1. 2013 MEMBER PROFILE- CALIFORNIA REPORT

2. BUSINESS CHARACTERISTICS OF CA MEMBERS

3. Key Findings In 2012, 62 percent of members were licensed as sales agents and 87 percent of those specialize in residential brokerage. The typical REALTOR® in California has 15 years of experience, 2 years more than the typical REALTOR nationwide. REALTORS® continue to incorporate the internet and online media in their business. Seventy percent reported having a website for at least five years, 15 percent reported having a real estate blog and over half of members reported using social media. The most commonly found information on websites, among commercial and residential REALTORS®, is the member’s own listings. REALTORS® are more confident in the market and their business, with 82 percent of members stating they are very certain they will remain in the business for 2 more years.

4. Business Characteristics of CA Members Years in Business By Function *Non-selling SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

5. Business Characteristics of CA Members REALTORS® BY TYPE OF LICENSE (Percent of Respondents) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

6. Business Characteristics of CA Members Primary Business Specialty of REALTORS® (Percent of Respondents) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

7. Business Characteristics of CA Members Secondary Business Specialty of REALTORS® (Percent of Respondents) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

8. Business Characteristics of CA Members Primary Business Specialty of Sales Agents (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

9. Business Characteristics of CA Members Percent of Income from Real Estate Specialty (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

10. Business Characteristics of CA Members REALTOR’S® Firm Web Presence (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

11. Business Characteristics of CA Members Active Use of Social or Professional Networking Websites (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

12. Business Characteristics of CA Members Active Use of Social or Professional Networking Websites (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

13. Business Characteristics of CA Members Real Estate Blogs (Percentage Distribution) 2013 SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

14. Business Characteristics of CA Members Real Estate Blogs (Percent Distribution) ALL REALTORS® 29 or younger 30 to 3940 to 4950 to 59 60 or older Have a blog 15% 17%32%20%17%6% Do not have a blog 73% 67%46%65%63%90% Do not have a blog, but plan to in the future 11% 17%18%14%20%4% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

15. Business Characteristics of CA Members Will Remain Active As A Real Estate Professional For Next Two Years (Percent Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

16. Business Characteristics of CA Members Will Remain Active As A Real Estate Professional For Next Two Years (Percent Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

17. Business Characteristics of CA Members Will Remain Active As A Real Estate Professional During The Next Two Years (Percent Distribution) Licensed AsReal Estate Experience Broker/Broker Associate Sales Agent 2 yrs. or less3 to 5 yrs.6 to 15 yrs. 16 yrs. or more Very Certain 85%81% 77%82%85%82% Somewhat Certain 10%13% 16%15%9%12% Not Certain 5%6% 7%4%6%7% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

18. BUSINESS ACTIVITY OF CA MEMBERS

19. Key Findings The typical agent nationwide had 12 transactions in 2012, up 2 transactions from the previous year. A typical agent in California continued to have 8 transactions as last year. In 2012, REALTORS® in California were still seeing slightly higher levels of distressed properties than the rest of the nation. A typical agent in California had one transaction involving a foreclosure and two transactions involving a short sale, compared to a typical agent nationwide who had one foreclosure and one short sale transactions. For the third year in a row, the difficulty in obtaining mortgage financing was nationally the most cited reason for potential clients. In California, 21 percent of members cited mortgage financing as a limiting factor, however the most important factor (39 percent) in limiting potential clients was difficulty in finding the right property.

20. Key Findings Nationwide, the typical property management specialist managed 49 properties in 2012 – the highest number on record in this survey, which is reflective of the strong rental conditions. In California the typical property manager managed 24 transactions. Most REALTORS® are still working 40 hours per week, a trend that has continued for several years. A typical REALTOR® in California spent a median of $320 to maintain a website in 2012, while a typical REALTOR® nationwide spent a median of $220. Websites do yield returns - members reported gaining typically three inquiries and 3 percent of their business from their websites.

21. Business Activity of CA Members Compensation Structure (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

22. Business Activity of CA Members Number of Transaction Sides or Commercial Deals, By Specialty in 2012 (Percentage Distribution) ALL REALTORS® Broker/ Broker Associate Sales Agent Commercial Specialists Res.Comm.Res.Comm.Res.Comm.Res.Comm. 0 transactions 3%77%76%4%2%81%*11% 1 to 5 transactions 32222327341956 6 to 10 transactions 27212628*2233 11 to 15 transactions 17**1817*** 16 to 20 transactions 7**95*11* 21 to 50 transactions 13** *** 51 transactions or more 3**42*11* SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

