What Role Will San Diego Realtors Play In 2014?
Who is the average San Diego Realtor in 2014? How many homes do they really sell, and how money much do they really make?
The National Association of Realtors (NAR) has announced that Realtors are making more money and are doing more deals. However, real estate agents are some of the most misunderstood professionals in the entire industry. The media doesn’t really make the industry very transparent either. So what does the data reveal?
A new 2014 Member Profile published by the National Association of Realtors details who its members currently are, how they do business, and what they make doing it. Surprisingly, out of approximately 2 million real estate agents in the U.S., only around half are actually Realtors, and members of the NAR.
The following can be deduced about Realtors in San Diego County:
Put simply; the average Realtor is a 56 year old female who has attended college. 14% don’t own a primary residence. Only 57% of Realtors are licensed as sales people, though 78% specialize in residential real estate sales. The average Realtor has now been in the industry for 12 years. 82% say they are certain they will stay in the business for another 2 years.
How do today’s San Diego, California real estate agents work?
The data states that 80% are full timers, which bucks the long term assumption most where only part time. However, there is a substantial difference in Realtor’s income, and their household income, suggesting they are not the main bread winners in the home. Still, the average Realtor works 40 hours a week. 69% report they have had a website for at least 5 years. 61% say they use social media, but a shocking 88% do not have a real estate blog. 16% of NAR members have at least one personal assistant. Median business expenses for these real estate professionals rose to $6,560. They spent the most on their vehicles. The average amount spent to maintain real estate websites was just $200 last year.
Interesting facts most might not expect:
- Realtors report that finding the right property has become harder than mortgage financing.
- Less than half dealt with a foreclosure or short sale
So how much business are Southern California real estate agents really doing, and are their incomes as extravagant as their cars suggest? According to the NAR:
- In 2013 the average Realtor closed 12 transactions, the same as in 2012
- 22% of residential agents closed at least one commercial real estate deal in the last 12 months
- Average dollar volume for last year was $1.8M
- The typical property manager had 30 units under management
- 21% of deals came from referrals and repeat business
- The average Realtor’s gross income for 2013 was $47,700
- Those in business for less than two years had a median gross income of just $8,500
- Those with 16 year experience or more average $70,200 in gross earnings
California Realtors may not be as grossly overpaid as most assume. They also aren’t as geeky as many industry platforms make out. Fortunately, this suggests that there is an incredible amount of room for highly ambitious, highly talented individuals that are hungry to make money in real estate. However, considering the average house flip has been grossing $50k to over $60k, the better money may be in real estate investing, not sales as a Realtor.