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Realtor income rises 25%, prepare for wave of new licensees

Realtor income and sales rose in 2012, and despite challenges cited, this news alone will have some considering getting back into real estate, or starting a new career, a potential wave which could be a double edged sword.

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2013 Realtors Member Profile shows incomes up

According to the 2013 National Association of Realtors (NAR) Member Profile which outlines member data from 2012, income and sales are up for Realtors for the second year in a row following nine years of decline, news that will likely lead to a new wave of professionals looking to diversify income or quit job hunting to seek their real estate license.

After all, the median gross income of a Realtor rose 25 percent from $34,900 in 2011 to $43,500 in 2012 is admittedly an attractive stat, and many will jump on the bandwagon, or perhaps return to the bandwagon regardless of any other facts in the report.

Paul Bishop, NAR vice president of Research put the earnings in perspective, noting that “the median Realtor® income had fallen by 35 percent during the housing downturn, but with the help of sustained increases in both home sales and prices, it’s recovered to the highest level since 2006.”

Brokers, experienced Realtors earn more

NAR reports that in 2012, brokers typically earned $54,900 while the median for sales agents was $34,000 and Realtors in the business for 16 years or more earned $57,300. NAR members working 60 hours a week or more earned $85,700, and 21 percent of all members earned a six-figure income.

Sales are up as well, with the number of sides in 2011 averaging 10 per NAR member, up to 12 in 2012.

NAR President Gary Thomas, said the real estate business is cyclical. “Realtors® have some way to go to surpass the peak income recorded back in 2002. Interestingly, the peak wasn’t during the bubble years because there were way too many people in the business,” he said. “To help smooth out the peaks and valleys associated with residential sales, many Realtors® are diversified into related services. As a result, changes in Realtor® income don’t exactly parallel changes in home sales and prices.”

More about members

Most (80 percent) of NAR members focus on residential sales and 73 percent have secondary real estate specialties. Fully 18 percent of residential specialists also offer commercial property management, 17 percent relocation services, 15 percent commercial brokerage, 8 percent counseling, and 7 percent land development. For Realtors® who have other primary specialties, 37 percent listed residential brokerage as a secondary business.

NAR reports the typical Realtor has 13 years of experience, is 57 years old, works 40 hours per week, and 57 percent are women. Half have at least a bachelor’s degree, and 90 percent are homeowners. Under two percent are under 30, and only four percent are between 30 and 34. Only six percent of Realtors surveyed were uncertain they would remain in the business for at least two more years.

Over half of all NAR members are licensed as sales agents, 27 percent are brokers, 18 percent broker associates, and four percent appraisers, some holding more than one license. Only four percent have two or more personal assistants, while 14 percent have one.

Only 39 percent of Realtors hold certifications in specialized training, of which, Short Sales and Foreclosure Resource Certification (SFR) is the most popularly held certification (23 percent) followed by e-Pro (17 percent) and Real Estate Professional Assistant (REPA, at seven percent).

Over one in three Realtors have obtained at least one professional designation with the GRI (Graduate Realtor Institute) as the most popular (21 percent), followed by ABR (Accredited Buyer Representative, 15 percent) and CRS (Certified Residential Specialist at 11 percent).

How Realtors now operate

Fully 36 percent of Realtors still do not have their own website, but 94 percent say their firm has a web presence, and 88 percent report to be without a blog, even though 56 percent say they use social media sites. Although it feels like every real estate professional in the country is on every social network and has multiple blogs, that simply isn’t the case, and the industry has a lot of room to grow.

Sixty-eight percent of Realtors are compensated through a split commission arrangement, 18 percent receive all of the commission and another four percent receive a commission plus a share of profits; 10 percent received some other form of compensation.

Most NAR members see no fringe benefits, and while four percent receive health insurance through their firm, a surprising 78 percent are not covered by errors and omissions insurance.

Challenges for Realtors

NAR members continue to report the biggest obstacle to any real estate transaction is obtaining a mortgage (cited by one in three respondents) and tight inventory levels (25 percent report difficulty in finding the right property).

Repeat business accounted for a median 21 percent of activity in 2012 and is higher for those with more experience – for members in the business 16 years or more, repeat business was 40 percent of their activity. Referrals accounted for an additional 21 percent of all business.

