The National Association of Realtors (NAR) recently released its “2015 NAR Member Profile.”
In this report, NAR seeks to paint a picture of who Realtors really are by surveying a random sample of their members.
Various traits are examined — such as demographic characteristics, business practices and earnings — with the goal of giving an accurate depiction of the typical Realtor.
Here is a quick look at today’s Realtor, based on that report, focusing on three broad categories:
First of all, there are significantly more women in real estate than there are men (58 percent to 42 percent). In addition, the median age of NAR members was 57 years old, up one year from 56 in 2013. From 1999 to 2008, median ages were between 51 and 52 years old. This leads us to believe that the progression of age is due to not only the natural advancement from the previous year, but because baby boomers are putting off retirement as a result of the financial crisis. The rest of the pie is made up of younger real estate professionals, 2 percent of which are under 30 and 18 percent of which are in the 30-44 age range and older Realtors aged 65 and up, who make up 25 percent of real estate pros.
Generally, there is a positive outlook on the real estate business for NAR members: 84% plan to stay in the business for at least two more years, compared to 82 percent in the previous year’s study. Realtors are also more likely than the average American to have had higher education and be married, with 50 percent holding a bachelor’s degree or higher and 71 precent being married.
With technology and social media becoming an increased part of today’s world, we’re seeing a lot more Realtors on social media and a higher comfort level using multiple modes of communication than in previous years. In 2008, only 35 percent of agents used social media. Today, that has almost doubled with 65 percent of NAR members saying they use some sort of social media platform. Also, 12 percent are blogging.
Though social media plays an important part in earning business, a significant portion of clients and customers come from repeat business (20 percent) and referrals from past clients and customers (an additional 20 percent). This is true for the average Realtor who has been in business for 12 years.
However, for those who have been in real estate for 16 years or more, business grew to 40 percent repeat business and 24 percent referrals. When it comes to interacting with those clients or potential customers, 93 percent of Realtors prefer email as a communication method, 91 percent prefer phone calls and 85 percent prefer text messages.
As the clientele base grows with experience, so do earnings. At three to five years’ experience, the average annual income was $37,400. At 12 years, or for the average Realtor, that number grew to $45,800. Finally, at 16 years, the average income was $68,200.
The typical Realtor works the customary 40 hours per week and the majority (69 percent) earn their money using a split commission arrangement. In contrast, 17 percent collect their earnings solely through their own commission, 4 percent through commission plus a share of the profits and 11 percent through other methods of compensation.
Check out our infographic below for more on the report: