Nar member profile 2011

NatioNal associatioN of RealtoRs® Member Profile 2011The Voice for Real Estate®

2011 OFFiCERS NAR RESEARCH STAFFPresident Office of the Chief EconomistRon Phipps, ABR, CRS, GRI, GREEN, e-PRO, SFR lawrence Yun, Ph.D. Chief Economist and Senior Vice PresidentPresident-Elect Peter c. Burley, cReMaurice "Moe" Veissi Director, REALTOR® UniversityFirst Vice President caroline Van HollenGary Thomas Senior Research and Strategic Planning CoordinatorTreasurer Survey and Market ResearchWilliam J. Armstrong, III, GRI Paul c. Bishop, Ph.D.Immediate Past President Vice PresidentVicki Cox Golder, CRB stephanie DavisVice President & Liaison to Committees Staff AssistantElizabeth Mendenhall Ken fearsVice President & Liaison to Government Affairs Manager, Regional EconomicsVince Malta Danielle Hale Research EconomistChief Executive OfficerDale Stinton, CAE, CPA, CMA, RCE Jessica lautz Research Economist selma Hepp Research Economist Quantitative Research Jed smith Managing Director, Quantitative Research Keunwon chung Statistical Economist Michael Hyman Research Assistant George Ratiu Research Economist Gregg stratton Research Economist Business Operations and Communications thomas Doyle Marketing and Communications Manager Meredith Dunn Research Communications Representative sophia stuart Research Marketing Associate

National Association of REALTORS® Contentsintroduction ..................................................................................................................................4Highlights ...................................................................................................................................... 5chapter 1: Business characteristics of RealtoRs®........................................................... 6chapter 2: Business activity of RealtoRs®......................................................................22chapter 3: income and expenses of RealtoRs® .............................................................39chapter 4: office and firm affiliation of RealtoRs® .....................................................53chapter 5: Demographic characteristics of RealtoRs® ...............................................63Methodology ..............................................................................................................................75list of exhibits ............................................................................................................................76 National association of RealtoRs® | Member Profile 2011 3

2011 Member ProfileIntroductioni n 2010, RealtoR® members across the country met vastly RealtoR® member characteristics were largely unchanged different market conditions. some markets saw a boom from 2009. the typical RealtoR® is an independent contractor after the Great Recession; others have continued to be affiliated with a firm of 29 agents and brokers catering to localplagued with high unemployment conditions. all markets have markets. Members typically have been with their firm for fivebeen stalled by the tightening of the mortgage market, which years and 75 percent of members do not receive benefits athas limited potential clients in purchasing a home. existing their firm.home sales declined slightly from 2009 to 2010, to 4.9 million the median age of RealtoRs® has steadily increased in recentsales from 5.2 million sales. Prices of existing homes remained years from 51 years of age in 2007 to 56 in 2011. the majority ofsteady from 2009 to 2010 at $172,900. members are women with a college education. experience hasin the winter and spring of 2010, buyers took advantage of also steadily increased in recent years. the typical memberfavorable conditions provided by the Home Buyer tax credit, has been in the field for 12 years, compared to eight years inrecord low mortgage rates, and housing affordability at an 2008. RealtoRs® frequently have had careers in other fieldsall time high. survey data from the Profile of Home Buyers and prior to real estate, the most common being in management,Sellers show these factors increased the share of first-time business, and financial professions.buyers from 41 percent of the market in 2008 to 50 percent of RealtoRs® are embracing new technologies and marketingthe market in 2010. However, after the close of the tax credit strategies that buyers are finding useful in their home searchdeadline of april 2010, home sales slowed throughout the rest process, including websites, blogs, and social media. inof the year. addition to membership in the NatioNal associatioNfor commercial real estate, 2010 signaled a leveling-off in of RealtoRs®, real estate professionals have other ways ofprevious years’ decline. commercial fundamentals regained distinguishing themselves, including affiliate memberships,their footing. Demand for space improved and vacancy professional designations, and certifications. Many RealtoRs®rates, while still high, began to descend. the combination of took advantage of each of these opportunities. in 2010,a stronger economy and a soft residential housing market representative of market conditions, the certification for shortmade the multifamily sector especially attractive, leading to sales and foreclosures grew from 12 percent to 21 percent ofcontracting availability and growing rents. the membership.the combination of high demand leveling off and lower prices looking forward, 73 percent of RealtoRs® are very certaindirectly affects RealtoR® income since most real estate they will remain in the market for two more years. Neweragents and brokers are compensated on a commission basis. members in the business are less certain they will remain inthe median gross income of RealtoRs® continued to decline real estate, while more seasoned members are more certain.to $34,100 in 2010. Residential brokerage specialists reporteda median of eight transactions in 2010, which is up slightlyfrom 2008 and 2009; however, the typical sales volume edgeddown to $1.1 million. Paul C. Bishop, Ph.D. Danielle Hale Meredith Dunn Selma Hepp Jessica Lautz Sophia Stuart May 20114 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®HighlightsBusiness Activity of NAR’s Commercial MembersBusiness Characteristics of REALTORS® • the median gross income of RealtoRs® was $34,100 in• fifty-seven percent of RealtoRs® were licensed as sales 2010, down from $35,700 in 2009. agents, and about eight in ten members specialize in • RealtoRs® with 16 years or more experience had a median residential brokerage. gross income of $47,100 compared to RealtoRs® with 2• the typical RealtoR® has 12 years of experience. years or less experience that had a median gross income of• three-quarters of all RealtoRs® reported daily use of $8,900. smartphones with wireless email and internet capability. • the median business expenses fell from $5,480 in 2009 to this is up from 56 percent in 2009. $4,270 in 2010.• Nearly two-thirds of RealtoRs® reported having a website • the largest single expense category for most RealtoRs® for at least five years, one in ten members reported having was vehicle expenses, which increased from $1,580 in a real estate blog, and half of members are using social 2009 to $1,680 in 2010. media. Office and Firm Affiliation of REALTORS®• the most commonly found information on websites, among • forty-one percent of RealtoRs® are affiliated with an commercial and residential RealtoRs®, is the members independent non-franchised company. own listings. • the typical RealtoR® works at a firm that employs 29• twenty-one percent of RealtoRs® have a certification for agents and brokers. short sales and foreclosures, up from 12 percent in 2009. • the median tenure for RealtoRs® with their current firm is• three-quarters of RealtoRs® are certain they will remain unchanged at five years. in the business for two more years. • More than three-quarters of brokers had some ownershipBusiness Activity of REALTORS® interest in their firm and more than half have sole ownership• in 2010, the typical agent had eight transactions—slightly of their firm. higher than the previous year. • three-quarters of RealtoRs® reported receiving no• commercial specialists also typically had eight transactions benefits through their firm. in 2010, up from 6 in 2009. • eleven percent of RealtoRs® worked for a firm that was• for the second year in a row, the difficulty in obtaining bought or merged in the past two years. mortgage financing was the most cited reason for potential Demographic Characteristics of REALTORS® clients being limited. • the typical RealtoR® is a 56 year old white female who• Most RealtoRs® worked 40 hours per week in 2010, a attended college and is a homeowner. trend that has continued for several years. • fifty-seven percent of all RealtoRs® are female, which• the typical RealtoR® earned 18 percent of their business remains unchanged from 2009. from past clients and customers. • seventy-five percent of RealtoRs® said that real estate was• RealtoRs® spent a median of $250 to maintain a website their only occupation, and that number jumps to 83 percent in 2010. among members with 16 or more years of experience.• Members typically brought in three inquiries and 3 percent • the median gross income of RealtoR® households of their business from their website. was $91,700 in 2010, up from $89,100 in 2009, which isIncome and Expenses of REALTORS® a nascent reversal of the downward trend observed in• Percentage split-commission is the prevailing method previous years. for RealtoR® compensation, with roughly seven in ten • a substantial majority of RealtoRs® - 91 percent - own respondents indicating this method of compensation, their primary residence. similar to 2009. National association of RealtoRs® | Member Profile 2011 5

Chapter 1:Business Characteristics of REALTORS®2 010 did not bring any major changes to REALTOR® membership. The majority of REALTORS® are sales agents who generally specialize in residential brokerage. There continued to be fewer younger members,which increased the typical number of years of experience among REALTORS®from 10 to 12.REALTORS®’ web presence and use of social media has been increasing in recentyears as a valuable marketing tool to reach clients. The 2011 survey shows thatalmost half of REALTORS® reported using social networking websites and anadditional 9 percent reported that they do not yet use such sites but plan to doso in the future. This is a steep increase from 2009, when just 35 percent ofmembers reported using social networking and 14 percent planned to. REALTORS®are also progressively more comfortable with technology with almost three-fourths of respondents now using a Smartphone with wireless email and Internetcapabilities.In addition to membership in the NATIONAL ASSOCIATION of REALTORS®,REALTORS® have other ways of distinguishing themselves, including affiliatememberships, professional designations, and certifications. There were moremembers with a primary specialty other than any of those suggested in thesurvey. The share of REALTORS® who obtained the Short Sales and Foreclosurecertification saw the largest increase, indicating a rising interest in this issue.There were generally more members with a certification in 2010 than there werein 2009. The most common affiliate memberships reported by members involvedresidential specialization and buyers agent representation. Finally, three-quarters of REALTORS® report that they are certain that they will remain in thebusiness.6 National association of RealtoRs® || Member Profile 2011 Association of REALTORS® Member Profile 2011

National Association of REALTORS®REALTORS® FuNCTiON ANd SPECiALTy AREA ExPERiENCE ANd iNCOME• Exhibits 1-1 through 1-5 • Exhibits 1-6 through 1-8 the majority of RealtoRs® hold sales agents licenses, With the continued slowdown in new membership, theyet the share of those holding broker licenses increased by 3 share of members with more years of experience in thepercentage points in 2010 from the year before. among the industry increased in 2010. the share of members with 1 to57 percent of members who hold sales agents licenses, the 5 years of experience fell between 2009 and 2010, from 30largest share still focuses on residential brokerage. While percent of RealtoRs® in 2009 to 23 percent in 2010. By theabout eight in ten members specialize in residential brokerage, same token, the share of members with 6 years of experiencethere was an increasing tendency among all types of licensees or more jumped from 69 percent in 2009 to 76 percent. on theto specialize in other areas. whole, RealtoRs® have been in the field for 12 years, up from 8 years in 2009. Brokers and broker associates tend to be involved in morebusiness specialties, such as commercial brokerage and experience levels do vary across member functions.property management. sales agents are more likely to primarily Managers and brokers who are not directly involved in sellingspecialize in residential brokerage, but again there is a larger continue to report the most experience, typically 28 and 20share than before who are focusing on other specialties. years respectively. among broker-owners who do not sell, almost two-thirds have been in the field for at least 26 years. While the most commonly practiced secondary specialties among appraisers, 97 percent have been in the industry for atamong all members are commercial brokerage, relocation, and least 6 years. the broker who sells is the next most experiencedcommercial property management, there was a significant group, while the typical sales agent has been in the field for 9jump in the share of members who indicated that they did not years.practice a secondary specialty. that share rose from 3 percentin 2009 to 28 percent in 2010. consequently, the share of While RealtoRs® more generally rely on their primarymembers with a secondary business specialty declined along business specialty for more than half of their income, theall specialties. reliance on real estate specialty has fallen since 2009. in 2010, 41 percent of RealtoRs® earned between 50 and 100 percent of their income from their primary real estate specialty, down from 49 percent in 2009. Nevertheless, those who relied 100 percent on their real estate specialty increased, regardless of years of experience. as anticipated, those who worked more hours were also more likely to depend entirely on their real estate specialty. among the members with fewer years of experience and who worked fewer hours, an increasingly larger share gained their income from other sources. National association of RealtoRs® | Member Profile 2011 7

2011 Member Profile • chapter 1: Business characteristics of RealtoRs®PERSONAL ASSiSTANTS WEBSiTES, BLOgS, ANd SOCiAL NETWORkiNg• Exhibits 1-9 through 1-12 • Exhibits 1-16 through 1-21 RealtoRs® generally do not have personal assistants. in today’s age of internet and technology, the web presenceHowever, broker-owners and managers are more likely to have of RealtoRs® is ever more important. While 9 out of 10an assistant, particular those who are not selling. in 2010, RealtoR’s® firms have a web presence, almost two-thirds ofhaving three or more personal assistants among the same all RealtoRs® reported having a website. appraisers weregroup became more common than the year before. More the least likely to indicate having a website; though their webtenured members are more likely to use personal assistants as presence has increased from 36 percent last year to 39 percentwell. this year. sales agents were equally likely to have a website provided by their firm as they were to have a website developed Personal assistants help with a variety of tasks. the most and/or maintained on their own. eight percent of all membersfrequently reported tasks included sending out mailings to still plan on having a website in the future. Nearly two-thirds ofpast clients or prospects, processing new listings and entering RealtoRs® has had a website for at least five years. Membersthem in the Mls, managing closing paperwork, and scheduling who have been in the industry the longest are also most likelylisting presentations, closings, and appointments. to have had a website for at least 5 years. there was no significant distinction in whether personal among residential brokerage specialists with websites,assistants were full-time or part-time, licensed or unlicensed, 9 in 10 listed their own property listings. increasingly moreand independent contractor or employee. Generally they were commercial brokerage specialists did the same on theirequally likely to be any of these. almost half of the personal websites. other material presented on their website at leastassistants were paid by the RealtoR®, though 37 percent two-thirds of the time includes home buying and sellingwere paid only by the firm. Nearly one-fifth were paid by both information, mortgage or financial calculators, and links to theirthe RealtoR® and the firm. in 2010, members were more firm’s website. similar information is contained on commerciallikely to share a personal assistant than the year prior. While brokerage websites.almost three-fourths of assistants were exclusive in 2009, onlytwo-thirds were exclusive in 2010. one in ten members reported having a real estate blog. that number did not change from the year before. among all RealtoRs®, those younger than 39 years of age are more likely to have a blog, though 6 percent of those over 60 alsoCOMMuNiCATiONS ANd TECHNOLOgy have a blog.• Exhibits 1-13 through 1-14 although social media has rapidly penetrated market technology is increasingly important for RealtoR® communications, the use of social media has not changedbusiness. With nearly all members reporting daily use of much between the 2010 and 2011 surveys. almost half ofemail and desktop or laptop computers, three-quarters members are using social media while an additional 9 percentreported daily use of smartphones with wireless email and plan to in the future. in the 2010 survey, only 35 percent ofinternet capability. this is up from 56 percent in 2009. More RealtoRs® used social networking websites, and 14 percentare also using technologies such as instant messaging, global planned to do so in the future. the use of social networkingpositioning systems, Rss feeds, and podcasts. sites is more widespread among younger RealtoRs®, with over 8 out of 10 of those aged 29 or younger using such sites. the majority of RealtoRs® use multiple listings softwaredaily. other software used regularly includes contactmanagement, document preparation, and electronic contractsand forms.8 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®MEMBERSHiP iN AFFiLiATES, PROFESSiONAL FiRM’S WEB PRESENCE ANd RELOCATiONdESigNATiONS, ANd CERTiFiCATiONS dEPARTMENT• Exhibits 1-22 and 1-23 • Exhibits 1-15 and 1-24 in addition to being a member of the NatioNal RealtoRs® firms provide them with additional resources,associatioN of RealtoRs®, RealtoRs® can distinguish including websites and relocation departments. Nine in tenthemselves in a number of other ways, including affiliate RealtoRs® reported that their firms have a web presence, andmemberships, professional designations, and certifications. 2 percent indicated that there is not currently a presence, but a site is planned. almost 40 percent of RealtoR® firms had one in five RealtoRs® has an affiliate membership with a relocation department or business development departmentthe council of Residential specialists and Real estate Buyer’s responsible for relocation activities. RealtoRs® who haveagent council, these being the two most common. By function, been in the field for longer were more likely to be aware of themanagers who do not sell and associate brokers were the most presence of a relocation department in their firm.likely to have an affiliate membership, most commonly in thecouncil of Real estate Brokerage Managers and the council ofResidential specialists respectively. about one-third of RealtoRs® held some type of FuTuRE PLANSdesignation or certification. the most prevalent designations • Exhibit 1-28were the Graduate RealtoR® institute, accredited BuyerRepresentative, and certified Residential specialist. among all RealtoRs®, three-quarters were certain theycertifications were increasingly more common among both will remain in the business for two more years. Brokers andbroker/broker associates and sales agents than in 2009. the broker associates are slightly more certain than sales agentslargest increase was in those who hold a certification for short that they will remain in the field—75 percent compared to 72sales and foreclosures which also became the most common percent. also, members who have less experience are morecertification among all types of licensees—in the 2011 survey cautious about staying in the real estate business than their21 percent of members had this certification compared to colleagues who have been in the field longer.just 12 percent in the 2010 survey. the second most commoncertification was for e-Pro with one in ten members holding it. National association of RealtoRs® | Member Profile 2011 9