Quick facts about Realtors:

  • Realtor median gross income rose from $34,900 in 2011 to $43,500 in 2012
  • Brokers earn $54,900
  • Sales agents earn $34,00
  • Realtors with 16+ years of experience earn $57,300
  • Realtors working 60+ hours per week earn $87,500
  • Realtors average 12 sales per year, up from 10 in 2011
  • Typical Realtor has 13 years of experience
  • Typical Realtor is 57 years old
  • 57% of Realtors are women
  • Half of all Realtors have at least a bachelor’s degree
  • 90% of Realtors own a home
  • Less than 6% of Realtors are under 34
  • Half of all Realtors are sales agents
  • 27% of Realtors are brokers
  • 18% of Realtors are broker associates
  • 36% of Realtors don’t have their own website
  • 88% of Realtors don’t have a blog
  • 44% of Realtors don’t use social media
  • 78% of Realtors aren’t covered by errors and omissions insurance
  • 96% of Realtors do not receive health insurance through their firm
  • One in three Realtors say obtaining a mortgage remains the top obstacle to a transaction
  • 25% of Realtors say the top challenge is finding the right property
  • 21% of Realtors’ sales are from repeat business
  • 21% of Realtors’ sales are from referrals

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Business News

How remote work has changed over the last decade

(BUSINESS NEWS) let’s reflect on how remote working and telecommuting has changed in recent years and look to how it will continue to change in the 2020s.

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As someone who often works remote, it’s interesting to see how much that means for work has evolved. The increase in commonality has been steady, and shows no signs of slowing down. Go Remotely has developed an insightful graphic showing the changes in trends regarding remote work over the years.

“For decades, the established economy dictated that you should pick one job, visit the same office for the next 40 years, and then retire,” reads the graphic’s intro. “However, recent remote working stats suggest the working world might be in for some revolutionary changes.”

From there, the graphic is broken down into five facets: Flexible Workspace Policy, Entrepreneurial Minds, Telecommuting is a Growing Trend, The Role of Companies in the Remote Working World, and The Future of Telecommuting.

With Flexible Workspace Policy, its suggested that telecommuting could be a solution for costly issues including lack of productivity caused by employee distractions, health problems, etc. It is said that employers lose $1.8 trillion annually due to these issues.

The end of 2018 found 35 percent of the US workforce working remotely. This is only expected to climb. Ten percent of employees don’t know if their company offers flexible work policies (this is something to check into!)

Bills and laws for virtual jobs passed by governments reflect the need for accessibility, economic stability, and emigration concerns. Companies with flexible work policies have reported seeing increases in productivity and profits. (Funny those both start with pro, no?)

With Entrepreneurial Minds, a few interesting things found include: remote workers are less likely to take off if they are sick, the majority reports better productivity when working alone, the majority reported lower stress levels. However, there is a problem with not being able to unplug after work which is an issue for some.

Telecommuting is a Growing Trend finds that there has been a seven percent increase between 2012 and 2016, with the majority (80-100 percent) reporting they work remotely. Industries seen embracing remote work include: transportation, computer/information systems/mathematical, arts/design/entertainment/sports/media, finance/insurance/real estate, law or public policy, community/social services, science/engineering/architecture, manufacturing or construction, healthcare, education/training/library, and retail.

The Role of Companies in the Remote Working World finds that the pros to hiring remote workers includes: finding talent outside of your geographic area, improves retention on work/life balance, increases productivity by decreasing commute time, and saves money by requiring less office space. The cons include lack of timeliness when it comes to receiving information from employers.

Finally, the Future of Telecommuting suggests that in 2020 the US mobile worker population will surpass 105 million (and will account for 72 percent of the US workforce). Hiring managers predict that telecommuting will increase tremendously, most skills will become even more niche over the next decade, and many think that 38 percent of their full-time workers will be working remotely in the next decade.

How do you feel about the increase in remote working and telecommuting?

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ClickUp team productivity app is gorgeous and wildly efficient

(BUSINESS NEWS) Seeking to improve your productivity and speed up your team, ClickUp is an inexpensive option for those obsessed with efficiency.

