2013 Member Profile

Jessica LautzMay 13, 2013

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

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 Brokers

2003 2005 2007 2008200

9 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

Primary Specialty Area Among Sales Agents

2003 2005 2007 2008200

9 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

Secondary Specialty AreaResidential brokerage

Commercial property management

Relocation

Commercial brokerage

Counseling

Land development

Residential appraisal

Residential property management

International

Auction

Commercial appraisal

Other

None/Nothing0 5 10 15 20 25 30 35 40

37%

18%

17%

15%

8%

7%

4%

3%

3%

3%

1%

10%

27%

Years of Experience in Real Estate

2007 Survey 2008 Survey 2009 Survey 2010 Survey 2011 Survey 2012 Survey 2013 Survey0

2

4

6

8

10

12

14

7

8

10 10

12

11

13

Years of Experience in Real Estate

Broker-O

wner (with

out sellin

g)

Broker-O

wner (with

sellin

g)

Associa

te Broker

Manager (

without s

elling)

Manager (

with se

llling)

Sales Agent

Appraiser

0

5

10

15

20

25

3025

20

17

29

17

10

22

Number of Personal Assistants

ALL REALTORS®

2 years or less

3 to 5 years

6 to 15 years

16 years or more

None 83% 95% 90% 84% 78%

One 14 5 9 13 17

Two or more 4 0 1 3 5

Make a Difference

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

Residential Specialists• 9% REBAC—Real Estate

Agent Council• 36 percent have a

designation• 21% GRI—Graduate

REALTOR Institute• 15% ABR—Accredited

Buyer Representative• 39 percent have a

certification• 23% Short Sales and

Foreclosures• 17% 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 80% 77% 81% 82% 78%

Somewhat certain 14 19 15 13 14

Not certain 6 5 5 5 8

Business Activity

Business Activity

2009 Survey

2010 Survey

2011 Survey

2012Survey

2013Survey

Properties appraised

200 200 200 200 200

Transaction sides 7 7 8 10 12

Percent of members who had a transaction involving a foreclosure

41% 48% 51% 56% 53%

Percent of members who had a transaction involving a short sale

28% 40% 45% 51% 51%

Brokerage sales volume

$1.2 million

$1.2 million

$1.1 million

$1.3 million

$1.5 million

Number of properties managed

40 33 25 30 49

Transaction Sides

ALL RE-ALTORS®

2 years or less

3 to 5 years 6 to 15 years

16 years or more

0

2

4

6

8

10

12

14

8

4

10

1213

Most Important Factor Limiting ClientsRESIDENTIAL SPECIALISTS

Broker/ Broker

AssociateSales

AgentCommercial

SpecialistsDifficulty in obtaining mortgage finance 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 fall further 8 8 16Low consumer confidence 8 5 8Concern about losing job 2 2 0

Where Clients Come From

• 21 percent repeat business from past clients

• 21 percent referrals from past clients

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

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

Technology

Use of Communications and Tech Products

All REALTORS®Daily or nearly

every dayA few times

a weekA few times a

monthA few times

a yearRarely or

NeverE-mail 95% 3% 1% 0 1%

Laptop/Desktop computer 91 4 2 1 2Smartphone with wireless email and Internet capabilities

86 3 1 1 10

Cell phone (no email and Internet)

61 4 1 0 34

Instant messaging (IM) 39 9 5 3 44Global positioning system (GPS)

38 24 17 6 15

Digital camera 30 22 30 11 6PDA/Handheld (no phone capabilities)

13 3 2 1 81

Blogs 5 4 10 10 72RSS feeds 4 4 6 6 81Podcasts 1 2 6 10 81

Use of Business Software

All REALTORS®Daily or nearly

every dayA few times

a weekA few times a

monthA few times

a yearRarely or

NeverMultiple listing 72% 14% 6% 2% 6%Contact management 30 18 14 9 29Electronic contract and forms 26 30 26 8 10Document preparation 25 27 22 8 19Comparative market analysis 21 31 31 11 7Customer relationship management 18 13 12 9 48Transaction management 15 15 15 9 46Social media management tools 15 12 14 10 50E-signature 13 13 17 13 44Property management 9 5 9 11 66

