Member Needs Assessment Study

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• Member Needs Assessment Study
• January 2008

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Objectives

• Based on the information provided by the NATIONAL
  ASSOCIATION OF REALTORS, the overall objective
  of this study is the administration of a blind
  telephone survey to a random sample of members in
  order to understand how best to serve the NAR
  membership in the current market environment.
  Description and inferences are to be made to the
  NAR membership population and not to any specific
  segment.
• Specific issues of the study already identified
  include
• Members needs threats, opportunities, and
  concerns
• Members connections to NAR
• Members usage and expectations of NAR as a
  business resource

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Methodology

• Telephone survey of NAR members administered
  between January 7th, 2008 and January 17th ,
  2008.
• NAR members were called from the list provided.
• A total of 9,149 members were contacted.
• 407 agreed to participate in the study.
• The survey instrument consisted of many
  top-of-mind, recall, and other open-ended
  responses. As a result, responses to these
  questions should be considered strictly
  qualitative. Responses gathered are too diverse
  to provide more than qualitative descriptions.

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Executive Summary
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Executive Summary
Professional and Industry Memberships

• Unprompted, seventy-four percent (74) of
  respondents stated they belong to NAR.
• Twenty-nine percent (29) of respondents
  identified themselves as members of other
  professional or industry organizations, but not
  one single organization was consistently
  identified.
• Unprompted, thirty-nine percent (39) of
  respondents accurately identified themselves as
  having membership in all three levels of the
  REALTOR organization.
• Respondents who did not mention their NAR
  membership were less likely to mention membership
  in the state and local organizations.
• Respondents find the most value in belonging to a
  professional organization for the following
  reasons being an information source about the
  industry (51) and providing continuing or
  professional education (32).
• Only 14 of respondents mentioned lobbying and
  advocacy as a most valuable benefit of
  membership.
• Nearly two-thirds of respondents said it is
  important to feel connected to professional and
  industry organizations.

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Executive Summary
Real Estate Industry Threats and Opportunities

• Respondents showed no clear consensus about
  threats facing them during the next year.
• Thirteen percent (13) said the slumping economy
  and potential recession is the greatest threat
  they will face.
• The next top four threats identified by
  respondents were
• Mortgage financing (11)
• Changing market conditions (10)
• Negative media about the industry (9)
• Foreclosures (7)
• Forty-four percent (44) of respondents said no
  organization can best help with anticipated
  threats.
• Only 12 said NAR is the best source of
  assistance for future threats.
• Nine percent would look to State (4) or Local
  (5) organizations for assistance.
• Seven percent look to their broker or office for
  assistance.

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Executive Summary
Real Estate Industry Threats, Opportunities,
and Concerns

• There is even less consensus among respondents
  about opportunities facing them during the next
  year.
• Ten percent (10) mentioned foreclosures as the
  greatest opportunity.
• Less than 5 identified any other one item as a
  future opportunity.
• Thirty-eight percent (38) identified no
  organization as the best source for assistance
  with opportunities.
• Twenty-six percent (26) look to their broker or
  office for assistance with opportunities.
• Only 14 mentioned one of the three levels of the
  REALTOR organization as the best source for
  assistance with opportunities.
• Industry concerns center on
• Professionalism of REALTORS
• Availability of mortgage financing, inventory
  levels, and foreclosures.

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Executive Summary
National Association of REALTORS Membership

• The most valuable benefits of NAR membership
  mirror those of generic professional and industry
  organizations.
• Information about the profession or industry
• Lobbying and advocacy
• Continuing and professional education
• Only 22 of respondents feel connected to NAR.
  Nearly three times more respondents (63) said it
  was important or very important to feel connected
  to professional organizations of which they are a
  member.
• Despite this disconnect, respondents who feel it
  is important to feel connected to industry and
  professional organizations are most likely to
  feel connected to NAR .
• Feeling connected to NAR is unrelated to
  memberships in other industry organizations or
  feeling connected at the state or local levels.
• About the same percentage of respondents who say
  membership is valuable (36) also say it is of no
  value (37).

