Several days ago, I wrote Everyone and Their Cousin is a REALTOR -- Is That Really True? It Might Be in Some States! detailing the reality about the number of REALTORS per capita around the country. In Virginia, we have one REALTOR per 213 people.
One of the most frequent questions asked on that blog post was how much business does each agent transact per year and many commenters suggested that a large number of REALTORS do very little business each year, leaving real estate sales up to the 80/20 rule. 20 percent of agents conducting 80% of the sales.
I decided to look a little closer at how the pie is split up in Northern Virginia.
The membership of the Northern Virginia Association of REALTORS (NVAR) stands at approximately 11,574 REALTORS.
For 2007, there were 19,363 home sales totalling $10,463,391,838 of volume in the area covered by NVAR (Arlington County, Fairfax County, Alexandria City, Falls Church City, Fairfax City).
Here's a breakdown:
Consider that each home sale has two sides of the transaction and most frequently involves a REALTOR on each side of the transaction. Thus, there were a total of 38,726 transaction sides to be divided amongst the REALTOR population.
38,726 divided by 11,574 = 3.34 transaction sides/Northern Virginia REALTOR
The average Northern Virginia home sales price in 2007 was $540,380, equating to about $1.8 million in sales per REALTOR.
A few things to consider:
- The membership of NVAR was likely larger in 2007 than the current membership.
- Many homes that sold in Northern Virginia could have had the buyers and/or sellers represented by REALTORS who are not members of NVAR. They could be members of the Dulles Area Association of REALTORS, the Greater Capital Area Association of REALTORS, the Prince William Association of REALTORS, or other associations.
- Many REALTORS completed many more than 3.34 transaction sides.
Thus, it is likely that the average amount of transaction sides/Northern Virginia REALTOR was much lower than the above numbers.
Interesting things to consider when choosing a REALTOR. It's not necessarily crucial to choose a REALTOR who sells dozens and dozens of homes each year and operates with an enormous team of backup support. However, I'd suggest finding a REALTOR who does some business -- something more than the small average seen above.
An agent who sells one home every 4 months is just not properly equipped for advising you in today's market. At RE/MAX Allegiance, our average agent sells 12 homes a year.
Ready to buy or sell in Northern Virginia? Make sure you make the right choice.
Contact Brian Block, REALTOR/Attorney, RE/MAX Allegiance: Licensed in Virginia & Washington D.C. 
(703) 626-0715
. If you are interested in purchasing or selling a property in Northern Virginia including Arlington County, Alexandria City, Annandale, Burke, D.C., Fairfax County, Falls Church City, Lorton, Springfield, Washington D.C., contact Brian today.
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Nice anology Brian. Yes I agree. I had someone call me this week about a property. When I asked was she working with an agent, she said yes but she teaches school.
It was hard to not say what are you thinking!
I don't know how one can keep up with what's going on in the market with only one sale every 4 months.
Brian I know in most businesses it is 80/20. If I am not mistaken NAR reports that Real Estate is 94/6. That is just mind boggling!
This is a excellent point Brian and very well made. It amazes me how people can claim to give full service when they have full time jobs.
Nice post using numbers as support for your claim.
Hi Brian. Thanks for the info. All I can say is that is a lot of pie!
I know so many agents that have not sold a property this year! I really baffles me! Why are they still here?
I have looked at it in our area and it is much the same except the average sales price is 150,000 or less and I don't understand how an agent can survive with business expenses on 3 or 4 transactions per year.
I love pie and have been eating more than my "share" this year. Might explain why my pants are to tight :-)
Numbers is numbers and can be moved around anyway you want to make you look good or your competitor look bad.
Brian
I thought everyone and their cousin in your area was a lawyer.
As a lawyer AND a Realtor, you must have a lot of cousins :-)
Hi Brian, the national average used to be 8 transactions per year and that was 10 years ago. I haven't looked lately but I would suspect it is a much lower number. Great post Brian...as usual.
Nice post. I have seen my numbers come down as there are many more agents in my area than 10 years ago. It peaked 4 years ago but this year many are getting out of Real Estate .
Brian,
Great point ! In the last year or two, we have termed our market not as a real estate glut, but a real estate agent glut ! As there were just too many realtors ! A lot of part timers not having any idea what they were doing !
The good news is that in all of our markets a lot of these realtors are being cleared out as we are all going through the cleansing process pers se. Those agents that make it to the other side when the dust setttles will be that much more successful !
That, of course, should include all of us on Active Rain : )
Chris Somers