http://realtytimes.com/printrtpages/20050830_membersurvey.htm "August 30, 2005
NAR Member Survey Shows Commissions Haven't Gone Down
In 2004, there were more than a 1.1 million members of the National Association of Realtors, over 25 percent more than four years previously. Housing had reached its third record in as many years. Did the housing flood lift all Realtors' boats?
Not exactly. New agents didn't fare so well as experienced ones did.
According to the latest Member Profile (2005), new members of two years or less made less than minimum wage, a median of about $12,850, while veterans of six to 10 years earned a median $58,700 in 2004, up 18.6 percent from 2002.
Realtors with at least 26 years of experience earned $92,600, up 37.2 percent from two years earlier.
For having all the responsibilities and liabilities of a business, brokers earned a median of $52,800, while sales associates earned a median of $37,600.
"People who have been selling real estate for a while are seeing healthy income growth, while newcomers need time to establish themselves," explained David Lereah, NAR's chief economist. "Real estate professionals build their business over time through referrals and repeat business, which is how most people learn about the practitioner they choose. Consumer surveys have consistently shown that homebuyers and sellers rate reputation and knowledge of the market as the most important criteria in choosing a real estate salesperson or broker, and these results underscore those findings."
Rapid member growth has distorted the median income figures, says the NAR. In other words, the median income has gone down, not up, blowing a hole in arguments that real estate agents are making too much money because of the housing boom.
The median gross income of all Realtors declined 5.6 percent between 2002 and 2004 to $49,300, while NAR membership increased 26.6 percent to 1.1 million. In addition, among salespersons, the median number of transactions sides handled went from 13 in 2002 to 12 in 2004. With business expenses of $8,200, the net for the typical Realtor was $41,100.
In 2004, the typical sales member sold two of their own listings and six of someone else's, while other Realtors sold five of their listings. The median sales or leasing volume was $2.2 million in 2004, up from $1.8 million in 2002.
If a typical Realtor sold $2.2 million in volume, and did eight transactions, she or he earned commissions of about six percent in order to gross $49,300 annually.
"In other words, the large number of newcomers -- about 165,000 people in the last year -- hasn't had a significant impact on overall business activity for the typical member," Al Mansell, president of the NAR, says.
The typical member worked 46 hours a week, and is 52 years old, and has been in business for nine years.
Approximately 15 percent of Realtors have been in business for one year or less.
Written by Blanche Evans"
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