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REALTOR®: Realtors Raising Level of Professionalism, according to NAR Survey

Wednesday, May 21, 2008

According to the 2008 National Association of REALTORS® Member Profile, Realtors are raising their level of professionalism through training and experience to better serve consumers. The number of members holding at least one professional designation increased by nearly 21,000 over the past year, reaching a total of more than 428,000 – more than one-third of NAR's entire membership.

Professional courses and training are important components of REALTOR® membership. Many REALTORS® hold at least one professional designation, with the most popular being GRI (Graduate, REALTOR® Institute), held by 19 percent of respondents; ABR® (Accredited Buyer Representative®), 14 percent; and CRS® (Certified Residential Specialist®), 10 percent. Smaller percentages hold one of 14 other designations. The median expense for professional development for the typical member was $710 in 2007.

Thirty percent of all Realtor business is from referrals or repeat business from previous clients, ranging from 2 percent for newcomers to 47 percent for respondents with at least 16 years of experience. One-third of NAR members report they had clients who are foreign nationals, and 15 percent are fluent in other languages.

"Our members build their business through repeat customers and referrals, and the longer they're in the business the higher their income, education and experience, meaning they are better prepared to serve consumers and handle market changes," said Paul Bishop, NAR's managing director of real estate research.

Technology is increasingly important to Realtors' success. Ninety-two percent use e-mail daily or nearly every day, 88 percent use computers and 82 percent cell phones. Other technology used daily or almost every day include smartphones with wireless e-mail and Internet capabilities, 34 percent; digital cameras, 27 percent; GPS devices, 19 percent; instant messaging, 18 percent; and PDA without phone capability; 15 percent.
Six out of 10 members have a personal Web site, which they have maintained for a median of four years, while 89 percent report their firm has a Web site; 73 percent have a home office.

Overall membership slipped 1.5 percent from a record in 2006. The modest decline in membership last year is attributed almost exclusively to newcomers who weren't able to sufficiently develop their business, according to the survey. Those in the business for two years or less dropped to 18 percent of overall membership from 23 percent in 2006.
 
"It's challenging to start in a business where you're paid primarily when a transaction is completed, but this can be a good time to learn the ropes for newcomers with patience who also have strong people, technical and entrepreneurial skills," NAR President Richard Gaylord said.

The survey shows the typical member is 52 years old and works 40 hours per week; 60 percent are women. Eighty-seven percent are Caucasian, 5 percent Hispanic, 4 percent African American, 3 percent Asian, 1 percent Native American and 1 percent other; respondents could choose more than one category.

Realtors are well-educated, with 44 percent holding at least a bachelor's degree. They are politically active – 95 percent are registered to vote; 91 percent voted in the last national election and 81 percent voted in the last local election.

The median Realtor income was $42,600 in 2007, down from $47,700 in 2006. In recent years, the typical member's income had been diluted by a large growth in membership, and income trended down since peaking in 2002. Realtors in the business for two years or less earned a median of $10,500, while those with three to five years of experience earned $34,600. For six to 15 years, the median was $52,000, while members in the business for 16 years or more earned $69,500.

Most members are optimistic about the future, with 77 percent saying they are confident they will remain active in the business during the next two years, while only 6 percent were not certain.

The survey results are representative of more than 1.2 million Realtors – about 60 percent of the nearly 2 million active real estate licensees across the country. The 2008 National Association of REALTORS® Member Profile was based on a survey of 161,400 members which generated 9,997 usable responses, representing an adjusted response rate of 7.7 percent. Income and transaction data are for 2007, while other data are representative of member characteristics in early 2008.

All 4,000 members of the Silicon Valley Association of REALTORS®, the local trade association representing those engaged in the real estate business on the Peninsula and in the South Bay, are also members of the National Association of REALTORS®.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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