Professional Documents
Culture Documents
Ken Fears
Director, Regional Economics and Housing
Finance
George Ratiu
Director, Quantitative and Commercial
Research
Danielle Hale
Managing Director of Housing Statistics
Scholastica Cororaton
Research Economist
Michael Hyman
Research Data Specialist
Hua Zhong
Data Analyst
Nadia Evangelou
Research Economist
Jessica Lautz
Managing Director, Survey Research
and Communications
Meredith Dunn
Research Communications Manager
Brandi Snowden
Research Survey Analyst
Amanda Riggs
Research Survey Analyst
Brian Horowitz
Research Survey Analyst
Stephanie Davis
Administrative Coordinator
Highlights
Benefits
Summary
Seventy-eight percent of real estate firms have
a single office, typically with three full-time real
estate licensees (up from 2 in 2015) and 85
percent specialize in residential brokerage, up
from 82 percent in 2015. Thirty-six percent of
firms are LLCs, 24 percent are sole
proprietorship, 27 percent are S-Corps, and 10
percent are C-Corps. Fifty-seven percent of
firms cover a geographic market area of a
metropolitan area or region, 30 percent cover a
rural area or small town, seven percent cover a
resort area or small town, and four percent
cover a multi-state area. Only one percent are
nationwide firms.
Eighty-three percent of firms are independent,
non-franchised companies and 15 percent are
independent franchised companies. The typical
residential firm has been operating for 13 years,
while the typical commercial firm has been
operating for 20 years. Franchised firms are
typically larger companies, thus 55 percent of
firms with four or more offices are franchised
companies. Franchised firms are also more
common among residential real estate firms as
19 percent of residential firms are franchised
compared to only eight percent of commercial
real estate firms.
Eighty-eight percent of firms reported that the
number of mergers and acquisitions for the firm
has remained the same from 2005 to 2010 and
2011 to 2016. However, nine percent of firms
indicated that mergers and acquisitions have
increased in that time period.
While the typical firm has three full-time real
estate licensees, larger firms reported having a
Exhibit 1-1
Exhibit 1-2
Exhibit 1-3
Exhibit 1-4
Exhibit 1-5
Exhibit 1-6
Exhibit 1-7
Exhibit 1-8
Exhibit 1-9
Exhibit 1-10
Exhibit 1-11
Exhibit 1-12
Exhibit 1-13
Exhibit 1-14
Exhibit 1-15
Exhibit 1-16
All Firms
7%
8
7
7
12
11
48
(Percentage Distribution)
2 to 3 years
8%
4 to 5 years
7%
6 to 7 years
7%
8 to 10 years
12%
11 to 14 years
11%
All Firms
Residential Firms
Commercial Firms
Median (years):
YEARS
IN REAL
ESTATE8%BUSINESS
7%
5%
8%(Percentage Distribution)
8%
7%
8%
7%
7%
12%
12%
11%
11%
48%
46%
14
13
All2%Firms: 14
Residential
Firms: 13
5%
5%
Commercial Firms: 20
12%
5%
67%
20
67%
48%
50%
46%
40%
30%
20%
10%
7%
8%
5%
8% 8%
7% 8%
2%
5%
7% 7%
5%
5%
%
One year or
less
2 to 3 years
4 to 5 years
All Firms
6 to 7 years
Residential Firms
Commercial Firms
1 office
2 offices
3 offices
4 or more offices 3 offices
3%
2 offices
9%
All Firms
NUMBER
OF OFFICES
78%
9
(Percentage
Distribution)
4 or more offices3
10
10%
1 office
78%
All Firms
78%
9%
3%
10%
1
85%
1 office
2 offices
3 offices
4 or more offices
90%
Median (offices)
80%
78%
Residential
Firms
Commercial Firms
NUMBER
OF OFFICES
76%
85%
(Percentage Distribution)
10%
6%
3%
4%
11%
5%
1
1
Median (offices):
All Firms: 1
Residential Firms: 1
Commercial Firms: 1
76%
70%
60%
50%
40%
30%
20%
9%
10%
10%
10%
6%
3%
3%
11%
5%
4%
%
1 office
2 offices
All Firms
Residential Firms
3 offices
4 or more offices
Commercial Firms
All Firms
Residential Firms
Commercial Firms
1
0
1
0
1
0
0
0
0
0
0
0
Increased
Decreased
Stayed the same
3 (Percentage Distribution)
88
Increased
9%
Decreased
3%
All Firms
SHARE OF83%
INDEPENDENT
15
(Percentage Distribution)
2 Subsidiary of a national or
regional corporation,
franchised company
1
2%
Subsidiary of a national or
regional corporation, nonfranchised company
1%
Independent, franchised
company
15%
Independent, non-franchised
company
83%
(Percentage Distribution)
83%
80%
15%
17%
1%
2%
2%
17%
1%
92%
8%
1%
8%
2%
1%
1%
* Less
than 1 percent
70%
60%
50%
92%
40%
83%
80%
All Firms
Residential Firms
30%
20%
10%
0%
Commercial Firms
Number
of Offices at AT
FirmFIRM
FIRM TYPE BY NUMBER
OF OFFICES
