REALTOR® vs Licensee Performance Metrics Study
University of Denver
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• Purpose• Research Team• Research Methodology• Findings• Conclusions
Introduction
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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
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Philip Beaver, PhDClinical Professor, Department of Business Information and Analytics
Donald J. McCubbrey, PhDClinical Professor, Department of Business Information and AnalyticsInterim Director, Burns School of Real Estate & ConstructionManagement
Research Team
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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
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Metrolist Membership
• Metrolist Licensees membership is growing • 9% in 2011• 12% in 2012• 18% in 2013• 22% in 2014
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Findings REALTORS: 98% of Top Producers
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• REALTORS have 92% of list sides
• 94% of sell sidesby REALTORS
REALTORS: Average Twice the Sides
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REALTORS: Twice the Transactions
2009 2010 2011 2012 20130%
10%20%30%40%50%60%
Percent Total Transactions by Licensee
12 to 56 to 12More
Perc
ent o
f Tot
al
2009 2010 2011 2012 20130%
10%
20%
30%
40%Percent Total Transactions by REALTOR
12 to 56 to 12More
Perc
ent o
f Tot
al
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• Average dollar volume for REALTORS was three times higher
REALTORS: Higher Dollar Volume
2009 2010 2011 2012 2013$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5
REALTOR Average Total Dollars in Transactions
REALTOR®Licensee
Ave
rage
Dol
lars
in M
illio
ns
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• Almost 60% of active Colorado communities had no Licensees, with most higher-priced communities served exclusively by REALTORS
2009 2010 2011 2012 2013 20140
50
100
150
200
250Cities Not Represented by Licensees
Total CitiesNo Licensees
Num
ber o
f Citi
es
REALTORS: In More Communities
63% of communities had no Licensees
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REALTOR: Higher Closing Prices
2009 2010 2011 2012 2013 2014$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000$322,767
$279,032
Average Closing Price
REALTOR®Licensee
Ave
rage
Clo
sing
Pri
ce
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REALTOR: Higher Average Price
2009 2010 2011 2012 2013 2014
-10000
-8000
-6000
-4000
-2000
0
2000
4000
Change in Average Price Per Number of Listings
REALTOR®Licensee
Chan
ge p
er U
nit I
ncre
ase
• REALTORS’average closing prices increase as listing volume increases
• Higher volume Licensees tend towards the lower-end markets
2009 2010 2011 2012 2013 2014
-10000
-8000
-6000
-4000
-2000
0
2000
4000
Change in Average PricePer Sells
REALTOR®Licensee
Chan
ge p
er U
nit I
ncre
ase
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Licensees: Listing and Selling Agent
• Licensees were twice as likely to act as both the listing and the selling agent for their transactions
2009 2010 2011 2012 2013 20140.00%2.00%4.00%6.00%8.00%
10.00%12.00%14.00%16.00%18.00%20.00%
Percent Both Sides
REALTOR®
Licensee
Perc
ent B
oth
Side
s
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• Licensees are more likely to sell their own homes or tenant-occupied homes
Licensees: Sell Own Home
2009 2010 2011 2012 2013 20140%2%4%6%8%
10%12%14% Percent Agent Owner
RE-AL-TOR®Licensee
Perc
ent o
f Tot
al S
ales
2009 2010 2011 2012 2013 20140%1%2%3%4%5%
Percent Tenant Occupied
RE-AL-TOR®
Perc
ent o
f Tot
al
Sale
s
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2009 2010 2011 2012 2013 20140%
2%
4%
6%
8%
10%
12%
14%
16%
Percent Short Sale
REALTOR®
Licensee
Perc
ent o
f Tot
al S
ales
Licensees: More Likely to List a Short Sale
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Licensees: Offer More Concessions
2009 2010 2011 2012 2013 20140%2%4%6%8%
10%12%14% Percent Cash Concessions
REALTOR® Licensee
Perc
ent o
f Tot
al S
ales
2009 2010 2011 2012 2013 20140.00%0.10%0.20%0.30%0.40%0.50%0.60%
Percent Personal Property
REALTOR®Licensee
Perc
ent o
f Tot
al
Sale
s
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• Same average Days On Market
• No difference in closing price as a percent of list price
• Similar price reductions
List Agent Performance
2009 2010 2011 2012 2013 201495%
96%
97%
98%
99%
100%
Average Closing as Percent of List
RE-AL-TOR®
Ave
rage
Clo
sing
/Lis
t Rati
o
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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
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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
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Contact
Deborah ShipleyMarketing Communications [email protected]
© 2014 REcolorado All rights reserved.