2011 Member Profile • chapter 1: Business characteristics of RealtoRs® Exhibit 1-1 REALTORS® By TyPE OF LiCENSE (Percent of Respondents) 60% 57% 50% 40% 30% 28% 20% 17% 10% 4% 1% 0% Broker Broker Associate Sales Agent Appraiser Other Exhibit 1-2 SPECiALTy ANd MAiN FuNCTiON OF REALTORS® (Percentage Distribution) ALL REALTORS® LICENSED AS 2011 Survey 2010 Survey Broker Broker Associate Sales Agent AppraiserPrimary Real estate specialty Residential brokerage 78% 81% 73% 86% 83% 4% commercial brokerage 4 4 7 4 3 * Residential appraisal 3 3 1 * 1 74 commercial appraisal 1 1 * * * 22 Relocation 1 1 1 1 2 * Property management 5 5 9 3 4 * counseling 1 1 1 1 1 * land/Development 1 2 2 1 1 * other specialties 5 2 6 4 6 *Main function Broker-owner (with selling) 16% 15% 54% 3% 1% * Broker-owner (without selling) 2 1 5 * * * associate broker 11 10 12 45 1 * Manager 4 4 6 6 3 * sales agent 60 61 17 42 89 4 appraiser 3 3 * * * 96 other 6 6 6 6 6 ** Less than 1 percent10 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 1-3 PRiMARy BuSiNESS SPECiALTy OF BROkER/BROkER ASSOCiATE LiCENSEES, 1999-2011 (Percentage Distribution) 1999 2001 2003 2005 2007 2008 2009 2010 2011Residential brokerage 75% 76% 81% 76% 79% 79% 80% 79% 78%commercial brokerage 6 6 3 4 5 6 6 7 6land/Development 4 3 1 3 3 1 3 2 2Relocation 1 1 2 3 2 * 1 1 1counseling 1 1 2 3 1 1 1 1 1appraising 4 4 3 2 1 4 1 1 1Property management 6 5 4 4 4 1 6 6 7international Na * * 1 * 3 * * *other 4 3 4 4 4 4 2 3 5NA - Not Asked* Less than 1 percentExhibit 1-4 PRiMARy BuSiNESS SPECiALTy OF SALES AgENT LiCENSEES, 1999-2011 (Percentage Distribution) 1999 2001 2003 2005 2007 2008 2009 2010 2011Residential brokerage 88% 82% 84% 74% 75% 77% 86% 87% 83%commercial brokerage 2 2 2 1 2 2 3 3 3land/Development 2 2 1 3 3 1 1 1 1Relocation 1 2 2 5 6 * 2 2 2counseling 1 3 2 5 4 5 1 1 1appraising 2 3 3 5 1 4 1 * 1Property management 2 3 3 3 4 3 4 3 4international Na * * * 2 2 1 * 1other 2 3 3 3 4 6 2 2 5NA - not asked* Less than 1 percent National association of RealtoRs® | Member Profile 2011 11

2011 Member Profile • chapter 1: Business characteristics of RealtoRs® Exhibit 1-5 SECONdARy BuSiNESS SPECiALTy OF REALTORS® (Percent of Respondents) Commercial brokerage 16% Relocation 14% Commercial Property Management 14% Residential Brokerage 10% Counseling 9% Land Development 8% Residential Property Management 4% Residential Appraisal 3% International * 2% Auction 2% * Commercial Appraisal 1% Other 9% None/Nothing 28% 0% 10% 20% 30%12 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 1-6 REAL ESTATE ExPERiENCE OF REALTORS®, By MAiN FuNCTiON (Percentage Distribution) ALL REALTORS® MAIN FUNCTION IN FIRM Broker-Owner Broker-Owner Associate Manager Manager Sales 2011 Survey 2010 Survey (without selling) (with selling) Broker (without selling) (with sellling) Agent Appraiser1 year or less 6% 6% * 1% 2% * 2% 8% *2 years 4 4 1 2 2 1 2 6 *3 years 4 7 3 1 3 1 4 5 14 years 4 5 1 2 3 2 3 6 *5 years 6 8 * 3 4 * 3 7 16 to 10 years 23 22 7 19 20 13 17 27 1311 to 15 years 11 11 6 12 11 15 12 11 1616 to 25 years 21 19 20 25 26 30 31 18 2626 to 39 years 18 15 46 29 26 36 20 12 3440 or more years 3 2 17 8 3 1 5 1 8Median (years) 12 10 28 20 17 23 18 9 23* Less than 1 percentExhibit 1-7 iNCOME FROM PRiMARy REAL ESTATE SPECiALTy, By yEARS OF ExPERiENCE (Percentage Distribution) REAL ESTATE EXPERIENCEPercent of income from real estate specialty ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreless than 50% 17% 27% 22% 14% 14% less than 25% 11 23 16 9 9 25% to 49% 5 5 6 5 650% to less than 100% 41% 27% 35% 43% 46% 50% to 74% 11 6 10 10 12 75% to 99% 31 21 26 33 34100% 42 46 43 43 40Exhibit 1-8 iNCOME FROM PRiMARy REAL ESTATE SPECiALTy, By NuMBER OF HOuRS WORkEd (Percentage Distribution) HOURS WORKED PER WEEKPercent of income from real estate specialty ALL REALTORS® Less than 20 hours 20 to 39 hours 40 to 59 hours 60 hours or moreless than 50% 17% 42% 22% 8% 6% less than 25% 11 37 14 3 2 25% to 49% 5 5 8 5 450% to less than 100% 41% 23% 39% 47% 50% 50% to 74% 11 6 11 12 10 75% to 99% 31 17 27 36 40100% 42 35 39 45 45 National association of RealtoRs® | Member Profile 2011 13

2011 Member Profile • chapter 1: Business characteristics of RealtoRs® Exhibit 1-9 NuMBER OF PERSONAL ASSiSTANTS (Percentage Distribution) LICENSED AS MAIN FUNCTION IN FIRM Broker-Owner Broker-Owner Manager Manager ALL Broker/ Broker (without (with Associate (without (with REALTORS® Associate Sales Agent selling) selling) Broker selling) sellling) Sales AgentNone 83% 77% 88% 66% 71% 83% 62% 78% 87%one 11 19 10 20 24 15 23 16 11two 2 3 1 3 3 2 * 4 1three or more 1 2 1 11 2 1 15 2 1* Less than 1 percent Exhibit 1-10 NuMBER OF PERSONAL ASSiSTANTS, By yEARS OF REAL ESTATE ExPERiENCE (Percentage Distribution) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreNone 83% 94% 90% 82% 78%one 14 6 9 15 17two or more 4 1 1 3 5 Exhibit 1-11 TASkS PERFORMEd By PERSONAL ASSiSTANTS (Percent of Respondents)send mailings to past clients or prospects 59%Process new listings and enter them in the Mls 58Manage closing paperwork 44schedule listing presentations, closings, and appointments 43Photograph listings 41Place/track advertising of listings 39order inspections 37Write ads 33Prepare comps 33send progress reports to sellers 30Prepare escrow files 28check Mls for expireds 20check newspapers for fsBos 8Prospect fsBos 8other 3914 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 1-12 CHARACTERiSTiCS OF PERSONAL ASSiSTANTS (Percentage Distribution) licensed 48%license information Unlicensed 52 Paid by RealtoR® 46salary expenses Paid by company 37 Both 17 full-time 51employment Part-time 49 exclusive assistant 63exclusivity shared with others 37 independent contractor 55employment arrangement employee 45 Hourly 35 salary 23compensation structure arrangement varies 20 Percent of commission 14 Per task 9Exhibit 1-13 FREQuENCy OF uSE OF COMMuNiCATiONS ANd TECHNOLOgy PROduCTS (Percentage Distribution) All REALTORS® Daily or nearly every day A few times a week A few times a month A few times a year Rarely or Nevere-mail 92% 5% 2% 1% 1%laptop/Desktop computer 90 4 2 1 3cell phone (no email and internet) 68 5 2 1 25smartphone with wireless email and 72 3 1 * 23internet capabilities (e.g., treo/BlackBerry)Digital camera 28 25 32 11 5instant messaging (iM) 30 10 6 4 50Global positioning system (GPs) 31 23 18 7 21PDa/Handheld (no phone capabilities) 12 2 1 1 85Blogs 5 6 9 7 73Rss feeds 5 4 6 5 81Podcasts 1 2 6 9 82* Less than 1 percent National association of RealtoRs® | Member Profile 2011 15

2011 Member Profile • chapter 1: Business characteristics of RealtoRs® Exhibit 1-14 FREQuENCy OF uSE OF BuSiNESS SOFTWARE (Percentage Distribution)ALL REALTORS® Daily or nearly every day A few times a week A few times a month A few times a year Rarely or NeverMultiple listing 69% 15% 7% 4% 6%contact management 27 17 13 8 35Document preparation 20 24 23 11 23electronic contract and forms 20 29 27 12 13comparative market analysis 17 31 31 13 9transaction management 15 13 11 8 53customer relationship management 12 13 13 10 53Graphics or presentation 8 13 24 18 37Property management 8 5 7 10 69loan analysis 4 9 18 18 51 Exhibit 1-15 REALTOR’S® FiRM WEB PRESENCE (Percentage Distribution) Firm does not have website but plans to in Firm does not the future have website 2% Firm has website 9% 89%16 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 1-16 REALTORS® WiTH WEBSiTES, By LiCENSE ANd FuNCTiON (Percentage Distribution) LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker- Broker- Manager Manager ALL Broker Sales Owner Owner Associate (without (with Sales REALTORS® Associate Agent (no selling) (with selling) Broker selling) selling) Agent AppraiserHave a website 62% 65% 61% 52% 65% 65% 63% 65% 63% 39% a website developed and/or 34 40 30 25 48 34 9 34 31 23 maintained by RealtoR® a website provided by firm 29 26 31 27 16 31 54 31 32 16Do not have a website 38 35 39 48 35 35 37 35 37 61 No website 30 28 31 45 26 28 37 30 29 52 No website, but plan to have 8 7 8 3 9 7 * 5 8 9 one in the future* Less than 1 percentExhibit 1-17 REALTORS® WiTH WEBSiTES, By ExPERiENCE (Percentage Distribution) ALL REALTORS® REAL ESTATE EXPERIENCE 2011 Survey 2010 Survey 2 years or less 3 to 5 years 6 to 15 years 16 years or moreHave a website 62% 63% 59% 62% 65% 61% a website developed and/or 34 34 25 29 37 34 maintained by RealtoR® a website provided by firm 29 29 35 34 27 27Do not have a website 38 37 41 38 35 39 No website 30 28 26 29 28 33 No website, but plan to have one 8 10 15 9 7 6 in the futureExhibit 1-18 LENgTH OF TiME REALTORS® HAVE HAd A WEBSiTE FOR BuSiNESS uSE (Percentage Distribution Among those with a website) ALL REALTORS® REAL ESTATE EXPERIENCE 2011 Survey 2010 Survey 2 years or less 3 to 5 years 6 to 15 years 16 years or moreless than one year 1% 1% 5% 1% 1% *1 to 2 years 21 24 88 27 12 93 to 4 years 16 18 3 48 15 75 or more years 63 57 5 25 72 84Median years 6 5 1 4 6 10* Less than 1 percent National association of RealtoRs® | Member Profile 2011 17

2011 Member Profile • chapter 1: Business characteristics of RealtoRs® Exhibit 1-19 iNFORMATiON ON REALTOR® WEBSiTES (Percent of Respondents with a website) BROKERAGE SPECIALISTS ALL REALTORS® Residential Commercialown property listings 91% 93% 82%information about home buying and selling 81 85 59Mortgage or financial calculators 67 71 54link to firm’s website 66 67 60Virtual tours 52 55 36community information or demographics 51 54 36school reports 50 55 30links to state and local government websites 43 46 33Home valuation or comparative Market analysis tools 32 34 18current mortgage rates 32 34 18links to real estate service providers 29 30 21links to mortgage lenders’ websites 26 27 11appointment scheduler 19 20 9link to commercial information exchange (cie) 4 3 19other 3 3 4 Exhibit 1-20 REAL ESTATE BLOgS (Percentage Distribution) ALL REALTORS® AGE 2011 Survey 2010 Survey 29 or younger 30 to 39 40 to 49 50 to 59 60 or olderHave a blog 10% 10% 16% 18% 12% 10% 6%Do not have a blog 81 77 69 66 77 79 88Do not have a blog, but plan to in the future 9 12 15 15 11 10 618 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 1-21 ACTiVE uSE OF SOCiAL OR PROFESSiONAL NETWORkiNg WEBSiTES (Percentage Distribution)Actively use social or AGEprofessional networking websites: ALL REALTORS® 29 or younger 30 to 39 40 to 49 50 to 59 60 or olderYes 49% 83% 72% 64% 52% 31%No 42 10 20 28 38 58No, but plan to in the future 9 6 8 8 10 9Exhibit 1-22 AFFiLiATE MEMBERSHiP OF REALTORS® (Percent of Respondents) LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker- Broker- Manager Manager ALL Broker Sales Owner Owner Associate (without (with SalesNAR Affiliates REALTORS® Associate Agent (no selling) (with selling) Broker selling) sellling) Agent AppraiserNot a member of any 77% 69% 83% 73% 75% 68% 65% 74% 79% 97%affiliatecciM institute - certifiedcommercial investment 1 2 1 2 1 2 * 2 1 2MembercRe - counselors of 1 2 1 1 2 1 3 1 1 *Real estatecRB - council of Real 3 5 1 12 5 3 24 13 1 1estate Brokerage ManagerscRs - council of 12 17 8 8 11 20 17 12 11 3Residential specialistsiReM - institute of Real 1 1 * 6 1 * * * * *estate ManagementReBac - Real estate 8 10 7 3 10 11 * 7 8 1Buyer’s agent councilRli - RealtoRs® land 1 1 * * 1 1 * 1 * *institutesioR - society of industrial * * * * * * * * * *and office RealtoRs®WcR - Women’s council of 4 5 3 5 3 7 13 6 4 *RealtoRs®* Less than 1 percent National association of RealtoRs® | Member Profile 2011 19

2011 Member Profile • chapter 1: Business characteristics of RealtoRs® Exhibit 1-23 PROFESSiONAL dESigNATiONS ANd CERTiFiCATiONS OF REALTORS® (Percent of Respondents) LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker- Broker- Manager Manager ALL Broker Sales Owner Owner Associate (without (with Sales REALTORS® Associate Agent (no selling) (with selling) Broker selling) sellling) Agent AppraiserDesignations No designations 64% 51% 74% 57% 61% 47% 47% 58% 68% 89% aBR - accredited Buyer 13 16 11 5 13 21 11 10 12 * Representative aBRM - accredited Buyer * * * 1 * * * 3 * * Representative Manager alc - accredited land * 1 * * 1 1 * 1 * * consultant cciM - certified commercial 1 1 * 1 2 1 * 1 * * investment Member ciPs - certified international 1 1 * 1 1 1 * 1 * 1 Property specialist cPM - certified Property * 1 * 7 1 * * * * * Manager cRB - certified Real estate 3 5 1 12 4 3 21 12 1 1 Brokerage Manager cRe - counselor of Real estate 1 1 * * 2 1 * 1 * * cRs - certified Residential 10 16 6 7 11 18 12 10 9 3 specialist Gaa - General accredited * * * * * * * * * * appraiser Green Designation 2 2 2 2 2 3 * 4 2 2 GRi - Graduate RealtoR® 21 30 14 27 22 35 29 30 18 7 institute PMN - Performance 1 1 * 3 * 1 * * 1 * Management Network Raa - Residential accredited * * * * * * * 1 * 1 appraiser Rce - RealtoR® association * * * * * * * * * * certified executive sioR - society of industrial * * * * * * * * * * and office RealtoRs® sRes - seniors Real estate 6 6 5 2 4 9 8 5 6 * specialistscertifications No certifications 65 64 65 71 72 56 55 73 64 97 at Home with Diversity 4 4 4 6 3 5 10 4 4 * e-Pro 11 13 10 1 9 17 20 7 11 * RePa - Real estate Profes- 5 3 7 8 3 3 10 5 6 2 sional assistant RsPs - Resort & second Home 1 1 1 1 1 1 * 2 1 * specialist short sales and foreclosures 21 23 20 14 18 27 24 19 21 * (sfR) tRc - transnational Referral 1 2 1 * 2 2 4 1 1 1 certification* Less than 1 percent20 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 1-24 RELOCATiON ACTiViTy OF REALTORS® (Percentage Distribution) LICENSED AS REAL ESTATE EXPERIENCE ALL REALTORS® Broker/ Broker Associate Sales Agent 2 years or less 3 to 5 years 6 to 15 years 16 years or moreRealtoRs®’s firm have a relocation department or business development department responsible for relocation activitiesYes 38% 33% 44% 35% 34% 39% 40%No 52 62 42 43 50 52 54Don’t know 10 6 14 22 16 10 6Exhibit 1-25 WiLL REMAiN ACTiVE AS A REAL ESTATE PROFESSiONAL duRiNg THE NExT TWO yEARS (Percentage Distribution) ALL REALTORS® LICENSED AS REAL ESTATE EXPERIENCE 2011 Survey 2010 Survey Broker/ Broker Associate Sales Agent 2 years or less 3 to 5 years 6 to 15 years 16 years or moreVery certain 73% 74% 75% 72% 70% 74% 74% 73%somewhat certain 18 18 17 18 19 17 18 17Not certain 9 8 9 10 11 9 8 10 National association of RealtoRs® | Member Profile 2011 21