Independent, non-franchised company
100%
2% 1%
Independent, franchised company
Subsidiary of a national or regional
90%
15%
corporation, franchised company
Subsidiary of a national or regional
80%
corporation,
non-franchised company
1%
5%
4%
24%
1%
3%
11%
35%
4%
11%
4%
* 70%
Less than 1 percent
44%
60%
50%
40%
83%
89%
71%
30%
59%
41%
20%
10%
0%
All Firms
One office
Two offices
Three offices
LEGAL ORGANIZATION
OF REAL ESTATE FIRMS
All Firms
LLC
Sole proprietorship
S-Corp
C-Corp
Partnership
C-Corp
10%
LLC
36%
S-Corp
27%
Sole proprietorship
24%
Three offices
10
30
120
30
118
10
All Firms
One office
15
*
*
*
*
1%
1%
1%
2%
4%
6%
85%
6%
4%
2%
1%
1%
85%
1%
Relocation
Counseling
International
Auction
%
10%
20%
30%
40%
50%
60%
70%
80%
90%
None
1 to 4 percent
5 to 10 percent
11 to 20 percent
90%
21 thru 50 percent
51 thru 75 percent
80%
76 thru 100 percent
Median (percent)
70%
*
(Percentage Distribution)
1%
*
4%
12%
82%
97%
60%
50%
40%
30%
20%
12%
10%
1%
5 to 10
percent
11 to 20
percent
4%
%
None
1 to 4 percent
21 thru 50
percent
51 thru 75
percent
76 thru 100
percent
All Firms
OTHER REAL ESTATE BUSINESS
ACTIVITIES AMONG FIRM
2%
Commercial Appraisal
International (Commercial)
International (Residential)
Auction
Commercial Brokerage
Residential Appraisal
Counseling
ResidentialProperty
PropertyManagement
Management
Commercial
Land/Development
Relocation
Residential Brokerage
Residential Brokerage
Residential Property Management
Commercial Brokerage Relocation
(Percent of Respondents)
2%
3%
4%
6%
9%
12%
16%
18%
29%
39%
42%
42%
39%
29%
18%
Land/Development
16%
12%
Counseling
9%
Residential Appraisal
6%
Auction
4%
International (Residential)
3%
International (Commercial)
2%
Commercial Appraisal
2%
%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Firms
GEOGRAPHICAllMARKET
AREA OF FIRM
57%Distribution)
(Percentage
30
Multi-state area
8
4%
4
1
Nationwide
1%
FIRM'S REAL ESTATE BROKERAGE SALES VOLUME BY RESIDENTIAL AND COMMERCIAL FIRMS, 2015
FIRM'S REAL ESTATE BROKERAGE SALES VOLUME BY NUMBER OF OFFICES AT FIRM, 2015
FIRM'S TOTAL REAL ESTATE TRANSACTION SIDES BY RESIDENTIAL AND COMMERCIAL FIRMS, 2015
FIRM'S TOTAL REAL ESTATE TRANSACTION SIDES BY NUMBER OF OFFICES AT FIRM, 2015
ANCILLARY SERVICES OFFERED AT FIRMS BY NUMBER OF OFFICES AT FIRM
ANCILLARY SERVICES OFFERED AT FIRMS TO TYPES OF CLIENTS
PERCENT OF NET REVENUE OF FIRM MADE ON ANCILLARY SERVICES BY NUMBER OF OFFICES AT FIRM
PERCENT OF CUSTOMER INQUIRIES GENERATED FROM SOURCES
PERCENT OF FIRM'S SALES VOLUME WAS GENERATED BY SOURCE
WHERE DOES CURRENT COMPETITION COME FROM
FEATURES ON FIRM'S WEBSITE BY RESIDENTIAL AND COMMERICAL FIRMS
FIRM PROVIDES OR ENCOURAGES AGENT/BROKER USE OF SPECIFIC SOFTWARE, BY RESIDENTIAL AND COMMERCIAL FIRMS
FIRM PROVIDES OR ENCOURAGES AGENT/BROKER USE OF SPECIFIC SOFTWARE, BY NUMBER OF OFFICES AT FIRM
EXPERIENCE WITH WIRE FRAUD AT CLOSING, BY RESIDENTIAL AND COMMERCIAL FIRMS
EXPERIENCE WITH WIRE FRAUD, BY NUMBER OF OFFICES AT FIRM
WIRE FRAUD EDUCATION TO CLIENTS, BY RESIDENTIAL AND COMMERCIAL FIRMS
WIRE FRAUD EDUCATION TO CLIENTS, BY NUMBER OF OFFICES AT FIRM
FIRM HAS SOCIAL MEDIA GUIDELINES FOR AGENTS AND EMPLOYEES, BY RESIDENTIAL AND COMMERCIAL FIRMS
FIRM HAS SOCIAL MEDIA GUIDELINES FOR AGENTS AND EMPLOYEES, BY NUMBER OF OFFICES AT FIRM
FIRM USE OF CLOSED COMMUNICATION GROUP, BY RESIDENTIAL AND COMMERCIAL FIRMS
FIRM USE OF CLOSED COMMUNICATION GROUP, BY NUMBER OF OFFICES AT FIRM
FIRM VIRTUAL OFFICE, BY RESIDENTIAL AND COMMERCIAL FIRMS
FIRM VIRTUAL OFFICE, BY NUMBER OF OFFICES AT FIRM
Residential Firms
Commercial Firms
FIRM'S REAL ESTATE BROKERAGE
SALES
VOLUME
BY2%RESIDENTIAL AND
3%
COMMERCIAL
43% FIRMS, 2015 53%
Median (millions):
No transactions
Less than $5 million
$5 million to under $10 million
$10 million to under $25 million
$25 million to under $50 million
$50 million to under $100 million
$1 billion
more
$100 million to under
$250ormillion
$250 million to under $500 million
$500
million
to under
billion
$500
million
to under
$1 $1
billion
$1 billion or more
Median
(millions)
$250
million
to under $500 million
15%Distribution)
(Percentage
22%
10%
4%
5%
3%
*
*
2%
$4.5
14%
7%
6%
4%
2%
2%
2%
$6.3
2%
2%
2%
2%
3%
4%
* Lessmillion
than 1 percent
$100
to under $250 million
5%
6%
4%
7%
10%
14%
22%
15%
53%
43%
2%
3%
