For more than two decades, Tim and Julie Harris have been leaders in the real estate industry, first as top producing agents, and now as sought-after business coaches. Their latest book, Harris Rules: Your No-BS Practical Step By Step Guide to Finally Become Rich and Free, is an international best seller. Learn more at timandjulieharris.com.
Statistics to Consider When Growing Your Brokerage
Understand your competition and customers in order to take your real estate firm to the next level.
July 24, 2018
If you’re at a point in your career where your optimism, enthusiasm, focus, vision, and hard work have paid off, and your brokerage is solidly grounded, it may be a good time to scale.
You start growing your company by knowing your competition and clientele. Let’s dive into some statistics on brokerage owners just like you.
According to the U.S. Bureau of Labor Statistics, 91 percent of you have been in business more than five years. Of that 91 percent, 19 percent have been in business five to nine years, 29 percent have been in business 10 to 19 years, 27 percent have been in business 20 to 39 years, and 16 percent have been in business 40 years or more. That means the vast majority of broker-owners have been in the business between 10 and 39 years—so your competition likely has longevity, too.
Brokers are also driven. Of the fastest-growing real estate firms, 82 percent have a clear and focused vision for the company, according to Foresight Information Services. The data company also found that 91 percent of broker-owners expect to recruit more agents and hire more staff in the next year, and 78 percent expect their bottom line to grow.
You and your fellow brokers are also putting in long hours—52.7 hours per week on average, according to JP Morgan Chase Institute. Forty percent of you are putting in 60 hours a week or more. But one-third of your time is spent out of the office, meeting with clients, working from home, commuting, and traveling to other market areas. There might be room for more efficiencies there.
But the hard work is paying off: According to the National Association of REALTORS®’ 2018 Member Profile, the median brokerage sales volume was $1.8 million in 2017, down slightly from $1.9 million in 2016 but still on par with $1.8 million in 2015.
Now, let’s look at your clients and how they want to engage with your real estate company. According to Hub Spot, 84 percent of the U.S. population shops online regularly, and of those, 40.7 million used only their mobile device in 2017 as compared to 17.9 million who exclusively used a laptop or desktop computer. However, only 78 percent of all websites are mobile-optimized, Hub Spot says.
What’s more, according to NAR’s 2017 Profile of Home Buyers and Sellers, 95 percent of all recent buyers used the internet at some point during the home search process. With this, you know your potential clients are looking at property online from their phones, so make sure your website meets those needs as you continue to grow your firm.
Lastly, when it comes to communicating with prospects, ATTOM Data Solutions has found that email is the most popular at 40 percent, followed by social media at 34 percent, open houses and events at 30 percent, direct mail at 23 percent, and display ads at 20 percent. But tracking your marketing methods and their success is essential. Are those email campaigns being opened and getting clicks? Are your display ads garnering enough leads?
The bottom line is your competition is experienced and driven, but there may be room for you to grow and improve by investing in the right digital upgrades and reaching out to your firm’s clients where they want to be reached.