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Back again to obsess over productivity apps – ClickUp, is a project management tool seeking to knock the frustration out of PM. It’s getting some good reviews, so I gave it a try for a week by setting up my current job search as a project and getting a feel for the app. And as you’ve read in my other reviews, we will address features and design.

On the feature front, ClickUp offers a pretty standard set up of tools for a productivity app. What stands out first and foremost are the status options. In general, most productivity statuses are simple: not started, started, in progress, done, etc.

But ClickUp lets you set up custom statuses that match your workflow.

For example, if you’re doing instructional design projects, you may assign projects based on where they are flowing in an ADDIE model, or if you are a Realtor, you may have things cataloged by sold, in negotiation, etc.

Customization is king and custom status is the closest you get to building your own app. And if you like it simple, you don’t have to customize it. The assigned comments feature lets you follow up on specific comments that originate action items – which is useful in team collaborations.

You can also assign changes to multiple tasks at once, including changing statuses (I would bulk assign completion tasks when I finished applications that I did in batches). There a lot of features here, but the best feature is how the app allows you to toggle on and off features that you will or won’t use – once again, customization is front and center for this platform.

In terms of design and intuive use, ClickUp nailed it.

It’s super easy to use, and the concept of space is pretty standard in design thinking. If your organization uses Agile methodology, this app is ready for you.

In terms of view, you can declutter the features, but the three viewing modes (list, box, and board) can help you filter the information and make decisions quickly depending on what role you have on a board or project. There is also a “Me” board that removes all the clutter and focuses on your tasks – a great way to do focused productivity bursts. ClickUp describes itself as beautifully intuitive, and I can’t disagree – both the web app and mobile app are insanely easy to use.

No complaints here.

And the horizon looks good for ClickUp – with new features like image markup, Gannt charts (!!!!!! #nerdalert), and threaded comments for starts.

This application is great, and it’s got a lot of growth coming up to an already rich feature base. It’s free with 100MB of storage, but the $5 fee for team member per month that includes team onboarding and set up (say you’re switching from another platform) and Dropbox/Google Docs integration? That’s a bargain, Charlie.

ClickUp is on the way up and it’s got it all – features, a beautifully accessible UI, relentless customization, and lot of new and upcoming features. If you’re into the productivity platform and you’re looking for a new solution for your team, go check it out.

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Business News

Should you alter your business travel due to the Coronavirus?

(BUSINESS NEWS) Got a business trip coming up? Worried about the coronavirus spoiling those plans? Stay up to date and safe with this cool site!

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The Center for Systems Science and Engineering (CSSE) at John Hopkins University has created a website that tracks one of the biggest trends of 2020: the coronavirus. Also known as 2019-nCoV, this disease has already spread to over 40,000 confirmed cases worldwide, with over 900 deaths (as of when this article was published, anyway.)

Not to mention, the United States Center for Disease Control and Prevention (CDC) notes that we still don’t know exactly how the virus spreads from person-to-person. In fact, there’s quite a bit we don’t know about this disease and although some people are reported as recovered, it’s only a small fraction compared to how many are sick.

So, what’s so great about this tracker? Well, first of all, it updates in real time, making it easy to keep track of everything we know about confirmed cases of the coronavirus. It’s chock full of statistics and visuals, making the information easy to digest. Plus, with a map front and center, it lets you know exactly where there have been reported outbreaks – and how many people have been diagnosed.

Because the site sticks to cold hard facts like statistics and maps, it also means you can avoid the racism and general panic that’s accompanied news of this outbreak.

This is a great tool for staying informed, but it’s also extremely helpful if you’re going to be traveling for work. As the virus continues to progress, you’ll be able to see just how many cases of coronavirus there are in the areas you’re planning to visit, which will allow you to plan accordingly. Even if you don’t feel the effects, you can still risk passing it to other people.

(In fact, the CDC recommends those traveling from certain areas in China practice “social distancing” when they return to the US, avoiding public spaces like grocery stores, malls and movie theaters.)

Of course, if you have something planned several months from now, don’t cancel your conference plans just yet. A lot can happen in that amount of time, so avoid the urge to check the website every couple hours. It’s supposed to be a tool for staying informed, not staying stressed out.

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