No transactions
10%
Commercial Firms
20%
30%
Residential Firms
40%
50%
60%
5%
50%
17%
14%
6%
5% 4%
3%
2%
1%
9%
*
4%
1%
*
$4.5
8%
2%
9%
4%
6%
10%
11%
14%
6%
14%
10%
1%
%
One10%
Office: $4.5
Two 6%
Offices: $17.1
Three
10%Offices: $43.2
Four 6%
or More Offices: $203.8
9%
13%
9%
14%
21%
$203.8
11%
12%
6%
*
Median
(millions):
13%
11%
1% Distribution) *
(Percentage
26%
13%
14% 21%
18%
19%
11%
12%
11%
14%
11%
13%
8%
17%
4%
12%
12%
3%
5%
*
*
13% $17.1
$43.2
17%
19%
18%
17%
13%
26%
50%
5%
10%
20%
Three offices
30%
Two offices
40%
One office
50%
60%
Residential Firms
No transactions
1 to 10
11 to 20
21 to 30
31 to 40
1001 or more
41 to 50
51 to 100
501 to 1000
101 to 250
251 to 500
501 to 1000
251 to 500
1001 or more
Median
101 to 250
Commercial Firms
%
6%
1%
3%
%
6%
7%
21%
14%
3%
8%
10%
7%
*
1%
*
18
Median:
Residential Firms: 30
Commercial Firms: 18
11%
10%
51 to 100
12%
8%
41 to 50
5%
3%
31 to 40
6%
14%
21 to 30
10%
21%
11 to 20
15%
33%
1 to 10
22%
3%
No transactions
4%
%
5%
10%
15%
Commercial Firms
20%
Residential Firms
25%
30%
35%
No transactions
1 to 10
11 to 20
211001
to 30or more
31 to 40
41 to 50
51 to501
100to 1000
101 to 250
251 to251
500to 500
501 to 1000
1001 or more
101 to 250
Median
Number of
Offices at Firm
FIRM'S TOTAL REAL ESTATE
TRANSACTION
SIDES BY NUMBER OF OFFICES AT
One office Two offices
Three offices
Four or more offices
FIRM,
2015
Median:
6%
1%
*
1%
(Percentage
27%
9%
7% Distribution)
16%
8%
2%
16%
11%
7%
8%
6%
1%
6%
7%
4%
5%10%
4%
5%
15%
9%
12%
17%
6%
1%
10%
19%
19%
12%
4%
13%18%
18%
13%
1%
9%
15%
4%
1%
6%
16%
8%
19%
21
100 19%
250
10%
5%
* Less than 1 percent
6%
51 to 100
17%
12%
1%
5%
41 to 50
4%
5%
2%
4%
31 to 40
7%
6%
3%
21 to 30
7%8%
11%
3%
2%
11 to 20
8%
16%
6%
7%
1 to 10
9%
27%
1%
%
No transactions
1%
6%
%
10%
20%
30%
Three offices
6%
3%
3%
2%
1%
5%
8%
12%
10%
48%
900
40%
Two offices
48%
One Office: 21
Two Offices: 100
Three Offices: 250
Four or More Offices: 900
50%
One office
60%
Business brokerage
Relocation services
Home improvement
Mortgage lending
Home warranty
Title or escrow services
Homeowners insurance
Settlement services
Other insurance
Home inspection
Moving services
Securities services
One office
Business brokerage
Relocation services
Home improvement
Mortgage lending
Home warranty
Title or escrow services
Homeowners insurance
Settlement services
Other insurance
Home inspection
Moving services
Securities services
Two offices
Business brokerage
Relocation services
Home improvement
Mortgage lending
Home warranty
Title or escrow services
Homeowners insurance
Settlement services
Other insurance
Home inspection
Moving services
Securities services
Three offices
Business brokerage
Relocation services
Home improvement
Mortgage lending
Home warranty
Title or escrow services
Homeowners insurance
Settlement services
Other insurance
Home inspection
Moving services
Securities services
Four or more offices
Business brokerage
Relocation services
Home improvement
Mortgage lending
Home warranty
Title or escrow services
29%
13
5
3
5
2
1
2
1
2
1
*
7%
15
24
37
41
35
28
25
19
36
19
7
58%
65
66
55
50
58
65
67
74
58
74
86
6%
8
6
5
5
5
5
5
6
4
6
7
35%
20
7
5
6
5
4
7
4
3
1
1
9%
15
23
42
47
38
30
27
20
38
24
7
50%
59
67
49
43
52
61
61
72
56
71
86
6%
6
4
3
4
5
5
5
5
4
5
6
35%
29
5
12
5
9
4
4
3
*
*
1
4%
18
21
44
51
35
28
28
17
35
23
7
53%
46
65
40
38
48
60
61
71
58
69
84
9%
6
9
5
7
7
8
7
10
7
9
8
48%
55
6
20
10
25
11%
17
24
53
63
41
38%
26
65
25
25
32
3%
2
6
1
2
2
Do not currently
Do not currently offer this service, but
offer this service plan to in the future
55%
6%
61
7
65
6
51
5
46
5
54
5
63
6
64
6
72
6
57
4
72
6
85
7
Homeowners insurance
Settlement services
Other insurance
Home inspection
Moving services
Securities services
11
20
8
2
1
1
35
29
29
35
31
10
50
46
58
60
61
83
5
6
6
3
6
8
Securities
services
Business
brokerage
Other insurance
Do not currently
offer this service
1%
15%
5%
2%
5%
6%
7%
8%
Settlement services
8%
8%
Home inspection
Home warranty
8%
8%
9%
10%
10%
9%
12%
11%
13%
10%
80%
15%
23%
11% 81%
15%
79%
71%
23%
Moving services
Relocation services
Homeowners insurance
15%
11%
13%
10%
Home improvement
Title or escrow services
Mortgage lending
Mortgage lending
12%
Home warranty
Title or escrow
Relocation
servicesservices
11%
10%
9%
Business brokerage
71%
6%
85%
85%
80%
84%
83%
