Anthony's Santa Rosa Home Mortgage Blog

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

Thu, 07 Jul 2011 11:22:39 -0400

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

Here's an interesting post by Len Harley that I wanted to pass on to my local agents outside of Activerain. Based on the latest NAR statistics, is real estate still a viable business for the average agent? I would think not. However, I would be interested to see what these numbers would look like in Sonoma County.

Via Lenn Harley, Real Estate Broker, Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate):

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 brokers 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.

_______________________________________________________________________________________________________

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

____________________________________________________________________________________________________

Anthony Ebright NMLSR ID #247647

Sales Manager / Home Loan Consultant / FHA and VA Specialist

707-548-0752

____________________________________________________________________________________________________

You can reach Anthony Ebright at 707-548-0752 if you need help refinancing or purchasing your home in Sonoma County, Santa Rosa, Healdsburg, Petaluma, Rohnert Park, Sebastopol, Bodega Bay, Windsor, Cloverdale, Guerneville, Sonoma.

Anthony's Santa Rosa Home Mortgage Blog

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

How I define my ActiveRain success

FHA Home Loans - 5% Down On FHA loans? Really?- Santa Rosa, CA

ActiveRainPhotoBloggerContest - Hole in the Head

The Cotati Crawl and Cinco De Mayo In Cotati, CA

iPhone Applications: 32 Top Real Estate Related iPhone Apps for REALTORS®

Social Media Branding for REALTORS® - Online Real Estate Marketing

2011 Business Strategies for REALTORS® - Online Real Estate Marketing

Social Media Marketing for REALTORS® - Online Real Estate Marketing

How To Create Your Customized QR Code Images

Will the real Brad Andersohn please stand up!

Using Google Images in Your Blog

Listing Syndication: a Good Idea?

Improve Video and Images for Higher Ranking in Search Engines

Top 50 Google Tools for Business

Apple and Mac for Real Estate? MLS? Max Pigman from Realtor.com explains

FHA Home Loans - Santa Rosa, CA - FHA Mortgage Insurance Premiums are going up!

The ActiveRain Manual - NEW & IMPROVED

Heads Up! USDA Rural Development Loans are going away!

Fed raises rate, banks move from bottle feeding to sippy cup and what it means for you

California and Arizona Home loans will be up to 95% LTV Soon!

Santa Rosa's Historic Railroad Square - Sonoma County Wine Country Lifestyle

Haiti Earthquake Relief - The Clinton Bush Haiti Fund

What are people saying about you online?

Internet Lead Conversion: It's Just Like Dancing!