High-Income Agents are High-Tech Users — by Inman
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InmanNext (a Real-Estate Agent-Focused Website of Inman News), conducted an online survey with 1,368 responses from December, 18, 2011 to January 2, 2012, asking an array of questions relating to income, marketing, use of technology, broker loyalty, social media, demographics, expenses and other related topics. Their findings were extremely insightful.
In the National Association of Realtors®2011 Member Profile, 17 percent of the respondents reported gross incomes of less than $25,000, while the InmanNext results found 21.5 percent reporting less than $30,000 of income. NAR’s study found 17 percent of Realtors reporting income of $100,000 or greater while the InmanNext survey had a level of 26.3 percent at that level income indicating that the InmanNext study attracted more higher income agents. Click here to view the survey instrument and the more than 80 questions.
Findings (and these are just a few of the many points available in the report)
|$30,000 or Less||294||21.5%|
|$30,000 to $50,000||167||12.2%|
|$50,000 to $100,000||292||21.3%|
|$100,000 to $200,000||252||18.4%|
|$200,000 and more||108||7.9%|
NAR 2010 Median Income* $34,100
|* National Association of Realtors®|
InmanNext Classified Middle-Income Agents as those earning $30,000 to $50,000 annually. Those making $100,000 or more were tagged as High-Income Agents.
Some of the finding include:
- Almost one-half of the Middle-Income Agents closed 10 or less transaction, while almost 75 percent closed 15 or fewer in the prior year.
- Two-thirds of the High-Income Agents closed 20 or more transactions, with almost 20 percent doing more than 50.
- 50 percent of the Middle-Income Agents average transaction size was less than $250,000 while approximately one out-of-three High-Income Agents’ average transaction size was $450,000 or greater. Just 14 percent of the Middle-Income Agents reported the same transaction size.
- Specialization in luxury homes, condos and townhouses was more prevalent among High-Income Agents, and they were also less likely to work in REOS or with first-time homebuyers.
- Middle-Income Agents typical split for 31 percent of the respondents was 70/30 (70 percent to the agent), while almost 16 percent reported a split of 80/20 (80 percent to the agent). 12.4 percent of this group had 100 percent commissions.
- 26.5 percent of High-Income Agents have a 100 percent commission structure, and more than a third making more than $199,999 had a 100 percent split. High-Income Agents reported paying their broker a monthly fee for desk costs, technology and related tools.
- Slightly more than half of all High-Income Agents spend $2,500 or more out of pocket for technology annually. Approximately one-in-four of the High-Income Agents spend $5,000 or more. 83.6 percent of Middle Income agents annual out-of-pocket technology costs tallied less than $2,500.
- While both sets of agents had a propensity to utilize smart phones, the High-Income Agents had a greater usage of the iPhone and BlackBerry.
- While half of the High-Income Agents updated their Website or Blog at least a few times per week, less than 40 percent of Middle-Income Agents updated blog or Website once a month.
This excellent InmanNext Study has much more data and finding, and I highly recommend a few minutes reading for residential real estate agents and brokers.
Kudos to Inman for the revealing report.