81%
9%
Home inspection
8%
8%
84%
Settlement services
8%
8%
85%
Homeowners insurance
7%
81%
81%
83%
8%
85%
Moving services
5% 6%
88%
Other insurance
5% 6%
88%
Securities services 1% 2%
0%
88%
88%
79%
Home improvement
10%
93%
93%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18%
Three offices
Distribution)
61%(Percentage43%
9%
14%
15%
25%
28%
4%
7%
5%
5%
1%
1%
5%
4%
*
1%
55%
10%
17%
6% 13%
6%
1%
6%
*
30%
Two offices
30%
23%
20%
4%
14%
2%
7%
4%
23%
43%
One office
14%
10%
20%
30%
10%
40%
50%
60%
1 to 4 percent
5 to 10 percent
21 to 50 percent
51 to 75 percent
76 to 100 percent
16%
7%
15%
17%
70%
1% 4%
2%
14%
25%
None
4%
9%
55%
0%
19%
20%
61%
All Firms
18%
13%
28%
19%
16%
1%
4%
10%
4%
6%
80%
11 to 20 percent
5%
7%
4%
5% 1% 5%
6% 1% 6%
90%
100%
Number
of Offices at Firm
PERCENT OF CUSTOMER INQUIRIES
GENERATED
FROM SOURCES
All Firms
Past client referrals
30%
35% business from past clients
Repeat
30%
Website
10%
Social Media
7%
30% 30% 30% 30%
30% 30%
30%
Open
2%
30% house
Other
9%
* Less than 1 percent
25%
25%
One office
30%
30%
10%
5%
*
10%
Two offices
(Medians)
30%
25%
15%
10%
5%
5%
Three offices
30%
30%
10%
10%
5%
5%
25%
25%
20%
15%
15%
15%
10% 10%
10%
9%
10%
10%
7%
5%
5% 5% 5%
5% 5% 5%
5%
2%
%
Past client referrals
All Firms
One office
Website
Two offices
Social Media
Three offices
Open house
Other
30%
30%
10%
5%
*
10%
(Medians)
30%
30%
10%
5%
3%
5%
30%
35%
10%
5%
5%
2%
30%
30%
10%
10%
5%
10%
10%
10% 10%
5% 5% 5% 5%
5% 5%
2%
All Firms
One office
Website
Two offices
Social Media
Three offices
10%
5%
3%
Open house
2%
Other
WHEREAllDOES
Firms CURRENT
One office TwoCOMPETITION
offices Three officesCOME
Four or FROM
more offices
Traditional brick and mortal firms
Non traditional market participants
Virtual firms
90%
85%
10%
10%
90%
10%
10%
10%
85% (Medians)
90%
10%
5%
10%
10%
90%
90%
7%
10%
90%
10%
10%
90%
7%
5%
7%
10%
5%
All Firms
One office
Two offices
Three offices
90%
7%
5%
Virtual firms
Firms
Commercial Firms
Residential Firms FIRMS
FEATURES ON FIRM'S WEBSITEAllBY
RESIDENTIAL
AND COMMERICAL
1%
25%
5%
(Percent6%
of Respondents)
6%
1%
6%
15%
9%
16%
17%
10%
18%
18%
10%
19%
27%
5%
30%
28%
12% 45%
30%
47%
33%
23%
34%
35%
44%
13%
58%48%
62%
44%
15%
47%
29%
53%
36%
55%
55%
60%
56% 19%
35%
59%
55%
19%
56% 60%
59%
58%
29%
62%
35%
45%
35%
47%
53%
55%
36%
78%
77%
80%
95%
88% 44%47%
97%
15%
44%
48%
13%
33%
34%
23%
28%
30%
12%
27%
30%
5%
18%
19%
10%
17%
18%
10%
15%
16%
9%
6%
6%
6%
5%
All Firms
10%
88%
95%
97%
78%
80%
77%
25%
20%
30%
Residential Firms
40%
50%
60%
Commercial Firms
70%
80%
90%
100%
Multiple listing
Comparative market analysis
Electronic contracts/form
E-signature
Document preparation/Management
Contact management
Market statistics
Transaction management
Social media management tools
Graphics/Presentation
Customer relationship management
Home visualization (e.g. virtual tours or virtual staging)
Video
Property management
QR Code
Marketing automation
Loan analysis
Agent rating
All Firms
86%
83
82
78
60
58
49
40
38
37
36
32
31
28
20
19
16
13
Residential Firms
88%
86
85
82
63
61
50
43
41
38
39
35
34
25
21
20
17
14
Commercial Firms
77%
72
68
57
52
54
49
26
26
37
23
11
14
25
10
9
10
2
Multiple listing
Comparative market analysis
Electronic contracts/form
E-signature
Document preparation/Management
Contact management
Market statistics
Transaction management
All Firms
86%
83
82
78
60
58
49
40
One office
85%
82
80
75
56
53
45
35
38
37
36
32
31
28
20
19
16
13
33
32
31
26
25
28
16
14
14
10
55
49
42
46
59
36
26
31
30
24
Yes
No, not aware of this happening at firm
Don't Know
All Firms
6%
92
2
Residential Firms
7%
92
2
Commercial Firms
3%
95
3
Yes
No, not aware of this of this happening at firm
Don't Know
All Firms
6%
92
2
One office
4%
95
1
All Firms
49%
48
3
Residential Firms
53%
44
3
Commercial Firms
33%
64
4
All Firms
49%
48
3
One office
46%
51
3
All Firms
4%
18
Residential Firms
4%
19
Commercial Firms
3%
18
29
47
3
31
44
3
14
61
4
All Firms
4%
18
One office
4%
17
29
47
3
26
51
3
34
38
3
All Firms
21%
76
3
Residential Firms
23%
74
3
Commercial Firms
16%
83
1
All Firms
21%
76
3
One office
16%
81
3
Yes*
No
Don't Know
All Firms
22%
77
1
Residential Firms
23%
76
1
Commercial Firms
23%
76
1
*A firm that does not have a fixed location, and employees may work from home or in different cities and countries.