Chapter 2:Business Activity of REALTORS®T he business activity of REALTORS® in 2010 was largely spent maintaining the status quo as the real estate market continued to steady and improve. Members typically had a slight improvement in the number of transactionscompleted in 2010 from 2009, but saw a slight decline in sales volume. Thetightening of the credit market reduced consumers ability to obtain a mortgage.Median weekly hours worked by the typical REALTOR® was unchanged from theprevious four years. The typical REALTOR® had fewer clients who were foreignnationals or whose primary language was not English. However, REALTORS® whospoke a language other than English reported a higher share of clients who spoke aforeign language.Websites were not a major source of business, although REALTORS® who investedmore heavily in their website reported a greater number of inquiries and business.22 National Association of REALTORS® | Member Profile 2011

National Association of REALTORS® forty-nine percent of brokerage specialists did not complete a foreclosure transaction in 2010. thirty-eightAPPRAiSAL SPECiALiSTS percent of brokerage specialists completed between one and• Exhibits 2-1 through 2-3 five foreclosure transactions, and 13 percent had six or more Nine in ten appraisal specialists appraise one to four unit transactions. likewise, 56 percent of brokerage specialistsresidential properties. the share of RealtoRs® who appraise did not participate in a short-sale transaction, and 38 percentother properties and land stayed fairly steady from the prior participated in one to five short-sale transactions. Brokersyear. the typical specialist appraised 200 properties in 2010— and broker associates were more likely than sales agents tothe same as in 2009. Residential appraisal specialists typically participate in a foreclosure or a short sale transaction.appraised 230 properties in 2010, and nearly one-third had no When it comes to listings, Realtor.com was the numberother real estate activities in 2010. one site where brokerage specialists placed their listings (82 percent). the firms website followed closely behind (81 percent).BROkERAgE SPECiALiSTS• Exhibits 2-4 through 2-16 PROPERTy MANAgEMENT thirty-three percent of RealtoRs® practice single agency,32 percent practice buyer and seller agency with disclosed • Exhibits 2-17 through 2-19dual agency, 18 percent practice transactional agency, and 10 the typical property management specialist managed 25percent practice buyer agency exclusively. properties in 2010. this continues a two-year decline. in 2009, in 2010, the typical agent had eight transactions—an the typical property management specialist managed 33increase from seven transactions in 2009. in 2010, the properties and in 2008 the typical property manager managedmedian number of their own listings a residential specialist 40. Residential specialists managed a median of 12 properties,sold was one, compared to selling four of others listings. compared with commercial specialists who managed a medianRealtoRs® with two years of experience or less had a median of 39 properties. the four most commonly reported tasks ofof three transactions, compared to brokerage specialists with property managers are selecting tenants, collecting rent,sixteen years of experience or more who had a median of ten marketing, and taking tenant applications. eight in ten propertytransactions. the median sales volume for brokerage specialists management specialists were active in the single-familywas slightly less than the previous year at $1.1 million. market. six in ten managed some multi-family properties, and about one-quarter were active in office property management. similar to the residential side, commercial specialistshad an increase in the number of transactions, but not theoverall sales volume. commercial specialists typically hadeight transactions in 2010, an increase from six in 2009. HOuRS WORkEd PER WEEkcommercial specialists reported a median transaction volume • Exhibit 2-20of $1.3 million—the same level as the prior year. the typical RealtoR® worked 40 hours per week in 2010, for the second year RealtoRs® reported that the most a trend that has continued for several years. Managers who sellcited reason for limiting potential clients was the difficulty had the highest median hours worked at 48 hours per week,in obtaining mortgage financing. More than one-quarter of while sales agents had the least at 35 hours per week.members reported the most important factor limiting clientswas the expectation that prices might fall further. National association of RealtoRs® | Member Profile 2011 23

2011 Member Profile • chapter 2: Business activity of RealtoRs®REPEAT BuSiNESS ANd REFERRALS LANguAgE ANd NATiONALiTy• Exhibits 2-21 through 2-24 • Exhibits 2-27 through 2-28 the typical RealtoR® earned 18 percent of their business seventy-two percent of RealtoRs® had no clients whofrom past clients and customers, and although the percentage were foreign nationals, and 21 percent of RealtoRs® had fewervaries across specialties, this share that is consistent from the than 10 percent. similar to last year, 44 percent of RealtoRs®prior year. as expected, experienced RealtoRs® reported a had no clients whose primary language was not english.greater share of repeat business from clients or referrals. Repeatbusiness has also held steady from the prior year at 19 percent.Repeat business was more common among RealtoRs® withmore experience (a median of 35 percent for those with 16 or WEBSiTE BuSiNESS ACTiViTymore years of experience, compared to 6 percent for those • Exhibits 2-29 through 2-33with three to five years of experience. the typical RealtoR® spent $250 to maintain a website in 2010. the typical member brought in three inquiries and 3 percent of their business from their website. Brokers tend to spend more on their websites, while sales agents tend toOPEN HOuSES spend the least amount on websites. Not surprisingly, those• Exhibits 2-25 through 2-26 who spent the most on websites also got the highest number While open houses are a useful tool for home buyers to of inquiries and the largest percent of their overall businesscompare and contrast home features and neighborhoods, of driven by website traffic.residential brokerage specialists surveyed only 34 percentsaid they received some business from an open house. in mostcases it was less than 10 percent of all business. sixty-sevenpercent of agents reported no business as a result of openhouses, and this varied little by years of experience.24 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 2-1 APPRAiSAL: TyPES OF PROPERTiES APPRAiSEd (Percent of Respondents, Appraisal Specialists only) 2011 Survey 2010 SurveyResidential (1 to 4 units) 90% 95%agricultural land and farms 36 33commercial (retail, office, shopping centers, etc.) 28 26Residential (5 or more units) 28 23industrial (manufacturing, warehouses, etc.) 25 21institutional (hospitals, schools, etc.) 13 11other 14 7Exhibit 2-2 APPRAiSAL: NuMBER OF PROPERTiES APPRAiSEd (Percentage Distribution, Appraisal Specialists only) ALL APPRAISAL SPECIALISTS In 2010 In 2009 RESIDENTIAL APPRAISAL SPECIALISTS9 or fewer 2% 5% 2%10 to 24 4 2 225 to 49 5 5 250 to 99 11 11 8100 to 199 22 26 23200 to 299 26 19 29300 to 399 12 19 13400 or more 18 14 22Median (properties) 200 200 230 National association of RealtoRs® | Member Profile 2011 25

2011 Member Profile • chapter 2: Business activity of RealtoRs® Exhibit 2-3 APPRAiSAL: OTHER REAL ESTATE ACTiViTiES OF APPRAiSAL SPECiALiSTS, 2010 (Percent of Respondents, Appraisal Specialists only) ALL RESIDENTIAL APPRAISAL SPECIALISTS APPRAISAL SPECIALISTSResidential brokerage 11% 25%commercial appraisal 8 10Residential appraisal 13 N/acounseling 15 13commercial brokerage 11 9Residential property management 1 1Relocation 4 5land/development 5 4commercial property management 7 8auction 1 1international * 1other 5 4None 27 32* Less than 1 percentN/A - Not Applicable Exhibit 2-4 BROkERAgE: AgENCy RELATiONSHiPS (Percentage Distribution, Brokerage Specialists only) ALL REALTORS® RESIDENTIAL SPECIALISTS Broker/ Broker Commercial 2011 Survey 2010 Survey All Associate Sales Agent Specialistssingle agency 33% 29% 33% 30% 36% 23%Buyer agency and seller agency 32 41 32 34 30 42with disclosed dual agencyBuyer agency exclusively 10 11 10 9 11 9transactional agency 18 10 18 19 17 16seller agency exclusively 7 7 6 8 5 11other 1 1 1 1 1 ** Less than 1 percent26 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 2-5 BROkERAgE: LiSTiNgS SOLd, 2010 (Percentage Distribution, Brokerage Specialists only) NUMBER OF OWN NUMBER OF OWN LISTINGS NUMBER OF OTHERS’ALL REALTORS® LISTINGS SOLD SOLD BY SOMEONE ELSE LISTINGS SOLD0 listings 42% 26% 16%1 listing 16 13 102 listings 12 12 113 listings 7 8 104 listings 4 6 85 listings 5 7 86 to 10 listings 9 17 2211 listings or more 6 13 16Median listings (2010) 1 2 4Median listings (2009) 1 3 4Residential Specialists0 listings 42% 26% 15%1 listing 16 13 102 listings 12 12 113 listings 7 8 104 listings 4 6 85 listings 4 7 86 to 10 listings 8 17 2211 listings or more 6 13 17Median listings (2010) 1 3 4Median listings (2009) 1 3 5Commercial Specialists0 listings 23% 27% 19%1 listing 12 13 112 listings 14 16 143 listings 10 8 104 listings 9 4 65 listings 8 7 76 to 10 listings 16 15 2111 listings or more 8 9 12Median listings (2010) 3 2 3Median listings (2009) 3 2 2 National association of RealtoRs® | Member Profile 2011 27

2011 Member Profile • chapter 2: Business activity of RealtoRs® Exhibit 2-6 BROkERAgE: NuMBER OF TRANSACTiON SidES OR COMMERCiAL dEALS, 2010 (Percentage Distribution, Brokerage Specialists only) ALL REALTORS® RESIDENTIAL SPECIALISTS Broker/ Broker In 2010 In 2009 All Associate Sales Agent Commercial Specialists0 transactions 8% 12% 8% 6% 10% 6%1 to 5 transactions 29 30 29 23 33 326 to 10 transactions 23 19 23 24 22 2311 to 15 transactions 14 13 14 15 13 1316 to 20 transactions 9 8 9 9 8 821 to 50 transactions 14 14 14 18 11 1551 transactions or more 4 3 4 5 2 4Median (transactions) 8 7 8 10 7 8 Exhibit 2-7 BROkERAgE: NuMBER OF TRANSACTiON SidES OR COMMERCiAL dEALS, By ExPERiENCE, 2010 (Percentage Distribution, Brokerage Specialists only) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or more0 transactions 8% 19% 8% 6% 7%1 to 5 transactions 29 53 30 27 246 to 10 transactions 23 17 28 24 2211 to 15 transactions 14 5 15 15 1616 to 20 transactions 9 3 9 10 921 to 50 transactions 14 3 9 16 1651 transactions or more 4 1 1 3 6Median (transactions) 8 3 7 9 10 Exhibit 2-8 BROkERAgE: NuMBER OF TRANSACTiON SidES iNVOLViNg PROPERTiES iN FORECLOSuRE, 2010 (Percentage Distribution, Brokerage Specialists only) RESIDENTIAL SPECIALISTS ALL REALTORS® All Broker/ Broker Associate Sales Agent Commercial Specialists0 transactions 49% 48% 44% 51% 61%1 to 5 transactions 38 38 39 38 326 to 10 transactions 7 7 9 6 511 to 15 transactions 2 3 3 2 116 to 20 transactions 1 2 2 1 *21 transactions or more 3 3 4 2 1Median (transactions) 1 1 1 * ** Less than 1 percent28 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 2-9 BROkERAgE: NuMBER OF TRANSACTiON SidES iNVOLViNg PROPERTiES iN FORECLOSuRE, By ExPERiENCE, 2010 (Percentage Distribution, Brokerage Specialists only) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or more0 transactions 49% 69% 49% 43% 50%1 to 5 transactions 38 26 38 42 366 to 10 transactions 7 2 7 8 811 to 15 transactions 2 1 2 3 216 to 20 transactions 1 1 1 1 221 transactions or more 3 1 3 3 3Median (transactions) 1 0 1 1 1Exhibit 2-10 BROkERAgE: NuMBER OF TRANSACTiON SidES iNVOLViNg SHORT SALES, 2010 (Percentage Distribution, Brokerage Specialists only) RESIDENTIAL SPECIALISTS ALL REALTORS® All Broker/ Broker Associate Sales Agent Commercial Specialists0 transactions 56% 56% 53% 57% 70%1 to 5 transactions 38 38 39 37 266 to 10 transactions 4 4 4 3 411 transactions or more 3 3 3 2 *Median (transactions) 0 0 0 0 0* Less than 1 percentExhibit 2-11 BROkERAgE: NuMBER OF TRANSACTiON SidES iNVOLViNg SHORT SALES, By ExPERiENCE, 2010 (Percentage Distribution, Brokerage Specialists only) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or more0 transactions 56% 75% 57% 51% 57%1 to 5 transactions 38 24 38 41 376 to 10 transactions 4 1 3 4 411 transactions or more 3 * 2 4 2Median (transactions) 0 0 0 0 0* Less than 1 percent National association of RealtoRs® | Member Profile 2011 29

2011 Member Profile • chapter 2: Business activity of RealtoRs® Exhibit 2-12 BROkERAgE: SALES VOLuME (Percentage Distribution, Brokerage Specialists only) ALL REALTORS® RESIDENTIAL SPECIALISTS Broker/ Broker Commercial In 2010 In 2009 All Associate Sales Agent Specialistsless than $500,000 36% 35% 36% 29% 42% 35%$500,000 to under $1 million 13 12 13 13 13 12$1 to under $1.5 million 9 9 9 9 9 9$1.5 to under $2 million 9 10 9 10 8 9$2 to under $3 million 10 11 10 11 9 11$3 to under $4 million 7 7 7 9 6 4$4 to under $5 million 5 4 5 6 4 9$5 to under $6 million 3 3 3 3 2 5$6 to under $7 million 2 2 2 2 2 1$7 to under $8 million 1 1 1 2 1 1$8 to under $10 million 2 2 2 1 2 *$10 million or more 4 4 4 5 3 4Median (millions) $1.1 $1.2 $1.1 $1.5 $0.9 $1.3* Less than 1 percent Exhibit 2-13 BROkERAgE: SALES VOLuME, By ExPERiENCE, 2010 (Percentage Distribution, Brokerage Specialists only) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreless than $500,000 36% 61% 41% 34% 31%$500,000 to under $1 million 13 17 14 12 13$1 to under $1.5 million 9 8 13 9 9$1.5 to under $2 million 9 5 10 9 9$2 to under $3 million 10 4 8 11 11$3 to under $4 million 7 2 6 8 8$4 to under $5 million 5 2 4 5 6$5 to under $6 million 3 1 1 4 3$6 to under $7 million 2 1 1 2 2$7 to under $8 million 1 * * 2 1$8 to under $10 million 2 * * 2 2$10 million or more 4 * 3 3 6Median (millions) $1.1 $0.3 $0.9 $1.3 $1.4* Less than 1 percent30 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 2-14 THE MOST iMPORTANT FACTOR LiMiTiNg POTENTiAL CLiENTS iN COMPLETiNg A TRANSACTiON, 2010 (Percentage Distribution, Brokerage Specialists only) RESIDENTIAL SPECIALISTS Broker/ Broker Commercial ALL REALTORS® All Associate Sales Agent SpecialistsDifficulty in obtaining 33% 32% 35% 31% 42%mortgage financeexpectation that prices 26 26 24 28 22might fall furtherlow consumer confidence 15 15 17 13 12Difficulty in finding the 10 10 8 11 10right propertyNo factors are limiting 8 8 7 9 11potential clientsconcern about losing job 4 4 5 4 3expectation that mortgage 1 1 1 1 1rates might come downother 4 4 4 4 ** Less than 1 percentExhibit 2-15 THE MOST iMPORTANT FACTOR LiMiTiNg POTENTiAL CLiENTS iN COMPLETiNg A TRANSACTiON, By ExPERiENCE, 2010 (Percentage Distribution, Brokerage Specialists only) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreDifficulty in obtaining 33% 34% 35% 34% 30%mortgage financeexpectation that prices 26 24 26 28 25might fall furtherlow consumer confidence 15 11 11 13 18Difficulty in finding the 10 17 12 9 8right propertyNo factors are limiting 8 7 8 8 9potential clientsconcern about losing job 4 3 5 3 6expectation that mortgage 1 1 1 1 1rates might come downother 4 2 4 4 3 National association of RealtoRs® | Member Profile 2011 31

