80% of real estate brokerages have only 3 agents.

The National Association of Realtors 2012 Profile of Real Estate Firms was recently published. Interesting to note that:

  • As of August 2021, NAR had 1.55 million members.
  • NAR had 202,774 self-designated Brokers of Record.
  • NAR’s Brokers of Record accounted for 13.1 percent of its total membership

The report is almost 100 pages (review it in full here), we’ll summarize the interesting bits:

National Association of Realtors 2012 Profile of Real Estate Firms

Brokerage firms breakdown:

  • 86% of Brokerages are independent non franchised firms.
  • 80% have a single office and an average of 3 full time licensed agents.
  • These smaller brokerages completed 19 transaction sides in 2020, with a volume of $4.5 million.
  • Brokerages with 4 or more offices had an average sales volume of $146 million & an average of 571 sides.
  • 12 percent were independent franchised firms.
  • The typical residential firm had been operating for 16 years.
  • 51% of firms covered a metropolitan region market area, 27 percent covered a rural area or small town.

Where the business came from:

  • 30% of sales came from past client referrals.
  • Repeat business from past clients equaled 30%.
  • 20% came from digital mediums (web traffic 10%) and (social media 10%)
Chart: Percent of Firms Sales Volume Generated by Source, Percental distribution

If you are not putting most of your effort and marketing expenses into generating sales from the first two – Past Client Referrals and Repeat Business from Past Clients – you are leaving an awful lot of money on the table 🙁

Notice how small the Third Party Referral Company share is – just 5%. This presumably includes leads from Realtor.com, Zillow and others.

Systems and tools offered to agents by their Brokers:

  • E-signatures (83 percent),
  • Comparative market analysis data (82 percent),
  • Electronic contracts and forms (80 percent),
  • Multiple listing data access (79 percent),
  • Contact management (50 percent).
  • Marketing automation (14 percent),
  • QR codes (14 percent),
  • Agent rating (13 percent)
  • Loan analysis (12 percent).

Only 50% of Brokerages offer the use of CRM’s – Contact Management Systems.
Considering 60% of sales are generated from Past Clients – that is a problem.

Special Plan for Smaller Broker/Teams:

In recognition of all the smaller Firms (and Teams) out there, OspreyCRM has created a subscription especially for Smaller Brokers and Teams with 4 users. Signup here for a 14 day free trial.

The Broker and up to 3 agents can now use a system that will generate more sales and referrals from a database of their past clients.

Learn more about what OspreyCRM can do for your Small Brokerage/Team.

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