There is a significant relationship between Realtors®’ educational attainment and their income level, according to panelists at today’s “Learn. Live. Lead. Lifelong Learning and Real Estate Success” forum during the 2013 REALTORS® Conference and Expo.

1. Learn. Live. Lead.
Life-long Learning and
Real Estate Success
Jessica Lautz
November 9, 2013

2. Firm Provides Training Programs
No, does not
provide training
38%
Yes, for staff only
4%
Yes, for sales agents
only
22%
Yes, for both staff
and sales agents
36%
2013 Profile of Real Estate Firms

3. Training and Education Required by Firm
Zero hours
1 to 10
11 to 20
21 to 40
41 to 80
81 to 100
100 or more hours
Median (hours)
2013 Profile of Real Estate Firms
New Sales
Agents
20%
12
18
25
17
5
4
Experienced
Sales Agents
19%
24
28
20
7
1
1
Other Staff
48%
21
14
12
5
1
1
21
12
2

4. Training Resources Used
Private education or training providers
Courses and training through the
National Association of REALTORS®
Fellow real estate professionals
Franchise
REALTOR® University
Local college or university
2013 Profile of Real Estate Firms
All
One
Two Three Four or more
Firms office offices offices
offices
61% 61%
63%
64%
68%
51
48
24
20
11
54
46
19
21
12
45
54
38
16
8
40
58
42
19
11
44
64
50
14
9

5. Certifications and Designations in Real Estate
All employees have a
designation or
certification
30%
No employees with
certification(s) or
designation(s)
18%
1 to 10 percent
12%
11 to 20 percent
4%
51 to 99 percent
14%
2013 Profile of Real Estate Firms
21 to 50 percent
22%

6. Firm’s Reimbursement Of Educational Activities
Full
Partial
No
reimbursement reimbursement reimbursement
Continuing education to
maintain real estate license
9%
10%
81%
Real estate sales training
Obtaining a designation in real
estate
Pre-license training
Obtaining a certification in real
estate
Vocational educational programs
8
16
76
8
7
14
11
79
82
7
3
13
5
81
93
College degree programs
2
4
94
2013 Profile of Real Estate Firms

7. Educational Attainment by Members
Degrees
Member
Commercial Member
High school graduate
9%
5%
Some college/Associate’s Degree
41
31
Bachelor’s Degree
30
35
Some graduate school
8
10
Graduate Degree
13
20
2013 Member Profile and 2013 Commercial Member Profile

8. Typical Work Week
• Typical member works 40 hours a
week in real estate
– Managers/appraisers typically 50
hours
• 77% real estate is the only occupation
– 65% w/2 years or less experience
– 83% of those with 16 years or
more
• 47% real estate is primary source of
income for household
– 64% who work 40+ hours a week
– 21% who work -40 hours a week
2013 Member Profile

9. Gross Annual Income, 2001-2012
$60,000
$52,200
$50,000
$49,300
$47,700
$47,700
$43,500
$42,600
$40,000
$36,700 $35,700
$34,100
$30,000
$34,900
$20,000
$10,000
$0
2001
2013 Member Profile
2002
2004
2006
2007
2008
2009
2010
2011
2012

10. Distribution of Income
Gross Income: Before
taxes and expenses
Less than $10,000
BrokerOwner
ALL (without
REALTORS® selling)
BrokerOwner
Manager Manager
(with Associate (without
(with
selling)
Broker selling) sellling)
Sales
Agent Appraiser
18%
18%
13%
15%
8%
5%
22%
2%
$10,000 to $24,999
15
7
10
14
0
6
18
6
$25,000 to $34,999
10
10
7
10
9
8
10
5
$35,000 to $49,999
12
10
10
15
6
17
12
15
$50,000 to $74,999
14
9
16
16
19
22
12
22
$75,000 to $99,999
10
7
13
11
28
15
9
15
$100,000 to $149,999
9
11
14
7
22
16
9
20
$150,000 to $199,999
5
7
9
5
2
4
4
8
$200,000 to $249,999
2
3
3
2
5
4
2
4
4
17
$43,500 $62,800
6
$66,300
5
$46,100
1
$81,900
5
3
$66,600 $35,700
4
$76,200
$250,000 or more
Median

11. Gross Annual Income by Hours Worked, 2012
$85,700
$90,000
$80,000
$70,000
$61,100
$60,000
$43,500
$50,000
$40,000
$25,200
$30,000
$20,000
$8,700
$10,000
$0
ALL
REALTORS®
2013 Member Profile
Less than 20
hours
20 to 39 hours
40 to 59 hours
60 hours or
more

12. Gross Annual Income by Experience, 2012
$57,300
$60,000
$50,000
$46,000
$43,500
$40,000
$29,600
$30,000
$20,000
$9,700
$10,000
$0
ALL
REALTORS®
2013 Member Profile
2 years or less
3 to 5 years
6 to 15 years
16 years or more

13. Years of Experience in Real Estate
14
13
12
12
11
10
10
10
8
8
7
6
4
2
0
2007 Survey 2008 Survey 2009 Survey 2010 Survey 2011 Survey 2012 Survey 2013 Survey
2013 Member Profile

14. Age Rising
57
57
56
56
55
54
54
53
52
52
52
52
51
51
56
54
52
51
50
49
48
1999 2001 2003 2005 2007 2008 2009 2010 2011 2012 2013
2013 Member Profile

15. Word of Mouth Business
• 42% of member business is from
referrals and repeat clients
• 54% of buyers and 64% of sellers
used an agent that was referred to
them or they had worked with
before
• 66% of buyers and sellers only
contacted 1 agent
• More then 8 in 10 buyers and sellers
would recommend their agent or use
again
2013 Profile of Home Buyers and Sellers

16. Agent Use By Buyer High and Growing
100%
90%
70%
69%
75%
77%
77%
77%
79%
81%
14
9
80%
12
9
12
9
13
9
12
7
10
6
77%
83%
89%
89%
88%
60%
50%
40%
30%
20%
10%
15
0%
2001
2003
2004
2005
2006
2007
Through a real estate agent or broker
Directly from the previous owner
2013 Profile of Home Buyers and Sellers
2008
8
5
6
5
7
4
6
5
7
5
2009
2010
2011
2012
2013
Directly from builder or builder's agent

18. What Buyers Want Most From Their Agent
Help determining
how much home
buyer can
afford, 3%
Help find and
arrange
financing, 3%
Help teach buyer
more about
neighborhood or
area
(restaurants, parks, p
Other, 2%
ublic
transportation), 1%
Help with
paperwork, 7%
Determine what
comparable homes
were selling for, 8%
Help with the price
negotiations, 11%
Help find the right
home to
purchase, 53%
Help buyer
negotiate the terms
of sale, 12%
2013 Profile of Home Buyers and Sellers

19. What Sellers Want Most From Their Agent
• Help seller market home
to potential buyers
• Help sell home within
specific timeframe
• Help price the home
competitively
• Help find a buyer for the
home
2013 Profile of Home Buyers and Sellers