2011 Member Profile • chapter 2: Business activity of RealtoRs® Exhibit 2-16 BROkERAgE: WEBSiTES WHERE REALTORS® PLACE THEiR LiSTiNgS (Percent of Respondents, Brokerage Specialists only) ALL REALTORS® RESIDENTIAL SPECIALISTS Broker/ Broker Commercial 2011 Survey 2010 Survey All Associate Sales Agent SpecialistsRealtoR.com® 82% 80% 83% 85% 82% 53%firm’s website 81 81 82 80 84 71local Mls website 67 69 68 67 69 47Personal website 46 48 47 45 49 23local RealtoR® association website 38 39 39 42 36 26franchiser’s website 25 27 26 26 26 14local newspaper website 23 25 23 25 21 17local real estate magazine website 21 22 21 23 20 15other Broker’s website 19 17 19 22 17 9commercial listing service** 10 12 8 11 6 54other 64 65 66 65 66 38None 3 2 3 3 3 5** Commercial listing service, e.g., CoStar, LoopNet, CCIMNet, or other commercial information exchange (CIE) Exhibit 2-17 PROPERTy MANAgEMENT: TyPES OF PROPERTiES MANAgEd (Percent of Respondents, Property Management Specialists only) 2011 Survey 2010 Surveysingle-family residential 78% 79%Multi-family residential 60 54office 23 24Retail 13 13industrial 8 11land 5 4other 2 632 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 2-18 PROPERTy MANAgEMENT: NuMBER OF PROPERTiES MANAgEd (Percentage Distribution, Property Management Specialists only) ALL REALTORS® 2011 Survey 2010 Survey Residential Specialists Commercial Specialists1 to 5 properties 24% 12% 15% 26%6 to 10 properties 9 12 29 611 to 20 properties 12 14 27 1021 to 40 properties 12 16 30 1041 to 60 properties 4 9 * 461 to 80 properties 2 5 * 281 to 100 properties 5 6 * 6101 to 500 properties 27 22 * 31501 properties or more 5 6 * 6Median (properties) 25 33 12 39* Less than 1 percentExhibit 2-19 PROPERTy MANAgEMENT: MANAgEMENT FuNCTiONS PERFORMEd (Percent of Respondents, Property Management Specialists only) 2011 Survey 2010 Surveytake tenant applications 81% 85%Marketing 79 83select tenants 78 89collect rent 77 88initiate evictions 71 77Perform large repairs or upgrades 65 62Perform small repairs 60 74Make tax payments 54 43Make mortgage payments 46 36initiate legal actions (other than evictions) 35 40other 28 23 National association of RealtoRs® | Member Profile 2011 33

2011 Member Profile • chapter 2: Business activity of RealtoRs® Exhibit 2-20 HOuRS WORkEd PER WEEk (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager 2011 2010 Broker Sales (without (with Associate (without (with Sales Survey Survey Associate Agent selling) selling) Broker selling) sellling) Agent Appraiserless than 20 hours 14% 11% 10% 17% 21% 11% 8% 4% 5% 16% 4%20 to 39 hours 30 30 25 35 15 23 31 9 15 35 1240 to 59 hours 41 45 47 36 46 45 44 72 59 36 6260 hours or more 15 15 19 12 19 21 17 15 21 13 22Median (hours) 40 40 40 35 40 40 40 45 48 35 45 Exhibit 2-21 REPEAT BuSiNESS FROM PAST CONSuMERS ANd CLiENTS, By SPECiALTy (Percentage Distribution) PRIMARY REAL ESTATE SPECIALTY ALL REALTORS® APPRAISAL BROKERAGE PROPERTY MANAGEMENT In 2010 In 2009 Residential Commercial Residential Commercial Residential CommercialNone 23% 21% 7% 5% 23% 14% 15% 18%less than 10% 17 19 9 2 19 17 21 16Up to 25% 20 20 10 11 21 28 5 14Up to 50% 16 17 7 12 16 19 25 14More than 50% 24 24 67 70 22 23 33 38Median (percent) 18% 18% 63% 66% 16% 20% 35% 30% Exhibit 2-22 REPEAT BuSiNESS FROM PAST CONSuMERS ANd CLiENTS, By ExPERiENCE, 2010 (Percentage Distribution) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreNone 22% 69% 35% 17% 10%less than 10% 17 15 30 21 12Up to 25% 20 8 19 25 21Up to 50% 16 4 10 17 19More than 50% 24 4 6 21 38Median (percent) 19% * 6% 17% 35%* Less than 1 percent34 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 2-23 BuSiNESS THROugH REFERRALS FROM PAST CONSuMERS ANd CLiENTS, By SPECiALTy (Percentage Distribution) PRIMARY REAL ESTATE SPECIALTY ALL REALTORS® APPRAISAL BROKERAGE PROPERTY MANAGEMENT In 2010 In 2009 Residential Commercial Residential Commercial Residential CommercialNone 16% 13% 13% 11% 15% 9% 15% 12%less than 10% 19 18 34 30 17 18 34 31Up to 25% 28 29 23 37 29 33 24 32Up to 50% 18 19 10 10 20 21 15 11More than 50% 20 21 18 13 20 18 12 14Median (percent) 18% 20% 12% 14% 19% 20% 11% 13%Exhibit 2-24 BuSiNESS THROugH REFERRALS FROM PAST CONSuMERS ANd CLiENTS, By ExPERiENCE, 2010 (Percentage Distribution) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreNone 16% 52% 15% 11% 10%less than 10% 19 19 28 18 18Up to 25% 28 16 29 30 29Up to 50% 18 8 14 20 20More than 50% 20 6 14 20 23Median (percent) 18% * 14% 20% 21%* Less than 1 percentExhibit 2-25 BuSiNESS ORigiNATEd FROM AN OPEN HOuSE, By SPECiALTy, 2010 (Percentage Distribution) RESIDENTIAL SPECIALISTS ALL REALTORS® All Broker/ Broker Associate Sales AgentNone 67% 60% 63% 58%less than 10% 23 27 27 27Up to 25% 7 9 7 9Up to 50% 2 2 1 3More than 50% 2 2 1 2Median (percent) 0% * * ** Less than 1 percent National association of RealtoRs® | Member Profile 2011 35

2011 Member Profile • chapter 2: Business activity of RealtoRs® Exhibit 2-26 BuSiNESS ORigiNATEd FROM AN OPEN HOuSE, By ExPERiENCE, 2010 (Percentage Distribution) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreNone 67% 67% 63% 67% 70%less than 10% 23 16 24 25 23Up to 25% 7 8 9 6 6Up to 50% 2 5 3 1 1More than 50% 2 4 1 1 1Median (percent) * * * * ** Less than 1 percent Exhibit 2-27 CuSTOMERS ANd CLiENTS WHOSE PRiMARy LANguAgE iS NOT ENgLiSH (Percentage Distribution) ALL REALTORS® REALTOR® IS Fluent in a language In 2010 In 2009 other than English Fluent in English onlyNone 44% 44% 18% 46%less than 10% 33 33 22 38Up to 25% 10 11 16 10Up to 50% 5 5 15 4More than 50% 7 6 29 3Median (percent) 3% 3% 20% 2% Exhibit 2-28 CuSTOMERS ANd CLiENTS WHO WERE FOREigN NATiONALS (Percentage Distribution) ALL REALTORS® In 2010 In 2009None 72% 70%less than 10% 21 22Up to 25% 5 5Up to 50% 1 2More than 50% 2 236 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 2-29 ExPENdiTuRES TO MAiNTAiN REALTOR® WEBSiTE (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 19% 23% 13% 25% 4% 8% 18% 39% 21% 23%less than $100 18 17 15 20 7 12 19 8 12 19$100 to $499 33 33 34 32 26 36 33 40 37 32$500 to $999 17 15 21 13 17 24 16 8 18 15$1,000 or more 13 12 18 10 46 20 14 6 12 11Median $250 $220 $360 $170 $890 $430 $250 $130 $280 $200Exhibit 2-30 CuSTOMER iNQuiRiES gENERATEd FROM WEBSiTE (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 27% 27% 22% 32% 4% 21% 25% 21% 31% 31%1 to 5 inquiries 37 35 32 40 18 29 33 7 33 416 to 10 inquiries 14 12 17 12 17 16 17 8 12 1311 to 20 inquiries 8 9 10 7 13 11 8 13 8 721 to 50 inquiries 6 7 8 4 10 10 9 13 7 451 to 100 inquiries 3 4 3 2 10 3 3 21 4 2More than 100 inquiries 6 6 9 3 28 10 6 17 5 3Median (inquiries) 3 4 5 3 19 6 4 23 3 3* Less than 1 percentExhibit 2-31 CuSTOMER iNQuiRiES gENERATEd FROM WEBSiTE By AMOuNT SPENT TO MAiNTAiN, 2010 (Percentage Distribution) AMOUNT SPENT TO MAINTAIN THE WEBSITE ALL REALTORS® None Less than $100 $100 to $499 $500 to $999 $1,000 or moreNone 27% 50% 34% 24% 13% 13%1 to 5 inquiries 37 31 42 42 36 256 to 10 inquiries 14 9 11 16 21 1411 to 20 inquiries 8 6 5 7 10 1421 to 50 inquiries 6 2 4 5 10 1351 to 100 inquiries 3 1 2 2 4 5More than 100 inquiries 6 1 2 4 6 16Median (inquiries) 3 0 3 3 6 9 National association of RealtoRs® | Member Profile 2011 37

2011 Member Profile • chapter 2: Business activity of RealtoRs® Exhibit 2-32 BuSiNESS gENERATEd FROM REALTOR® WEBSiTE (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 35% 37% 29% 40% 17% 25% 32% 48% 31% 40%1% to 5% 28 27 25 30 6 21 29 8 26 306% to 10% 14 15 16 13 23 16 16 8 13 1311% to 25% 12 10 15 9 36 18 12 21 11 1026% to 50% 8 6 10 6 16 15 8 10 12 5More than 50% 4 4 5 4 3 6 4 4 7 3Median (percent of business) 3% 3% 4% 2% 13% 7% 4% 2% 4% 2% Exhibit 2-33 BuSiNESS gENERATEd FROM REALTOR® WEBSiTE, By AMOuNT SPENT TO MAiNTAiN, 2010 (Percentage Distribution) AMOUNT SPENT TO MAINTAIN THE WEBSITE ALL REALTORS® None Less than $100 $100 to $499 $500 to $999 $1,000 or moreNone 35% 60% 41% 31% 20% 17%1% to 5% 28 23 33 33 27 176% to 10% 14 6 12 16 21 1711% to 25% 12 5 7 12 18 2126% to 50% 8 4 4 6 9 20More than 50% 4 3 2 3 5 8Median (percent of business) 3% * 2% 3% 7% 10%* Less than 1 percent38 National association of RealtoRs® | Member Profile 2011

Chapter 3:income and Expenses of REALTORS®The combination of sales volume and lower prices directly affects REALTOR®income as most real estate agents and brokers are compensated on a commissionbasis. The median gross income of REALTORS® — income earned from real estateactivities — was $34,100 in 2010, down from $35,700 in 2009. At the same time,REALTOR® business expenses fell from $5,480 in 2009 to $4,270 in 2010.When viewed across different functions, brokers who were not involved in sellingactivities and managers typically earned the highest annual income. Sales agentsare less likely to work under a 100 percent commission than brokers (12 percent vs.25 percent). Percentage split-commission was even more popular with salesagents, with roughly four in five receiving this type of compensation structure.It is also important to compare the business characteristics of higher and lowerearning REALTORS® in addition to looking at specific influences on income. Higherincome levels are associated strongly with more real estate transactions becausethe real estate business is largely commission-based. As REALTORS®’ years ofexperience increase, they build a client base through referrals of past clients andrepeat business. National Association of REALTORS® | Member Profile 2011 39

2011 Member Profile • chapter 3: income and expenses of RealtoRs®COMPENSATiON STRuCTuRE BuSiNESS ExPENSES• Exhibits 3-1 through 3-3 • Exhibits 3-4 through 3-13 seventy percent of RealtoRs® were compensated under Median business expenses fell from $5,480 in 2009 toa percentage split commission in the 2011 survey — similar to $4,270 in 2010. Brokers typically had higher business expensesthe 2010 survey. almost one in five were compensated with a at $6,180 compared to $3,450 for sales agents.100 percent commission arrangement. RealtoR® income and expenses are highly correlated. Brokers are more likely to work under a 100 percent RealtoRs® with gross personal incomes of less than $10,000commission than sales agents (25 percent vs. 12 percent). a year reported a median business expense level of $1,730,Percentage split-commission was even more popular with compared to RealtoRs® making $150,000 or more who hadsales agents, with roughly four in five receiving this type of median business expenses of $30,000.compensation structure. those with less experience more the median administrative expenses reported in 2010 wereoften had percentage split-commission arrangements, as did $720, up from $690 in 2009, and were higher for brokersthose who had lower personal earnings. than sales agents. Marketing services typically were $550, the median year starting and ending commission splits with brokers having higher expenses in this category thanwere 70 percent, the same as in the 2010 survey. among sales agents. the largest single expense category for mostRealtoRs® with a percentage commission-split, the median RealtoRs® was vehicle expenses, which increased fromyear-starting commission percentage was 58 percent for those $1,580 in 2009 to $1,680 in 2010.earning under $10,000 compared to 80 percent for thosemaking $150,000. also, more experienced RealtoRs® tendedto have higher percentages of commission, with those whowere in business over 16 years typically receiving year-startingpercentage commission splits of 70 percent, compared to 51percent for those with 2 years or less experience.40 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®REALTOR® iNCOME iNCOME OF BuSiNESS CHARACTERiSTiCS OF• Exhibits 3-14 through 3-17 REALTORS® • Exhibit 3-18 the median gross income of RealtoRs® — income earnedfrom real estate activities — was $34,100 in 2010, down from experience in real estate, number of hours worked, function$35,700 in 2009. Nearly four in ten respondents reported performed with the firm, and license type reveal interestinggross incomes below $25,000. seventeen percent reported differences among RealtoRs®. for instance, RealtoRs® inincomes of $100,000 or more. higher income groups are more likely to remain active as a real estate professional during the next two years with 92 percent those with a broker or broker associate license reported of those in the $150,000 or more income bracket saying theya median income of $48,700 compared to $24,900 for sales were very certain to remain active in the business compared toagents. over half of RealtoRs® had net incomes (accounting only 60 percent in the less than $10,000 income group. also,for taxes and expenses) of less than $25,000, with a median of RealtoRs® who make more money are more likely to have a$24,600 in 2010. this is up from $23,400 in 2009. designation, a certification, and a website. Broker owners (without selling) and managers (without Higher income levels are associated strongly with more realselling) had higher gross and net incomes than other groups. estate transactions because the real estate business is largelyappraisers also had higher incomes with a gross median commission-based. as RealtoRs®’ years of experienceincome of $64,500. increase, they build a client base through referrals of past as RealtoRs® gain knowledge and experience, their clients and repeat business. RealtoRs® making $150,000 orincome generally rises. RealtoRs® with 16 years or more more had a median of 35 percent of repeat business from pastexperience had a median gross income of $47,100 compared to clients and 24 percent of business through referrals from pastRealtoRs® with 2 years or less experience that had a median clients, compared to 0 percent of repeat business from pastgross income of $8,900. Referrals and previous clients are a clients and 6 percent of business through referrals for thosesignificant source of business for RealtoRs®. the amount of making less than $10,000.hours worked per week also strongly correlated with income. income is also related to a RealtoRs® level of education.RealtoRs® who typically worked less than 20 hours a week While about 46 percent in the lowest income group havehad a median gross income of $8,100 a year, and those who a bachelor’s degree or higher, the comparable figure is 57worked 60 or more hours per week had a median gross income percent in the highest income group. Not surprisingly, of thoseof $73,000. in the highest income group, 94 percent said that real estate was their only occupation, compared with 51 percent in the lowest income group. the home ownership level in the highest income group was 96 percent where as 87 percent in the lowest income group owned their own home. Median firm size, median age, and voter participation varies somewhat across income categories. National association of RealtoRs® | Member Profile 2011 41

