New Study: Real Estate Brokerages More Diverse Than Ever
What’s the first thing hopeful buyers do when they wish to apply for any sort of mortgage? Most contact a real estate broker.
Therefore, it helps to have an idea of what’s out there. The National Association of Realtors recently released key findings from its profile of mortgage firms. They include:
- Tech spending is on the upswing.
More than six in 10 firms increased technology spending in 2005, and 41 percent planned on additional technology spending in 2006 while another 56 percent anticipated they would maintain the same level of spending.
- Ancillary services are more common
More than three-quarters of home mortgage brokerages offer one or more ancillary services, up from half of firms in 2004.
“Most buyers and sellers rely on the expertise of real estate professionals to help them with all aspects of the transaction process, from shopping or listing to negotiation and closing,” says David Lereah, NAR’s chief economist.
Secondary services include property management, 41 percent; land and development, 22 percent; residential brokerage (for firms with other primary activities), 22 percent; relocation, 20 percent; appraisal, 13 percent; counseling, 10 percent; auction, 4 percent; and international, 3 percent.
- Websites are the rule
Almost eight out of 10 real estate firms have a Website that’s been online for a median of five years. While the vast majority of firm Web sites feature real estate listings, three out of five include mortgage or financial calculators; over half have community information.
- Single-office brokerages are predominant
More than half of real estate/mortgage loan firms have been in business for 15 years or more, and 80 percent of firms operate out of only one office with a median of five licensees. Only 10 percent of firms have three or more offices.
- Training is the key to success
Seventy percent of all firms provide training for both staff and sales agents. Eight of out 10 firms said their training programs contributed to their ability to acquire listings. Two-thirds of real estate firms report higher profits in 2005, including 66 percent of residential brokerages and 72 percent of commercial firms.
“Real estate firms understand the importance of training and education programs that keep their staff on top of the latest trends,” Stevens says. “These programs allow agents and staff to learn from others’ experience in this fast-changing marketplace.”
- Profits were higher in ’05
Two-thirds of real estate firms report higher profits in 2005, including 66 percent of residential brokerages and 72 percent of commercial firms.
- Residential is most popular focus
Eighty-one percent of firms offer residential brokerage, and 36 percent provide commercial brokerage as a secondary activity; 55 percent of large residential firms have a relocation department.
In terms of primary real estate activity, 81 percent focus on residential first or second mortgage brokerage, 6 percent commercial, 5 percent property management and 3 percent appraisal; 6 percent focus on other areas.