2011 Member Profile Webinar

2011 Member Profile Webinar

Jessica LautzJune 1, 2011

Methodology

• Tailored Design Method• Mailed hard copy and emailed to 54,758 members• Thank you reminder and re-mail reminder• Received 8,303 surveys• Response rate of 15.3 percent• Incentive REALTOR® decal

Business Characteristics

What do our members do?

• 28 percent brokers• 17 percent broker associates• 57 percent sales agents• 4 percent appraisers

Primary Specialty Area

Secondary Specialty Area

Years of Experience in Real Estate

Number of Personal Assistants

ALL REALTOR

S®2 years or less

3 to 5 years

6 to 15 years

16 years or more

None 83% 94% 90% 82% 78%

One 14 6 9 15 17

Two or more 4 1 1 3 5

Make a Difference

• 23 percent members of an affiliate• 12% CRS—Council of

Residential Specialists• 8% REBAC—Real Estate

Agent Council• 36 percent have a

designation• 21% GRI—Graduate

REALTOR Institute• 13% ABR—Accredited

Buyer Representative• 35 percent have a

certification• 21% Short Sales and

Foreclosures• 11% e-Pro

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 years

16 years or more

Very certain 73% 70% 74% 74% 73%Somewhat certain 18 19 17 18 17Not certain 9 11 9 8 10

Business Activity

Business Activity

2009 Survey

2010 Survey

2011 Survey

Properties appraised 200 200 200

Transaction sides 7 7 8

Percent of members who had a transaction involving a foreclosure

41% 48% 51%

Percent of members who had a transaction involving a short sale

28% 40% 45%

Brokerage sales volume $1.2 million $1.2 million $1.1 million

Number of properties managed

40 33 25

Transaction Sides

Most Important Factor Limiting ClientsRESIDENTIAL SPECIALISTS

ALL REALTOR

S® All

Broker/ Broker

AssociateSales Agent

Commercial

SpecialistsDifficulty in obtaining mortgage finance 33% 32% 35% 31% 42%Expectation that prices might fall further 26 26 24 28 22Low consumer confidence 15 15 17 13 12Difficulty in finding the right property 10 10 8 11 10No factors are limiting potential clients 8 8 7 9 11Concern about losing job 4 4 5 4 3Expectation that mortgage rates might come down 1 1 1 1 1

Where Clients Come From

• 18 percent repeat business from past clients

• 18 percent referrals from past clients

• 3 percent off member website (of those with a website)

• Only 34 percent of members report any business from an open house

Technology

Changes in Technology

Communication Source

2009 Survey

2010 Survey 2011 Survey

Realtor website 60% 63% 62%

Realtor blog 7 10 10

Use of social media 35 51 49

Blog Use

ALL REALTORS

® AGE2011

Survey

2010 Surv

ey29 or

younger 30 to 3940 to

4950 to

5960 or older

Have 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 6

Social Media Use

ALL REALTORS

®29 or

younger30 to

3940 to

4950 to

5960 or older

Yes 49% 83% 72% 64% 52% 31%No 42 10 20 28 38 58No, but plan to in the future

9 6 8 8 10 9

Firm Web Presence

Median Amount Spent on Website

Percent of Business from Website by Amount to Maintain

Income and Expenses

Compensation Structures

All REALTORSPercentage commission split 68%100% Commission 18Commission plus share of profits 3Salary plus share of profits/production bonus

3

Salary only 2Share of profits only 1Other 6Median year-starting percentage commission split

70%

Median year-ending percentage commission split

70%

Commission Split by Years of Experience

Gross Annual Income, 2010

Net Annual Income, 2010

Gross Annual Income by Experience, 2010

Net Annual Income by Experience, 2010

Expenses 2010

2010 2011

Total Expenses $5,480 $4,270

Business Use of Vehicle 1,580 1,680

Technology 720 630

Professional Development 700 600

Administrative 690 720

Marketing of Services 690 550

Median percent spent on online marketing

10% 10%

Business Promotion 670 580

Affinity/Referral Relationship 0 0

Office/Lease Building 0 0

Office and Firm Affiliation

Where do our members work?

What type of firm?

• Typical firm size 29 brokers and agents– Typical firm has 1 office– Typical office size has 25

brokers and agents• 5 years typical tenure at firm• 11 percent worked at a firm that

was bought or merged

Relationship to the Firm

Benefits from the Firm

ALL REALTORS

®Employe

esIndependent Contractors

Errors and omissions (liability insurance) 20% 38% 19%Health insurance 5 37 2 Pension/SEP/401(K) 3 25 1 Life insurance 3 21 1 Dental insurance 3 24 1 Paid vacation/sick days 3 38 1 Vision care 2 19 1 Disability insurance (long-term care) 1 11 *Other 2 3 1 None 75 41 79

Demographics

Who Are Our Members?

Typical member: • 56-years-old• 57 percent are female• 48 percent at least a Bachelor’s

degree• 35 percent had prior career in

management/business/financial or sales/retail

• 75 percent real estate is only occupation

• Household income in 2010--$91,700

• 43 percent real estate is primary source of income for household

For More Information

Member Profile Webpagehttp://www.realtor.org/topics/member_profile

Economists Blog:http://economistsoutlook.blogs.realtor.org/

Via the FaceBook Page:http://www.facebook.com/narresearchgroup

Via Twitter Account:http://twitter.com/#!/NAR_Research