2010 Member Profile2010 Member Profile
Webinar
J i L tJessica Lautz
May 20, 2010
Methodologygy
• 93 question survey93 question survey
• Mailed hard copy to 58,022 members
il d 3 869 b• Emailed copy to 43,869 members
• Received 6,830 surveys
• Response rate of 6.7 percent
• Incentive a drawing for $$Incentive a drawing for $$
• Oversamples: 8 states and 2 locals
Business Characteristics
What do our members do?
• 25 percent brokers25 percent brokers
• 17 percent broker associatesassociates
• 59 percent sales agents
Primary Specialty Areay p y
Secondary Specialty Areay p y21%
22%
Relocation
Commercial brokerage 22%
18%
15%
Commercial brokerage
Residential property management
Counseling
L d d l 13%
11%
4%
Land development
Residential brokerage
Commercial property management
3%
3%
3%
Residential appraisal
International
Auction
1%
4%
3%
Commercial appraisal
Other
None/Nothing 3%
0 5 10 15 20 25 30 35 40
None/Nothing
Years of Experience in Real Estate
25 23
2020
19
15
10
12
5
1010
7
0
5
All Realtors Broker‐Owner (without selling)
Broker‐Owner (with selling)
Associate Broker
Sales Agent Appraiser
Number of Personal Assistants
Broker Broker
ALL REALTORS®
Broker-Owner
(without selling)
Broker-Owner
(with selling)
Associate Broker
Manager (without selling)
Manager (with sellling)
Sales 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
Make a Difference
• 25 percent members25 percent members of an affiliate
• 44 percent have a• 44 percent have a designation
24 h• 24 percent have a certification
Will Remain Active in Real Estate for Two More Years by Experience
All Members 2 years or less 3 to 5 years 6 to 15 years16 years or
moreAll Members 2 years or less 3 to 5 years 6 to 15 years more
Very certain 74% 69% 72% 75% 76%
SomewhatSomewhat certain 18 23 20 17 17
Not certain 8 8 8 8 7
B i A ti itBusiness Activity
Business Activity
2009 Survey 2010 Survey2009 Survey 2010 Survey
Properties appraised 200 200
Transaction sides 7 7Transaction sides 7 7
Percent of members who had a transaction involving a foreclosure
41% 48%
Percent of members who had a transaction involving a short sale
28% 40%
Brokerage sales volume $1.2 million $1.2 million
Number of properties managed 40 33
Transaction Sides
98
9
7
87
6
8
4
5
6
2
3
43
0
1
All Realtors 2 years or less 3 to 5 years 6 to 15 years 16 years or more
Most Important Factor Limiting p gClients
RESIDENTIAL SPECIALISTSRESIDENTIAL SPECIALISTSALL
REALTORS® AllBroker/ Broker
AssociateSales Agent
Commercial Specialists
Difficulty in obtaining mort a e finan e 34% 33% 34% 32% 48%mortgage finance 34% 33% 34% 32% 48%Expectation that prices might fall further 23 23 22 23 19
Low consumer confidence 13 13 16 11 12Low consumer confidence 13 13 16 11 12Difficulty in finding the right property 11 12 9 13 8No factors are limiting potential lients 7 7 7 8 7potential clients 7 7 7 8 7
Concern about losing job 6 6 6 6 1
Ability to sell existing home 1 1 1 1 0Expectation that mortgage 0 0 0 1 1Expectation that mortgage rates might come down
0 0 0 1 1
Other 5 5 5 6 3
How Recent Home Buyers are yViewing Their Home Purchase
Primarily as aBoth Primarily as a way to satisfy
their desire to be homeowners
Both40%
55%
Primarily as a financial
investment5%
Where Clients Come From
• 18 percent repeat18 percent repeat business from past clients
• 20 percent referrals• 20 percent referrals
• Only 36 percent of bmembers report any
business from an open hhouse
Technology
Changes in Technology g gy
Communication Source 2009 Survey 2010 Survey
Realtor website 60% 63%
Realtor blog 7 10
Realtor blog for members 29 and younger
6 18
Use of social media 35 51
Use of social media for members 50 to 59
32 52
Blog Useg
ALL REALTORS® AGEALL REALTORS® AGE2010
Survey2009
Survey 29 or younger 30 to 39 40 to 49 50 to 59 60 or older
H bl 10% 7% 18% 16% 12% 9% 6%Have a blog 10% 7% 18% 16% 12% 9% 6%
Do not have a blog 77 80 63 67 71 78 85
Do not have a blog,12 13 17 16 16 12 8
Do not have a blog, but plan to in the future
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 in the future
12 8 8 12 11 14
Firm Web Presence
Fi d t
Firm does not have Web site,
Firm does not have Web site but plans to in the future, 2%
8%
Firm has Web site, 89%
Median Amount Spent on Websitep
$400 $370$380
$300
$350
$370
$300
$200
$250
$
$220$240
$230$250
