Fluctuating market dynamics, shifting client expectations, and emerging technological advancements all keep the real estate industry in a perpetual state of evolution. Yet how much do we know about a licensed real estate agent’s journey? What are the realities and experiences of working in the profession day-to-day? And what does the future hold?
Kaplan Real Estate Education’s inaugural Real Estate Survey of Trends aims to answer these questions by compiling the experiences and viewpoints of 750 licensed real estate agents at various stages of their careers. (The survey sometimes breaks out responses from “successful” agents—15+ transactions a year; for those breakouts, please click on the link above.)
The Agent Profile
What are the demographics of a licensed real estate agent? Respondents skewed slightly female and were more likely to be millennials or Generation X. The majority had household incomes of above $100,000. Nearly half were licensed in the South Atlantic region of the country.
Fifty-five percent of respondents have more than 5 years of experience as licensed real estate agents. Eighty-eight percent specialize in residential real estate, 19% in commercial real estate, and 16% in property management. (Some questions allowed for multiple answers.)
Becoming a Real Estate Agent
The majority of respondents (54%) pursued a real estate license due to a general interest in real estate, followed by looking to directly impact their earnings (44%), and to have flexibility in their work location (43%).
Overall, the primary goal when deciding to pursue real estate was increasing earning potential (76%), which was also related to their greatest influence to pursue such a career: financial opportunity (39%).
Respondents spent more than an average of 100 hours studying for their real estate licensing exam, preparing 3-4 weeks in advance, about 30 hours per week. Almost one-third (32%) started preparing 6 or more weeks in advance. Real estate licensing preparatory courses were deemed the most valuable preparation for the licensing exam, with 83% of respondents identifying on-demand, in-person, or live-online courses as their most valuable resources.
So why did some choose not to move forward with licensing education? The number one reason was time, followed by changing family responsibilities.
Real estate agents come from many backgrounds. Not surprisingly, real estate was the #1 answer (11%), followed by healthcare (11%), education (10%), and financial services (10%).
Experience as an Agent
Respondents included both those employed as full-time licensed real estate agents (57%) and part time (43%). Nearly two-thirds (64%) of those employed as part-time agents have another job outside of real estate, with 12% working in another capacity in real estate. Family responsibilities occupy the time of 34% of part-time agents.
The majority of respondents (59%) stated that they primarily work from home or another non-brokerage location. One quarter reported they are in a hybrid situation, splitting their time between the office and remote work, and 13% primarily work at a brokerage office.
Sixty-one percent of respondents listed a property over the past 12 months, and overall respondents averaged seven real estate transactions during that time period. The average listing value was approximately $500,000, and listings were generally on the market for one and a half months.
While every agent has obstacles, none of the challenges respondents were asked about were cited by more than 4 out of 10 as one of their biggest pain points. That said, client lead generation (39%) and market fluctuations (36%) were identified as significant problems.
Given the focus on lead generation, nearly one-third (32%) of respondents stated that they would find guidance on effective lead generation to be valuable; however, only 13% are actually getting that guidance. Real estate agents need greater support on the whole, with 18% not currently utilizing any support today.
Client communication was seen as the most important skill needed to be an agent. Active listening, transparent dialogue, and empathy are key to creating productive relationships built on trust.
The good news is that most agents surveyed feel like they have strong client communication skills. Skills gaps exist in the other important areas of negotiation and market knowledge, which are imperative for day-to-day operations and effectively closing transactions.
The best marketing tools are the ones that work: social media posts (e.g., walk-through videos, listings) (56%), brokerage websites (43%), and real estate agent referral network (35%).
Speaking of referrals, the survey showed that most referrals come from friends and family (63%), with social media (35%) and a referral program of existing clients (31%) coming far behind. Friends and family were also the most effective way to source clients (36%), followed by their real estate referral program (14%) and referral network (9%).
Perspectives on the Industry
What factors most influence an agent’s perception of the real estate market? Hard, rational metrics: home/property prices (59%), mortgage rates (58%), and interest rates (58%). The same three factors are seen as influencing clients’ perceptions on whether it’s a good time to buy, but in a different order: mortgage rates (59%), interest rates (55%), and estimated home/property value (35%).
Is now a good time to buy or sell property? Two-thirds said it’s a good time to both buy (67%) and sell (66%). More than one-third of agents (35%) surveyed believe that mortgage rates will decrease in the next 6 to 12 months, while nearly one-third (29%) believe that property prices will increase.
And while much has been discussed about the possibility of an upcoming recession, 41.4% expressed little concern. In fact, while 23% saw their number of clients decrease in the last 12 months, 48% expect their client list to grow in the next year. More than three-quarters (78%) said they would advise clients to buy or sell property in the next 6 to 12 months, citing positive market conditions and the inherent value of real estate.
There’s been much discussion about changes to commission structure recently, and 26% of respondents believe that these changes will have a negative impact on their income in the next 1 to 3 years, 52% believe there will be no significant impact, and the remaining 22% anticipate positive impact from the changes. That said, two-thirds (66%) of agents are considering adjustments to how they do business as a result of the commission changes, with many of the respondents (29%) focused on increasing the volume of transactions they close.
Like everyone else on the planet, the real estate industry is integrating AI into their business. More than half of agents (54%) have used AI in social media content creation (22%), personalized email marketing (21%), and rudimentary administrative tasks (17%).
Looking ahead one to three years, agents believe that AI will be helping them with social media (36%), identifying market trends (35%), and email marketing (34%). Only 17% do not intend to use it AI in the next 1 to 3 years.
In the long term, licensed real estate agents express optimism, but recognize that real challenges exist. Nearly two-thirds of agents (63%) expressed concerns about client retention, and more than half (52%) cited concerns about emotional and financial stress. More than half (52%) also feel that traditional brokerages are not doing enough to prepare them for the technologies that will transform the industry.
The good news is that the majority of respondents (77.1%) see themselves as practicing real estate agents in the next 3 to 5 years, citing their passion for the profession and the potential for long-term career and business growth. The bad news is, nearly one-quarter (22.9%) of agents are at risk of leaving the industry due to retirement, income instability, burnout, and economic uncertainty.
So what advice do respondents have for new real estate agents?
- Perseverance and patience, with continuous improvement
- Be prepared for significant effort, long hours, and to demonstrate dedication, resilience, and persistence in the face of challenges
- Have sufficient savings, manage your finances wisely, and understand that consistent income takes time to establish
- Gain knowledge, understand market dynamics, stay updated on regulations, and consistently seek further training
- Above all, remember that becoming a licensed real estate agent is a significant endeavor that requires determination, engagement, and insight
Click here for more on Kaplan Real Estate Education’s inaugural Real Estate Survey of Trends, including responses broken out by “successful” agents.
