Every year in October, I run all my real estate numbers and business planning for the New Year. I also run weekly, monthly, and quarterly figures to keep on track, and this makes the end of the year numbers very easy to manage.
The smart business minded agents have already completed this by the 3rd QTR. As you complete your business plan for the new year, one important factor is to "know your competition." But you also need to know the source of your business, your ROI for that business, the overall market, etc...
I have completed my own research in my market place. These are some of the findings as they pertain to my market. (Part 3 of 3)
Here are the parameters:
Market - Onondaga, Madison, Cayuga, and Oswego County New York
Type - Residential, Single family homes only
Number of Closed Transactions since January 1, 2013 to October 31, 2013 -included in this study - 4,799 homes
Number of licensed real estate agents included in this study - 1,309
Here are the findings:
Out of the 1,309 practicing agents, 283 agents or 21% of all agents only sold 1 residential home this year!
913 agents or 69% of all agents sold 8 or fewer homes this year!
1,051 agents or 80% of all agents sold 12 or fewer homes this year!
1,193 agents or 91% of all agents sold 20 or fewer homes this year!
Less than 1% or .009% of all agents in my market sold more than 50 homes this year! (Only about 12 agents or teams total)
75 to 80% of all real estate agents in my market made less than $30,000 this year, and 95% of this group made less than $15,000 this year selling residential real estate in these areas!
The public perception is that all real estate agents earn a lot of money... Not true in my market!
I love this quote I came across: "Real estate, the highest paying hard work, and the lowest paying easy work"... How true!
Here is another interesting Stat: Less than 5% of all agents, in all niches, in my marketplace earn more than $100,000 per year after taxes, business expenses, commission splits, relocation splits, etc...
Bigger is not always better. Many agents are attempting to run a "leaner" business. There is a saying: "Keep it small and keep it all"
And if you want to increase your income as a real estate agent in 2014, you will need to do these 3 things:
2) Increase your average sales price
3) Increase your commission rate
It is that simple...
"Based on Information from the Association/Board of Realtors (alternatively, from CCAR MLS, OCBR MLS, or the CNYIS MLS) for the 4th QTR of 2013."