2010 Member Profile 
2010 Member Profile
     Webinar

     Jessica Lautz
     J i L t
     May 20, 2010
Methodology
                        gy
•   93 question survey
    93 question survey
•   Mailed hard copy to 58,022 member...
Business Characteristics
What do our members do? 

        • 25 percent brokers
          25 percent brokers
        • 17 percent broker 
         ...
Primary Specialty Area
      y p       y
Secondary Specialty Area
                     y p       y
                      Relocation                                ...
Years of Experience in Real Estate
25                     23

                                     20
20                  ...
Number of Personal Assistants
                        Broker-
                        Broker     Broker-
                 ...
Make a Difference
        • 25 percent members
          25 percent members 
          of an affiliate
        • 44 percen...
Will Remain Active in Real Estate 
   for Two More Years by Experience

                                                  ...
Business Activity
B i      A ti it
Business Activity

                                      2009 Survey
                                      2009 Survey    ...
Transaction Sides
                                                                      9
9
                              ...
Most Important Factor Limiting 
                p                     g
                    Clients
                      ...
How Recent Home Buyers are 
                          y
      Viewing Their Home Purchase
 Both                          P...
Where Clients Come From
         • 18 percent repeat
           18 percent repeat 
           business from past clients
 ...
Technology
Changes in Technology 
                      g              gy
Communication Source        2009 Survey   2010 Survey

Real...
Blog Use
                                      g

                       ALL REALTORS®
                       ALL REALTORS...
Social Media Use


                   ALL REALTORS® 29 or younger 30 to 39 40 to 49 50 to 59 60 or older

Yes             ...
Firm Web Presence

                 Firm does not
                 Fi d          t
                 have Web site
Firm doe...
Median Amount Spent on Website
                      p
$400                                           $380
               ...
Inquiries from Website
                           q
                                                                      ...
Inquiries from Website by the 
        q                     y
        Amount Spent to Maintain
                          ...
Percent of Business from Website 
         by the Amount to Maintain
                                                     ...
Income and Expenses
I        dE
Compensation Structures
                 p
                                                    REAL ESTATE EXPERIENCE
    ...
Commission Split by Years of 
                   p     y
              Experience
80%                                     ...
Median Gross Annual Income, 2009
                          ,
                                     $49,100 
$50,000 
$50,00...
Median Net Annual Income, 2009
                           ,

$35,000                              $31,900

$30,000
       ...
Median Gross Annual Income, 2009
                          ,
$60,000 
                                                    ...
Median Net Annual Income, 2009
                          ,

                                                              ...
Expenses in 2009
                           p
Total Expenses                                  $5,480
Business Use of Vehic...
Office and Firm Affiliation
Offi     d Fi Affili ti
Where do our members work?
                           Non‐franchised 
     Franchised            subsidiary of a 
   subsi...
What type of firm?
      yp
    • Typical firm size 29 brokers
      Typical firm size 29 brokers 
      and agents
      ...
Relationship to the Firm
                   p
               Other, 13%
                    ,


Employee, 6%




         ...
Benefits from the Firm
                                                                     Independent 
                 ...
Demographics
Who are our members? 

    • Typical member:
      Typical member: 
      – 54‐years‐old
      – 57 percent are female
   ...
Where to Find Your Copy
                     py

          Via the “Right Tools, Right
                   Right Tools
    ...
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NAR Member Profile Highlights - May 2010

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NAR Member Profile Highlights - May 2010

