Do You Stand Out in the Crowd? A Glimpse into the 2010 NAR Member Profile - Part II

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.

Do You Stand Out in the Crowd? A Glimpse into the 2010 NAR Member Profile

Q: What does Rhode Island, Montana, Delaware, South Dakota, Alaska, North Dakota, Vermont and Wyoming all have in common?

A: They all have less people in their states than the National Association of REALTORS has members.

The National Association of REALTORS (NAR) is America's largest trade association, representing 1.2 million members involved in all aspects of the real estate industry. This includes brokers, salespeople, property managers, appraisers, counselors and others engaged in in both residential and commercial real estate.

Each year the NAR surveys their membership to identify trends and general census statistics that give those who read the report a good sense of the pulse of the membership. The Profile report is available as a free download for NAR Members via Realtor.org or the hard copy can be purchased via the site as well. The Profile is broken down into five basic categories:

Business Characteristics of REALTORS

Business Activity of REALTORS

Income and Expenses of REALTORS

Office and Firm Affiliation of REALTORS

Demographic Characteristics of REALTORS

I really enjoy reviewing this report each year to not only identify emerging trends and potential obstacles but also to measure the success of our local agents. The report tends to create a "bar" of standards that can either be raised or surpassed by agents looking to find success.

In today's and tomorrow's posts are a few areas that I found noteworthy. My comments follow the results in blue.

The average REALTOR is a 54 year old white female. (Females outnumber males 57%-43%)

77% of REALTORS said real estate is their only occupation yet 45% responded that real estate is their primary source of income. ~ This seems to mean that while 3 out of 4 in the business don't have another job, less than 2 of those same four rely on their income to pay the bills. There's an old saying that says "How hard will you work Plan A if you have a Plan B?"

The median income figure is a bit questionable. If you quickly read the report you would think that $35,700 is the median income but that is the figure for all REALTORS. Most REALTORS are considered "sales agents." The median income for "sales agents" is just $26,600 ($17,200 after taxes). Those licensed as Brokers or Broker Associates pull in a median income of $49,100 ($31,900 after taxes). ~ Maybe with income levels that low we see now when only 45% say it's their only source of income.

"Honey, if you quit your job I might have to start focusing more on business development activities instead of spending all day searching the MLS for homes for my tire kicking buyers and making fliers for my over-priced listing."

89% of all members own their own home while 13% of members own a vacation home. 17% own one investment property, while 8% owns two investment properties and 14% own 3 or more. ~ I guess that shows great credibility for those members who are "putting their money where their mouths are." I do wonder if I would trust a Realtor who was telling me "it's a great time to buy" when they are currently renting a place to live.

56% of REALTORS use a smart phone (with wireless email and Internet capabilities). ~ Maybe the other 44% are just looking to the sky for the smoke signals or carrier pigeons their clients must be using?

10% of agents have a blog. ~ This is up from 7% in the 2009 report so more and more people are starting to find a voice in the crowded landscape through on-line web logs. If you're an agent, what are you doing to become the "trusted advisor" and source of information on your community, market place or neighborhood? A blog isn't hard to create and there is plenty of information out there to be shared with people who know, love and trust you.

In Part II of this post, we'll look at some of the areas in the 2010 Member Profile discussing where REALTORS are getting their business, how they're spending their money and how they spend their time.