percent) of repeat buyers.

Since most home purchases are financed through a mortgage loan, mortgage lenders were among the most frequently used real estate service providers. Nine out of 10 buyers used a mortgage lender. Other real estate services used most often included homeowners insurance, title insurance and appraisers; there was little or no variation between first-time and repeat buyers, because those services are most directly tied to the financing of the home sale.

A little more than one-third (36 percent) of all homebuyers said that the main reason they chose a particular lender was on the recommendation of their real estate agent. Homebuyers relied heavily on their agent's recommendation for home warranty (54 percent), environmental inspections (51 percent), home inspector (51 percent) and pest inspector (50 percent). Buyers typically received mortgage information specific to their home purchase from two lenders.

"Realtors are the first stop for homebuyers and sellers because of the services we provide. Realtors do more than sell houses—we are part of the community and knowledgeable about our neighborhoods and the needs of consumers. Homebuyers and sellers want the kind of expertise that Realtors offer," said National Association of Realtors President Cathy Whatley.

In other findings, the survey showed that use of real estate services varied by the type of home purchased. New-home purchasers were less likely (41 percent) to have a home inspection, while four out of five buyers of previously owned homes had an inspection. New-home buyers also were far less likely (56 percent) to use a termite inspector than were buyers of previously owned homes (73 percent).

Appraisers also were used by a smaller percentage of new-home purchasers, compared to buyers of previously owned homes. And buyers who used the Internet most intensively in their home search were more likely to use the services of a home inspector.

Determining which services are necessary can be difficult, since individual situations may vary. Consulting a knowledgeable and professional Realtor paves the way for a smoother transaction on the road to home ownership.

Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.