REALTOR® vs Licensee Performance Metrics Study
University of Denver
© 2014 REcolorado All rights reserved.
Image space
• Purpose • Research Team • Research Methodology • Findings • Conclusions
Introduction
2 © 2014 REcolorado All rights reserved.
Image space
Purpose
• Gain an In-Depth Understanding of our Customers
• Compare Performance Metrics between REALTOR® and Licensee Agents
• Analyze Member Data using an objective, third party, statistical approach
• Understand the REALTOR® Value Proposition
3 © 2014 REcolorado All rights reserved.
Image space
Philip Beaver, PhD Clinical Professor, Department of Business Information and Analytics
Donald J. McCubbrey, PhD Clinical Professor, Department of Business Information and Analytics Interim Director, Burns School of Real Estate & Construction Management
Research Team
4 © 2014 REcolorado All rights reserved.
Image space
Research Methodology
• No assumptions made about differences between REALTORS and Licensees
• Statistical analysis techniques used to support any conclusions
• The study used Metrolist data from 2009 through June 2014
5 © 2014 REcolorado All rights reserved.
Image space
Metrolist Membership
• Metrolist Licensees membership is growing • 9% in 2011 • 12% in 2012 • 18% in 2013 • 22% in 2014
6 © 2014 REcolorado All rights reserved.
Image space
Findings REALTORS: 98% of Top Producers
7 © 2014 REcolorado All rights reserved.
Image space
• REALTORS have
92% of list sides
• 94% of sell sides by REALTORS
REALTORS: Average Twice the Sides
8 © 2014 REcolorado All rights reserved.
Image space
REALTORS: Twice the Transactions
0%
20%
40%
60%
2009 2010 2011 2012 2013
Pe
rce
nt
of
Tota
l
Percent Total Transactions by Licensee
1
2 to 5
6 to 12
More
0%
10%
20%
30%
40%
2009 2010 2011 2012 2013
Pe
rce
nt
of
Tota
l
Percent Total Transactions by REALTOR
1
2 to 5
6 to 12
More
9 © 2014 REcolorado All rights reserved.
Image space
• Average dollar volume for REALTORS was three times higher
REALTORS: Higher Dollar Volume
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2009 2010 2011 2012 2013
Ave
rage
Do
llars
in M
illio
ns
REALTOR Average Total Dollars in Transactions
REALTOR®
Licensee
10 © 2014 REcolorado All rights reserved.
Image space
• Almost 60% of active Colorado communities had no Licensees, with most higher-priced communities served exclusively by REALTORS
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014
Nu
mb
er
of
Cit
ies
Cities Not Represented by Licensees
Total Cities
No Licensees
REALTORS: In More Communities
63% of communities had no Licensees
11 © 2014 REcolorado All rights reserved.
Image space
REALTOR: Higher Closing Prices
$322,767
$279,032
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2009 2010 2011 2012 2013 2014
Ave
rage
Clo
sin
g P
rice
Average Closing Price
REALTOR®
Licensee
12 © 2014 REcolorado All rights reserved.
Image space
REALTOR: Higher Average Price
-10000
-8000
-6000
-4000
-2000
0
2000
4000
2009 2010 2011 2012 2013 2014
Ch
ange
pe
r U
nit
Incr
eas
e
Change in Average Price Per Number of Listings
REALTOR®
Licensee
• REALTORS’ average closing prices increase as listing volume increases
• Higher volume Licensees tend towards the lower-end markets
-10000
-8000
-6000
-4000
-2000
0
2000
4000
2009 2010 2011 2012 2013 2014
Ch
ange
pe
r U
nit
Incr
eas
e
Change in Average Price Per Sells
REALTOR®
Licensee
13 © 2014 REcolorado All rights reserved.
Image space
Licensees: Listing and Selling Agent
• Licensees were twice as likely to act as both the listing and the selling agent for their transactions
0.00%
5.00%
10.00%
15.00%
20.00%
2009 2010 2011 2012 2013 2014
Pe
rce
nt
Bo
th S
ide
s
Percent Both Sides
REALTOR®
Licensee
14 © 2014 REcolorado All rights reserved.
Image space
• Licensees are more likely to sell their own homes or tenant-occupied homes
Licensees: Sell Own Home
0%
5%
10%
15%
2009 2010 2011 2012 2013 2014Pe
rce
nt
of
Tota
l Sal
es
Percent Agent Owner
REALTOR®
0%
2%
4%
6%
2009 2010 2011 2012 2013 2014
Pe
rce
nt
of
Tota
l Sa
les
Percent Tenant Occupied
REALTOR®
15 © 2014 REcolorado All rights reserved.
Image space
0%
2%
4%
6%
8%
10%
12%
14%
16%
2009 2010 2011 2012 2013 2014
Pe
rce
nt
of
Tota
l Sal
es
Percent Short Sale
REALTOR®
Licensee
Licensees: More Likely to List a Short Sale
16 © 2014 REcolorado All rights reserved.
Image space
Licensees: Offer More Concessions
0%
5%
10%
15%
2009 2010 2011 2012 2013 2014
Pe
rce
nt
of
Tota
l Sal
es
Percent Cash Concessions
REALTOR®
Licensee
0.00%
0.20%
0.40%
0.60%
2009 2010 2011 2012 2013 2014
Pe
rce
nt
of
Tota
l Sa
les
Percent Personal Property
REALTOR®
Licensee
17 © 2014 REcolorado All rights reserved.
Image space
• Same average Days On Market
• No difference in closing price as a percent of list price
• Similar price reductions
List Agent Performance
95%
96%
97%
98%
99%
100%
2009 2010 2011 2012 2013 2014
Ave
rage
Clo
sin
g/Li
st R
atio
Average Closing as Percent of List
REALTOR®
18 © 2014 REcolorado All rights reserved.
Image space
Conclusion: Similarities
Metrolist Licensee members have grown from 13% in 2009 to 22% in 2014
• REALTOR and Licensees are similar in terms of:
• Days on market • Sale price as a percent of list price • Contract characteristics
19 © 2014 REcolorado All rights reserved.
Image space
Conclusion: Differences
• 98% of top producers are REALTORS • REALTORS list and sell twice as many
properties • REALTORS operate in a higher-priced market • REALTORS are more reactive to market
conditions, with Licensees showing similar behavior from year to year
• Licensees tend to pursue a lower-cost model
20 © 2014 REcolorado All rights reserved.
Contact
Deborah Shipley Marketing Communications Manager [email protected] 303.796.2574
© 2014 REcolorado All rights reserved.