23. Business Activity of CA Members Number of Residential Sides and Commercial Sides, By Experience (Percentage Distribution) 2 years or less3 to 5 years6 to 15 years16 years or more Res.Comm.Res.Comm.Res.Comm.Res.Comm. 0 transactions 13%86%5%82%2%81%1%69% 1 to 5 transactions 6714331432182729 6 to 10 transactions 17*254291272 11 to 15 transactions **15*16*21* 16 to 20 transactions 4*8*4*9* 21 to 50 transactions **13*16*11* 51 transactions or more **3*2*3* Median (transactions) 4*8*8*10* *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

24. Business Activity of CA Members Number of Transaction Sides Involving Properties in Foreclosure in 2012 (Percentage Distribution) ALL REALTORS®Broker/ Broker AssociateSales Agent CAUSCAUSCAUS 0 transactions 45%47%37%43%49%50% 1 to 5 transactions 41%38%45%39% 38% 6 to 10 transactions 7%8%9%8%7% 11 to 15 transactions 2% 1%3%2% 16 to 20 transactions 2% 1% 21 transactions or more 3% 5% 2% Median (transactions) 11211* *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

25. Business Activity of CA Members Number of Transaction Sides Involving Properties in Foreclosure, By Experience in 2012 (Percentage Distribution) 2 years or less3 to 5 years6 to 15 years16 years or more 0 transactions 78%40%41%47% 1 to 5 transactions 22%53%42%40% 6 to 10 transactions *3%9%7% 11 to 15 transactions *3%1%2% 16 to 20 transactions **3%1% 21 transactions or more *3% 4% Median (transactions) *211 *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

26. Business Activity of CA Members Number of Short Sale Transactions, By Residential Specialty in 2012 (Percentage Distribution) ALL REALTORS®Broker/ Broker AssociateSales Agent CAUSCAUSCAUS 0 transactions 32%49%30%47%34%50% 1 to 5 transactions 56%43%56%43%55%42% 6 to 10 transactions 7%5%9%6%7%5% 11 transactions or more 5%3%6%4%5%3% Median (transactions) 21312* *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

27. Business Activity of CA Members Number of Short Sale Transactions, By Experience, 2012 (Percentage Distribution) 2 years or less3 to 5 years6 to 15 years16 years or more 0 transactions 57%25%30%33% 1 to 5 transactions 44%63%56%55% 6 to 10 transactions *8%9%7% 11 to 15 transactions *3% 16 to 20 transactions **1% 21 transactions or more *3%2% Median (transactions) *222 *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

28. Business Activity of CA Members The Most Important Factor Limiting Potential Clients in Completing a Transaction (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

29. Business Activity of CA Members BROKERAGE: SALES VOLUME, BY EXPERIENCE, 2012 (Percentage Distribution) ALL REALTORS® 2 years or less 3 to 5 years 6 to 15 years 16 years or more Less than $500,000 30%52%15%31%29% $500K to under $1 million 1030599 $1 to under $1.5 million 8*20106 $1.5 to under $2 million 991598 $2 to under $3 million 12*201213 $3 to under $4 million 94*812 $4 to under $5 million 54*75 $5 to under $6 million 4*843 $6 to under $7 million 2**13 $7 to under $8 million 2*312 $8 to under $10 million 3*514 $10 million or more 8*1088 Median (millions) $1.7$0.3$1.8$1.6$2.0 *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

30. Business Activity of CA Members Brokerage Sales Volume, By Specialty, in 2012 SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

31. Business Activity of CA Members BUSINESS ORIGINATED FROM AN OPEN HOUSE, 2012 (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

32. Business Activity of CA Members BUSINESS GENERATED FROM AN OPEN HOUSE BY REAL ESTATE EXPERIENCE (Percentage Distributions of a “Yes” Response) 2 yrs. or less 3 to 5 yrs. 6 to 15 yrs. 16 yrs. or more Did you generate business from an open house? 43%49%43%39% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

33. Business Activity of CA Members SHARE OF BUSINESS FROM PAST CONSUMERS AND CLIENTS, BY PRIMARY REAL ESTATE SPECIALTY, 2012 (Percentage Distribution) APPRAISALBROKERAGE PROPERTY MANAGEMENT ALL REALTORS® ResidentialCommercialResidentialCommercialResidentialCommercial Median 23%76%25%21%43%10%25% *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

34. Business Activity of CA Members Amount of Business Through Referrals From Past Consumers and Clients, By Experience, 2012 (Percent Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

35. Business Activity of CA Members Business Generated From REALTOR® Website in 2012 (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

36. Business Activity of CA Members Repeat Business From Past Consumers and Clients, by Experience, 2012 (Percent Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

