NAR 2009 Member Profile survey results

The National Association of Realtors® has just released its 2009 Member Profile results. It’s always an interesting read and this year’s version isn’t too surprising given the market conditions this past year. Notably, NAR membership declined 10.5% from Dec 2007 to Dec 2008. It has dropped another 6.4% so far through April 2009. With our membership dues coming up for payment in June, it is expected even more will leave the industry.

Remember, when reading about income, it’s important to keep in mind that Realtors® are self-employed. All expenses for marketing, office supplies, equipment, medical insurance, professional dues are paid by us. Agents also must pay monthly fees to their broker for being associated with them, plus the broker takes a chunk (up to 50%) of the commission when a home sells. We also pay our FICA tax at 15% since there’s no employer.

INCOME results

• The median gross income dropped 14% in 2008 to $36,700.
• Median net income (after taxes & expenses) also fell 14% to 23,200.
• Those with 2 or fewer years in the business had a median gross income of $8,600.
• Those in the business 16 years or more had a median gross income of $53,900.

AGE results

• The median age increased from 52 to 54 yrs old.

EXPERIENCE results

• The average years of experience increased from 8 to 10 years.
• Three-fourths said real estate was their only occupation but less than half said it was the main source of their household income. (spouse’s occupation)

OPEN HOUSE results

• 90% of the agents get less than 10% of their business from open houses.
• 61% of the agents get no business from open houses.

TECHNOLOGY USE results

• Only 42% use a smart phone (those phones with email & Internet ability)
• Agents with less experience in the business were more likely to use smart phones.
• Only 7% of the agents have a blog. (I’m a cutting edge early-adaptor. LOL)
• 35% are involved in social networking (Facebook, Twitter, LinkedIN, etc.)
• 81% put their listings on their broker’s site; 80% put listings on Realtor.com; 66% put them on their MLS; 46% put listings on their own web site; and 16% put listings on other broker’s sites (reciprocity).

 How can you use this info? Well, first of all think twice before you ask your agent to cut their commission. They need to have enough funds to be able to spend time and marketing monies to properly market your home. Second, is to ask if your agent is working another job because if they are, they won’t have much time to spend working on your home and once in-contract, will apt to be unaccessible for handling the timing details. Third, ask your agent how many homes they’ve sold the past year. If they’ve only sold one or two homes, they may not be as sharp on their skills as they should be. Fourth, look into their techie skills. Without them, they won’t know how to properly market your home on the Internet or to easily communicate with you.

Recognize the type of market we’re in, and make sure you select a winning agent.

Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.