For a long while, I have suspected that the top agents in our industry collect a disproportionate amount of the sales and income available in the market. This was supported mostly by my own observations and qualitative evidence; along with National Association of Realtors Statistics such as: 84% of those who obtain a real estate license are out of the business within 24 months, and Real Estate is dominated by the top tiers of the industry. Recently, I decided to go on a bit of a fact-finding mission through research in our local MLS. Here is what I found out:
As disparate as that may seem, the analysis gets even more lopsided when you look at it from the perspective of income…
In summary, the 33% of agents in the Treasure Valley are bringing home an annual income which is 3.5X the Idaho Median household of $47,628 (prior to brokerage splits). Meanwhile, the bottom 67% of the industry is earning an annual income which is only 55% of the Idaho Median household income. If it seems like it may be your imagination that the Rich are getting Richer in Treasure Valley real estate sales, it’s not. Stay tuned for my next post which will be an exploration into the habits of the top 33% of our industry. Though not easy, the path to success is more simple than you may currently believe.