New Chicago Agent survey demonstrates that post-recession agents are pushing forward despite drastic changes and decreased incomes
Chicago, IL – September 7, 2010 – (RealEstateRama) — As the recession comes to an end and the real estate market starts to steady, a new survey by Chicago Agent magazine highlights the notion that modern agents are working harder despite a steep income decline.
Before the recession hit, the median income of licensed agents polled was $91,000 per year. In 2009, that number sank to $50,000. This information, along with other valuable facts and figures about income, commissions, company satisfaction work ethic and more, are revealed in Chicago Agent magazine’s first annual “Truth About Agents” survey.
The survey was devoted to revealing the issues that affect agents on a daily basis but are rarely discussed. The anonymous survey received an overwhelming response, as agents are anxious see how their answers compare to others in the same profession.
Gone are the days of everyone jumping into real estate with the idea that it is an easy career that will bring in an ample income without any effort. The modern agent must work for his/her commissions, and 62% of those surveyed have increased their marketing efforts in 2010 as compared to 2009. While in the past agents would do most of their work from remote sites or from home, respondents revealed that 34% go into the office every day, while just 13% never go into the office at all.
In other attempts to increase business, agents are spending more and more time online, and are attending numerous networking events. Of those surveyed, 72% spend more than two hours online every day, 60% are on Facebook and 56% use LinkedIn to increase business. While networking is still important to agents, only 19% attend events just to mingle, with the remaining percentage preferring events that include information valuable to their business, such as speeches by prominent industry members, mortgage presentations, motivational speeches or seminars on economic conditions.
A number of agents have moved offices to potentially boost business. Chicago Agent respondents reported that almost 30% have changed offices in the last two years, and another 20% plan to change offices in 2010. Education has also become an increasingly important facet of the modern agent’s life, as almost 45% of agents surveyed have sought out additional accreditation, and many have multiple designations.
While most agents are working harder to make their careers work, many believe that it is still too easy to become licensed. An overwhelming 68% of those surveyed believe that the process to become licensed should be more difficult. “I think the process should be 100 percent more difficult,” says Charlotte Miles, CRS, GRI, broker with RE/MAX South Suburban in Flossmoor. “Perhaps more hours will deter some from entering the field. We are already having a hard time with the present market only to find the workload increase on some transactions from ensuring an agent is properly handling their side of the fence.”
One surprising discovery was that almost 80% of the licensed agents questioned agree that their commissions are negotiable, showing that respondents are doing whatever is necessary to keep business moving forward.
Despite the increased efforts by agents, the real estate industry has not been immune to declining incomes. Before the recession 72% of agents who responded made more than $50,000, while only 44% made this much in 2009. Fifty-eight percent made more than 75,000, while only 29% made this much in 2009. While 38% made over 100,000 before the recession, just 13% made this amount in 2009.
For agents 25 and under, the median income dropped 53% from $107,000 to $30,000, while for agents 31 to 35 the drop was only 30% from $75,000 to $60,000. These numbers reveal that though agents are working harder, the commissions are not matching their prior efforts.
Another surprising fact that emerged from the survey is that agents may not be as satisfied with their associations as originally suspected. When asked if they would still join their association if they could access the MLS elsewhere, almost 35 percent said they would opt out of the association. However, 75% still believe that their association provides more than just access to the MLS.
To see more information on agents, commissions, company satisfaction and more, visit http://chicagoagentmagazine.com/resources/the-truth-about-agents/results.asp.
The results presented in the survey reported from Chicago Agent magazine’s 2010 readers survey. Licensed Chicagoland agents responded to the survey during August 2010.
About Chicago Agent magazine
Chicago Agent magazine and ChicagoAgentMagazine.com is a subsidiary of Agent Publishing, the only media company that unites the residential housing industry in local markets across the U.S. Realtors, developers, lenders and industry affiliates look to Chicago Agent for news, information, advice and important data relevant to the Chicagoland area. The only company that addresses the business and personal needs of the real estate professional, Chicago Agent magazine is delivered to thousands of agents in hundreds of realty offices in the Chicagoland area. For more information, visit ChicagoAgentMagazine.com.