  1. 1. 2010 Member Profile  2010 Member Profile Webinar Jessica Lautz J i L t May 20, 2010
  2. 2. Methodology gy • 93 question survey 93 question survey • Mailed hard copy to 58,022 members • Emailed copy to 43,869 members il d 3 869 b • Received 6,830 surveys • Response rate of 6.7 percent • Incentive a drawing for $$ Incentive a drawing for $$ • Oversamples: 8 states and 2 locals
  3. 3. Business Characteristics
  4. 4. What do our members do?  • 25 percent brokers 25 percent brokers • 17 percent broker  associates • 59 percent sales agents
  5. 5. Primary Specialty Area y p y
  6. 6. Secondary Specialty Area y p y Relocation 21% Commercial brokerage Commercial brokerage 22% Residential property management 18% Counseling 15% Land development L dd l 13% Residential brokerage 11% Commercial property management 4% Residential appraisal 3% International 3% Auction 3% Commercial appraisal 1% Other 4% None/Nothing 3% 0 5 10 15 20 25 30 35 40
  7. 7. Years of Experience in Real Estate 25 23 20 20 19 15 12 10 10 7 5 0 All Realtors Broker‐Owner  Broker‐Owner  Associate  Sales Agent Appraiser (without  (with selling) Broker selling)
  8. 8. Number of Personal Assistants Broker- Broker Broker- Broker Owner Owner Manager ALL (without (with Associate (without Manager Sales REALTORS® selling) selling) Broker selling) (with sellling) Agent None 83% 64% 70% 82% 71% 73% 87% One 14 32 24 15 16 18 11 Two 2 3 4 2 2 6 1 Three or more 1 2 2 1 10 2 0
  9. 9. Make a Difference • 25 percent members 25 percent members  of an affiliate • 44 percent have a 44 percent have a  designation • 24 24 percent have a  h certification
  10. 10. Will Remain Active in Real Estate  for Two More Years by Experience 16 years or  All Members 2 years or less All Members 2 years or less 3 to 5 years 6 to 15 years 3 to 5 years 6 to 15 years more Very certain 74% 69% 72% 75% 76% Somewhat  Somewhat certain 18 23 20 17 17 Not certain 8 8 8 8 7
  11. 11. Business Activity B i A ti it
  12. 12. Business Activity 2009 Survey 2009 Survey 2010 Survey 2010 Survey Properties appraised 200 200 Transaction sides Transaction sides 7 7 Percent of members who had a  41% 48% transaction involving a foreclosure Percent of members who had a  28% 40% transaction involving a short sale Brokerage sales volume $1.2 million $1.2 million Number of properties managed 40 33
  13. 13. Transaction Sides 9 9 8 8 7 7 6 6 5 4 3 3 2 1 0 All Realtors 2 years or less 3 to 5 years 6 to 15 years 16 years or  more
  14. 14. Most Important Factor Limiting  p g Clients RESIDENTIAL SPECIALISTS RESIDENTIAL SPECIALISTS ALL  Broker/ Broker  Sales  Commercial  REALTORS® All Associate Agent Specialists Difficulty in obtaining  mortgage finance mort a e finan e 34% 33% 34% 32% 48% Expectation that prices might  fall further 23 23 22 23 19 Low consumer confidence Low consumer confidence 13 13 16 11 12 Difficulty in finding the right  property 11 12 9 13 8 No factors are limiting  potential clients potential lients 7 7 7 8 7 Concern about losing job 6 6 6 6 1 Ability to sell existing home 1 1 1 1 0 Expectation that mortgage  Expectation that mortgage 0 0 0 1 1 rates might come down Other 5 5 5 6 3
  15. 15. How Recent Home Buyers are  y Viewing Their Home Purchase Both Primarily as a  Primarily as a 40% way to satisfy  their desire to be  homeowners 55% Primarily as a  financial  investment 5%
  16. 16. Where Clients Come From • 18 percent repeat 18 percent repeat  business from past clients • 20 percent referrals 20 percent referrals • Only 36 percent of  members report any  b business from an open  house
  17. 17. Technology
  18. 18. Changes in Technology  g gy Communication Source 2009 Survey 2010 Survey Realtor website 60% 63% Realtor blog 7 10 Realtor blog for members  6 18 29 and younger Use of social media 35 51 Use of social media for  32 52 members 50 to 59
  19. 19. Blog Use g ALL REALTORS® ALL REALTORS® AGE 2010  2009  Survey Survey 29 or younger 30 to 39 40 to 49 50 to 59 60 or older Have a blog H bl 10% 7% 18% 16% 12% 9% 6% Do not have a blog 77 80 63 67 71 78 85 12 13 17 16 16 12 8 Do not have a blog,  Do not have a blog, but plan to in the  future
  20. 20. Social Media Use ALL REALTORS® 29 or younger 30 to 39 40 to 49 50 to 59 60 or older Yes 51% 79% 72% 63% 52% 34% No 36 12 19 25 36 51 No, but plan to  12 8 8 12 11 14 in the future
  21. 21. Firm Web Presence Firm does not Fi d t have Web site Firm does not but plans to in have Web site, the future, 2% 8% Firm has Web site, 89%
  22. 22. Median Amount Spent on Website p $400 $380 $370 $350 $300 $ $300 $250 $240 $250 $230 $220 $200 $ $170 $150 $100 $ $50 $0 In 2009 In 2008 Broker‐Owner  Broker‐Owner  Associate  Manager  Manager  Sales Agent (without  (with selling) Broker (without  (with sellling) selling) selling)
