A Closer Look at the Characteristics of Florida's Real Estate Firms
Florida Realtors commissioned the National Association of Realtors to conduct a study of real estate firms in the state. The study covered firms’ size, business activities, benefits offered and gathered firm owners’ predictions about their future.
Here are highlights from the 2015 report:
Characteristics of real estate firms
- - 81 percent of Florida real estate firms have a single office, typically with two full-time real estate licensees.
- - 91 percent of firms are independent non-franchised firms, and 8 percent are independent franchised firms.
- - 74 percent of firms specialize in residential brokerage.
Business activity of firms
- Firms with only one office had a median brokerage sales volume of $3.6 million in 2014, while firms with four or more offices had a median brokerage sales volume of $1.1 billion in 2014.
- Firms with one office had a median of 14 real estate transaction sides in 2014, while firms with four or more offices typically had 2,450 real estate transaction sides in 2014.
- Firms typically received 35 percent of their customer inquiries from past client referrals, 25 percent from repeat business from past clients, and 10 percent from their website, and five percent through social media.
- Firms typically generated 40 percent of their sales volume from past client referrals, 25 percent from repeat business from past clients, 10 percent from their website, and five percent through social media.
- The most common benefit that firms offer to independent contractors, licensees, and agents is errors and omissions/liability insurance at 37 percent.
- While this is also the most common benefit for salaried licensees and agents, only 29 percent have this benefit.
- Among administrative staff, 36 percent have errors and omissions/liability insurance, 31 percent receive vacation/sick days, and eight percent have health insurance.
- 46 percent of senior management has errors and omissions/liability insurance, 21 percent have vacation/sick days, and 16 percent have health insurance.
Future outlook of firms
- 48 percent of firms in Florida reported they are actively recruiting sales agents.
- 75 percent of firms expect profitability (net income) from all real estate activities to increase in the next year.
- 46 percent of firms expect competition to increase in the next year from non-traditional market participants.
- Maintaining sufficient inventory, profitability, keeping up with technology, and competition from nontraditional market participants are among the biggest challenges cited for firms in the next two years.