Yes*
No
Don't Know
All Firms
22%
77
1
One office
22%
77
1
*A firm that does not have a fixed location, and employees may work from home or in different cities and countries.
BENEFITS
Exhibit 3-1
Exhibit 3-2
Exhibit 3-3
Exhibit 3-4
BENEFITS
Exhibit 3-1
BENEFITS RECEIVED BY INDEPENDENT CONTRACTORS/LICENSEES/AGENTS
(Percentage Distribution)
Employee Pays
Errors and Omissions (E&O)
Insurance/Liability Insurance
Health insurance
Dental care
Vision care
Disability insurance
Life insurance
Long-term care insurance
Vacation/sick days
Pension plan/401(k)/SEP
26%
17
10
10
9
9
9
9
8
Firms Pays
37%
2
*
*
2
*
*
2
*
Both Pay
18%
1
1
*
*
1
*
*
1
Not Offered
18%
79
89
90
89
91
90
89
91
BENEFITS
Exhibit 3-2
BENEFITS RECEIVED BY SALARIED LICENSEES/AGENTS
(Percentage Distribution)
Employee Pays
Errors and Omissions (E&O)
Insurance/Liability Insurance
Health insurance
Dental care
Disability insurance
Long-term care insurance
Vision care
Life insurance
Pension plan/401(k)/SEP
Vacation/sick days
Firms Pays
10%
7
6
6
6
6
5
4
4
26%
4
2
3
1
1
2
1
12
Both Pay
7%
4
2
1
1
2
1
4
1
Not Offered
58%
85
90
90
92
92
92
91
84
BENEFITS
Exhibit 3-3
BENEFITS RECEIVED BY ADMINISTRATIVE STAFF
(Percentage Distribution)
Employee Pays
Dental care
Health insurance
Disability insurance
Long-term care insurance
Vision care
Life insurance
Errors and Omissions (E&O)
Insurance/Liability Insurance
Pension plan/401(k)/SEP
Vacation/sick days
Firms Pays
Both Pay
Not Offered
7%
7
6
6
6
5
5%
11
7
3
3
4
5%
10
3
3
5
2
84%
73
85
89
86
89
4
4
3
36
4
35
3
7
2
58
84
60
BENEFITS
Exhibit 3-4
BENEFITS RECEIVED BY SENIOR MANAGEMENT
(Percentage Distribution)
Dental care
Errors and Omissions (E&O)
Insurance/Liability Insurance
Health insurance
Life insurance
Long-term care insurance
Vision care
Disability insurance
Pension plan/401(k)/SEP
Vacation/sick days
Employee Pays
8%
8
8
7
7
7
6
6
4
Firms Pays
6%
Both Pay
5%
Not Offered
82%
45
15
8
4
5
7
5
22
6
8
2
2
4
3
7
1
41
69
83
86
84
84
82
73
Exhibit 4-1
Exhibit 4-2
Exhibit 4-3
Exhibit 4-4
Exhibit 4-5
Exhibit 4-6
Exhibit 4-7
Exhibit 4-8
Exhibit 4-9
Exhibit 4-10
Exhibit 4-11
Exhibit 4-12
Exhibit 4-13
Exhibit 4-14
Exhibit 4-15
Exhibit 4-16
Exhibit 4-17
Exhibit 4-18
Exhibit 4-19
FIRM ACTIVELY RECRUITING SALES AGENTS IN 2016, BY RESIDENTIAL AND COMMERCIAL FIRMS
FIRM ACTIVELY RECRUITING SALES AGENTS IN 2016, BY NUMBER OF OFFICES AT FIRM
REASON FOR FIRM TO ACTIVELY RECRUIT SALES AGENTS, BY RESIDENTIAL AND COMMERCIAL FIRMS
REASON FOR FIRM TO ACTIVELY RECRUIT SALES AGENTS, BY NUMBER OF OFFICES AT FIRM
EXPECTATION ON PROFITABILITY (NET INCOME) FROM ALL REAL ESTATE ACTIVITIES FROM MID-2016 TO MID2017, BY RESIDENTIAL AND COMMERCIAL FIRMS
EXPECTATION ON PROFITABILITY (NET INCOME) FROM ALL REAL ESTATE ACTIVITIES FROM MID-2016 TO MID2017, BY NUMBER OF OFFICES AT FIRM
EXPECTATION OF LEVEL OF COMPETITION IN THE NEXT YEAR (MID-2016 TO MID-2017)
BIGGEST CHALLENGES FACING FIRM IN NEXT TWO YEARS, BY RESIDENTIAL AND COMMERCIAL FIRMS
BIGGEST CHALLENGES FACING FIRM IN NEXT TWO YEARS, BY NUMBER OF OFFICES AT FIRM
PREDICTION OF GENERATIONS EFFECT ON THE INDUSTRY IN THE NEXT 2 YEARS, BY RESIDENTIAL AND COMMERCIAL FIRMS
PREDICTION OF GENERATIONS EFFECT ON THE INDUSTRY IN THE NEXT 2 YEARS, BY NUMBER OF OFFICES AT FIRM
FIRM EXIT PLAN, BY RESIDENTIAL AND COMMERCIAL FIRMS
FIRM EXIT PLAN, BY NUMBER OF OFFICES AT FIRM
FAMILY RELATIONSHIPS IN FIRM, BY RESIDENTIAL AND COMMERCIAL FIRMS
FAMILY RELATIONSHIPS IN FIRM, BY NUMBER OF OFFICES AT FIRM
