2013 comm member and member profile webinar presentation slides

8/13/2019 2013 Comm Member and Member Profile Webinar Presentation Slides

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Summer Webinar Series:2013 Commercial Member Profile

&2013 Member Profile

Jessica Lautz

July 30, 2013


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2013 Commercial

Member Profile


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Methodology

Emailed to 42,169 members

Received 1,796 surveys

Response rate of 4.3 percent


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Business Characteristics


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What do commercial members do?

60 percent brokers

19 percent broker associates

25 percent sales agents

37 percent are members of a NAR

affiliate

Wide varieties of specialty areas

Investment sales

Land sales

Office leasing Retail building sales


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Years of Experience in Real Estate

0

5

10

15

20

25

30

35

Broker Broker

Associate

Sales Agent Appraiser

NAR's

Commercial

Members

Licensed As

25 25

31

13

31


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Business Activity


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Sales and Leasing Volume2006 2008 2009 2010 2011 2012

Salestransactionvolume

$2,248,700 $2,024,900 $1,067,000/$1,767,900

$1,282,100/$1,722,200

$1,058,300/$2,010,500

$1,857,100/$2,507,700

Median dollarvalue of salestransactions

$553,000 $544,100 $407,200 $397,600 $414,300 $433,600

Typical sq ftof salestransactions

15,770 14,000 9,026 8,900 9,600 10,400

Leasingtransactionvolume

$183,300 $244,300 $45,000/$330,200

$118,400/$145,000

$93,100$402,100

$230,500/$476,400

Leasingdollar value

$97,700 $128,900 $140,600 $145,000 $144,800 $169,100

Typical sq ftof leasingtransactions

4,230 4,300 4,359 4,100 4,100 4,200


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Transaction Volume

0

1

2

3

4

5

6

7

8

All Commercial

Members

2 years or less 3 to 5 years 6 to 15 years 16 to 25 years 26 years or more

8

3

6

7

8 8


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Business Revenue and Firm

Affiliation


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Median Gross Annual Income, 2006-2012

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2006 2008 2009 2010 2011 2012

$115,600

$99,900

$68,600$76,500

$86,000$90,200


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Median Gross Annual Income, 2012

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2012 Broker BrokerAssociate

SalesAgent

Appraisal

$90,200$98,900

$86,400

$69,900

$120,000


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Median Gross Annual Income by Experience

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

All

Commercial

Members

2 years or less 3 to 5 years 6 to 15 years 16 to 25 years 26 years or

more

$90,200

$35,400

$68,200

$90,400$94,700

$123,700


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Business Practices

83 percent work 40+

hours/week

52 percent spend 75 to 100

percent of time oncommercial real estate

45 percent work on

commission split basis and

34 percent work 100% for

commission

56 percent of firms are local

31% are independent and

not affiliated with a firm


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Demographics


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Who are commercial members?

Typical commercial member:

59-years-old

78 percent are male

91 percent are

white/Caucasian

65 percent have at least a

Bachelors degree


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2013 Member Profile

Jessica Lautz

May 13, 2013


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Methodology

Tailored Design Method

Mailed hard copy and emailed to 58,068 members

Re-mail reminder

Received 4,883 surveys

Response rate of 8.4 percent

Incentive drawing for gift cards


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Business Characteristics


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What do our members do?

27 percent brokers

18 percent broker associates

56 percent sales agents

4 percent appraisers


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Years of Experience in Real Estate

0

2

4

6

8

10

12

14

2007 Survey 2008 Survey 2009 Survey 2010 Survey 2011 Survey 2012 Survey 2013 Survey

7

8

10 10

12

11

13


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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

years

16 years or

more

Very certain 80% 77% 81% 82% 78%

Somewhat certain 14 19 15 13 14

Not certain 6 5 5 5 8


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Business Activity


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Business Activity

2009

Survey

2010

Survey

2011

Survey

2012

Survey

2013

Survey

Properties appraised 200 200 200 200 200

Transaction sides 7 7 8 10 12

Percent of members

who had a transactioninvolving a foreclosure

41% 48% 51% 56% 53%

Percent of members

who had a transaction

involving a short sale

28% 40% 45% 51% 51%

Brokerage sales volume $1.2million

$1.2million

$1.1million

$1.3million

$1.5million

Number of properties

managed

40 33 25 30 49


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Transaction Sides

0

2

4

6

8

10

12

14

ALLREALTORS

2 years or less 3 to 5 years 6 to 15 years 16 years ormore

8

4

10

1213


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Most Important Factor Limiting Clients

