snapshot: 2013 nar member profile
DESCRIPTION
A closer examination of the 2013 NAR Member Profile, released 5/13/13.TRANSCRIPT
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2013 Member Profile
Jessica LautzMay 13, 2013
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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
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Business Characteristics
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What do our members do?
• 27 percent brokers• 18 percent broker associates• 56 percent sales agents• 4 percent appraisers
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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
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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
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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%
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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
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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
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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
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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
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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
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Business Activity
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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
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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
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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
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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
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Technology
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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
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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
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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
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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
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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
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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%
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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
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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%
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Income and Expenses
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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
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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
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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
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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
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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
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Office and Firm Affiliation
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Where do our members work?
Independent company
56%
Franchised company
40%Other
3%
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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
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Relationship to the Firm
Independent Contractor;
83%
Employee; 6%
Other; 11%
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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
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Demographics
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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
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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
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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
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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