Graphics or presentation 9 14 26 17 34

Loan analysis 5 9 18 18 50

Video 3 6 14 15 62

Preferred Method of Communications

Current clients/ customers

Past clients/ customers

Potential clients/

customersDo not use

E-mail 92% 66% 63% 1%Telephone 90 58 57 1Text messaging 74 35 31 11Postal mail 28 40 40 21Instant messaging (IM) 26 11 11 46Blog 4 5 8 67Video chat 1 1 1 73Podcast 1 1 2 73

Changes in Technology

Communication Source

2009 Survey

2010 Survey

2011 Survey

2012Survey

2013Survey

Realtor website 60% 63% 62% 62% 64%

Realtor blog 7 10 10 10 12

Use of social media 35 51 49 54 56

Information on WebsitesResidential Commercial

Own property listings 93% 93%Information about home buying and selling 87 67Mortgage or financial calculators 75 23Link to my firm's 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

Firm Web Presence

Firm has Web site; 94%

Firm does not have Web site; 4%

Firm does not have Web site but plans to in the

future; 1%

Median Amount Spent on Website

ALL REA

LTORS®

Broke

r-Owner (w

ithout s

elling)

Broke

r-Owner (w

ith se

lling)

Associa

te Bro

ker

Man

ager (

without s

elling)

Man

ager (

with se

llling)

Sales A

gent

$0

$100

$200

$300

$400

$500

$600

$220

$300

$560

$150

$270

$370

$260

Percent of Business from Website by Amount to Maintain

ALL RE-ALTORS®

None Less than $100 $100 to $499 $500 to $999 $1,000 or more

0

2

4

6

8

10

12

14

4%

0%

3%

4%

7%

12%

Income and Expenses

Compensation Structures

All REALTORSPercentage commission split 68%100% Commission 18Commission plus share of profits 4Salary plus share of profits/production bonus

3

Salary only 1Share of profits only 1Other 5

Gross Annual Income, 2001-2012

2001 2002 2004 2006 2007 2008 2009 2010 2011 2012$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$47,700

$52,200 $49,300

$47,700

$42,600

$36,700 $35,700 $34,100 $34,900

$43,500

Net Annual Income, 2012

In 2012 In 2011 Broker/ Broker Associate

Sales Agent$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$27,400

$23,200

$33,500

$22,200

Gross Annual Income by Experience, 2012

ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or more$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$43,500

$9,700

$29,600

$46,000

$57,300

Expenses 2010-20132010 2011 2012 2013

Total 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 online marketing

10% 10% 10% 10%

Business Promotion 670 580 560 640Affinity/Referral Relationship 0 0 0 0Office/Lease Building 0 0 0 0

Office and Firm Affiliation

Where do our members work?

Independent company

56%

Franchised company

40%Other

3%

What type of firm?

• Typical firm size 23 brokers and agents– Typical firm has 1 office– Typical office size has 24

brokers and agents• 7 years typical tenure at firm• 10 percent worked at a firm that

was bought or merged

Relationship to the Firm

Independent Contractor;

83%

Employee; 6%

Other; 11%

Benefits Received

Provided by Firm

Provided by Partner/

Spouse/ Family

Pays for out of

pocketDo not

receive Errors and omissions (liability insurance) 22% 11% 38% 31%

Health insurance 4 27 34 36

Paid vacation/sick days 4 12 19 66

Pension/SEP/401(K) 4 15 30 53

Life insurance 3 17 35 46

Dental insurance 3 25 24 49 Disability insurance (long-term care) 3 14 20 65

Vision care 3 23 25 50 Other 2 11 15 72

Demographics

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 in

management/business/financial or sales/retail

• 77 percent real estate is only occupation

• Household income in 2012--$99,400

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

Age Rising

1999 2001 2003 2005 2007 2008 2009 2010 2011 2012 201348

49

50

51

52

53

54

55

56

57

52 52

51

52

51

52

54 54

56 56

57

Invest in Their Product

• 87% own their own home• 13% own a vacation property• 36% own a residential

investment property• 10% own a commercial property

For More InformationMember Profile Webpagewww.realtor.org/reports/member-profile

The Economists’ Outlook Blog:economistsoutlook.blogs.realtor.org/ Via the NAR Research FaceBook Page:www.facebook.com/narresearchgroup Via @NAR_Research Twitter Account:twitter.com/NAR_Research