We're taking a "below the surface" view into the 2010 NAR Member Profile to explore some of the habits and business practices of today's real estate agents. In Part I we looked at such segments of the report covering "who is the typical agent," income of REALTORS and some of their technology habits.
In this post, we'll explore some business practices of today's REALTOR. My comments on the figures are in blue.
15% of all REALTORS say they work 60+ hours each week while the median hours worked each week is the typical American standard of 40. (Managers surveyed work a median of 50 hours each week). ~ The real interesting question would be to discover how much of that "hours worked" was spent on Business Development activities (prospecting, negotiating, listing and buyer appointments and closings) and how much was spent on Business Support activities (paperwork, computer searches, market analyses, email, social networking, attending home inspections, etc.)
When it comes to the question of where does a REALTORS business come from, 16% (median) of an agents business is from past customers and clients. This means the listing or purchase came directly from someone you have done business with in the past. That median jumps to 39% of an agents business for those REALTORS with 16+ years of experience.
20% of an agents business came from referral business from past consumers and clients.
These numbers, coupled with the NAR Home Buyers and Sellers survey results from 2009 show the importance of the referral business for success in today's market.
How do Buyers select an agent?
44% are referred by (or is) a friend, neighbor or relative
10% used the agent before
5% are referred by another agent
4% are referred through a relocation company
How do Sellers select an agent?
40% are referred by (or is) a friend, neighbor or relative
24% used the agent before
5% are referred by a relocation company
4% are referred by another agent
When it comes to spending money, or shall we say "investing" in one's business, here's how most REALTORS spent their money. (all numbers are median)
REALTORS spent $670 on business promotion
REALTORS spent $720 annually on professional development (training, coaching, continuing education)
REALTORS spent $720 on technology products and services
66% of REALTORS have no designations. Of those who do, the most common designations are the GRI (Graduate Realtor Institute) with 13% and the ABR (Accredited Buyer Representative).
If you're reading this as a REALTOR, hopefully you have identified a few areas of weakness within the industry that you could really exploit into business opportunities for yourself. Perhaps in other areas, you now see where you could invest a little more time, money or effort.
I encourage all members of the National Association of Realtors to log on to the member website and check out this report as well as the many other tools, reports and links which may help you grow your business in 2010 and beyond. You're already paying for it so you might as well get some value from your investment.
Until next time...keep building relationships...solving problems...and having fun.