REALTOR® vs Licensee Performance Metrics Study University ...Research+Report+FINAL.pdf · Interim...

REALTOR® vs Licensee Performance Metrics Study

University of Denver

© 2014 REcolorado All rights reserved.

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• Purpose • Research Team • Research Methodology • Findings • Conclusions

Introduction

2 © 2014 REcolorado All rights reserved.

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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, 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


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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 sides by REALTORS

REALTORS: Average Twice the Sides


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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


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• 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


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• 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


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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


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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


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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

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


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• 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®


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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


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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


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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

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®


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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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