43% of Real Estate Agents Do Less Than 10 Transactions a Year and More Interesting Agent Statistics
Everyone is still talking about Redfin on 60 minutes, with many agents claiming how much more professional and experience a the "traditional agent" is.... really?
The NAR just released the 2007 REALTOR Technology Survey which has some interesting points but the most telling is probably this from page 7.
- 47% of agents did less than 10 transactions "sides" last year.
- 28% did less than 20 transactions last year.
So lets see, 75% of the NAR members who responded to the survey did less than 1.6 transactions a month with a majority of these doing less than one transaction per month.
This clearly represents the majority of real estate agents, the same ones who claim that they are significantly more professional and experienced than the redfin agents. I fairly certain that the redfin agent do more than 1.6 transactions a month. More transactions... equals more experience at handling problems.
Another interesting statistic was from page 20. If you read agent blogs you will hear that all agents say they deliver great service which gets them referral business but yet the report indicates the following:
- 43% of agents reported that less than 25% of their business came from referrals.
Again, if traditional agents do such a great job and deliver the exceptional service that most seem to claim, why are they only getting 25% referral business?
How about this. According to the 2006 the NAR reported that 71% of buyers searched for homes on the internet but look at these statistics from the report:
- 78% agents advertised on REALTOR.com
- 75% advertised on the local MLS - isn't that why you use / pay the agent?
Another common argument from agents is the amount of documents the agents need to review to close a transaction but on page: 40 of the report.
- 75% reported that there is less than 20 documents needed.
Thats not a whole lot of documents or work. In California, the purchase contract alone is 10 pages. Not a whole lot of time needed to sign and review 20 documents.
This is from page 45 of the report.
- Only 43% of agents enter and manage transaction information.
What kind of work are the agents actually doing?
With real statistics like this, consumers will really begin to question the value proposition of their agents and the cost of their services. This is the reason we created our real estate agent hourly rate calculator.
We also feel that due to information like this the adoption rate from the general public to sell FSBO or use a flat-fee MLS, or discount real estate model like redfin, Coldwell Banker blue edge or Century 21 clickit will only continue to raise from the 29% market share currently reported by the 2006 NAR Buyers & Sellers Report.
Download the 2007 NAR REALTORS & Technology Report.
The NAR just released the 2007 REALTOR Technology Survey which has some interesting points but the most telling is probably this from page 7.
- 47% of agents did less than 10 transactions "sides" last year.
- 28% did less than 20 transactions last year.
So lets see, 75% of the NAR members who responded to the survey did less than 1.6 transactions a month with a majority of these doing less than one transaction per month.
This clearly represents the majority of real estate agents, the same ones who claim that they are significantly more professional and experienced than the redfin agents. I fairly certain that the redfin agent do more than 1.6 transactions a month. More transactions... equals more experience at handling problems.
Another interesting statistic was from page 20. If you read agent blogs you will hear that all agents say they deliver great service which gets them referral business but yet the report indicates the following:
- 43% of agents reported that less than 25% of their business came from referrals.
Again, if traditional agents do such a great job and deliver the exceptional service that most seem to claim, why are they only getting 25% referral business?
How about this. According to the 2006 the NAR reported that 71% of buyers searched for homes on the internet but look at these statistics from the report:
- 78% agents advertised on REALTOR.com
- 75% advertised on the local MLS - isn't that why you use / pay the agent?
Another common argument from agents is the amount of documents the agents need to review to close a transaction but on page: 40 of the report.
- 75% reported that there is less than 20 documents needed.
Thats not a whole lot of documents or work. In California, the purchase contract alone is 10 pages. Not a whole lot of time needed to sign and review 20 documents.
This is from page 45 of the report.
- Only 43% of agents enter and manage transaction information.
What kind of work are the agents actually doing?
With real statistics like this, consumers will really begin to question the value proposition of their agents and the cost of their services. This is the reason we created our real estate agent hourly rate calculator.
We also feel that due to information like this the adoption rate from the general public to sell FSBO or use a flat-fee MLS, or discount real estate model like redfin, Coldwell Banker blue edge or Century 21 clickit will only continue to raise from the 29% market share currently reported by the 2006 NAR Buyers & Sellers Report.
Download the 2007 NAR REALTORS & Technology Report.
Labels: 60 minutes, discount, fsbo, NAR, real estate commissions, redfin
posted by Jessie B at 9:23 PM
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