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Executive Summary
National Association of REALTORS Membership

• Sixty-seven percent (67) said they would join
  NAR even if not required to do so.
• Respondents willingness to join NAR is impacted
  by their existing feeling of connectedness with
  NAR and their perceived value of NAR membership.
• The relative importance of the personal
  characteristic importance of feeling connected
  to industry organization(s) suggests that there
  is a component of value and of connectedness
  to NAR that is beyond the control of the
  organization.

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Executive Summary
Respondent Profile

• The sample includes 68 sales agents and about
  18 brokers, owners, and managers.
• Only 4 of the sample engages in mostly or
  exclusively commercial real estate.
• Fourteen percent (14) of the sample play an
  active leadership role in real estate
  organizations.
• Women constitute 57 of the sample.
• The sample is composed primarily of independent
  or independent franchised companies. Only 11
  report working for a national or regional
  corporation.
• Nearly all (99) respondents expect to work in
  real estate for at least two more years.

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Professional and Industry Memberships
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Professional and Industry Memberships
Memberships in Industry and Professional
Organizations (unprompted)
All respondents are known to be NAR members
Prompted response
Unprompted response

• Eleven percent (11) reported membership in six
  other organizations.
• An additional eighteen percent (18) of
  respondents reported membership in a variety of
  other industry organizations. A few examples
  are a real estate exchange, a Latin American
  association.

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Professional and Industry Memberships
Memberships in Industry and Professional
Organizations
Recall NAR unprompted and mentioned membership
in other organization unprompted
NAR
Unprompted do not recall NAR membership but
membership in other organization was mentioned
unprompted

• Those who reported NAR membership unprompted
  (74), also mentioned their membership with a
  state association (61) and a local association
  (68).
• Those who did not report their NAR membership
  unprompted (26) are more likely to report
  memberships in a local association (49) or
  other industry organizations (43).

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Professional and Industry Memberships
Most Valuable Benefit(s) of Memberships in
Professional Organizations (Unprompted)

• Half of respondents said the benefit of
  membership in industry or professional
  organizations is keeping informed about their
  profession.
• Continuing education is the next most frequently
  mentioned benefit, followed by lobbying and
  advocacy.

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Professional and Industry Memberships
Importance of Feeling Connected to Industry
Professional Organizations
Nearly four times more respondents said it is
important to feel connected to industry
organizations than unimportant.
Mean3.83 Important to Feel Connected to
Industry Organizations
Women are more likely to say it is important to
feel connected to industry organizations.

• Forty-four percent (44) said it is very
  important to feel connected to their professional
  organizations and another 19 said it is
  important (total 63).
• Seventeen percent (17) said it is unimportant or
  very unimportant.

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Real Estate Industry Threats, Opportunities, and
Concerns
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Threats, Opportunities, and Concerns
Greatest Threat to Real Estate Over the Next Year
(unprompted responses)

• The slumping economy tops the list of perceived
  threats.
• Mortgage financing and changing market
  conditions round out the top three threats
  mentioned.

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Threats, Opportunities, and Concerns
Best Source of Assistance with Threats
(unprompted responses)

• Most respondents (44) say no organization can
  best help with anticipated threats next year.
• Another 29 believe that organizations such as
  the Chamber of Commerce and unnamed organizations
  will provide the greatest assistance.
• Respondents perceive NAR as the one organization
  best able to help with the threats to the
  industry.

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Threats, Opportunities, and Concerns
Greatest Opportunity in Real Estate Over the Next
Year (unprompted responses)

• The top issue identified as an opportunity during
  the next year is foreclosures (10).
• No other issue mentioned reached a 5 threshold.
• Only responses mentioned by 1 or more of
  respondents are shown.

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Threats, Opportunities, and Concerns
Greatest Opportunity in Real Estate Over the Next
Year (continued)

• Items listed above are responses provided by
  fewer than 1 of respondents.

