Broker/Owners Identify Challenges, Promising Trends
Data from the 2014 National Association of Realtors Profile of Real Estate Firms.
(Boonton, NJ, November 20, 2014) — The most recent National Association of Realtors industry profile provides a unique view of todays real estate firms and insights into concerns and promising trends.
The industry remains a fiercely independent business dominated by mom-and-pop firms. Eighty-one percent of all brokerages have one office and two full-time real estate licensees. Only seven percent of companies have four or more offices with 92 full-time real estate licensees.
The typical residential real estate firms brokerage sales volume was $4.7 million in 2013. Firms reported that 35 percent of their sales volume typically comes from past client referrals, 30 percent from repeat business from past clients, 10 percent from their website, and five percent through social media.
The concern most cited by brokers: Millennials inability to buy a home because of stagnant wage growth, a slow job market, and high debt-to-income ratios.
Other oft-cited challenges: Profitability, keeping up with technology, maintaining sufficient inventory, and local or regional economic conditions.
Such worries aside, 54 percent of firms reported they are recruiting sales agents, with 87 percent of those firms reporting business growth as their primary reason for recruiting.
More from the report appears in the November issue of Real Estate Broker's Insider along with advice on keeping agents safe, working with Zillow, Trulia and Realtor.com, and a new business model that will sound familiar to veteran brokers.
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Real Estate Broker's Insider provides residential real estate agency broker/owners with actionable news and information on managing their businesses for greater profitability.