2011 Member Profile • chapter 3: income and expenses of RealtoRs®Exhibit 3-1 COMPENSATiON STRuCTuRES FOR REALTORS® (Percentage Distribution) ALL REALTORS® LICENSED AS 2011 Survey 2010 Survey Broker/ Broker Associate Sales AgentPercentage commission split 68% 69% 54% 80%100% commission 18 18 25 12commission plus share of profits 3 3 3 2salary plus share of profits/production bonus 3 3 5 1salary only 2 2 3 1share of profits only 1 1 2 *other 6 4 9 3Median year-starting percentage commission split 70% 70% 70% 65%Median year-ending percentage commission split 70% 70% 75% 70%* Less than 1 percentExhibit 3-2 COMPENSATiON STRuCTuRES FOR REALTORS®, By ExPERiENCE (Percentage Distribution) REAL ESTATE EXPERIENCE ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or morePercentage commission split 68% 83% 79% 68% 60%100% commission 18 7 13 18 22commission plus share of profits 3 3 2 3 2salary plus share of profits/production bonus 3 1 2 2 4salary only 2 1 * 2 3share of profits only 1 * 1 1 1other 6 3 4 6 7Median year-starting percentage commission split 70% 51% 60% 70% 70%Median year-ending percentage commission split 70% 55% 65% 70% 75%* Less than 1 percent42 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 3-3 COMPENSATiON STRuCTuRES FOR REALTORS®, By gROSS PERSONAL iNCOME (Percentage Distribution) GROSS PERSONAL INCOME Less than $10,000 to $25,000 $35,000 $50,000 $75,000 $100,000 $150,000 ALL REALTORS® $10,000 $24,999 to $34,999 to $49,999 to $74,999 to $99,999 to $149,999 or morePercentage commission split 68% 77% 79% 73% 70% 61% 60% 51% 48%100% commission 18 15 13 15 15 21 21 26 29commission plus share 3 1 2 2 3 3 2 4 6of profitssalary plus share of profits/ 3 * 1 2 2 4 5 9 6production bonussalary only 2 1 1 2 4 2 4 2 1share of profits only 1 1 1 * 1 2 1 2 2other 6 6 4 6 5 8 8 6 8Median year-starting 70% 58% 60% 65% 70% 70% 70% 80% 80%percentage commission splitMedian year-ending 70% 60% 65% 70% 70% 75% 80% 85% 90%percentage commission split* Less than 1 percentExhibit 3-4 TOTAL REAL ESTATE BuSiNESS ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 3% 2% 3% 3% 11% 3% 1% 15% 4% 2%less than $500 6 4 4 7 2 4 2 22 6 6$500 to $999 9 6 6 11 7 7 6 7 6 10$1,000 to $2,499 20 17 16 23 15 13 17 17 22 22$2,500 to $4,999 19 20 18 20 8 15 19 20 19 21$5,000 to $9,999 15 19 14 16 10 13 17 8 17 16$10,000 to $19,999 13 15 16 10 9 18 15 7 12 11$20,000 to $29,999 7 8 8 6 5 8 10 * 6 6$30,000 to $49,999 5 5 7 3 9 9 7 * 4 4$50,000 to $99,999 3 3 5 2 7 6 4 6 3 2$100,000 or more 2 2 3 1 17 4 2 * 1 1Median $4,270 $5,480 $6,180 $3,450 $8,490 $8,220 $6,360 $1,610 $4,050 $3,760* Less than 1 percent National association of RealtoRs® | Member Profile 2011 43

2011 Member Profile • chapter 3: income and expenses of RealtoRs®Exhibit 3-5 TOTAL REAL ESTATE ExPENSES, By gROSS PERSONAL iNCOME, 2010 (Percentage Distribution) GROSS PERSONAL INCOME Less than $10,000 to $25,000 to $35,000 to $50,000 to $75,000 to $100,000 $150,000 ALL REALTORS® $10,000 $24,999 $34,999 $49,999 $74,999 $99,999 to $149,999 or moreNone 3% 5% 2% 2% 2% 2% 2% 1% 3%less than $500 6 12 5 7 3 3 3 2 1$500 to $999 9 18 12 7 6 4 3 3 2$1,000 to $2,499 20 32 28 19 16 14 9 9 4$2,500 to $4,999 19 18 26 25 24 19 12 9 8$5,000 to $9,999 15 11 16 19 19 21 19 12 7$10,000 to $19,999 13 3 9 16 16 20 21 19 10$20,000 to $29,999 7 1 2 4 7 10 15 16 16$30,000 to $49,999 5 1 * 1 4 5 12 17 17$50,000 to $99,999 3 * 1 1 1 2 3 9 19$100,000 or more 2 * * * 1 1 1 3 13Median $4,270 $1,730 $2,790 $4,080 $4,850 $7,120 $10,630 $17,200 $30,000* Less than 1 percentExhibit 3-6 AdMiNiSTRATiVE ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker- Manager Manager Broker Sales (without Owner (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 17% 16% 17% 17% 37% 17% 15% 47% 22% 15%less than $500 25 27 21 30 15 18 21 21 29 29$500 to $999 16 18 15 17 5 14 16 6 16 18$1,000 to $1,499 13 13 12 13 12 10 15 4 13 14$1,500 to $2,499 10 10 10 10 8 11 10 8 9 10$2,500 to $4,999 9 7 10 8 6 12 10 10 4 8$5,000 to $9,999 4 4 5 3 2 7 5 2 3 3$10,000 to $14,999 2 2 3 1 6 3 3 * 1 2$15,000 or more 4 3 6 2 10 7 5 2 3 2Median $720 $690 $900 $590 $430 $1,070 $940 $80 $480 $680* Less than 1 percent44 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 3-7 AFFiNiTy/REFERRAL RELATiONSHiP ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 61% 57% 58% 63% 75% 61% 53% 88% 54% 60%less than $500 15 15 14 15 10 15 17 2 20 14$500 to $999 7 7 7 6 1 6 7 4 9 6$1,000 to $1,499 5 6 5 4 2 5 5 2 4 5$1,500 to $2,499 4 4 5 4 1 5 5 * 5 5$2,500 to $4,999 4 5 4 3 2 3 6 * 1 4$5,000 to $9,999 3 3 4 3 6 3 4 2 6 3$10,000 to $14,999 1 1 1 1 3 1 2 * 1 1$15,000 or more 1 2 2 1 1 2 2 2 1 1Median $0 $0 $0 $0 $0 $0 $0 $0 $0 $0* Less than 1 percentExhibit 3-8 MARkETiNg OF SERViCES ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 18% 13% 18% 16% 60% 23% 9% 70% 20% 13%less than $500 31 29 25 35 10 22 26 14 33 34$500 to $999 17 20 17 18 8 15 19 10 15 19$1,000 to $1,499 11 13 12 10 2 10 15 1 13 11$1,500 to $2,499 9 10 10 9 1 9 10 2 7 10$2,500 to $4,999 7 7 9 6 5 9 9 2 6 7$5,000 to $9,999 4 4 5 3 6 6 6 * 4 4$10,000 to $14,999 2 2 3 1 1 3 4 * 2 1$15,000 or more 2 2 3 1 7 4 2 2 * 2Median $550 $690 $720 $480 $0 $690 $880 $0 $460 $570Median percent spenton online marketing and 10% 10% 10% 10% 10% 10% 10% 3% 10% 10%promotion* Less than 1 percent National association of RealtoRs® | Member Profile 2011 45

2011 Member Profile • chapter 3: income and expenses of RealtoRs®Exhibit 3-9 OFFiCE LEASE/BuiLdiNg ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker- Manager Manager Broker Sales (without Owner (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 72% 73% 66% 78% 66% 53% 73% 92% 77% 77%less than $500 7 6 7 7 7 9 5 2 4 7$500 to $999 4 4 4 4 * 3 4 * 2 4$1,000 to $1,499 4 3 4 3 1 4 3 4 1 4$1,500 to $2,499 3 3 3 3 4 5 2 * 3 3$2,500 to $4,999 3 3 4 2 5 7 2 * 4 2$5,000 to $9,999 3 3 5 2 7 8 4 * 6 1$10,000 to $14,999 2 2 3 2 1 5 3 * * 2$15,000 or more 3 3 5 1 10 8 3 2 3 1Median $0 $0 $0 $0 $0 $0 $0 $0 $0 $0* Less than 1 percentExhibit 3-10 PROFESSiONAL dEVELOPMENT ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker- Manager Manager Broker Sales (without Owner (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 10% 8% 12% 8% 40% 17% 6% 30% 13% 6%less than $500 35 30 32 38 19 30 35 22 36 37$500 to $999 27 29 25 27 16 24 25 38 31 28$1,000 to $1,499 15 17 15 14 8 14 18 7 12 15$1,500 to $2,499 9 9 8 8 2 9 9 2 5 9$2,500 to $4,999 4 4 5 3 7 5 6 * 4 3$5,000 to $9,999 1 1 2 1 4 2 1 * * 1$10,000 to $14,999 1 1 1 * * 1 * * 1 *$15,000 or more * * * * 2 * * 1 * *Median $600 $700 $620 $580 $260 $580 $680 $470 $530 $620* Less than 1 percent46 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 3-11 BuSiNESS PROMOTiON ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 15% 11% 17% 12% 48% 22% 9% 59% 19% 10%less than $500 33 32 27 37 15 26 25 19 31 36$500 to $999 18 21 17 19 14 14 20 11 20 19$1,000 to $1,499 11 12 13 10 6 12 16 7 11 11$1,500 to $2,499 9 11 9 10 3 8 11 2 7 10$2,500 to $4,999 8 7 8 7 4 7 10 2 6 8$5,000 to $9,999 4 4 5 3 7 4 5 * 2 4$10,000 to $14,999 2 1 3 1 1 2 3 * 3 2$15,000 or more 2 2 3 2 3 5 2 * * 2Median $580 $670 $690 $530 $60 $580 $900 $0 $500 $620Median percent spenton online marketing and 10% 10% 10% 10% 10% 10% 10% 3% 10% 10%promotion* Less than 1 percentExhibit 3-12 TECHNOLOgy PROduCTS ANd SERViCES ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker- Manager Manager Broker Sales (without Owner (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 16% 11% 16% 15% 40% 18% 11% 29% 26% 13%less than $500 29 28 24 33 7 20 27 37 29 33$500 to $999 22 25 21 22 10 19 25 15 16 23$1,000 to $1,499 14 16 15 13 12 15 16 7 11 14$1,500 to $2,499 11 12 11 10 13 11 9 6 8 11$2,500 to $4,999 6 6 8 5 7 8 8 4 7 6$5,000 to $9,999 2 2 3 1 5 3 3 * 1 1$10,000 to $14,999 1 * 1 * 4 2 1 * 2 *$15,000 or more 1 1 1 * 2 1 * 2 * *Median $630 $720 $750 $540 $660 $800 $740 $280 $410 $600* Less than 1 percent National association of RealtoRs® | Member Profile 2011 47

2011 Member Profile • chapter 3: income and expenses of RealtoRs®Exhibit 3-13 BuSiNESS uSE OF VEHiCLE ExPENSES, 2010 (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker- Manager Manager Broker Sales (without Owner (with Associate (without (with Sales In 2010 In 2009 Associate Agent selling) selling) Broker selling) sellling) AgentNone 8% 11% 10% 6% 39% 14% 5% 26% 8% 5%less than $500 12 11 9 14 3 9 7 17 11 13$500 to $999 15 14 12 17 7 11 14 12 13 17$1,000 to $1,499 13 12 11 14 6 9 12 10 11 15$1,500 to $2,499 15 14 14 15 8 14 13 20 14 15$2,500 to $4,999 17 17 18 16 15 16 19 6 21 17$5,000 to $9,999 13 12 16 11 10 15 19 6 15 12$10,000 to $14,999 5 5 6 4 6 7 6 2 5 4$15,000 or more 3 3 4 2 6 5 5 2 3 2Median $1,680 $1,580 $2,080 $1,440 $1,100 $2,010 $2,380 $800 $2,010 $1,550Exhibit 3-14 ANNuAL iNCOME OF REALTORS®, 2010 (Percentage Distribution) ALL REALTORS® LICENSED ASGross Income: Before taxesand expenses In 2010 In 2009 Broker/ Broker Associate Sales Agentless than $10,000 22% 21% 14% 29%$10,000 to $24,999 18 17 14 21$25,000 to $34,999 11 11 10 11$35,000 to $49,999 12 13 13 11$50,000 to $74,999 13 14 15 11$75,000 to $99,999 9 8 12 6$100,000 to $149,999 8 8 11 5$150,000 to $199,999 4 3 5 3$200,000 to $249,999 2 2 2 1$250,000 or more 3 3 4 2Median $34,100 $35,700 $48,700 $24,900Net Income: After taxesand expensesless than $10,000 30% 31% 22% 36%$10,000 to $24,999 21 21 18 23$25,000 to $34,999 12 13 13 11$35,000 to $49,999 12 12 14 9$50,000 to $74,999 11 10 13 9$75,000 to $99,999 7 6 9 5$100,000 to $149,999 4 4 6 3$150,000 to $199,999 2 2 2 1$200,000 to $249,999 1 1 1 *$250,000 or more 1 1 2 1Median $24,600 $23,400 $33,300 $18,800* Less than 1 percent48 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 3-15 ANNuAL iNCOME OF REALTORS®, By MAiN FuNCTiON, 2010 (Percentage Distribution) MAIN FUNCTION IN FIRM Broker-Owner Broker-Owner Manager ManagerGross Income: Before taxes ALL (without (with Associate (without (with Salesand expenses REALTORS® selling) selling) Broker selling) sellling) Agent Appraiserless than $10,000 22% 18% 14% 15% 07% 8% 28% 3%$10,000 to $24,999 18 10 11 19 7 11 21 11$25,000 to $34,999 11 4 9 11 7 9 11 10$35,000 to $49,999 12 7 12 16 10 11 11 12$50,000 to $74,999 13 9 19 12 21 22 11 26$75,000 to $99,999 9 12 11 10 16 15 7 15$100,000 to $149,999 8 18 11 9 25 17 6 14$150,000 to $199,999 4 7 5 4 4 6 3 6$200,000 to $249,999 2 2 3 2 1 2 1 2$250,000 or more 3 13 6 4 2 * 2 2Median $34,100 $80,000 $54,900 $39,800 $73,400 $63,700 $26,200 $64,500Net Income: After taxes and expensesless than $10,000 30% 19% 22% 27% 6% 10% 35% 9%$10,000 to $24,999 21 12 15 21 7 20 24 13$25,000 to $34,999 12 6 14 13 6 10 11 18$35,000 to $49,999 12 5 13 11 20 18 10 20$50,000 to $74,999 11 18 14 13 26 20 9 15$75,000 to $99,999 7 16 9 8 12 14 5 10$100,000 to $149,999 4 10 6 4 17 6 3 12$150,000 to $199,999 2 2 2 2 3 1 1 1$200,000 to $249,999 1 1 2 1 4 2 1 1$250,000 or more 1 11 3 1 * 1 1 2Median $24,600 $61,300 $34,700 $27,300 $61,300 $43,800 $19,700 $42,800* Less than 1 percent National association of RealtoRs® | Member Profile 2011 49

2011 Member Profile • chapter 3: income and expenses of RealtoRs®Exhibit 3-16 ANNuAL iNCOME OF REALTORS®, By ExPERiENCE, 2010 (Percentage Distribution) REAL ESTATE EXPERIENCEGross Income: Beforetaxes and expenses ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreless than $10,000 22% 56% 28% 18% 16%$10,000 to $24,999 18 24 24 18 15$25,000 to $34,999 11 6 14 12 10$35,000 to $49,999 12 5 12 13 12$50,000 to $74,999 13 4 12 15 15$75,000 to $99,999 9 3 4 10 11$100,000 to $149,999 8 2 4 8 10$150,000 to $199,999 4 * 2 3 5$200,000 to $249,999 2 * * 2 2$250,000 or more 3 * * 2 4Median $34,100 $8,900 $23,700 $37,700 $47,100Net Income: After taxesand expensesless than $10,000 30% 70% 37% 25% 21%$10,000 to $24,999 21 17 28 23 17$25,000 to $34,999 12 5 13 13 12$35,000 to $49,999 12 4 11 12 14$50,000 to $74,999 11 2 7 13 13$75,000 to $99,999 7 1 3 7 9$100,000 to $149,999 4 * 2 4 7$150,000 to $199,999 2 * * 2 3$200,000 to $249,999 1 * * 1 2$250,000 or more 1 * * 1 3Median $24,600 $7,100 $16,800 $26,600 $34,400* Less than 1 percent50 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 3-17 ANNuAL iNCOME OF REALTORS®, By HOuRS WORkEd, 2010 (Percentage Distribution) HOURS PER WEEKGross Income: Beforetaxes and expenses ALL REALTORS® Less than 20 hours 20 to 39 hours 40 to 59 hours 60 hours or moreless than $10,000 22% 62% 29% 10% 7%$10,000 to $24,999 18 21 26 14 9$25,000 to $34,999 11 6 14 11 7$35,000 to $49,999 12 4 11 15 11$50,000 to $74,999 13 3 10 18 17$75,000 to $99,999 9 1 6 12 12$100,000 to $149,999 8 1 3 10 16$150,000 to $199,999 4 * 1 5 9$200,000 to $249,999 2 * * 2 4$250,000 or more 3 1 1 3 8Median $34,100 $8,100 $22,300 $49,700 $73,000Net income: after taxesand expensesless than $10,000 30% 66% 39% 18% 12%$10,000 to $24,999 21 20 28 19 14$25,000 to $34,999 12 6 11 14 12$35,000 to $49,999 12 3 10 15 14$50,000 to $74,999 11 4 7 15 16$75,000 to $99,999 7 1 3 10 12$100,000 to $149,999 4 1 2 5 10$150,000 to $199,999 2 * 1 2 5$200,000 to $249,999 1 * * 1 1$250,000 or more 1 * * 1 4Median $24,600 $7,600 $16,300 $34,500 $46,800* Less than 1 percent National association of RealtoRs® | Member Profile 2011 51

