2013 Member ProfileJessica LautzMay 13, 2013
Methodology• Tailored Design Method• Mailed hard copy and emailed to 58,068 members• Re-mail reminder• Received 4,883 surv...
Business Characteristics
What do our members do?• 27 percent brokers• 18 percent broker associates• 56 percent sales agents• 4 percent appraisers
Primary Specialty Area Among Brokers2003 2005 2007 20082009 2010 2011 2012 2013Residential brokerage 81% 76% 79% 79% 80% 7...
Primary Specialty Area Among Sales Agents2003 2005 2007 20082009 2010 2011 2012 2013Residential brokerage 84% 74% 75% 77% ...
Secondary Specialty Area37%18%17%15%8%7%4%3%3%3%1%10%27%0 5 10 15 20 25 30 35 40Residential brokerageCommercial property m...
Years of Experience in Real Estate024681012142007 Survey 2008 Survey 2009 Survey 2010 Survey 2011 Survey 2012 Survey 2013 ...
Years of Experience in Real Estate051015202530Broker-Owner(withoutselling)Broker-Owner(with selling)AssociateBrokerManager...
Number of Personal AssistantsALLREALTORS®2 years orless3 to 5years6 to 15years16 years ormoreNone 83% 95% 90% 84% 78%One 1...
Make a Difference• 22 percent members of an affiliate• 12% CRS—Council ofResidential Specialists• 9% REBAC—Real EstateAgen...
Will Remain Active in Real Estate for Two MoreYears by ExperienceAllMembers2 years orless3 to 5years6 to 15years16 years o...
Business Activity
Business Activity2009Survey2010Survey2011Survey2012Survey2013SurveyProperties appraised 200 200 200 200 200Transaction sid...
Transaction Sides02468101214ALLREALTORS®2 years or less 3 to 5 years 6 to 15 years 16 years ormore84101213
Most Important Factor Limiting ClientsRESIDENTIALSPECIALISTSBroker/BrokerAssociateSalesAgentCommercialSpecialistsDifficult...
Where Clients Come From• 21 percent repeat business from pastclients• 21 percent referrals from past clients• 4 percent of...
Technology
Use of Communications and Tech ProductsAll REALTORS®Daily or nearlyevery dayA few timesa weekA few times amonthA few times...
Use of Business SoftwareAll REALTORS®Daily or nearlyevery dayA few timesa weekA few times amonthA few timesa yearRarely or...
Preferred Method of CommunicationsCurrent clients/customersPast clients/customersPotentialclients/customersDo not useE-mai...
Changes in TechnologyCommunicationSource2009Survey2010Survey2011Survey2012Survey2013SurveyRealtor website 60% 63% 62% 62% ...
Information on WebsitesResidential CommercialOwn property listings 93% 93%Information about home buying and selling 87 67M...
Firm Web PresenceFirm has Website, 94%Firm does nothave Website, 4%Firm does nothave Web sitebut plans toin thefuture, 1%
Median Amount Spent on Website$0$100$200$300$400$500$600ALLREALTORS®Broker-Owner(withoutselling)Broker-Owner(with selling)...
Percent of Business from Website by Amount to Maintain02468101214ALLREALTORS®None Less than$100$100 to $499 $500 to $999 $...
Income and Expenses
Compensation StructuresAll REALTORSPercentage commission split 68%100% Commission 18Commission plus share of profits 4Sala...
Gross Annual Income, 2001-2012$47,700$52,200$49,300$47,700$42,600$36,700 $35,700 $34,100 $34,900$43,500$0$10,000$20,000$30...
Net Annual Income, 2012$0$5,000$10,000$15,000$20,000$25,000$30,000$35,000In 2012 In 2011 Broker/ BrokerAssociateSales Agen...
Gross Annual Income by Experience, 2012$0$10,000$20,000$30,000$40,000$50,000$60,000ALL REALTORS® 2 years or less 3 to 5 ye...
Expenses 2010-20132010 2011 2012 2013Total Expenses $5,480 $4,270 $4,520 $4,900Business Use of Vehicle 1,580 1,680 1,770 1...
