by Karisa Bruin, Information Specialist
One of the keystones of NAR’s Information Central is – you guessed it – information. We in Info Central seek to provide interesting and useful resources to REALTORS® to help them grow their careers and businesses.
One of our crucial sources of information is the handy little (80 page) report published by NAR’s Research area, The NAR Member Profile. This research compilation reports business characteristics and activities and demographics of REALTORS® across the country. Information Central uses this data to make sure that our Field Guides are thorough and accurate.
But this information is as useful for members as it is for us. Let’s use an example of a member who is considering changing firms. He could consult the most recent Member Profile and determine what percentage of REALTORS® work with non-franchised firms (58%) versus the percentage that work for franchised firms (41%) or he could also look at the Field Guide to Franchises vs Independents for more information.
When it comes to business practices, REALTORS® can doublecheck to see where their finances stand in comparison with other members. Eighty per cent of REALTORS® are independent contractors and are therefore responsible for the majority of their own business expenses. The median total business expense among all REALTORS® was $5,480 in 2009 while the median annual income $35,700. From the report, we can also see that as a REALTOR® gains experience, her income will most likely see gains as well — REALTORS® with 16 years of experience or more average an income of $52,300. The report also includes the average number of listings sold.
The Profile also includes statistical data for appraisers (number of appraisals done) as well as data about other business specialties and languages spoken. Also, for those REALTORS® who are thinking of diving into the high-tech side of the business, there is data listed on p. 41 about the amount of business generated from a REALTOR® website versus how much it costs to maintain a site.
The demographic analysis of REALTORS® is particularly useful for people who are interested in transitioning to a career in real estate from a prior full-time career. Eighteen per cent of current REALTORS® were formerly employed full-time in the Management/Business/Financial industry while only 5% of members cite real estate as their first career. Think you’re too old to practice real estate? Think again! The median age of REALTORS® is 52 years.
The 2010 Member Profile is out now. Look into it for the information mentioned here and more. Available to members as a free download.