2011 Member Profile • chapter 3: income and expenses of RealtoRs®Exhibit 3-18 BuSiNESS CHARACTERiSTiCS ANd ACTiViTy OF REALTORS®, By gROSS PERSONAL iNCOME GROSS PERSONAL INCOME ALL Less than $10,000 to $25,000 to $50,000 to $100,000 $150,000 or REALTORS® $10,000 $24,999 $49,999 $99,999 to $149,999 morePercent of RealtoRs® in the category 100% 22% 18% 22% 22% 8% 8%Real estate eXPeRieNce 2 years or less 10% 25% 13% 5% 3% 3% 0% 3 to 5 years 14 17 18 16 10 7 5 6 to 15 years 35 28 35 40 39 36 33 16 years or more 42 29 34 40 48 54 63Have a website 62% 52% 44% 38% 30% 24% 18%Have a designation 36% 20% 27% 39% 45% 47% 52%Have a certification 35% 23% 33% 38% 42% 40% 41%Will ReMaiN actiVe as a Real estate PRofessioNal DURiNG tHe NeXt tWo YeaRsVery certain 73% 60% 62% 73% 85% 89% 92%somewhat certain 18 24 26 18 11 9 5Not certain 9 17 12 8 5 2 3BUsiNess actiVitYBrokerage: Median number of transactions 8 2 5 10 14 19 36Brokerage: Median sales volume (millions) $1.1 $0.2 $0.6 $1.2 $2.4 $4.5 $8.6Median hours worked per week 40 20 30 40 45 50 50Percent of repeat business from past consumers 19% 0% 13% 21% 25% 33% 35%and clients (median)Percent of business through referrals from past 19% 6% 17% 20% 23% 25% 24%consumers and clients (median)affiliatioN WitH fiRM independent contractor 81% 87% 88% 82% 75% 72% 71% employee 6 4 4 6 8 8 5 other 14 9 8 12 17 20 24Median size of firm, by number of brokers and agents 29 20 20 20 20 30 30tenure at firm (median years) 5 3 4 6 7 7 11DeMoGRaPHicsage 39 or younger 12% 14% 12% 12% 11% 11% 8% 40 to 59 50 48 47 50 52 56 59 60 or older 38 38 41 38 37 33 34Median age 56 56 56 56 56 55 55education: bachelor’s degree or higher 48% 46% 42% 44% 53% 58% 57%Real estate is only occupation 75% 51% 68% 79% 87% 94% 94%Gross household income (median) $91,700 $68,600 $67,800 $78,400 $100,300 $153,400 $236,100Real estate is primary source of income for household 43% 13% 24% 42% 65% 76% 86%Homeownership rate 91% 87% 88% 90% 93% 95% 96%Voted in the last national election 92% 89% 90% 93% 94% 96% 96%52 National association of RealtoRs® | Member Profile 2011

Chapter 4:Office and Firm Affiliation of REALTORS®D espite the unsettled nature of the housing markets in the past few years, REALTOR® office and firm affiliation remained largely unchanged. Most REALTORS® are independent contractors typically affiliated with anindependent non-franchised company. Independent franchised companiesremained the next most popular type of firm affiliation by REALTORS®.Firm size has remained consistent despite the economic slump. One-office firmswere predominant among respondents. The typical REALTOR® had been with theircurrent firm for five years, a figure that has not changed in the previous few years.While mergers and consolidations continued to affect about one in ten REALTORS®,most were unaffected in their compensation and the typical office size decreasedonly slightly.Brokers typically have an ownership stake in their firms. While just under half ofbrokers had sole ownership of their firm in the 2010 survey, in the 2011 survey 56percent of brokers reported sole ownership of their firm.Because most members are independent contractors, firm benefits are notcommon; only one-quarter of REALTORS® reported receiving any benefits. Amongthose receiving benefits, liability insurance was the most commonly received. National Association of REALTORS® | Member Profile 2011 53

2011 Member Profile • chapter 4: office and firm affiliation of RealtoRs®FiRM AFFiLiATiON FiRM CHARACTERiSTiCS• Exhibits 4-1 through 4-4 • Exhibits 4-5 through 4-8 More RealtoRs® report that they work with an independent the typical RealtoR® works at a firm that employs 29non-franchised company than any other type of company (41 agents and brokers.. Brokers and broker associates typicallypercent). Brokers and broker associates (51 percent) are more work at smaller firms with a median of 23 total agents andoften affiliated with an independent non-franchised company brokers; comparatively sales agents typically work at largerthan sales agents (31 percent). in the 2011 survey, more firms with a median of 36 agents and brokers. one in tenRealtoRs® reported an affiliation with a franchised subsidiary respondents worked in a firm with more than a hundred agentsof a national or regional corporation (33 percent) than with an and brokers.independent, franchised company (21 percent). By function in the number of offices in firms that RealtoRs® are affiliatedthe firm, broker-owners and appraisers most often reported an with is little changed from last year. Most RealtoRs® areaffiliation with independent, non-franchised companies. affiliated with firms that have a single office. about one-fifth among the primary specialties, those in appraisal (69 of RealtoRs® (22 percent) work at a firm with 2 to 4 offices.percent), residential property management (63 percent), and sales agents and associate brokers typically work in firmscommercial property management (70 percent) were most with two or more offices, while the median number of officeslikely to be affiliated with an independent non-franchised for broker-owners, appraisers, and managers who sell is onecompany. office. Managers who do not sell typically work for firms with 10 or more offices. Based on firm size, smaller firms are more often independentnon-franchised companies, while larger firms are more likely to Because the typical RealtoR® works at a single-office firm,be franchised. as in previous years, four-fifths of RealtoRs® the typical office of 25 agents is very close in size to the typical(81 percent) are independent contractors of their firms. firm. Managers who do not sell usually work in an office that is half the size of the firm, measured by the number of brokers or agents working there. the median tenure for RealtoRs® with their current firm is unchanged at five years. By function within the firm, sales agents have the least tenure at their current firm while broker- owners who do not sell tend to have the longest tenure.54 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®BROkERS OWNERSHiP iNTEREST MERgERS• Exhibits 4-9 and 4-10 • Exhibits 4-13 through 4-15 More than three-quarters of brokers had some ownership RealtoR® experience with mergers was similar tointerest in their firm, and more than half reported having sole what was reported in the last few years. eleven percent ofownership of their firm. the share was even higher for brokers RealtoRs® worked for a firm that was either bought oraffiliated with non-franchised firms, where 65 and 71 percent merged in the past two years. Most who changed firms afterhad sole ownership depending on whether the company was the merger did so voluntarily. While most RealtoRs® whoindependent or a subsidiary. the amount of time spent with worked for a firm that was bought or merged were not affectedthe firm is strongly related to a broker’s ownership interest in their compensation, firm changers were more likely thanand the direction of the relationship depends on whether non-changers to see a change in compensation. among allthe independent company is franchised or not. among who had a change in compensation a slightly larger share saw aindependent non-franchised firms, the longer the tenure decrease than an increase, whether or not they changed firms.the more likely a broker is to have sole ownership; amongindependent franchised firms, the opposite is true.BENEFiTS• Exhibits 4-11 and 4-12 three-quarters of RealtoRs® received no benefits fromtheir firm. independent contractors, the most commonarrangement among RealtoRs®, are less likely than employeesto receive benefits. among all RealtoRs®, errors andomissions insurance was the most common benefit received;one-fifth reported this benefit. six of ten members who wereemployees received benefits and were nearly equally likely toreport errors and omissions insurance as health insurance andpaid vacation or sick days. By firm affiliation, those working fornon-franchised subsidiaries and “other” firms were the mostlikely to receive benefits and the most commonly receivedbenefits were liability insurance followed by health insuranceregardless of firm type. National association of RealtoRs® | Member Profile 2011 55

2011 Member Profile • chapter 4: office and firm affiliation of RealtoRs® Exhibit 4-1 FiRM AFFiLiATiON, By LiCENSE TyPE ANd FuNCTiON (Percentage Distribution) LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker-Owner Broker-Owner Manager Manager ALL Broker Sales (without (with Associate (without (with SalesFirm Description REALTORS® Associate Agent selling) selling) Broker selling) sellling) Agent Appraiser Otherindependent, non- 41% 51% 31% 73% 80% 32% 25% 39% 30% 73% 41%franchised companyfranchisedsubsidiary of a 33 24 42 2 2 39 37 30 42 5 32national or regionalcorporationindependent, 21 20 22 16 13 24 29 23 22 6 22franchised companyNon-franchisedsubsidiary of a 5 4 5 9 4 3 5 7 5 9 4national or regionalcorporationother 1 1 1 * 1 2 4 2 1 7 1* Less than 1 percent Exhibit 4-2 FiRM AFFiLiATiON, By SPECiALTy (Percentage Distribution) PRIMARY REAL ESTATE SPECIALTY BRoKeRaGe PRoPeRtY MaNaGeMeNtFirm Description ALL REALTORS® Appraisal Residential Commercial Residential Commercialindependent, non-franchised 41% 69% 36% 36% 63% 70%companyfranchised subsidiary of a national or 33 10 35 43 24 17regional corporationindependent, franchised company 21 7 24 16 9 6Non-franchised subsidiary of a 5 8 5 5 3 8national or regional corporationother 1 7 1 1 1 ** Less than 1 percent Exhibit 4-3 FiRM AFFiLiATiON, By FiRM SiZE (Percentage Distribution) NUMBER EMPLOYED BY OR AFFILIATED WITH FIRMFirm Description ALL REALTORS® One 2 to 5 6 to 25 26 to 100 101 or moreindependent, non-franchised company 41% 89% 66% 44% 24% 26%franchised subsidiary of a national or 33 2 18 34 41 41regional corporationindependent, franchised company 21 4 11 20 31 25Non-franchised subsidiary of a national 5 3 3 2 3 7or regional corporationother 1 1 2 1 1 156 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 4-4 REALTOR® AFFiLiATiON WiTH FiRMS (Percentage Distribution) Other 13% Independent Contractor 81% Employee 6%Exhibit 4-5 SiZE OF FiRM, By NuMBER OF COMMERCiAL ANd RESidENTiAL BROkERS ANd AgENTS (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker- Broker- Manager Manager 2011 2010 Broker Sales Owner Owner Associate (without (with Sales Survey Survey Associate Agent (no selling) (with selling) Broker selling) selling) Agent Appraiserone 7% 6% 10% 3% 11% 18% 3% 3% 4% 3% 10%2 to 5 21 20 24 18 24 34 16 10 33 15 206 to 25 22 23 19 26 14 15 23 21 21 25 826 to 50 8 11 8 9 10 4 13 1 10 10 *51 to 100 8 9 6 10 5 1 9 18 8 10 *101 to 250 8 8 6 11 2 2 11 12 7 11 *251 to 500 4 4 4 4 3 * 6 4 8 5 *501 to 999 4 4 3 4 3 * 7 7 3 5 *1,000 or more 8 9 5 11 1 1 8 20 4 11 *None/Not applicable 11 7 15 5 29 25 4 5 3 4 62Median 29 29 23 36 30 5 41 85 18 42 0* Less than 1 percent National association of RealtoRs® | Member Profile 2011 57

2011 Member Profile • chapter 4: office and firm affiliation of RealtoRs® Exhibit 4-6 NuMBER OF OFFiCES (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker- Broker- Manager Manager 2011 2010 Broker Sales Owner Owner (with Associate (without (with Sales Survey Survey Associate Agent (no selling) selling) Broker selling) sellling) Agent Appraiser1 office 54% 55% 63% 46% 78% 88% 46% 15% 57% 44% 93%2 to 4 offices 22 22 18 27 12 10 22 28 18 26 55 to 9 offices 9 9 8 10 4 1 13 6 14 11 *10 to 99 offices 12 12 10 14 6 1 17 46 11 15 2100 or more offices 2 2 2 3 1 * 2 5 1 3 *Median 1 1 1 2 1 1 2 10 1 2 1* Less than 1 percent Exhibit 4-7 SiZE OF OFFiCES, By NuMBER OF COMMERiCiAL ANd RESidENTiAL BROkERS ANd AgENTS (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRMCommercial and Broker/ Broker- Broker- Manager Managerresidential brokers 2011 2010 Broker Sales Owner Owner (with Associate (without (with Salesand agents only Survey Survey Associate Agent (no selling) selling) Broker selling) sellling) Agent Appraiserone 6% 6% 10% 2% 18% 21% 1% 6% 3% 2% 20%2 to 5 18 18 23 14 25 37 14 5 32 12 136 to 25 27 28 24 30 14 19 32 24 34 29 926 to 50 15 18 14 17 6 4 19 23 10 20 *51 to 100 16 15 13 19 14 1 20 24 12 21 2101 to 250 8 7 6 11 2 2 7 14 6 12 *251 to 500 2 2 2 3 * * 4 * 1 3 *501 to 999 1 1 * 1 1 * * * 1 1 *1,000 or more 1 * * 1 * * 1 5 * 1 *None/Not applicable 6 6 9 2 19 16 2 * 2 2 56Median 25 24 20 32 16 4 30 43 15 36 0* Less than 1 percent58 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 4-8 TENuRE OF REALTORS® AT THEiR PRESENT FiRM (Percentage Distribution) ALL REALTORS® LICENSED AS MAIN FUNCTION IN FIRM Broker/ Broker- Broker- Manager Manager 2011 2010 Broker Sales Owner Owner Associate (without (with Sales Survey Survey Associate Agent (no selling) (with selling) Broker selling) sellling) Agent Appraiser1 year or less 17% 18% 12% 20% 4% 10% 17% 13% 10% 20% 2%2 years 12 12 9 15 2 7 11 15 7 15 13 years 9 10 7 10 4 6 10 9 5 9 84 years 7 7 6 8 2 5 7 2 5 7 25 years 6 7 5 7 2 6 5 10 7 7 36 to 11 years 24 20 22 24 21 22 23 10 27 24 2612 years or more 26 26 39 16 65 44 27 41 40 18 60Median (years) 5 5 8 4 21 9 6 6 9 4 15Exhibit 4-9 BROkER OWNERSHiP iNTEREST (Percentage Distribution) ALL BROKERS FIRM AFFILIATION Independent, Independent, Franchised subsidiary Non-franchised non-franchised franchised of a national or subsidiary of a national 2011 Survey 2010 Survey company company regional corporation or regional corporationsole ownership 56% 45% 65% 33% 45% 71%Partner in a partnership 12 11 8 15 26 11stockholder and/or corporate office 8 10 9 7 6 2No ownership interest 23 33 17 45 22 16other 1 1 1 * 2 ** Less than 1 percent National association of RealtoRs® | Member Profile 2011 59