RESIDENTIAL

SPECIALISTSBroker/

Broker

Associate

Sales

Agent

Commercial

Specialists

Difficulty in obtaining mortgage

finance 30% 28% 21%Difficulty in finding the right property 22 28 25

No factors are limiting potential clients 13 13 24

Ability to sell existing home 10 8 5

Expectation that prices might fall

further 8 8 16Low consumer confidence 8 5 8

Concern about losing job 2 2 0


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Where Clients Come From

21 percent repeat business from past

clients

21 percent referrals from past clients

4 percent off member website (of those

with a website) Only 34 percent of members report any

business from an open house


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Technology


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Changes in Technology

Communication

Source

2009

Survey

2010

Survey

2011

Survey

2012

Survey

2013

Survey

Realtor website 60% 63% 62% 62% 64%

Realtor blog 7 10 10 10 12

Use of social media 35 51 49 54 56


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Percent of Business from Website by Amount to Maintain

0

2

4

6

8

10

12

14

ALL

REALTORS

None Less than

$100

$100 to $499 $500 to $999 $1,000 or

more

4

0%

3%

4%

7%

12%


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Income and Expenses


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Gross Annual Income, 2001-2012

$47,700

$52,200 $49,300

$47,700

$42,600

$36,700 $35,700 $34,100 $34,900

$43,500

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2001 2002 2004 2006 2007 2008 2009 2010 2011 2012


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Net Annual Income, 2012

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

In 2012 In 2011 Broker/ Broker

Associate

Sales Agent

$27,400

$23,200

$33,500

$22,200


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Gross Annual Income by Experience, 2012

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

ALL REALTORS 2 years or less 3 to 5 years 6 to 15 years 16 years or

more

$43,500

$9,700

$29,600

$46,000

$57,300


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Expenses 2010-2013

2010 2011 2012 2013

Total Expenses $5,480 $4,270 $4,520 $4,900

Business Use of Vehicle 1,580 1,680 1,770 1,790

Technology 720 630 630 690

Professional Development 700 600 600 640

Administrative 690 720 560 830

Marketing of Services 690 550 510 590

Median percent spent on online

marketing

10% 10% 10% 10%

Business Promotion 670 580 560 640

Affinity/Referral Relationship 0 0 0 0

Office/Lease Building 0 0 0 0


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Office and Firm Affiliation


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Where do our members work?

Independentcompany

56%

Franchisedcompany

41%

Other

3%


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Relationship to the Firm

IndependentContractor,

83%

Employee, 6%

Other, 11%


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Demographics


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Who Are Our Members?

Typical member:

57-years-old

57 percent are female

50 percent at least a Bachelors degree

34 percent had prior career in

management/business/financial or

sales/retail

77 percent real estate is only occupation

Household income in 2012--$99,400 47 percent real estate is primary source of

income for household


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Age Rising

4849

50

51

5253

54

55

5657

1999 2001 2003 2005 2007 2008 2009 2010 2011 2012 2013

52 52

51

52

51

52

54 54

56 56

57


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Invest in Their Product

87% own their own home

13% own a vacation property

36% own a residential

investment property

10% own a commercial property


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Next up on the Summer Webinar Series

August 6th: 2013 Investment and Vacation Home Buyer Survey


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Where to find NAR Research

Jessica Lautz:[email protected], 202-383-1155

NAR Researchwww.realtor.org/research-and-statistics

Economists Outlook Blog:

economistsoutlook.blogs.realtor.org

FaceBook: facebook.com/narresearchgroup

Twitter: twitter.com/NAR_Research
mailto:[email protected]://www.realtor.org/research-and-statisticshttp://economistsoutlook.blogs.realtor.org/http://www.facebook.com/narresearchgrouphttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttp://www.facebook.com/narresearchgrouphttp://www.facebook.com/narresearchgrouphttp://economistsoutlook.blogs.realtor.org/http://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticsmailto:[email protected]

2013 comm member and member profile webinar presentation slides

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