TYPE OF FAMILY RELATIONSHIPS IN FIRM, BY RESIDENTIAL AND COMMERCIAL FIRMS
TYPE OF FAMILY RELATIONSHIPS IN FIRM, BY NUMBER OF OFFICES AT FIRM
FIRM ENCOURAGEMENT TO VOLUNTEER, BY RESIDENTIAL AND COMMERCIAL FIRMS
FIRM ENCOURAGEMENT TO VOLUNTEER, BY NUMBER OF OFFICES AT FIRM
Firms
Residential
FIRM ACTIVELYAllRECRUITING
SALES Firms
AGENTSCommercial
IN 2016Firms
BY RESIDENTIAL
47%
51%
32%
AND COMMERCIAL
46%
44% FIRMS
59%
Firm is recruiting
Firm is not recruiting
Not applicable, no sales agents
affiliated with firm
Commercial Firms
(Percentage Distribution)
3%
5%
6%
59%
32%
Residential Firms
6%
51%
All Firms
44%
47%
0%
Firm is recruiting
10%
20%
3%
46%
30%
40%
50%
60%
70%
5%
80%
90%
100%
47%
46%
39%
(Percentage Distribution)
66%
53%
32%
5%
88%
5%
Three offices
81%
16%
1%
88%
10%
10% 1%
1%
2%
16%
81%
66%
Two offices
One office
32%
39%
All Firms
0%
Firm is recruiting
10%
20%
1%
53%
47%
5%
46%
30%
40%
50%
60%
70%
2%
5%
80%
90%
100%
Commercial
Residential
Firms SALES AGENTS
All FirmsBY
REASON FOR FIRM
TOFirms
ACTIVELY
RECRUIT
Expand into new lines of business/specialty areas
25%
14%
15%
RESIDENTIAL 10%
AND COMMERCIAL
FIRMS
Replace agents leaving firm
34%
32%
(Percentage
Distribution)
Expand into new markets
43%
32%
32%
Desire for younger agents
28%
41%
40%
80%
Growth in primary business
80%
87%
86%
Growth in primary business
87%
86%
28%
41%
40%
43%
32%
32%
10%
34%
32%
25%
14%
15%
%
Commercial Firms
25%
Residential Firms
50%
All Firms
75%
100%
40%
32%
32%
85%
15%
(Percentage
35% Distribution)
40%
24%
37%
27%
34%
84%
15%
15%
92%
54%
40%
41%
89%
15%
61%
62%
47%
17%
75%
61% 62%
54%
47%
50%
40%
40%
35%
32% 32%
24%
25%
37%
40% 41%
34%
27%
15%
15%
15%
15%
17%
%
All Firms
One office
Two offices
Three offices
All Firms
Residential Firms
Commercial Firms
EXPECTATION ON
FROM ALL
Increase
64% PROFITABILITY
65%(NET INCOME)
67%
Stay the sameREAL ESTATE ACTIVITIES
27%
25%
FROM27%
MID-2016 TO MID-2017
BY
Decrease
6%
6%
6%
100%
6%
6%
6%
27%
27%
25%
64%
65%
67%
All Firms
Residential Firms
Commercial Firms
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Increase
Decrease
EXPECTATION
(NET INCOME)
FROM
ALL
REALoffices
ESTATE
All Firms ON
OnePROFITABILITY
office Two offices
Three offices
Four
or more
64%
62%
69%
72% OF OFFICES 70%
ACTIVITIES FROM
MID-2016
TO MID-2017
BY NUMBER
AT FIRM
Increase
Stay the same
Decrease
100%
27%
6%
6%
28%
7%
7%
26% Distribution)
(Percentage
4%
4%
20%
6%
26%
2%
6%
2%
90%
80%
27%
26%
20%
26%
72%
70%
Three offices
28%
70%
60%
50%
40%
30%
64%
62%
All Firms
One office
69%
20%
10%
0%
Increase
Two offices
Decrease
EXPECTATION
OF LEVEL OF COMPETITION
IN THE NEXT YEAR
Traditional brick and
Non-traditional market
TOfirms
MID-2017) participants
mortar(MID-2016
firms
Virtual
(Percentage Distribution)
17%
46%
68%
50%
4%
15%
4%
Increase
Stay the Same
100%
Decrease
90%
43%
53%
5%
5%
15%
80%
70%
50%
53%
46%
43%
Virtual firms
Non-traditional market
participants
60%
50%
68%
40%
30%
20%
10%
17%
0%
Traditional brick and mortar
firms
Increase
Decrease
Profitability
Keeping up with technology
Maintaining sufficient inventory
Recruiting younger agents
Local or regional economic conditions
Competition from nontraditional market participants
Competition from traditional brick and mortar firms
State and local legislation and regulation
Agent retention
Competition from new virtual firms
Off market listings (pocket listings)
Liability in a digital world (contracts, signatures, etc.)