Office and Firm Affiliation
Where do our members work?Independentcompany56%Franchisedcompany41%Other3%
What type of firm?• Typical firm size 23 brokers and agents– Typical firm has 1 office– Typical office size has 24 brokers...
Relationship to the FirmIndependentContractor, 83%Employee, 6%Other, 11%
Benefits ReceivedProvidedby FirmProvided byPartner/Spouse/ FamilyPays forout ofpocketDo notreceiveErrors and omissions(lia...
Demographics
Who Are Our Members?Typical member:• 57-years-old• 57 percent are female• 50 percent at least a Bachelor’s degree• 34 perc...
Age Rising484950515253545556571999 2001 2003 2005 2007 2008 2009 2010 2011 2012 201352 525152515254 5456 5657
Invest in Their Product• 87% own their own home• 13% own a vacation property• 36% own a residentialinvestment property• 10...
For More InformationMember Profile Webpagewww.realtor.org/reports/member-profileThe Economists’ Outlook Blog:economistsout...
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Snapshot: 2013 NAR Member Profile

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A closer examination of the 2013 NAR Member Profile, released 5/13/13.

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Snapshot: 2013 NAR Member Profile

  1. 1. 2013 Member ProfileJessica LautzMay 13, 2013
  2. 2. Methodology• Tailored Design Method• Mailed hard copy and emailed to 58,068 members• Re-mail reminder• Received 4,883 surveys• Response rate of 8.4 percent• Incentive drawing for gift cards
  3. 3. Business Characteristics
  4. 4. What do our members do?• 27 percent brokers• 18 percent broker associates• 56 percent sales agents• 4 percent appraisers
  5. 5. Primary Specialty Area Among Brokers2003 2005 2007 20082009 2010 2011 2012 2013Residential brokerage 81% 76% 79% 79% 80% 79% 78% 75% 81%Commercial brokerage 3 4 5 6 6 7 6 4 3Land/Development 1 3 3 1 3 2 2 2 1Relocation 2 3 2 * 1 1 1 1 1Counseling 2 3 1 1 1 1 1 2 1Appraising 3 2 1 4 1 1 1 1 1Property management 4 4 4 1 6 6 7 10 8International * 1 * 3 * * * * 1Other 4 4 4 4 2 3 5 6 4
  6. 6. Primary Specialty Area Among Sales Agents2003 2005 2007 20082009 2010 2011 2012 2013Residential brokerage 84% 74% 75% 77% 86% 87% 83% 83% 83%Commercial brokerage 2 1 2 2 3 3 3 1 2Land/Development 1 3 3 1 1 1 1 1 1Relocation 2 5 6 * 2 2 2 2 2Counseling 2 5 4 5 1 1 1 1 1Appraising 3 5 1 4 1 * 1 1 *Property management 3 3 4 3 4 3 4 5 6International * * 2 2 1 * 1 * 1Other 3 3 4 6 2 2 5 6 5
  7. 7. Secondary Specialty Area37%18%17%15%8%7%4%3%3%3%1%10%27%0 5 10 15 20 25 30 35 40Residential brokerageCommercial property managementRelocationCommercial brokerageCounselingLand developmentResidential appraisalResidential property managementInternationalAuctionCommercial appraisalOtherNone/Nothing
  8. 8. Years of Experience in Real Estate024681012142007 Survey 2008 Survey 2009 Survey 2010 Survey 2011 Survey 2012 Survey 2013 Survey7810 10121113
  9. 9. Years of Experience in Real Estate051015202530Broker-Owner(withoutselling)Broker-Owner(with selling)AssociateBrokerManager(withoutselling)Manager(with sellling)Sales Agent Appraiser25201729171022
  10. 10. Number of Personal AssistantsALLREALTORS®2 years orless3 to 5years6 to 15years16 years ormoreNone 83% 95% 90% 84% 78%One 14 5 9 13 17Two or more 4 0 1 3 5
  11. 11. Make a Difference• 22 percent members of an affiliate• 12% CRS—Council ofResidential Specialists• 9% REBAC—Real EstateAgent Council• 36 percent have a designation• 21% GRI—GraduateREALTOR Institute• 15% ABR—Accredited BuyerRepresentative• 39 percent have a certification• 23% Short Sales andForeclosures• 17% e-Pro