$
$
$150
$200 $170
$50
$100
$0In 2009 In 2008 Broker‐Owner
(without selling)
Broker‐Owner (with selling)
Associate Broker
Manager (without selling)
Manager (with sellling)
Sales Agent
Inquiries from Websiteq
ALL Broker Owner Broker Owner AssociateManager (without ManagerALL
REALTORS®Broker‐Owner
(without selling)Broker‐Owner (with selling)
Associate Broker
(without selling)
Manager (with sellling) Sales Agent
None 27% 16% 24% 20% 17% 19% 31%
1 to 5 inquiries 35 25 31 36 31 33 376 to 10 inquiries 12 4 10 15 19 1211 to 20 inquiries 9 6 10 10 10 6 821 to 50 inquiries 7 12 10 7 8 10 651 to 100 inquiries 4 6 6 5 7 2 3More than 100 inquiries 6 31 9 7 26 10 4Median (inquiries) 4 20 4 4 12 5 3
Inquiries from Website by the q yAmount Spent to Maintain
16
14
1616
8
10
12
4
6
8
43
45
0
2
ALL None Less than $100 to $500 to $1 000 or
0
ALL REALTORS®
None Less than $100
$100 to $499
$500 to $999
$1,000 or more
Percent of Business from Website by the Amount to Maintain
19%
16%
18%
20%19%
10%
12%
14%
16%
9%
6%
8%
10%
5%4%
6%
0%
2%
4%
0%
ALL REALTORS®
None Less than $100
$100 to $499
$500 to $999
$1,000 or more
I d EIncome and Expenses
Compensation Structuresp
REAL ESTATE EXPERIENCEALL
REALTORS® 2 years or less 3 to 5 years 6 to 15 years16 years or
morePercentage commission split 69% 83% 80% 69% 60%commission split 69% 83% 80% 69% 60%
100% Commission 18 9 12 19 22Commission plus share of profits
3 3 3 3 3share of profits
Salary only 2 1 1 2 2Salary plus share of profits/production
3 2 1 2 5p /pbonusShare of profits only
1 1 0 0 2
Other 4 3 2 4 6
Commission Split by Years of p yExperience
60%
70%
80%70%
55%60%
70%74%
70%
60%65%
70%75%
40%
50%
60%
20%
30%
0%
10%
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
Median Gross Annual Income, 2009,
$50,000$49,100
$
$40,000
$45,000
$50,000
$35,700 $36,700
$25,000
$30,000
$35,000
$26,600
$10 000
$15,000
$20,000
$0
$5,000
$10,000
In 2009 In 2008 Broker/Broker Associate
Sales Agent
Median Net Annual Income, 2009,
$30,000
$35,000 $31,900
$20,000
$25,000$23,400 $23,200
$17,200
$10,000
$15,000
$0
$5,000
$
In 2009 In 2008 Broker/ Broker Associate
Sales Agent
Median Gross Annual Income, 2009,
$60,000
$50,000 $41,200
$52,300
$30,000
$40,000 $35,700 $36,700
$25,400
$20,000
$8 800
$0
$10,000 $8,800
In 2009 In 2008 2 years or less
3 to 5 years
6 to 15 years
16 years or more
Median Net Annual Income, 2009,
$34 000
$30,000
$35,000
$23 400
$27,100
$34,000
$20,000
$25,000$23,400
$16,400
$10,000
$15,000
$7,500
$0
$5,000
ALL 2 years or 3 to 5 years 6 to 15 years 16 years orALL REALTORS®
2 years or less
3 to 5 years 6 to 15 years 16 years or more
Expenses in 2009p
Total Expenses $5,480
Business Use of Vehicle 1,580
Technology 720
P f i l D l 700Professional Development 700
Administrative 690
Marketing of Services 690g
Median percent spent on online marketing 10 percent
Business Promotion 670
Affinity/Referral Relationship 0
Office/Lease Building 0
Offi d Fi Affili tiOffice and Firm Affiliation
Where do our members work?
Franchised Non‐franchised subsidiary of a
Othersubsidiary of a national or regional
corporation9%
national or regional corporation
4%
Other1%
Independent, non‐franchised companyIndependent p y
54%Independent,
franchised company32%
What type of firm?yp
• Typical firm size 29 brokersTypical firm size 29 brokers and agents– Typical firm has 1 office– Typical firm has 1 office
– Typical office size has 24 brokers and agentsbrokers and agents
• 5 years typical tenure at firmfirm
• 12 percent worked at a firm th t b ht dthat was bought or merged
Relationship to the Firmp
Other, 13%
Employee, 6%
,
IndependentIndependent Contractor, 81%
Benefits from the Firm
2010 Survey EmployeesIndependent Contractors2010 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
DemographicsDemographics
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, b i fi i l d l / ilbusiness, financial and sales/retail
– 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
Where to Find Your Copypy
Via the “Right Tools RightVia the Right Tools, Right Now” webpage:http://www.realtor.org/prodser.nsf/RightTools/ResearchTools?OpenRightTools/ResearchTools?OpenDocument
OR
Via the Realtor.org Store:http://www.realtor.org/prodser.nsf/products/E186-45-09?OpenDocument
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