  23. 23. Inquiries from Website q Manager  ALL  Broker‐Owner  Broker‐Owner  ALL Broker Owner Broker Owner Associate  Associate (without  (without Manager  Manager REALTORS® (without selling) (with selling) Broker selling) (with sellling) Sales Agent None 27% 16% 24% 20% 17% 19% 31% 1 to 5 inquiries 35 25 31 36 31 33 37 6 to 10  inquiries 12 4 10 15 19 12 11 to 20  inquiries 9 6 10 10 10 6 8 21 to 50  inquiries 7 12 10 7 8 10 6 51 to 100  inquiries 4 6 6 5 7 2 3 More than 100  inquiries 6 31 9 7 26 10 4 Median  (inquiries) 4 20 4 4 12 5 3
  24. 24. Inquiries from Website by the  q y Amount Spent to Maintain 16 16 14 12 10 8 6 5 4 4 4 3 2 0 0 ALL  ALL None Less than  Less than $100 to  $100 to $500 to  $500 to $1,000 or  $1 000 or REALTORS® $100 $499 $999 more
  25. 25. Percent of Business from Website  by the Amount to Maintain 19% 20% 18% 16% 14% 12% 9% 10% 8% 6% 5% 6% 4% 4% 2% 0% 0% ALL  None Less than  $100 to  $500 to  $1,000 or  REALTORS® $100 $499 $999 more
  26. 26. Income and Expenses I dE
  27. 27. Compensation Structures p REAL ESTATE EXPERIENCE ALL  16 years or  REALTORS® 2 years or less 3 to 5 years 6 to 15 years more Percentage  commission split commission split 69% 83% 80% 69% 60% 100% Commission 18 9 12 19 22 Commission plus  3 3 3 3 3 share of profits share of profits Salary only 2 1 1 2 2 Salary plus share of  3 2 1 2 5 p profits/production  /p bonus Share of profits  1 1 0 0 2 only Other 4 3 2 4 6
  28. 28. Commission Split by Years of  p y Experience 80% 74% 75% 70% 70% 70% 70% 70% 65% 60% 60% 60% 55% 50% 40% 30% 20% 10% 0% ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or more Median year‐starting percentage commission split Median year‐ending percentage commission split
  29. 29. Median Gross Annual Income, 2009 , $49,100  $50,000  $50,000 $45,000  $40,000  $35,700  $36,700  $35,000  $ $30,000  $26,600  $25,000  $20,000  $15,000  $10,000  $10 000 $5,000  $0  In 2009 In 2008 Broker/Broker  Sales Agent Associate 
  30. 30. Median Net Annual Income, 2009 , $35,000 $31,900 $30,000 $23,400 $23,200 $25,000 $20,000 $17,200 $15,000 $10,000 $5,000 $ $0 In 2009 In 2008 Broker/ Broker  Sales Agent Associate
  31. 31. Median Gross Annual Income, 2009 , $60,000  $52,300 $50,000  $41,200  $40,000  $35,700  $36,700  $30,000  $25,400  $20,000  $8,800  $8 800 $10,000  $0  In 2009 In 2008 2 years or  3 to 5  6 to 15  16 years or  less years years more
  32. 32. Median Net Annual Income, 2009 , $34,000 $34 000 $35,000 $30,000 $27,100 $23,400 $23 400 $25,000 $20,000 $16,400 $15,000 $10,000 $7,500 $5,000 $0 ALL  ALL 2 years or  2 years or 3 to 5 years 6 to 15 years 16 years or  3 to 5 years 6 to 15 years 16 years or REALTORS® less more
  33. 33. Expenses in 2009 p Total Expenses $5,480 Business Use of Vehicle 1,580 Technology 720 Professional Development P f i lD l 700 Administrative  690 g Marketing of Services 690 Median percent spent on online marketing 10 percent Business Promotion 670 Affinity/Referral Relationship 0 Office/Lease Building  0
  34. 34. Office and Firm Affiliation Offi d Fi Affili ti
  35. 35. Where do our members work? Non‐franchised  Franchised  subsidiary of a  subsidiary of a  Other national or regional  national or regional  1% corporation corporation 4% 9% Independent, non‐ Independent,  Independent franchised company p y franchised company 54% 32%
  36. 36. What type of firm? yp • Typical firm size 29 brokers Typical firm size 29 brokers  and agents – Typical firm has 1 office Typical firm has 1 office – Typical office size has 24  brokers and agents brokers and agents • 5 years typical tenure at  firm • 12 percent worked at a firm  that was bought or merged th t b ht d
  37. 37. Relationship to the Firm p Other, 13% , Employee, 6% Independent  Independent Contractor, 81%
  38. 38. Benefits from the Firm Independent  2010 Survey 2010 Survey Employees Contractors Paid vacation/sick days 12% 40% 10% Errors and omissions (liability insurance) 11  28  10  Health insurance 6  45  2  Pension/SEP/401(K) 3  31  1  Life insurance 3  31  1  Dental insurance 3  28  1  Disability insurance (long‐term care) 2  19  1  Vision care 3  20  1  Other 2  5  1  None 73  30  77 
  39. 39. Demographics
  40. 40. Who are our members?  • Typical member: Typical member:  – 54‐years‐old – 57 percent are female – 48 percent at least a Bachelor’s degree – 1/3 had a prior career in management,  business, financial and sales/retail b i fi i l d l / il – 77 percent real estate is only occupation – Household income in 2009 $89 100 Household income in 2009‐‐$89,100  – 45 percent real estate is primary source  of income for household
  41. 41. Where to Find Your Copy py Via the “Right Tools, Right Right Tools Now” webpage: http://www.realtor.org/prodser.nsf/ RightTools/ResearchTools?Open Document OR Via the Realtor.org Store: http://www.realtor.org/prodser.nsf/ products/E186-45- 09?OpenDocument

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