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Threats, Opportunities, and Concerns
Best Source of Assistance with Opportunities
(unprompted responses)

• Thirty-eight percent (38) of respondents do not
  see any organization as being able to assist with
  the opportunities of the next year.
• Sources closer in proximity and immediacy to
  respondents, such as Brokers and offices (26),
  and local associations (8), are seen as a help
  by more respondents than more distant sources.
  Other included the Chamber of Commerce, YMCA,
  unnamed organizations, REBAC, and ReMax.

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Threats, Opportunities, and Concerns
Best Source of Assistance with Threats and
Opportunities (unprompted responses)

• Most think no organization can best help with
  threats (44) or opportunities (38).
• Other organizations are expected to be the
  source of assistance with threats (29) and
  opportunities (22).
• Respondents perceive NAR being better able to
  help with threats to the industry (12), than
  with opportunities (5). NAR is seen as an
  industry protector, and less as a promoter of
  business.
• Sources closer in proximity and immediacy to the
  respondents, such as Brokers and offices (26),
  and local associations (8), are seen by
  respondents as a source for help with
  opportunities than more distant organizational
  sources.

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Threats, Opportunities, and Concerns
Greatest Industry Concerns

Majority concerned

Majority unconcerned

• Respondents are most concerned about the
  professionalism of fellow REALTORS (72 scored
  it 4 or higher) and the availability of mortgage
  financing (65 scored it 4 or higher).
• Respondents are least concerned about the change
  in agent status (57 scored it 2 or lower).

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Threats, Opportunities, and Concerns

• Respondents whose comments could not be
  classified in any of the prior categories
  mentioned three general concerns.
• Concern about the economy and a potential
  recession
• Negative mass medias effect on consumers and
  ultimately the economy
• Other REALTORS
• Poor public image of real estate professionals
• Greater competition among REALTORS becoming
  inevitable.

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National Association of REALTORS Membership
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NAR Membership
Most Valuable Benefits of NAR Membership
(unprompted responses)

• The most valuable benefits of NAR membership
  mirror those identified as benefits of generic
  professional and industry organizations.

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NAR Membership

• Respondents want more relevant interaction with
  NAR
• More education opportunities especially away from
  large metro areas
• Interest in more local information and
  opportunities for interaction with local and
  state real estate associations
• Some respondents would like stronger regulation
  of industry ethics and professional standards.
  These respondents contrast with those who prefer
  that NAR give more control to local associations
  and individual members.

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NAR Membership
Feeling Connected to NAR

• Only 22 of respondents feel connected to NAR.
  63 said it was important or very important to
  feel connected to professional organizations of
  which they are a member.

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NAR Membership
Feeling Connected to NAR is driven by personal
value.

• Respondents who feel it is important to feel
  connected to industry and professional
  organizations are most likely to feel connected
  to NAR.
• Feeling connected to NAR is unrelated to
  memberships in other industry organizations or
  recognition that membership involves more than
  one level of the REALTOR family.
• Those that feel connected indicated that this
  feeling is due to the information support
  received, and representation on Capitol Hill.
• The perception that NAR is removed from local
  real estate issues, the publics lack of
  knowledge/recognition of what it means to be a
  REALTOR, respondents own lack of knowledge
  about NAR, and feeling closer to the local
  association were reasons provided by those that
  do not feel connected.

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NAR Membership
Gender Differences (Results Presented are
Significantly Related to Gender)
Importance of Feeling Connected
Concern about Industry Consolidation

• Female practices are more likely to have a
  residential focus (66 of women versus 48 of
  men).
• Women find education to be a benefit of NAR
  membership more than men (26 versus 17).
• Feeling Connected to professional organizations
  is very important to 52 of women versus 33 of
  men.
• Women are twice as likely to be concerned about
  real estate industry consolidation (18) then men
  (9).

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NAR Membership
Value of NAR Membership in Day-to-Day Real
Estate Activities

• Thirty-six percent (36) find value in their NAR
  membership in day-to-day real estate activities.
• Thirty-seven percent (37) of respondents feel
  low/no value in day-to-day real estate activities
  from their NAR membership.

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NAR Membership
If not required to join all three levels of the
REALTOR organization (local, state, and
national), How likely would you be to join the
National Association of REALTORS?

• 67 of respondents say they would join NAR even
  if not required to do so.