  12. 12. Will Remain Active in Real Estate for Two MoreYears by ExperienceAllMembers2 years orless3 to 5years6 to 15years16 years ormoreVery certain 80% 77% 81% 82% 78%Somewhat certain 14 19 15 13 14Not certain 6 5 5 5 8
  13. 13. Business Activity
  14. 14. Business Activity2009Survey2010Survey2011Survey2012Survey2013SurveyProperties appraised 200 200 200 200 200Transaction sides 7 7 8 10 12Percent of memberswho had a transactioninvolving a foreclosure41% 48% 51% 56% 53%Percent of memberswho had a transactioninvolving a short sale28% 40% 45% 51% 51%Brokerage sales volume $1.2million$1.2million$1.1million$1.3million$1.5millionNumber of propertiesmanaged40 33 25 30 49
  15. 15. Transaction Sides02468101214ALLREALTORS®2 years or less 3 to 5 years 6 to 15 years 16 years ormore84101213
  16. 16. Most Important Factor Limiting ClientsRESIDENTIALSPECIALISTSBroker/BrokerAssociateSalesAgentCommercialSpecialistsDifficulty in obtaining mortgagefinance 30% 28% 21%Difficulty in finding the right property 22 28 25No factors are limiting potential clients 13 13 24Ability to sell existing home 10 8 5Expectation that prices might fallfurther 8 8 16Low consumer confidence 8 5 8Concern about losing job 2 2 0
  17. 17. Where Clients Come From• 21 percent repeat business from pastclients• 21 percent referrals from past clients• 4 percent off member website (of thosewith a website)• Only 34 percent of members report anybusiness from an open house
  18. 18. Technology
  19. 19. Use of Communications and Tech ProductsAll REALTORS®Daily or nearlyevery dayA few timesa weekA few times amonthA few timesa yearRarely orNeverE-mail 95% 3% 1% 0 1%Laptop/Desktop computer 91 4 2 1 2Smartphone with wirelessemail and Internetcapabilities86 3 1 1 10Cell phone (no email andInternet)61 4 1 0 34Instant messaging (IM) 39 9 5 3 44Global positioning system(GPS)38 24 17 6 15Digital camera 30 22 30 11 6PDA/Handheld (no phonecapabilities)13 3 2 1 81Blogs 5 4 10 10 72RSS feeds 4 4 6 6 81Podcasts 1 2 6 10 81
  20. 20. Use of Business SoftwareAll REALTORS®Daily or nearlyevery dayA few timesa weekA few times amonthA few timesa yearRarely orNeverMultiple listing 72% 14% 6% 2% 6%Contact management 30 18 14 9 29Electronic contract andforms 26 30 26 8 10Document preparation 25 27 22 8 19Comparative market analysis 21 31 31 11 7Customer relationshipmanagement 18 13 12 9 48Transaction management 15 15 15 9 46Social media managementtools 15 12 14 10 50E-signature 13 13 17 13 44Property management 9 5 9 11 66Graphics or presentation 9 14 26 17 34Loan analysis 5 9 18 18 50Video 3 6 14 15 62
  21. 21. Preferred Method of CommunicationsCurrent clients/customersPast clients/customersPotentialclients/customersDo not useE-mail 92% 66% 63% 1%Telephone 90 58 57 1Text messaging 74 35 31 11Postal mail 28 40 40 21Instantmessaging (IM) 26 11 11 46Blog 4 5 8 67Video chat 1 1 1 73Podcast 1 1 2 73
  22. 22. Changes in TechnologyCommunicationSource2009Survey2010Survey2011Survey2012Survey2013SurveyRealtor website 60% 63% 62% 62% 64%Realtor blog 7 10 10 10 12Use of social media 35 51 49 54 56
  23. 23. Information on WebsitesResidential CommercialOwn property listings 93% 93%Information about home buying and selling 87 67Mortgage or financial calculators 75 23Link to my firms Web site 66 86Community information/demographics 56 28Virtual tours 55 36School reports 54 28Links to state/local government Web sites 43 29Home valuation/Comparative Market Analysis tools 40 7Current mortgage rates 38 29Links to real estate service providers (title companies,settlement services, etc) 32 24Links to mortgage lenders Web sites 30 16Appointment scheduler 21 13