TRID (TILA-RESPA Integrated Disclosure)
Protecting client data
Wire Fraud
Listing data security
Piracy/scraping
Industry consolidation
Drones and regulation of drones
State and local laws involving legal marijuana
All Firms
49%
48
48
36
35
35
33
28
24
21
18
18
17
15
12
11
9
6
5
4
Residential Firms
49%
49
51
39
34
37
35
26
26
23
19
19
19
16
13
12
9
6
5
3
Commercial Firms
44%
43
44
20
44
16
30
36
16
8
19
7
6
8
4
2
2
8
5
4
Profitability
Keeping up with technology
Maintaining sufficient inventory
Recruiting younger agents
Local or regional economic conditions
Competition from nontraditional market participants
Competition from traditional brick and mortar firms
State and local legislation and regulation
Agent retention
Competition from new virtual firms
Off market listings (pocket listings)
Liability in a digital world (contracts, signatures, etc.)
TRID (TILA-RESPA Integrated Disclosure)
Protecting client data
Wire Fraud
Listing data security
Piracy/scraping
Industry consolidation
Drones and regulation of drones
State and local laws involving legal marijuana
All Firms
49%
48
48
36
35
35
33
28
24
21
18
18
17
15
12
11
9
6
5
4
30% 31%
30%
23%
22%
21%
21%
20%
20%
18% 19%
14%
16% 16%
10%
%
Gen Y ability to Recruitment of Baby Boomers
Gen Y view of Retention of Gen Baby Boomers
buy a home
Gen Y and Gen X retiring from real homeowership Y and Gen X real relocating to
(stagnant wages,
real estate
estate as a
(sharing
estate
other states in
slow job market, professionals
profession
generation)
professionals
retirement
debt load, etc.)
All Firms
Residential Firms
Commercial Firms
Too many
younger real
estate
professionals
joining
PREDICTION OF GENERATIONS
EFFECT
ON Two
THEOffices
INDUSTRY
IN THE
2 YEARS BY
All Firms
One Office
Three Offices
Four orNEXT
More Offices
Gen Y ability to buy a home (stagnant wages, slow job
NUMBER
OF
OFFICES
AT
FIRM
market, debt load, etc.)
48%
51%
42%
33%
34%
(Percent of Respondents)
80%
Recruitment
of Gen Y and Gen X real estate professionals
46%
Baby Boomers retiring from real estate as
a profession
44%
74%
Gen Y view of homeowership (sharing generation)
32%
Retention
of Gen Y and Gen X real estate professionals
30%
70%
66%in retirement
Baby Boomers relocating to other states
21%
Too many older real estate professionals staying in the
62%
59%
profession
18%
60%
Too many younger real estate professionals joining
16%
50%
51%
48%
46%
42%
40%
43%
34%
27%
22%
59%
48%
32%
36%
18%
66%
49%
25%
40%
11%
74%
62%
23%
47%
22%
17%
16%
18%
14%
29%
11%
22%
10%
48%49%
47%
44%43%
40%
40%
40%
33%34%
34%
32% 32%
30%
25%
23%
36%
30%
27%
29%
21%22%
18%
20%
22%
22%
18%17%18%
11%
16%16%
14%
11%10%
10%
%
Gen Y ability to Recruitment of
Baby Boomers
buy a home
Gen Y and Gen X retiring from real
(stagnant wages,
real estate
estate as a
slow job market,
professionals
profession
debt load, etc.)
