Learn. Live. Lead.

Life-long Learning and Real Estate Success

Jessica Lautz November 9, 2013

Firm Provides Training Programs

No, does not provide training 38%

Yes, for staff only 4%

Yes, for sales agents only 22%

Yes, for both staff and sales agents 36% 2013 Profile of Real Estate Firms

Training and Education Required by Firm

New Sales Agents 20% 12 18 25 17 5 4 Experienced Sales Agents 19% 24 28 20 7 1 1
Other Staff 48% 21 14 12 5 1 1

Zero hours 1 to 10 11 to 20 21 to 40 41 to 80 81 to 100 100 or more hours

Median (hours)

21

12

2013 Profile of Real Estate Firms

Training Resources Used

Private education or training providers Courses and training through the National Association of REALTORS Fellow real estate professionals Franchise REALTOR University Local college or university

All One Two Three Four or more Firms office offices offices offices 61% 61% 63% 64% 68%
51 48 24 20 11 54 46 19 21 12 45 54 38 16 8 40 58 42 19 11 44 64 50 14 9

2013 Profile of Real Estate Firms

Certifications and Designations in Real Estate

All employees have a designation or certification 30%

No employees with certification(s) or designation(s) 18%

1 to 10 percent 12%

11 to 20 percent 4% 51 to 99 percent 14% 21 to 50 percent 22%

2013 Profile of Real Estate Firms

Firms Reimbursement Of Educational Activities

Full Partial No reimbursement reimbursement reimbursement
Continuing education to maintain real estate license Real estate sales training Obtaining a designation in real estate Pre-license training Obtaining a certification in real estate Vocational educational programs College degree programs 9% 8 8 7 7 3 2 10% 16 14 11 13 5 4 81% 76 79 82 81 93 94

2013 Profile of Real Estate Firms

Educational Attainment by Members

Degrees High school graduate Some college/Associates Degree Bachelors Degree Some graduate school Graduate Degree Member 9% 41 30 8 13 Commercial Member 5% 31 35 10 20

2013 Member Profile and 2013 Commercial Member Profile

Typical Work Week

Typical member works 40 hours a week in real estate Managers/appraisers typically 50 hours 77% real estate is the only occupation 65% w/2 years or less experience 83% of those with 16 years or more 47% real estate is primary source of income for household 64% who work 40+ hours a week 21% who work -40 hours a week
2013 Member Profile

Gross Annual Income, 2001-2012

$60,000 $52,200 $50,000 $40,000 $30,000 $20,000 $10,000 $0 $49,300

$47,700

$47,700
$42,600 $36,700 $35,700 $34,100

$43,500

$34,900

2001
2013 Member Profile

2002

2004

2006

2007

2008

2009

2010

2011

2012

Distribution of Income
Gross Income: Before taxes and expenses Less than $10,000 $10,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $249,999 BrokerOwner ALL (without REALTORS selling) 18% 15 10 12 14 10 9 5 2 18% 7 10 10 9 7 11 7 3 BrokerOwner Manager Manager (with Associate (without (with selling) Broker selling) sellling) 13% 10 7 10 16 13 14 9 3 15% 14 10 15 16 11 7 5 2 8% 0 9 6 19 28 22 2 5 5% 6 8 17 22 15 16 4 4 Sales Agent Appraiser 22% 18 10 12 12 9 9 4 2 2% 6 5 15 22 15 20 8 4

$250,000 or more Median

4 17 $43,500 $62,800

6 $66,300

5 $46,100

1 $81,900

5 3 $66,600 $35,700

4 $76,200

Gross Annual Income by Hours Worked, 2012

$90,000 $85,700

$80,000
$70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $8,700

$61,100 $43,500

$25,200

$0
ALL REALTORS 2013 Member Profile Less than 20 hours 20 to 39 hours 40 to 59 hours 60 hours or more

Gross Annual Income by Experience, 2012

$60,000 $50,000 $40,000 $43,500 $46,000 $57,300

$29,600 $30,000
$20,000

$9,700
$10,000 $0 ALL REALTORS 2013 Member Profile 2 years or less 3 to 5 years 6 to 15 years 16 years or more

Years of Experience in Real Estate

14 12 12 10 10 8 8 6 4 2 0 2007 Survey 2008 Survey 2009 Survey 2010 Survey 2011 Survey 2012 Survey 2013 Survey 2013 Member Profile 7 10 13

11

Age Rising
57 56 55 54 53 52 51 54 54

57
56 56

52

52
51

52
51

52

50
49 48 1999 2001 2003 2005 2007 2008 2009 2010 2011 2012 2013
2013 Member Profile

Word of Mouth Business

42% of member business is from referrals and repeat clients 54% of buyers and 64% of sellers used an agent that was referred to them or they had worked with before 66% of buyers and sellers only contacted 1 agent More then 8 in 10 buyers and sellers would recommend their agent or use again
2013 Profile of Home Buyers and Sellers

Agent Use By Buyer High and Growing

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2001 2003 2004 2005 2006 2007 Through a real estate agent or broker Directly from the previous owner 2013 Profile of Home Buyers and Sellers 15 14 9 12 9 69% 75% 77% 77% 77% 79% 81% 77% 83% 89% 89% 88%

12 9

13 9

12 7

10 6 2008

8 5 2009

6 5 2010

7 4 2011

6 5 2012

7 5 2013

Directly from builder or builder's agent

How Seller Sold Home 1991-2013

100 90 80 70 60 4 1 4 4 7 8 4 4 2 3 3 3 4 3 3 2 3

77

82

50
40 30 20 10 0 19 17

81

80

77

79

83

82

85

84

85

84

85

88

87

88

88

15

18

16

13

14

14

13

12

12

13

11

10

1991 1993 1995 1997 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 All FSBO (For-sale-by-owner) Agent-assisted Other

What Buyers Want Most From Their Agent

Help determining how much home buyer can afford, 3% Help find and arrange financing, 3% Help teach buyer more about neighborhood or area (restaurants, parks, public transportation), 1% Other, 2%

Help with paperwork, 7%

Determine what comparable homes were selling for, 8% Help with the price negotiations, 11%

Help find the right home to purchase, 53%

Help buyer negotiate the terms of sale, 12%

2013 Profile of Home Buyers and Sellers

What Sellers Want Most From Their Agent

Help seller market home to potential buyers Help sell home within specific timeframe Help price the home competitively Help find a buyer for the home

2013 Profile of Home Buyers and Sellers