  24. 24. Firm Web PresenceFirm has Website, 94%Firm does nothave Website, 4%Firm does nothave Web sitebut plans toin thefuture, 1%
  25. 25. Median Amount Spent on Website$0$100$200$300$400$500$600ALLREALTORS®Broker-Owner(withoutselling)Broker-Owner(with selling)AssociateBrokerManager(withoutselling)Manager(with sellling)Sales Agent$220$300$560$150$270$370$260
  26. 26. Percent of Business from Website by Amount to Maintain02468101214ALLREALTORS®None Less than$100$100 to $499 $500 to $999 $1,000 ormore40%3%4%7%12%
  27. 27. Income and Expenses
  28. 28. Compensation StructuresAll REALTORSPercentage commission split 68%100% Commission 18Commission plus share of profits 4Salary plus share of profits/production bonus 3Salary only 1Share of profits only 1Other 5
  29. 29. Gross Annual Income, 2001-2012$47,700$52,200$49,300$47,700$42,600$36,700 $35,700 $34,100 $34,900$43,500$0$10,000$20,000$30,000$40,000$50,000$60,0002001 2002 2004 2006 2007 2008 2009 2010 2011 2012
  30. 30. Net Annual Income, 2012$0$5,000$10,000$15,000$20,000$25,000$30,000$35,000In 2012 In 2011 Broker/ BrokerAssociateSales Agent$27,400$23,200$33,500$22,200
  31. 31. Gross Annual Income by Experience, 2012$0$10,000$20,000$30,000$40,000$50,000$60,000ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years ormore$43,500$9,700$29,600$46,000$57,300
  32. 32. Expenses 2010-20132010 2011 2012 2013Total Expenses $5,480 $4,270 $4,520 $4,900Business Use of Vehicle 1,580 1,680 1,770 1,790Technology 720 630 630 690Professional Development 700 600 600 640Administrative 690 720 560 830Marketing of Services 690 550 510 590Median percent spent on onlinemarketing10% 10% 10% 10%Business Promotion 670 580 560 640Affinity/Referral Relationship 0 0 0 0Office/Lease Building 0 0 0 0
  33. 33. Office and Firm Affiliation
  34. 34. Where do our members work?Independentcompany56%Franchisedcompany41%Other3%
  35. 35. What type of firm?• Typical firm size 23 brokers and agents– Typical firm has 1 office– Typical office size has 24 brokers andagents• 7 years typical tenure at firm• 10 percent worked at a firm that was boughtor merged
  36. 36. Relationship to the FirmIndependentContractor, 83%Employee, 6%Other, 11%
  37. 37. Benefits ReceivedProvidedby FirmProvided byPartner/Spouse/ FamilyPays forout ofpocketDo notreceiveErrors and omissions(liability insurance) 22% 11% 38% 31%Health insurance 4 27 34 36Paid vacation/sick days 4 12 19 66Pension/SEP/401(K) 4 15 30 53Life insurance 3 17 35 46Dental insurance 3 25 24 49Disability insurance (long-term care) 3 14 20 65Vision care 3 23 25 50Other 2 11 15 72
  38. 38. Demographics
  39. 39. Who Are Our Members?Typical member:• 57-years-old• 57 percent are female• 50 percent at least a Bachelor’s degree• 34 percent had prior career inmanagement/business/financial orsales/retail• 77 percent real estate is only occupation• Household income in 2012--$99,400• 47 percent real estate is primary source ofincome for household
  40. 40. Age Rising484950515253545556571999 2001 2003 2005 2007 2008 2009 2010 2011 2012 201352 525152515254 5456 5657
  41. 41. Invest in Their Product• 87% own their own home• 13% own a vacation property• 36% own a residentialinvestment property• 10% own a commercial property
  42. 42. For More InformationMember Profile Webpagewww.realtor.org/reports/member-profileThe Economists’ Outlook Blog:economistsoutlook.blogs.realtor.org/Via the NAR Research FaceBook Page:www.facebook.com/narresearchgroupVia @NAR_Research Twitter Account:twitter.com/NAR_Research

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