I have heard it so often: “10% of all agents do 90 % of the business.” There are numerous variation on this theme. 15-85, 20-80, 30-70 , and so on. What bothers me is that these numbers are espoused by some of the industry’s leading companies and personalities. The statistics prove that they are a gross distortion of the truth. More important, they denigrate the hard working members of our profession who make up a majority of sales.
A small minority of mega-agents is likely promulgating this myth. It caters to their obvious self-serving interests. Arguably real estate is the most overpopulated profession around. In my city there are more real estate agent than there are waiters!
My cousin Rachel, who is a Realtor in Baltimore, is a case in point. Her husband does well. Her real estate ambitions are to do four ends per year so that she can afford to pay for trips to visit her children who are dispersed all over the US.
Rachel is among the approximately 53.3% of all real estate professionals who do 4 deals or less in the USA (Canada is not much different). Does that make her a poor agent? Is she less capable than some mega-agent with a support staff of 15 people? Not at all. She has her goals and ambitions, which she meets consistently. She often refers business to others. She premeditates that her life is about more than just real estate.
Thousands of our agent clients understand that they rank in the majority. They have the confidence to do their job efficiently,
So here is a REality of real estate. June 2016. We randomly picked 1,128 counties. We measured performance over the last 12 month. Over 2.2 million homes sold, meaning 4.4 transactions, accomplished by 530.826 hard working real estate professionals. Here are the debunking 10%-90% results:
Note if you did four transactions you are part of the majority of your peers.
And here is another dose of REality. If you tranacted 1,5 million dollars of real estate in the last 12 month you are part of a majority of 56%
There are thousands upon thousands of Rachels who make up the backbone of the real estate community. This vast army of honest hard working real estate professionals is what real estate is all about. Their numbers vastly overwhelms the overachievers and uber-producers. By its inherent commission nature, there are very few boards that require a full time commitment. In the few boards that do require full timers, it is perhaps possible to find a figure approaching the myth, as there tend to be fewer agents participating (much to the joy of the active agents, I should add.)
Compounding the 90-10 myth is that many of the “Icon agents” who form teams, usurp the achievements of their team members. They credit themselves as owners of the deals on which their team members slaved. This achievement theft shows them as better mega agents than they are, and robs hundreds of agents of a performance records and likely skews overall production results.
Of course averages are just that. If you need to know performance benchmarks for your county, city, or zipcode call us. Congratulations to the wonderful majority who make real estate happen.
“Thank you so much for your article on ‘Debunking the Myth’.
“For the 20+ years I have been in the business as an upper-middle producer, averaging about 15 sales per year through all the ups and downs, I have heard this info, as I was paying the bills for my employers along the way, and watching the “mini-offices” within my office and so many “blazing stars” get the bulk of the credit for production.
“You are right, it is the ones who slog away in the trenches who do the majority of the community work, promote harmony in the office, keep their companies out of court, and try to lead a balanced lifestyle. There are no trophies or newspaper announcements for the realtors who deal with life’s trials like raising well balanced children, mental illness in the family, or even dealing with personal health problems while trying to care for their clients’ needs. A prima donna couldn’t do it! And there are so many like us in this business.
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