2010 Member Profile Webinar

Jessica LautzMay 20, 2010

Methodology

• 93 question survey• Mailed hard copy to 58,022 members• Emailed copy to 43,869 members• Received 6,830 surveys• Response rate of 6.7 percent• Incentive a drawing for $$• Oversamples: 8 states and 2 locals

Business Characteristics

What do our members do?

• 25 percent brokers• 17 percent broker

associates• 59 percent sales agents

Primary Specialty Area

Secondary Specialty Area

Years of Experience in Real Estate

Number of Personal Assistants

ALL REALTORS

®

Broker-Owner

(without selling)

Broker-Owner

(with selling)

Associate Broker

Manager (without selling)

Manager (with

sellling)Sales

Agent

None 83% 64% 70% 82% 71% 73% 87%

One 14 32 24 15 16 18 11

Two 2 3 4 2 2 6 1

Three or more 1 2 2 1 10 2 0

Make a Difference

• 25 percent members of an affiliate

• 44 percent have a designation

• 24 percent have a certification

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 years16 years or

more

Very certain 74% 69% 72% 75% 76%

Somewhat certain 18 23 20 17 17

Not certain 8 8 8 8 7

Business Activity

Business Activity

2009 Survey 2010 Survey

Properties appraised 200 200

Transaction sides 7 7

Percent of members who had a transaction involving a foreclosure

41% 48%

Percent of members who had a transaction involving a short sale

28% 40%

Brokerage sales volume $1.2 million $1.2 million

Number of properties managed 40 33

Transaction Sides

Most Important Factor Limiting Clients

RESIDENTIAL SPECIALISTS

ALL

REALTORS® AllBroker/ Broker

AssociateSales

AgentCommercial

SpecialistsDifficulty in obtaining mortgage finance 34% 33% 34% 32% 48%Expectation that prices might fall further 23 23 22 23 19

Low consumer confidence 13 13 16 11 12Difficulty in finding the right property 11 12 9 13 8No factors are limiting potential clients 7 7 7 8 7

Concern about losing job 6 6 6 6 1

Ability to sell existing home 1 1 1 1 0Expectation that mortgage rates might come down

0 0 0 1 1

Other 5 5 5 6 3

How Recent Home Buyers are Viewing Their Home Purchase

Where Clients Come From

• 18 percent repeat business from past clients

• 20 percent referrals• Only 36 percent of

members report any business from an open house

Technology

Changes in Technology

Communication Source 2009 Survey 2010 Survey

Realtor website 60% 63%

Realtor blog 7 10

Realtor blog for members 29 and younger

6 18

Use of social media 35 51

Use of social media for members 50 to 59

32 52

Blog Use

ALL REALTORS® AGE2010

Survey2009

Survey 29 or younger 30 to 39 40 to 49 50 to 59 60 or olderHave a blog 10% 7% 18% 16% 12% 9% 6%Do not have a blog 77 80 63 67 71 78 85Do not have a blog, but plan to in the future

12 13 17 16 16 12 8

Social Media Use

ALL REALTORS® 29 or younger 30 to 39 40 to 49 50 to 59 60 or older

Yes 51% 79% 72% 63% 52% 34%

No 36 12 19 25 36 51No, but plan to in the future

12 8 8 12 11 14

Firm Web Presence

Median Amount Spent on Website

Inquiries from Website

ALL REALTORS®

Broker-Owner (without selling)

Broker-Owner (with selling)

Associate Broker

Manager (without

selling)Manager

(with sellling) Sales Agent

None 27% 16% 24% 20% 17% 19% 31%

1 to 5 inquiries 35 25 31 36 31 33 376 to 10 inquiries 12 4 10 15 19 1211 to 20 inquiries 9 6 10 10 10 6 821 to 50 inquiries 7 12 10 7 8 10 651 to 100 inquiries 4 6 6 5 7 2 3More than 100 inquiries 6 31 9 7 26 10 4Median (inquiries) 4 20 4 4 12 5 3

Inquiries from Website by the Amount Spent to Maintain

Percent of Business from Website by the Amount to Maintain

Income and Expenses

Compensation Structures

REAL ESTATE EXPERIENCEALL

REALTORS® 2 years or less 3 to 5 years 6 to 15 years16 years or

morePercentage commission split 69% 83% 80% 69% 60%

100% Commission 18 9 12 19 22Commission plus share of profits

3 3 3 3 3

Salary only 2 1 1 2 2Salary plus share of profits/production bonus

3 2 1 2 5

Share of profits only

1 1 0 0 2

Other 4 3 2 4 6

Commission Split by Years of Experience

Median Gross Annual Income, 2009

Median Net Annual Income, 2009

Median Gross Annual Income, 2009

Median Net Annual Income, 2009

Expenses in 2009

Total Expenses $5,480

Business Use of Vehicle 1,580

Technology 720

Professional Development 700

Administrative 690

Marketing of Services 690

Median percent spent on online marketing 10 percent

Business Promotion 670

Affinity/Referral Relationship 0

Office/Lease Building 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 24

brokers and agents

• 5 years typical tenure at firm

• 12 percent worked at a firm that was bought or merged

Relationship to the Firm

Benefits from the Firm

2010 Survey EmployeesIndependent

Contractors

Paid vacation/sick days 12% 40% 10%Errors and omissions (liability insurance) 11 28 10 Health insurance 6 45 2 Pension/SEP/401(K) 3 31 1 Life insurance 3 31 1 Dental insurance 3 28 1 Disability insurance (long-term care) 2 19 1 Vision care 3 20 1 Other 2 5 1 None 73 30 77

Demographics

Who are our members?

• Typical member: – 54-years-old– 57 percent are female– 48 percent at least a Bachelor’s degree– 1/3 had a prior career in management,

business, financial and sales/retail– 77 percent real estate is only occupation– Household income in 2009--$89,100 – 45 percent real estate is primary source

of income for household

Where to Find Your Copy

Via the “Right Tools, Right Now” webpage:http://www.realtor.org/prodser.nsf/RightTools/ResearchTools?OpenDocument

OR

Via the Realtor.org Store:http://www.realtor.org/prodser.nsf/products/E186-45-09?OpenDocument