2011 Member Profile • chapter 4: office and firm affiliation of RealtoRs® Exhibit 4-10 BROkER OWNERSHiP iNTEREST iN iNdEPENdENT COMPANiES, By REAL ESTATE ExPERiENCE (Percentage Distribution) INDEPENDENT, NON-FRANCHISED COMPANY 41% 2 years or less s 59% 39% s 3 to 5 years 45% 66% 6 to 15 years s 16% 68% 16 years or more e 14% 46% 2 years or less s 54% 34% 3 to 5 years s 57% 33% 6 to 15 years s 41% 31% 16 years or more e 45% 0% 10% 20% 30% 40% 50% 60% 70% 80% Sole ownership No ownership interest60 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 4-11 BENEFiTS RECEiVEd THROugH FiRM (Percent of Respondents) AFFILIATION WITH FIRMS ALL REALTORS® Employees Independent Contractorserrors and omissions (liability insurance) 20% 38% 19%Health insurance 5 37 2Pension/seP/401(K) 3 25 1life insurance 3 21 1Dental insurance 3 24 1Paid vacation/sick days 3 38 1Vision care 2 19 1Disability insurance (long-term care) 1 11 *other 2 3 1None 75 41 79* Less than 1 percentExhibit 4-12 BENEFiTS RECEiVEd THROugH FiRM, By FiRM TyPE (Percent of Respondents) FIRM AFFILIATION Independent, Independent, Franchised subsidiary Non-franchised non-franchised franchised of a national or subsidiary of a national ALL REALTORS® company company regional corporation or regional corporation Othererrors and omissions (liability insurance) 20% 20% 26% 17% 27% 29%Health insurance 5 6 6 3 12 25Pension/seP/401(K) 3 3 2 2 8 9life insurance 3 3 3 2 7 11Dental insurance 3 3 2 2 10 11Paid vacation/sick days 3 4 3 3 6 9Vision care 2 2 2 1 7 9Disability insurance (long-term care) 1 1 1 1 4 8other 2 2 2 2 3 4None 75 75 71 80 62 58 National association of RealtoRs® | Member Profile 2011 61

2011 Member Profile • chapter 4: office and firm affiliation of RealtoRs® Exhibit 4-13 WORkEd FOR A FiRM THAT WAS BOugHT OR MERgEd (Percentage Distribution) Yes 11% No 89% Exhibit 4-14 REALTORS® CHANgiNg FiRMS duE TO CONSOLidATiON (Percentage Distribution)REALTOR® changed firms as a result of a merger: 2011 Survey 2010 SurveyYes, voluntarily 35% 32%Yes, involuntarily 6 7No 59 61 Exhibit 4-15 CHANgE iN COMPENSATiON RESuLTiNg FROM MERgER (Percentage Distribution) 2011 SURVEY 2010 SURVEY Among all who worked Among those who Among all who worked Among those who for a firm that was changed firms as a for a firm that was changed firms as a bought or merged result of merger bought or merged result of mergerit increased 14% 22% 11% 18%it stayed the same 70 53 70 55it decreased 16 25 19 2762 National association of RealtoRs® | Member Profile 2011

Chapter 5:demographic Characteristics of REALTORS®T he typical REALTOR® is a 56-year-old white female who attended college and is a homeowner. While the median profile has not changed, REALTORS® come from a variety of demographic groups and career backgrounds. Mostoften, their previous career was in management, business or finance (19 percent)or in the sales or retail sector (16 percent). REALTORS® often reflect the many age,ethnic, language, education and income characteristics represented in their localcommunities.The median gross income of REALTOR® households was $91,700 in 2010. This is upfrom $89,100 in 2009. Household income of members directly correlates to thenumber of hours worked per week and whether real estate is their primary sourceof income. Ninety-one percent of members own their primary residence, whilesome also owned vacation or commercial properties. National Association of REALTORS® | Member Profile 2011 National association of RealtoRs® 63

2011 Member Profile • chapter 5: Demographic characteristics of RealtoRs®gENdER PRiOR FuLL-TiME CAREERS OF REALTORS®• Exhibits 5-1 through 5-3 • Exhibits 5-8 and 5-9 fifty-seven percent of all RealtoRs® are female, which RealtoRs® enter the profession with a variety ofremains unchanged from last year. However, among members employment experiences. Most often, their previous careerwho are over 60 years old, this percentage falls to 50 percent. was in management, business or finance (19 percent) or in theamong broker licensees, 50 percent are female, compared sales or retail sector (16 percent). only 6 percent reported thatwith 63 percent of sales agent licensees. among part-time real estate was their first career.sales agents, 66 percent are female, while 58 percent of full-time sales agents are female. REAL ESTATE AS ONLy OCCuPATiON • Exhibit 5-10AgE Real estate remains the only occupation for 75 percent of all• Exhibits 5-4 through 5-6 RealtoRs®. RealtoRs® with more experience are most likely the median age of RealtoRs® has increased to 56 years. to indicate that real estate is their only current occupation. forin past years, median age remained steady around 52. thirty- RealtoRs® with 16 or more years of experience, 83 percenteight percent of RealtoRs® are at least 60 years old, while indicated real estate was their only occupation, comparedonly 3 percent are under 30 years old. those who function as with 63 percent of RealtoRs® with five or fewer years ofbrokers and managers without selling tend to be the oldest (a experience.median age of 60). MARiTAL STATuS ANd SiZE OF HOuSEHOLdEduCATiON • Exhibits 5-11 and 5-12• Exhibit 5-7 the marital status of RealtoRs® has remained relatively overall, the level of education among RealtoRs® exceeds unchanged from last year. seventy-three percent of RealtoRs®that of the general public. Nine in ten members have some are married, with 14 percent being divorced, and 7 percent beingpost-secondary education with 30 percent having completed single and never married. the typical RealtoR® householda bachelor’s degree as their highest level of educational has two people. Younger RealtoRs® more often have largerattainment. eight percent of RealtoRs® had some graduate households; the median household size for RealtoRs® agedschool education, with 10 percent having completed a graduate 49 or younger is three.degree.64 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®RACE ANd ETHNiCiTy, LANguAgES ANd HOMEOWNERSHiP ANd REAL ESTATECOuNTRy OF BiRTH iNVESTMENT• Exhibits 5-13 through 5-14, and • Exhibits 5-17 and 5-18 Exhibits 5-20 through 5-21 a substantial majority of RealtoRs® (91 percent) own eighty-two percent of RealtoRs® are white. Hispanics/ their primary residence. the percentage of RealtoRs® wholatinos account for 6 percent of RealtoRs®, followed by own their home differs slightly by age. Members 39 years oldBlack/african americans (4 percent) and asian/Pacific and younger had a lower level of homeownership at 78 percent,islanders (4 percent). compared with a homeownership rate of more than 94 percent for RealtoRs® aged 60 or older. eighty-five percent of RealtoRs® report they are fluentonly in english. seven percent are fluent in spanish and 8 in addition to their primary residences, RealtoRs® oftenpercent report speaking another language. RealtoRs® under own other properties. sixteen percent reported that they40 years of age are most likely to be fluent in another language owned one or more vacation homes, while 44 percent noted(22 percent). among all RealtoRs®, 12 percent were born that they owned other residential properties for investment.outside the U.s. ten percent own at least one commercial property.HOuSEHOLd iNCOME VOTiNg• Exhibits 5-15 and 5-16 • Exhibit 5-19 the median gross income of RealtoR® households RealtoRs® understand the importance of voting. Ninety-was $91,700 in 2010. this is up from $89,100 in 2009. as five percent are registered to vote, and 92 percent voted in theexperience increases so does the typical RealtoR®’s gross last national election, while 85 percent voted in their last localhousehold income. RealtoRs® with 16 years or more real election.estate experience had a median household income of $95,400in 2010. Household income of members directly correlates to thenumber of hours worked per week and whether real estate istheir primary source of income. of those who worked 40 hoursor more per week, 63 percent said real estate was their primarysource of household income, compared with 18 percent of thosewho typically worked less than 40 hours per week. those withmore experience in real estate also were more likely than lessexperienced RealtoRs® to indicate that real estate is theirprimary source of household income. National association of RealtoRs® | Member Profile 2011 65

2011 Member Profile • chapter 5: Demographic characteristics of RealtoRs® Exhibit 5-1 gENdER OF REALTORS®, By AgE (Percentage Distribution) AGE All REALTORS® 39 or younger 40 to 49 50 to 59 60 or olderMale 43% 44% 38% 40% 50%female 57 56 62 60 50 Exhibit 5-2 gENdER OF REALTORS®, By ExPERiENCE (Percentage Distribution) REAL ESTATE EXPERIENCE All REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreAll REALTORS® Male 43% 42% 38% 43% 46% female 57 58 62 57 54Brokers/Broker associates Male 50 57 46 46 52 female 50 44 55 54 48sales agents: Work 40+ hours Male 42 45 43 43 37 female 58 55 57 57 63sales agents: Work less than 40 hours Male 34 36 31 36 32 female 66 65 69 64 68 Exhibit 5-3 gENdER OF REALTORS®, By FuNCTiON (Percentage Distribution) LICENSED AS MAIN FUNCTION IN FIRM Brokers/ Broker-Owner Broker-Owner Manager Manager Broker Sales (without (with Associate (without (with Sales All REALTORS® Associates Agents selling) selling) Broker selling) sellling) Agent AppraiserMale 43% 50% 37% 69% 59% 42% 31% 50% 38% 72%female 57 50 63 31 41 58 69 50 62 2866 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 5-4 AgE OF REALTORS®, 1999-2011 (Percentage Distribution) 1999 2001 2003 2005 2007 2008 2009 2010 2011Under 30 years 4% 4% 5% 5% 5% 5% 4% 4% 3%30 to 34 years 5 6 6 6 6 6 4 5 435 to 39 years 9 9 9 8 8 8 7 6 540 to 44 years 12 12 13 12 12 10 9 8 945 to 49 years 15 14 12 13 14 13 12 12 1150 to 54 years 17 18 16 16 16 15 16 15 1555 to 59 years 15 16 15 16 16 16 15 16 1660 to 64 years 11 10 12 12 13 14 15 16 1665 years and over 13 12 12 13 12 14 17 17 22Median age 52 52 51 52 51 52 54 54 56Exhibit 5-5 AgE OF REALTORS®, By FuNCTiON (Percentage Distribution) LICENSED AS MAIN FUNCTION IN FIRM Brokers/ Broker-Owner Broker-Owner Manager Manager All Broker Sales (without (with Associate (without (with Sales REALTORS® Associates Agents selling) selling) Broker selling) sellling) Agent AppraiserUnder 30 years 3% 1% 4% 1% 2% 1% 3% 5% 3% 1%30 to 34 years 4 3 5 2 3 2 8 6 4 435 to 39 years 5 4 6 2 6 4 4 5 6 340 to 44 years 9 6 10 5 7 6 7 8 10 945 to 49 years 11 9 13 8 10 9 10 13 12 1450 to 54 years 15 14 15 14 14 13 9 14 15 1855 to 59 years 16 16 16 12 16 19 8 13 16 2060 to 64 years 16 18 15 16 15 19 36 17 16 1865 years and over 22 29 17 40 28 27 17 21 20 14Median age 56 59 54 61 57 58 60 55 55 55 National association of RealtoRs® | Member Profile 2011 67

2011 Member Profile • chapter 5: Demographic characteristics of RealtoRs® Exhibit 5-6 AgE OF REALTORS®, By REAL ESTATE ExPERiENCE (Percentage Distribution) REAL ESTATE EXPERIENCE All REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreUnder 30 years 3% 13% 7% 1% N/a30 to 34 years 4 8 9 5 N/a35 to 39 years 5 10 10 7 *40 to 44 years 9 13 15 12 345 to 49 years 11 14 14 15 750 to 54 years 15 14 13 18 1255 to 59 years 16 15 15 15 1760 to 64 years 16 10 10 14 2165 years and over 22 4 7 13 39Median age 56 47 48 52 62* Less than 1 percentN/A- Not Applicable Exhibit 5-7 FORMAL EduCATiON OF REALTORS® (Percentage Distribution) Graduate Degree High School Graduate 10% 9% Some Graduate School 8% Some College 31% Bachelors Degree 30% Associates Degree 11%68 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 5-8 PRiOR FuLL-TiME CAREERS OF REALTORS® (Percentage Distribution) Management/ Business/Financial 19% Sales/Retail 16% Other 14% Office/Admin support 9% Education 7% None, real estate is first career 6% Homemaker 5%Government/Military/ 4% Protective services Construction 4% * Healthcare 4% * Manufacturing/ Production 3% Architecture/ 2% Engineering Computer/ 2% Mathematical Transportation 2% Legal 2% Community/ 1% Social services Personal care/ 1% Other services Life/Physical/ * Social sciences 0% 5% 10% 15% 20% 25% * Less than 1 percent National association of RealtoRs® | Member Profile 2011 69

2011 Member Profile • chapter 5: Demographic characteristics of RealtoRs® Exhibit 5-9 PRiOR FuLL-TiME CAREER OF REALTORS®, By REAL ESTATE ExPERiENCE (Percentage Distribution) REAL ESTATE EXPERIENCE All REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreManagement/Business/financial 19% 18% 20% 23% 16%sales/Retail 16 15 12 19 14other 14 16 16 14 14office/admin support 9 9 10 9 9education 7 6 6 5 9None, real estate is first career 6 3 3 2 10Homemaker 5 7 5 4 6Government/Military/Protective services 4 3 4 4 5construction 4 5 3 3 4Healthcare 4 4 6 4 3Manufacturing/Production 3 2 4 3 3architecture/engineering 2 4 3 2 2computer/Mathematical 2 3 3 3 1transportation 2 1 3 2 1legal 2 3 2 2 1community/social services 1 2 1 1 1Personal care/other services 1 1 1 1 1life/Physical/social sciences * * * * ** Less than 1 percent Exhibit 5-10 REAL ESTATE iS ONLy OCCuPATiON (Percent “Yes”) 100% 83% 80% 75% 74% 62% 63% 60% 40% 20% 0 All REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or more Real Estate Experience70 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 5-11 MARiTAL STATuS OF REALTORS® (Percentage Distribution) Widowed Other Single- 4% 2% never married 7% Married 73% Divorced 14%Exhibit 5-12 SiZE OF REALTOR® HOuSEHOLdS (Percentage Distribution) AGE All REALTORS® 39 or younger 40 to 49 50 to 59 60 or older1 person 15% 12% 9% 15% 20%2 persons 49 25 23 50 693 persons 15 20 21 17 84 persons 14 28 31 13 35 or more persons 7 15 16 6 1Median 2 3 3 2 2Exhibit 5-13 RACiAL ANd ETHNiC diSTRiBuTiON OF REALTORS®, By REAL ESTATE ExPERiENCE (Percentage of Respondents) REAL ESTATE EXPERIENCE All REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or moreWhite 82% 84% 79% 86% 90%Hispanic/latino 6 6 9 6 4Black/african american 4 4 6 4 3asian/Pacific islander 4 5 4 4 3american indian/eskimo/aleut 1 1 1 * 1other 2 2 2 1 1Note: Respondent could choose more than one racial or ethnic category.* Less than 1 percent National association of RealtoRs® | Member Profile 2011 71

2011 Member Profile • chapter 5: Demographic characteristics of RealtoRs® Exhibit 5-14 RACiAL ANd ETHNiC diSTRiBuTiON OF REALTORS®, By AgE (Percentage of Respondents) AGE All REALTORS® 39 or younger 40 to 49 50 to 59 60 or olderWhite 82% 76% 84% 87% 91%Hispanic/latino 6 11 8 6 3Black/african american 4 6 3 3 3asian/Pacific islander 4 7 4 4 3american indian/eskimo/aleut 1 * 1 1 1other 2 2 2 1 1Note: Respondent could choose more than one racial or ethnic category.* Less than 1 percent Exhibit 5-15 gROSS HOuSEHOLd iNCOME OF REALTORS®, By REAL ESTATE ExPERiENCE, 2010 (Percentage Distribution) LICENSED AS REAL ESTATE EXPERIENCE Brokers/ Broker All REALTORS® Associates Sales Agents 2 years or less 3 to 5 years 6 to 15 years 16 years or moreless than $10,000 2% 1% 2% 5% 2% 1% 2%$10,000 to $24,999 4 3 5 7 4 4 4$25,000 to $34,999 6 5 6 6 6 6 5$35,000 to $49,999 10 9 10 10 10 10 9$50,000 to $74,999 17 16 18 17 20 17 16$75,000 to $99,999 17 17 17 17 18 18 17$100,000 to $149,999 22 22 21 22 22 22 21$150,000 to $199,999 11 12 10 9 9 12 12$200,000 to $249,999 5 5 5 3 3 5 6$250,000 or more 7 9 5 4 5 6 9Median $91,700 $97,400 $87,200 $82,900 $85,400 $92,900 $95,400 Exhibit 5-16 REAL ESTATE iS PRiMARy SOuRCE OF iNCOME FOR HOuSEHOLd (Percent “Yes”) LICENSED AS REAL ESTATE EXPERIENCE Brokers/ Broker All REALTORS® Associates Sales Agents 2 years or less 3 to 5 years 6 to 15 years 16 years or moreall RealtoRs® 43% 53% 35% 23% 29% 44% 53%Work less than 40 hours per week 18 25 14 8 11 17 27Work 40 hours or more per week 63 69 57 44 51 63 7072 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Exhibit 5-17 HOMEOWNERSHiP OF REALTORS®, By AgE (Percent “Own Primary Residence”) 100% 94% 91% 89% 91% 80% 78% 60% 40% 20% 0 All REALTORS® 39 or younger 40 to 49 50 to 59 60 or older AGEExhibit 5-18 REAL ESTATE iNVESTMENTS OF REALTORS® (Percentage Distribution) All REALTORS®Vacation Homes None 84% one 13 two 2 three or more 1Residential Properties (except primary residence and vacation homes)None 57%one 19two 10three or more 15Commercial PropertiesNone 90%one 10two *three or more ** Less than 1 percent National association of RealtoRs® | Member Profile 2011 73

