IS THE AVERAGE REAL ESTATE LICENSEE ABLE TO MAKE A LIVING INCOME TODAY??

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372
http://actvra.in/dxG

IS THE AVERAGE REAL ESTATE LICENSEE ABLE TO MAKE A LIVING INCOME TODAY??

A review of the NAR statistics on AGENT and BROKER earnings for 2010, it would appear that agents and Lennbrokers need other forms of income to maintain a standard of living to which are accustomed. 

For agents who entered the real estate business between the years 2004 and 2007, they have had a rude awakening.  While our business has always had it's ups and downs in terms of agent income, the loss of about 20% of the NAR membership is not matched by a 20% increase in income for present members.   

  • The NAR reports that the typical NAR member had 8 transaction sides in 2010-this is up from 7 sides in 2009.

For the average market today with a sales price of $200,000, this number represents an annual income of about $24,000.  

  • The NAR reports that Brokers and broker associates typically had 10 transactions, while sales agents typically had 7.

That would represent an annual income of about $30,000 for brokers and broker associates.  Not sufficient if the broker is also a broker/owner.  Of course, this number may represent "net income to the broker".  The question is, "what is the overhead"? 

  • The NAR reports that 51 percent of members had transaction involving a property in foreclosure and 44 percent of members had a transaction involving a short sale.

THAT IS VERY TELLING since most foreclosures and short sales represent a less than average SOLD price and the commissions for these sales is generally lower than for home owner sales.

  • The NAR reports that - While the median transaction sides increased, the brokerage sales volume fell to $1.1 million in 2010 from $1.2 million in 2009. Members had more transactions (typically), but the total volume of what those sales were worth was lower in 2010 than in 2009.

If that $1.1 million represents "sales volume", it may also represent "gross income", in which case, the income is not sufficient to maintain a real estate practice in most real estate markets across the U.S.

  • The NAR reports that - A transaction side can either be the selling or buying side of a real estate transaction. If the agent worked as both the buyer and seller's agent that would count as two transaction sides.

Which serves to encourage dual agency to the detriment of many home buyers.   Although the benefits of dual agency to an individual agent is not generally significant because of the limitations under most state's license laws, to brokers, it usually means twice the income.   

  • For more information on the 2011 NAR Member Profile, click here.

Enjoy.

Posted by


_______________________________________________________________________________________________________


Want to learn more about Loudoun County, VA? Join Loudoun County, VA on Facebook!

close

Re-Bloggged 8 times:

Re-Blogged By Re-Blogged At
  1. Nestor & Katerina Gasset 07/06/2011 01:19 PM
  2. Ernie Steele 07/07/2011 10:31 AM
  3. Judith Abbott 07/07/2011 10:43 AM
  4. Keith D. Myers 07/07/2011 10:55 AM
  5. Loreena Yeo 07/07/2011 10:58 AM
  6. Anthony Ebright - NMLSR ID #247647 Purchase and Refinance Mortgages 07/07/2011 11:22 AM
  7. Jill Watts 07/07/2011 01:10 PM
  8. Winston Heverly 01/09/2012 11:46 PM
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
AR Twitter Users
Real Estate Trends
Silent Majority
Tags:
agent income

Comments 228 New Comment

Ambassador
2,277,109
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Karen.  HA!  I surely did, didn't I?? 

Well, keep on keeping on and you'll be fine.

July 10, 2011 03:35 PM
Rainer
8,608
Vince Berruti
Coldwell Banker Real Estate Services

Bottom line--there just aren't as many buyers out there and sellers are still overpricing their homes no matter how much we try to educate them.  Buyers are still being scared by the negative media into thinking twice about buying a house.  We as agents will be seeing tons of short sales and foreclosures out there for a long time and this makes it even tougher to make a buck.  Whoops...I just remembered..I have to write a check for July's multilist dues...there goes that anticipation of filling my gas tank.

July 11, 2011 08:52 AM
Ambassador
2,277,109
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Vince.  Isn't it the truth.  Cost of living for the important things such as gasoline and coffee (is coffee a produce?) seems to go up in direct relationship to the drop in home values.

 

July 11, 2011 04:13 PM
Rainmaker
134,092
Mike Reyman
Delaware County Real Estate
Berkshire Hathaway HomeServices Fox & Roach Realtors

Lenn,  Great mathematics and an unfortunate reality for many of us.  However, I see some agents just continue to follow the basic concepts of marketing while incorporating some for the new technology strategies and it seems to pay off.  I'm new so I am just building that foundation and hope that the future brings better economics for all!  I think the saying that "there is no such thing as luck.  Luck is jusr opportunity meeting preparedness"  is a good motto for me today!  Thanks for the great post.

July 11, 2011 09:12 PM
Rainmaker
152,769
Elisa Uribe- Realtor
Oakland CA Homes for Sale
Wells and Bennett Realtors

I have to agree with Alex on the 80/so rule, good post!

September 01, 2011 12:34 AM
Ambassador
2,277,109

Lenn Harley

Real Estate Broker - Virginia & Maryland
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clip to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: