Finding the Best Real Estate Agent

Overview of the Real Estate Market

When it comes to the real estate market, it’s important to have access to reliable statistics to make informed decisions. Whether you’re preparing for a sales meeting or creating a customer brochure, having quick facts at your fingertips can be invaluable. Here are some of the most requested statistics that provide an overview of the real estate market:

REALTOR® Demographics

• Sixty-four percent of REALTORS® were licensed sales agents, 20 percent held broker licenses, and 18 percent held broker associate licenses.
• The typical REALTOR® is a 60-year-old white female who attended college and is a homeowner.
• 62% of all REALTORS® are female, and the median age of all REALTORS® is 60.
• The median real estate experience of all REALTORS® is 11 years.
• The median tenure at their present firm for all REALTORS® is 6 years.
• Most REALTORS® worked 30 hours per week in 2022.
• The median gross income of REALTORS® in 2022 was $56,400, an increase from $54,300 in 2021.
• The median number of transaction sides in 2022 was as follows:
• Residential sides for all REALTORS®: 12
• Residential sides for residential specialist broker/broker associates only: 14
• Residential sides for residential specialists only: 10
• Residential sides for commercial specialists only: 4
• Commercial sides for commercial specialists only: 5
• In terms of formal education, REALTORS® have varied backgrounds:
• Some college: 30%
• Bachelor’s degree: 31%
• Graduate degree and above: 12%
• Associate degree: 12%
• Some graduate school: 6%
• High-school graduate: 8%
• The majority of REALTORS® are independent contractors (89%), while a small percentage are employees (4%), and the rest fall into other categories (7%).

(Source: 2023 National Association of REALTORS® Member Profile)

Statistics on REALTORS® and Technology

In today’s digital age, technology plays a crucial role in the real estate industry. Here are some statistics that highlight how REALTORS® utilize technology in their work:

• REALTORS® prefer to communicate with their clients through various channels:
• Text messaging: 94%
• Telephone: 92%
• Email: 90%
• In terms of online presence, a significant percentage of REALTORS® have websites:
• Broker/broker associates: 68%
• Sales agents: 66%
• The majority of REALTORS® have their own listings on their websites (86%) and provide information about buying and selling (70%). Additionally, 66% have a link to their firm’s website.
• Social media is also a popular tool among REALTORS®:
• Facebook: 67%
• LinkedIn: 49%
• When it comes to using drones in their real estate business, the statistics are as follows:
• Hire a professional: 43%
• Someone in their office uses drones: 11%
• Personally use drones: 7%
• Do not use drones: 23%

(Source: 2023 Member Profile)

Home Buyer Statistics

Buying a home is a significant decision, and understanding the demographics and preferences of home buyers can be beneficial for real estate professionals. Here are some statistics related to home buyers:

First-Time vs. Repeat Buyers

• First-time buyers: 32%
• Median age of first-time buyers: 35
• Median age of repeat buyers: 58
• Median household income of first-time buyers: $95,900
• Median household income of repeat buyers: $111,700

Home Characteristics

• The typical home purchased was 1,860 square feet in size, built in 1985, and had three bedrooms and two bathrooms.
• Among those who financed their home purchase, buyers typically financed 85% of the home price.
• 89% of buyers purchased their home through a real estate agent or broker.

Buyer Satisfaction

• 90% of buyers would use their agent again or recommend their agent to others.

Home Search Methods

• Internet: 52%
• Real estate agent: 28%
• Yard sign/open house sign: 4%
• Friend, relative, or neighbor: 8%
• Home builder or their agent: 6%
• Directly from sellers/Knew the sellers: 3%
• Print newspaper advertisement: less than 1%

(Source: 2023 Profile of Home Buyers and Sellers, National Association of REALTORS®)

Home Seller Statistics

When it comes to selling a home, understanding the trends and preferences of sellers can help real estate professionals provide better service to their clients. Here are some statistics related to home sellers:

• The typical home seller in 2023 was 60 years of age, had a median household income of $111,100, and lived in their home for 10 years.
• 89% of sellers were assisted by a real estate agent when selling their home.
• Recent sellers typically sold their homes for 100% of the listing price, and 32% reported reducing the asking price at least once.
• The typical home sold was on the market for 2 weeks.
• 39% of sellers who used a real estate agent found their agents through a referral by friends or family, and 26% used the agent they previously worked with to buy or sell a home.
• 73% of sellers would definitely use the same agent again.

(Source: 2023 Profile of Home Buyers and Sellers, National Association of REALTORS®)

For Sale By Owner (FSBO) Statistics

For some homeowners, selling their property without the assistance of a real estate agent is an attractive option. Here are some statistics related to For Sale By Owner (FSBO) sales:

• FSBOs accounted for 7% of home sales in 2023.
• The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.
• The most common methods used by FSBO sellers to market their homes are:
• Friends, relatives, or neighbors: 20%
• Yard sign: 19%
• Third party aggregator: 14%
• For-sale-by-owner website: 5%
• Open house: 7%
• Online classified ads: 4%
• Multiple Listing Service (MLS) website: 5%
• Other website with real estate listings: 1%
• Video hosting websites: 1%
• The most challenging tasks for FSBO sellers are:
• Getting the right price: 15%
• Understanding and performing paperwork: 7%
• Selling within the planned length of time: 7%
• Helping buyers obtain financing: 5%

(Source: 2023 Profile of Home Buyers and Sellers, National Association of REALTORS®)

Other Recommended Sources for Data on Real Estate

If you’re looking for further information and research on the real estate market, here are some recommended sources:

• The Economists’ Outlook blog at https://downunderrealty.com provides insight into NAR Research’s reports and analyzes how various economic indicators affect the real estate market.
• NAR’s State-by-State Economic Impact of Real Estate Activity examines real estate markets in each state and analyzes their contribution to the economy.
• The Research & Statistics section of https://downunderrealty.com includes links to recent surveys and reports available from NAR.
• U.S. Housing Market Conditions is published quarterly by the U.S. Department of Housing & Urban Development, providing numerous housing market statistics from the federal government and other organizations.
• The State of the Nation’s Housing, from the Joint Center for Housing Studies of Harvard University, is an annual review of housing markets in the U.S., including data on demographic trends and economic conditions.

By utilizing these resources, you can stay informed and make data-driven decisions in the real estate industry.

In conclusion, finding the best real estate agent requires understanding the current market trends and statistics. By staying informed about the demographics of REALTORS®, their use of technology, and the preferences of home buyers and sellers, you can better serve your clients and provide them with the guidance they need. Remember to utilize reliable sources and keep up-to-date with the latest research to stay ahead in the ever-changing real estate market.