The NAR Member Profile has been conducted regularly since 1964 and each time it comes out there are interesting insights into the profession.

While some things change, others remain the same. The typical Realtor is still married, female, and male brokers outnumber female brokers; all are at a median all time high of 52 years of age. But experience is paying off as brokers and agents earn more income with the number of years in the industry. Economic conditions and technology has helped Realtors earn more money than in the past, but tenured agents and brokers make the most.

Gender

The real estate industry is more female-dominated than ever. In 1978, only 21 percent of brokers were women, and by 2001 the percentage grew to 46 percent. Fifty-six percent of Realtors are female, up two percentage points from the 1996 Member Profile. While 54 percent of brokers are male, that percentage is significantly lower than in the late 1970s.

Age

The median age for agents is 50, up from 42 in 1978. While there has been an increase in agents who are 55 years of age or older, (32 percent compared to 21 percent in 1978) there has been a sharp decline in the proportion of agents who are younger than 35 (12 percent compared to 29 percent in 1978.)

Race

Despite the NAR's efforts to help diversify homeownership opportunities for all races, racial profiles remain unchanged in the organization itself. The majority of Realtors are white (92 percent), two percent are black, two percent Asian and five percent are Latin, Hispanic, or Spanish.

Gross income

Realtors took home more money than they did in 1998, the last time the profile was conducted. Broker median gross income was $73,000 while sales agents earned $34,100, making the median Realtor gross income $47,700.

Due to the real estate boom of the late '90s and 2000, 23 percent of Realtors earned over $100,000, compared to 10 percent in 1996. However, wage disparities emerged with males earning $57,100 while females earned $42,900.

Brokers earned 16 percent more than they did in 1995. Thirty-six percent of brokers reported earning over $100,000 in 2000, compared to just over 16 percent in 1995.

Sales agent income rose 13 percent in the same period. Fifteen percent of sales agents earned more than $100,000 in 2000 compared to 7 percent in 1995.

Gross income by experience

The number of years a Realtor is in the business appears to affect income favorably, but it may also partially account for the low numbers in younger recruits. Gross income for a Realtor with 16 to 25 years experience was $38,600 greater than those with one to five years experience. Realtors made $20,300 with one to five years in the business, while those with six to ten years made $49,100 and those with eleven to fifteen years, made $61,000. Broken out, that means that brokers with one to five years experience made $38,800 while sales agents with one to five years experience made $18,800.

Hours worked

Realtors typically work a 43-hour week, with sales agents working 41 hours and brokers working 45 hours per week. Thirteen percent of brokers work more than 60 hours a week.

More hours resulted in higher incomes. Realtors who worked less than 20 hours a week grossed $9,000 while Realtors who worked more than 60 hours a week grossed $99,300. Nearly 60 percent of Realtors work full-time, or over 40 hours a week.

Compensation structures

Nearly three out of four Realtors are compensated by commission. Starting median percentages were 60/40 and 65/35. Fifty-nine percent of brokers receive a split of between 65 percent and 70 percent, with twenty six percent earning 100 percent commissions. Eighty-three percent of sales agents earned commissions, with fourteen percent earning 100 percent commissions. Four percent of Realtors receive either a salary or salary with a share of profits. Eight percent of brokers receive a salary compared to one percent of agents.

Expenses

In 2000, the typical Realtor spent $6,600 or 14 percent of gross personal income on business-related expenses. Realtors earning more money spent more on their businesses; a Realtor with a $100,000 income spent $26,300 on expenses including marketing, promotion and technology, while 12 percent of Realtors reported spending less than $1,000. An equal number reported spending over $30,000.

Promotion and marketing represented the major expense for Realtors. Realtors with $100,000 incomes spent $5,100 on marketing and promotion.

Technology was not the biggest priority for Realtors, with Realtors spending about $900. Brokers spent $1,200 on technology while agents spent $700.

Published: June 14, 2001

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.