Retention Rates for New Licensees
A broker once said to me that real estate was one of the last professions whereby a person of limited means with no specialized training or college degree could establish a highly successful career through intelligence and hard work. There is truth to that; however, there has to be a solid foundation upon which to build that successful business and career.
The table below demonstrates that many individuals who envisioned a career in real estate over the last eight years were not successful. Of the persons licensed in 2013, seventy-four percent still hold an active license, whereas five percent have already let their licenses expire. After three years, only forty-eight percent of those licensed in 2011 continue to be actively licensed. Over the course of eight years, sixty-two percent of those licensed in 2006 have since let their license expire while only twenty percent continuing to maintain an active license.
One contributing factor is likely that the licensees were not provided the tools, training and supervision needed to have a reasonable chance of succeeding. While we know there will always be those who don’t make it in the business, a higher success rate should be attainable for those entering the real estate profession in Arkansas.
In a recent article, we encouraged new licensees to seek out a firm with a Principal Broker who is dedicated to training and providing support to his or her agents. A Principal Broker or Executive Broker who is committed to their agents can mean the difference between success and failure.
In our new broker education, the Real Estate Commission has developed a curriculum designed for success. Hopefully, new brokers who complete that training will provide their new licensees a greater chance for success as well.
|Real Estate Licensee Retention by Year|
|New Licenses Issued Each Year||779||1039||835||679||655||524||582||740|
|Renewed Active for 2014||156||226||228||217||261||253||367||548|
|Renewed Inactive for 2014||81||130||125||95||108||94||81||150|
|License Expired for 2014||486||602||427||312||264||155||115||37|
|Percent Renewed Active 2014||20%||22%||27%||32%||40%||48%||63%||74%|
|Percent Renewed Inactive 2014||10%||13%||15%||14%||16%||18%||14%||20%|
|Percent Licenses Expired 2014||62%||58%||51%||46%||40%||30%||20%||5%|
|Active, Inactive and Expired statistics reflect the November 2014 status of those persons licensed in each respective year. Deceased, suspended and revoked not included.|