NAR Member Profile Highlights - May 2010

transcript

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%

Relocation

Commercial brokerage 22%

Commercial brokerage

Residential property management

Counseling

L d d l 13%

Land development

Residential brokerage

Commercial property management

Residential appraisal

International

Auction

Commercial appraisal

None/Nothing 3%

0 5 10 15 20 25 30 35 40

None/Nothing

Years of Experience in Real Estate

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

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%

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

Use of social media 35 51

Use of social media for members 50 to 59

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%

Firm has Web site, 89%

Median Amount Spent on Websitep

$400 $370$380

$220$240

$230$250

$200 $170

$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

ALL None Less than $100 to $500 to $1 000 or

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

20%19%

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

80%70%

55%60%

70%74%

60%65%

70%75%

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

$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

$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

$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

$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

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

Via the Realtor.org Store:http://www.realtor.org/prodser.nsf/products/E186-45-09?OpenDocument