2011 Member Profile • chapter 5: Demographic characteristics of RealtoRs® Exhibit 5-19 VOTiNg PATTERN OF REALTORS® (Percent “Yes”) Registered to vote 95% Voted in last national election 92 Voted in last local election 85 Exhibit 5-20 LANguAgE FLuENCy OF REALTORS® (Percentage Distribution) AGE All REALTORS® 39 or younger 40 to 49 50 to 59 60 or olderfluent only in english 85% 78% 83% 84% 89%fluent in other languages 15 22 17 16 11spanish 7 12 11 6 6other 8 10 7 10 5 Exhibit 5-21 COuNTRy OF BiRTH OF REALTORS® (Percentage Distribution) AGE All REALTORS® 39 or younger 40 to 49 50 to 59 60 or olderU.s. 88% 84% 87% 88% 91%outside U.s. 12 16 13 12 974 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®Methodolgyi n January 2011, NaR mailed out a question survey to Where relevant, RealtoR® information in subgroups was a random sample of 54,758 RealtoRs®. an identical included based on the license held by members of NaR: a questionnaire was also distributed via e-mail to the broker, broker-associate or sales agent license. the termsame members to fill out a Web-based online version if they “broker” refers to RealtoRs® holding a broker or brokerpreferred. the tailored survey Design Method was used to associate license unless otherwise noted. in some cases,survey the sample, which includes a pre-postcard mailing, information is presented by RealtoRs® main function withinthe survey, a follow-up letter and a re-mailing of the survey. their firm or their real estate specialty regardless of the type ofMembers also received an e-mail letting them know they license held.would be receiving a survey, the survey link via e-mail, and the primary measure of central tendency used throughouttwo follow-up reminders. Using this method, a total of 8,303 this report is the median, the middle point in the distributionresponses were received, including 6,398 via hard copy mail of responses to a particular question or, equivalently, the pointsurvey and 1,905 via the Web-based survey. after accounting at which half of the responses are above and below a particularfor undeliverable questionnaires, the survey had an adjusted value. Data may not be comparable to previous Member Profileresponse rate of 15.3 percent. publications due to changes in questionnaire design.survey responses were weighted to be representative of statelevel NaR membership. information about compensation,earnings, sales volume and number of transactions ischaracteristic of calendar year 2010, while all other data arerepresentative of member characteristics in early 2011.the NatioNal associatioN of RealtoRs® is committedto equal opportunity in the real estate industry. in accordancewith this commitment, racial and ethnic information wascollected and is included in this report. National association of RealtoRs® | Member Profile 2011 75

2011 Member ProfileList of ExhibitsCHAPTER 1: BUSINESS CHARACTERISTICS OF REALTORS®exhibit 1-1 RealtoRs® BY tYPe of liceNseexhibit 1-2 sPecialtY aND MaiN fUNctioN of RealtoRs®exhibit 1-3 PRiMaRY BUsiNess sPecialtY of BRoKeR/BRoKeR associate liceNsees, 1999-2011exhibit 1-4 PRiMaRY BUsiNess sPecialtY of sales aGeNt liceNsees, 1999-2011exhibit 1-5 secoNDaRY BUsiNess sPecialtY of RealtoRs®exhibit 1-6 Real estate eXPeRieNce of RealtoRs®, BY MaiN fUNctioNexhibit 1-7 iNcoMe fRoM PRiMaRY Real estate sPecialtY, BY YeaRs of eXPeRieNceexhibit 1-8 iNcoMe fRoM PRiMaRY Real estate sPecialtY, BY NUMBeR of HoURs WoRKeDexhibit 1-9 NUMBeR of PeRsoNal assistaNtsexhibit 1-10 NUMBeR of PeRsoNal assistaNts, BY YeaRs of Real estate eXPeRieNceexhibit 1-11 tasKs PeRfoRMeD BY PeRsoNal assistaNtsexhibit 1-12 cHaRacteRistics of PeRsoNal assistaNtsexhibit 1-13 fReQUeNcY of Use of coMMUNicatioNs aND tecHNoloGY PRoDUctsexhibit 1-14 fReQUeNcY of Use of BUsiNess softWaReexhibit 1-15 RealtoRs® fiRM WeB PReseNceexhibit 1-16 RealtoRs® WitH WeBsites, BY liceNse aND fUNctioNexhibit 1-17 RealtoRs® WitH WeBsites, BY eXPeRieNceexhibit 1-18 leNGtH of tiMe RealtoRs® HaVe HaD a WeBsite foR BUsiNess Useexhibit 1-19 iNfoRMatioN oN RealtoR® WeBsitesexhibit 1-20 Real estate BloGsexhibit 1-21 actiVe Use of social oR PRofessioNal NetWoRKiNG WeBsitesexhibit 1-22 affiliate MeMBeRsHiP of RealtoRs®exhibit 1-23 PRofessioNal DesiGNatioNs aND ceRtificatioNs of RealtoRs®exhibit 1-24 RelocatioN actiVitY of RealtoRs®exhibit 1-25 Will ReMaiN actiVe as a Real estate PRofessioNal DURiNG tHe NeXt tWo YeaRs76 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®List of ExhibitsCHAPTER 2: BUSINESS ACTIVITY OF REALTORS®exhibit 2-1 aPPRaisal: tYPes of PRoPeRties aPPRaiseDexhibit 2-2 aPPRaisal: NUMBeR of PRoPeRties aPPRaiseDexhibit 2-3 aPPRaisal: otHeR Real estate actiVities of aPPRaisal sPecialists, 2010exhibit 2-4 BRoKeRaGe: aGeNcY RelatioNsHiPsexhibit 2-5 BRoKeRaGe: listiNGs solD, 2010exhibit 2-6 BRoKeRaGe: NUMBeR of tRaNsactioN siDes oR coMMeRcial Dealsexhibit 2-7 BRoKeRaGe: NUMBeR of tRaNsactioN siDes oR coMMeRcial Deals, BY eXPeRieNce, 2010exhibit 2-8 BRoKeRaGe: NUMBeR of tRaNsactioN siDes iNVolViNG PRoPeRties iN foReclosURe, 2010exhibit 2-9 BRoKeRaGe: NUMBeR of tRaNsactioN siDes iNVolViNG PRoPeRties iN foReclosURe, BY eXPeRieNce, 2010exhibit 2-10 BRoKeRaGe: NUMBeR of tRaNsactioN siDes iNVolViNG sHoRt sales, 2010exhibit 2-11 BRoKeRaGe: NUMBeR of tRaNsactioN siDes iNVolViNG sHoRt sales, BY eXPeRieNce, 2010exhibit 2-12 BRoKeRaGe: sales VolUMeexhibit 2-13 BRoKeRaGe: sales VolUMe, BY eXPeRieNce, 2010exhibit 2-14 tHe Most iMPoRtaNt factoR liMitiNG PoteNtial clieNts iN coMPletiNG a tRaNsactioN, 2010exhibit 2-15 tHe Most iMPoRtaNt factoR liMitiNG PoteNtial clieNts iN coMPletiNG a tRaNsactioN, BY eXPeRieNce, 2010exhibit 2-16 BRoKeRaGe: WeBsites WHeRe RealtoRs® Place tHeiR listiNGsexhibit 2-17 PRoPeRtY MaNaGeMeNt: tYPes of PRoPeRties MaNaGeDexhibit 2-18 PRoPeRtY MaNaGeMeNt: NUMBeR of PRoPeRties MaNaGeDexhibit 2-19 PRoPeRtY MaNaGeMeNt: MaNaGeMeNt fUNctioNs PeRfoRMeDexhibit 2-20 HoURs WoRKeD PeR WeeKexhibit 2-21 RePeat BUsiNess fRoM Past coNsUMeRs aND clieNts, BY sPecialtYexhibit 2-22 RePeat BUsiNess fRoM Past coNsUMeRs aND clieNts, BY eXPeRieNce, 2010exhibit 2-23 BUsiNess tHRoUGH RefeRRals fRoM Past coNsUMeRs aND clieNts, BY sPecialtYexhibit 2-24 BUsiNess tHRoUGH RefeRRals fRoM Past coNsUMeRs aND clieNts, BY eXPeRieNce, 2010exhibit 2-25 BUsiNess oRiGiNateD fRoM aN oPeN HoUse, BY sPecialtY, 2010exhibit 2-26 BUsiNess oRiGiNateD fRoM aN oPeN HoUse, BY eXPeRieNce, 2010exhibit 2-27 cUstoMeRs aND clieNts WHose PRiMaRY laNGUaGe is Not eNGlisHexhibit 2-28 cUstoMeRs aND clieNts WHo WeRe foReiGN NatioNalsexhibit 2-29 eXPeNDitURes to MaiNtaiN RealtoR® WeBsiteexhibit 2-30 cUstoMeR iNQUiRies GeNeRateD fRoM WeBsiteexhibit 2-31 cUstoMeR iNQUiRies GeNeRateD fRoM WeBsite BY aMoUNt sPeNt to MaiNtaiN, 2010exhibit 2-32 BUsiNess GeNeRateD fRoM RealtoR® WeBsiteexhibit 2-33 BUsiNess GeNeRateD fRoM RealtoR® WeBsite, BY aMoUNt sPeNt to MaiNtaiN, 2010 National association of RealtoRs® | Member Profile 2011 77

2011 Member ProfileList of ExhibitsCHAPTER 3: INCOME AND EXPENSES OF REALTORS®exhibit 3-1 coMPeNsatioN stRUctURes foR RealtoRs®exhibit 3-2 coMPeNsatioN stRUctURes foR RealtoRs®, BY eXPeRieNceexhibit 3-3 coMPeNsatioN stRUctURes foR RealtoRs®, BY GRoss PeRsoNal iNcoMeexhibit 3-4 total Real estate BUsiNess eXPeNses, 2010exhibit 3-5 total Real estate eXPeNses, BY GRoss PeRsoNal iNcoMe, 2010exhibit 3-6 aDMiNistRatiVe eXPeNses, 2010exhibit 3-7 affiNitY/RefeRRal RelatioNsHiP eXPeNses, 2010exhibit 3-8 MaRKetiNG of seRVices eXPeNses, 2010exhibit 3-9 office lease/BUilDiNG eXPeNses, 2010exhibit 3-10 PRofessioNal DeVeloPMeNt eXPeNses, 2010exhibit 3-11 BUsiNess PRoMotioN eXPeNses, 2010exhibit 3-12 tecHNoloGY PRoDUcts aND seRVices eXPeNses, 2010exhibit 3-13 BUsiNess Use of VeHicle eXPeNses, 2010exhibit 3-14 aNNUal iNcoMe of RealtoRs®, 2010exhibit 3-15 aNNUal iNcoMe of RealtoRs®, BY MaiN fUNctioN, 2010exhibit 3-16 aNNUal iNcoMe of RealtoRs®, BY eXPeRieNce, 2010exhibit 3-17 aNNUal iNcoMe of RealtoRs®, BY HoURs WoRKeD, 2010exhibit 3-18 BUsiNess cHaRacteRistics aND actiVitY of RealtoRs®, BY GRoss PeRsoNal iNcoMeCHAPTER 4: OFFICE AND FIRM AFFILIATION OF REALTORS®exhibit 4-1 fiRM affiliatioN, BY liceNse tYPe aND fUNctioNexhibit 4-2 fiRM affiliatioN, BY sPecialtYexhibit 4-3 fiRM affiliatioN, BY fiRM siZeexhibit 4-4 RealtoR® affiliatioN WitH fiRMsexhibit 4-5 siZe of fiRM, BY NUMBeR of coMMeRcial aND ResiDeNtial BRoKeRs aND aGeNtsexhibit 4-6 NUMBeR of officesexhibit 4-7 siZe of offices, BY NUMBeR of coMMeRicial aND ResiDeNtial BRoKeRs aND aGeNtsexhibit 4-8 teNURe of RealtoRs® at tHeiR PReseNt fiRMexhibit 4-9 BRoKeR oWNeRsHiP iNteRestexhibit 4-10 BRoKeR oWNeRsHiP iNteRest iN iNDePeNDeNt coMPaNies, BY Real estate eXPeRieNceexhibit 4-11 BeNefits ReceiVeD tHRoUGH fiRMexhibit 4-12 BeNefits ReceiVeD tHRoUGH fiRM, BY fiRM tYPeexhibit 4-13 WoRKeD foR a fiRM tHat Was BoUGHt oR MeRGeDexhibit 4-14 RealtoRs® cHaNGiNG fiRMs DUe to coNsoliDatioNexhibit 4-15 cHaNGe iN coMPeNsatioN ResUltiNG fRoM MeRGeR78 National association of RealtoRs® | Member Profile 2011

National Association of REALTORS®List of ExhibitsCHAPTER 5: DEMOGRAPHIC CHARACTERISTICS OF REALTORS®exhibit 5-1 GeNDeR of RealtoRs®, BY aGeexhibit 5-2 GeNDeR of RealtoRs®, BY eXPeRieNceexhibit 5-3 GeNDeR of RealtoRs®, BY fUNctioNexhibit 5-4 aGe of RealtoRs®, 1999-2011exhibit 5-5 aGe of RealtoRs®, BY fUNctioNexhibit 5-6 aGe of RealtoRs®, BY Real estate eXPeRieNceexhibit 5-7 foRMal eDUcatioN of RealtoRs®exhibit 5-8 PRioR fUll-tiMe caReeRs of RealtoRs®exhibit 5-9 PRioR fUll-tiMe caReeR of RealtoRs®, BY Real estate eXPeRieNceexhibit 5-10 Real estate is oNlY occUPatioNexhibit 5-11 MaRital statUs of RealtoRs®exhibit 5-12 siZe of RealtoR® HoUseHolDsexhibit 5-13 Racial aND etHNic DistRiBUtioN of RealtoRs®, BY Real estate eXPeRieNceexhibit 5-14 Racial aND etHNic DistRiBUtioN of RealtoRs®, BY aGeexhibit 5-15 GRoss HoUseHolD iNcoMe of RealtoRs®, BY Real estate eXPeRieNce, 2010exhibit 5-16 Real estate is PRiMaRY soURce of iNcoMe foR HoUseHolDexhibit 5-17 HoMeoWNeRsHiP of RealtoRs®, BY aGeexhibit 5-18 Real estate iNVestMeNts of RealtoRs®exhibit 5-19 VotiNG PatteRN of RealtoRs®exhibit 5-20 laNGUaGe flUeNcY of RealtoRs®exhibit 5-21 coUNtRY of BiRtH of RealtoRs® National association of RealtoRs® | Member Profile 2011 79

80 National association of RealtoRs® | Member Profile 2011

the NatioNal associatioN of RealtoRs®, “the Voice for Real estate,”is america’s largest trade association, representing 1.1 million members, includingNaR’s institutes, societies and councils, involved in all aspects of the real estateindustry. NaR membership includes brokers, salespeople, property managers,appraisers, counselors and others engaged in both residential and commercial realestate.the term RealtoR® is a registered collective membership mark thatidentifies a real estate professional who is a member of the NatioNalassociatioN of RealtoRs® and subscribes to its strict code of ethics.Working for americas property owners, the National association provides a facility forprofessional development, research and exchange of information among its membersand to the public and government for the purpose of preserving the free enterprisesystem and the right to own real property.NATiONAL ASSOCiATiON OF REALTORS®RESEARCH diViSiONthe Mission of the NatioNal associatioN of RealtoRs® Research Division is tocollect and disseminate timely, accurate and comprehensive real estate data and toconduct economic analysis in order to inform and engage members, consumers,policymakers and the media in a professional and accessible manner.to find out about other products from NaR’s Research Division, visitwww.RealtoR.org/research.NATiONAL ASSOCiATiON OF REALTORS®Research Division500 New Jersey avenue, NWWashington, Dc 20001202-383-7518eresearch@realtors.org

500 New Jersey Avenue, NW • Washington, DC 20001-2020800.874.6500 • www.REALTOR.org

Nar member profile 2011

by Bob Stewart on Nov 08, 2011

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Nar member profile 2011 — Document Transcript