The National Association of Realtors® just released its latest survey of the membership, representing 2007 statistics. Some of the results I found surprising, other stats were not. I also thought there was a key missing statistic that if known, might help explain some of the other stats.
MEDIAN INCOME
Not surprising is that Realtors® median income declined. It was $42,600 in 2007, down 10.7% from $47,700 in 2006 when it also fell 3.2% from 2004, and 5.6% from 2002. If I add all those percentages together, that would seem to indicate that median incomes were 19.5 % lower than they were 6 years ago. Remember, since we’re self-employed and responsible for all professional & marketing expenses, taxes, medical insurance, etc., those figures represent a GROSS income.
Some of the drop in income can be attributed to the problems in the industry last year with fewer homes being sold. However, there is another factor … that being that when the market was better, a lot of new people decided to get their real estate license. NAR membership grew 89.6% from 1998-2006. Naturally, new people make a lot less money as they try to gain business.
- Realtors®with less than two years in the business had a median income of only $10,500 in 2007.
- Those with 3-5 years of tenure had an income of $34,600.
- 6-15 years experience had incomes of $52,000
- 16 or more years earned $69,500.
HOURS WORKED
Based on the agents I know, I found the “hours worked” stats to be surprisingly low. The survey said that 30% work 20-39 hours per week, and 15% work at least 60 hours. The agents that I know, work far more than 40 hours a week.
LIFE BEFORE REAL ESTATE
Most agents had prior careers before moving to real estate. 18% worked in management, business or for financial companies. 16% worked in sales or retail. 10% worked in office or admin support. 6% worked in education. When working with other agents during transactions, I’ve found it fairly easy to tell who has a corporate background and who doesn’t. That corporate training is a definite benefit not only for the agent but also the client!
WHAT I FOUND SURPRISING … AND PATHETIC!
- 92% use email daily or ALMOST daily. IMO this should be 100%!
- 88% use computers and 82% use cell phones. Don’t know how people do this job without either one of those tools.
- 27% use digital camers. That’s REALLY pathetic!
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