All Firms
One Office
Gen Y view of
homeowership
(sharing
generation)
Two Offices
Retention of Gen
Y and Gen X real
estate
professionals
Three Offices
Baby Boomers
relocating to
other states in
retirement
Too many
younger real
estate
professionals
joining
Firms BY RESIDENTIAL
Residential FirmsAND Commercial
Firms
FIRM EXIT All
PLAN,
COMMERCIAL
FIRMS
Yes, have exit plan
No, do not plan on retiring
No, do not plan on leaving real
estate business
No,
do not have
an exit plan
Commercial
Firms
38%
22%
17%
39%26%
Residential Firms
38%
All Firms
38%
0%
10%
38%
(Percentage Distribution)
22%
20%
18%
27%
39%
31%
18%
18% 18%
31%
22%
18%
22%
30%
40%
50%
18%
27%
17%
60%
70%
26%
80%
90%
100%
Number
Offices at Firm
FIRM EXIT PLAN, BY NUMBER
OFofOFFICES
AT FIRM
All Firms
38%
(Percentage
Distribution)
One office
Two
offices
Three offices
37%
49%
46%
22%
49%
24%
19%
15%
14%
17%
18%
16%
14%
14%
26%
46%26%
22%
14% 28%
28% 22%
49%
Two offices
37%
18%
All Firms
38%
17%
10%
20%
30%
22%15%
16%
One office
0%
40%
50%
60%
22%
26%
26%
70%
80%
90%
100%
Commercial Firms
Firms
Residential
Firms BYCommercial
Firms AND
FAMILY All
RELATIONSHIPS
IN FIRM,
RESIDENTIAL
7%
6%
9%
43% COMMERCIAL
43% FIRMS
36%
(Percentage Distribution)
50%
6%
All Firms
7%
0%
56%
36%
9%
Residential Firms
50%
56%
43%
50%
43%
10%
20%
30%
50%
40%
50%
60%
70%
80%
90%
100%
FAMILY RELATIONSHIPS
IN FIRM,
BY
NUMBER
OFFICES
FIRM
All Firms
One office
Two
offices
ThreeOF
offices
FourAT
or more
offices
Yes, everyone is related
Yes, relationships exist
No, there are no family
relationships
7%
43%
(Percentage
Distribution)
9%
2%
39%
60%
*
67%
2%
66%
50%
52%
33%
32%
Four or more 2%
offices
66%
Two offices 2%
38%
39%
7%
0%
33%
60%
9%
All Firms
32%
67%
Three offices %
One office
38%
52%
43%
10%
20%
30%
50%
40%
50%
60%
70%
80%
90%
100%
TYPE OF FAMILY
RELATIONSHIPS
INFirms
FIRM, BY
RESIDENTIAL
AND
All Firms
Residential
Commercial
Firms
62%
62%
57%
COMMERCIAL55%
FIRMS
55%
52%
Spouse/partner
Parent/child
Grandparent/grandchild
70%
Siblings
62%
60%
4%
18%
(Percent of Respondents)
3%
17%
62%
55%
7%
23%
57%
55%
52%
50%
40%
30%
23%
20%
18%
10%
17%
7%
4%
3%
%
All Firms
Spouse/partner
Residential Firms
Parent/child
Siblings
Commercial Firms
Grandparent/grandchild
TYPE OF FAMILY
RELATIONSHIPS
IN FIRM, BY
NUMBER OF
OFFICES
All Firms
One office
Two offices
Three offices
Four or more offices
Spouse/partner
62%
62% AT FIRM64%
62%
49%
Parent/child
Grandparent/grandchild
80%
Siblings
55%
4%
18%
50%
73%
(Percent of Respondents)
3%
4%
15%
18%
73%
60%
4%
26%
74%
6%
32%
74%
70%
62%
60%
64%
62%
62%
60%
55%
50%
49%
50%
40%
32%
30%
20%
26%
18%
10%
18%
15%
4%
4%
3%
6%
4%
%
All Firms
One office
Spouse/partner
Parent/child
Two offices
Siblings
Three offices
Grandparent/grandchild
All Firms
Residential Firms
Commercial Firms
FIRM ENCOURAGEMENT
TO VOLUNTEER,
BY RESIDENTIAL
Yes, in the local community
82%
84%
78%
Yes, at the local association of
FIRMS
REALTORS
(Percent of Respondents)
48%
51%
40%
Yes,
90%at the state association of
84%
REALTORS 82%
80%
28%
30%
27%
Yes, at the
70%
National
Association of
REALTORS
60%
19%
21%51%
16%
48%
No,
50%do not encourage to
volunteer
15%
14%
17%
40%
30%
28%
30%
21%
19%
20%
15%
14%
AND COMMERCIAL
78%
40%
27%
16%
17%
10%
%
All Firms
Residential Firms
Commercial Firms
82%
(Percent of Respondents)
80%
89%
90%
95%
48%
43%
90%
75%
95%
77%
89% 65%
80%
19%
75%
28%
24%
38%
65%
46%
19%
43%
15%
16%
29%
23%
16%
52%
38%
46%
7%
2%
52%
38%
29%
24%
15%
38%
9%
77%
23%
16% 16%
9%
10%
7%
2%
%
All Firms
One office
Two offices
Three offices
Methodology
In July 2016, NAR invited a random sample of 147,835 REALTORS who are executives at real estate
firms to fill out an online survey. A total of 4,567 useable responses were received for an overall
response rate of 3.1 percent. All information in this report is representative of member characteristics in
2016 while sales and lease transaction values and other statistics where noted are of calendar year
2015.
The primary measure of central tendency used throughout this report is the median the middle point
in the distribution of responses to a particular question or, equivalently, the point at which half of the
responses are above and below a particular value.
The National Association of REALTORS, The Voice for Real Estate, is Americas largest trade
association, representing 1.2 million members, including NARs institutes, societies and councils,
involved in all aspects of the real estate industry. NAR membership includes brokers, salespeople,
property managers, appraisers, counselors and others engaged in both residential and commercial real
estate.
The term REALTOR is a registered collective membership mark that identifies a real estate professional
who is a member of the National Association of REALTORS and subscribes to its strict Code of Ethics.
Working for Americas property owners, the National Association provides a facility for professional
development, research and exchange of information among its members and to the public and
government for the purpose of preserving the free enterprise system and the right to own real property.
NATIONAL ASSOCIATION OF REALTORS
RESEARCH DIVISION
The Mission of the National Association of REALTORS Research Division is to collect and disseminate
timely, accurate and comprehensive real estate data and to conduct economic analysis in order to
inform and engage members, consumers, and policymakers and the media in a professional and
accessible manner.
To find out about other products from NARs Research Division, visit www.REALTOR.org/research-andstatistics.
NATIONAL ASSOCIATION OF REALTORS
Research Division
500 New Jersey Avenue, NW
Washington, DC 20001
202-383-7518
data@realtors.org
2016 National Association of REALTORS
All Rights Reserved.
May not be reprinted in whole or in part without permission of the National Association of REALTORS.
For reprint information, contact data@realtors.org.