37. Business Characteristics & Activity of REALTORS® Characteristics (Percent of REALTORS® in the category) Years of Experience Median15 yrs. 2 years or less7% 3 to 5 years8% 6 to 15 years37% 16 years or more48% Type of License Broker29% Broker Associate13% Sales Agent62% Appraiser1% Other0% Technology Have a website90% Have a Real Estate Blog15% Will remain active as a real estate professional in the next two years Very certain82% Somewhat certain12% Not certain6% Business Activity Median hours worked per week40 hrs. Brokerage Transactions Median Number of Transactions 8 Median Number of Transactions Involving Foreclosure1 Median Number of Transactions Involving Short sale2 Median sales volume (millions)$1.7 million Percent of repeat business from past consumers and clients (median)23% Percent of business through referrals from past consumers and clients (median)23% Affiliation with Firm (Percent of REALTORS® in the category) Independent Contractor84% Employee5% Other11% Median size of firm, by number of brokers and agents25 Tenure at firm (median years)7

38. INCOME AND EXPENSES

39. Key Findings Median gross income for REALTORS® in 2012 was $50,400, up from $48,200 the previous year. Sixty-eight percent of respondents indicated percentage split-commission as the prevailing method of compensation. Median business expense for 2012 was $8,040. The largest single expense category that REALTORS® reported was their vehicle expense at $2,050. Brokerage sales volume rose to $1.5 million in 2012 from $1.3 million in 2011.

40. Income and Expenses Annual Income of Realtors®, 2012 vs. 2011 (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

41. Income and Expenses Annual Income of Realtors®, 2012 (Percentage Distribution) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

42. Income and Expenses Annual Income of REALTORS®, By Experience, 2012 (Percentage Distribution) Gross Income: Before taxes and expenses ALL REALTORS® 2 years or less3 to 5 years6 to 15 years 16 years or more Less than $10,000 14%46%11%13%10% $10,000 to $24,999 1422131711 $25,000 to $34,999 10151389 $35,000 to $49,999 125191610 $50,000 to $74,999 12 151311 $75,000 to $99,999 11*912 $100,000 to $149,999 10*8714 $150,000 to $199,999 8*8611 $200,000 to $249,999 3*234 $250,000 or more 6*258 Median $50,400$12,500$44,800$45,700$74,100 *Less than 1% SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

43. Income and Expenses ANNUAL INCOME OF REALTORS® (Gross Income: Before taxes and expenses) By MAIN FUNCTION, 2012 (Percentage Distribution) ALL REALTORS® Broker- Owner (without selling) Broker-Owner (with selling) Associate Broker Manager (without selling) Manager (with selling) Sales Agent Less than $10,000 14%17%14%17%*6%13% $10,000 to $24,999 14*96*618 $25,000 to $34,999 105058**11 $35,000 to $49,999 12*1017*1914 $50,000 to $74,999 12*913* 14 $75,000 to $99,999 111716133368 $100,000 to $149,999 10*116332510 $150,000 to $199,999 817169*136 $200,000 to $249,999 3*5*3362 $250,000 or more 6*411*65 Median $50,400$31,700$78,900$55,300$125,100$99,200$44,200

44. Income and Expenses Total Real Estate Expenses for CA REALTORS® (Median) SERIES: 2013 Member Profile Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

45. Income and Expenses Business Expenses of REALTORS®, By License Type, 2012 (Median Values) ALL REALTORS® Broker/ Broker Associate Sales Agent BUSINESS USE OF VEHICLE EXPENSE $2,050$2,100$2,010 AFFINITY/REFERRAL RELATIONSHIP EXPENSES $80$250 * ADMINISTRATIVE EXPENSES $1,000$1,260$900 MARKETING OF SERVICES EXPENSES $790$930$720 PROFESSIONAL DEVELOPMENT EXPENSES $780$750$800 BUSINESS PROMOTION EXPENSE $810$840$810 TECHNOLOGY PRODUCTS AND SERVICES EXPENSES $890$1,020$810 *Less than 1%

46. Income and Expenses Business Expenses of REALTORS®, By Main Function, 2012 (Median Values) Broker- Owner (without selling) Broker- Owner (with selling) Associate Broker Manager (without selling) Manager (with selling) Sales Agent BUSINESS USE OF VEHICLE EXPENSE $2,000$2,720$1,920$1,250$7,080$2,080 AFFINITY/REFERRAL RELATIONSHIP EXPENSES $250 **$500$80 ADMINISTRATIVE EXPENSES $12,000$1,000$1,100$500$2,500$920 MARKETING OF SERVICES EXPENSES $330$830$970$500$2,000$770 PROFESSIONAL DEVELOPMENT EXPENSES $830$720$920$750$1,370$790 BUSINESS PROMOTION EXPENSE *$810$800$500$2,130$840 TECHNOLOGY PRODUCTS AND SERVICES EXPENSES $750$1,120$970$750$1,310$810

47. OFFICE AND FIRM AFFILIATION OF REALTORS ®

48. Key Findings 55 percent of REALTORS® are affiliated with an independent company. A typical REALTOR® in California works at a firm that employs 25 agents and brokers, compared to 23 agents and brokers nationally. The median tenure for REALTORS® with their current firm is 7 years. Nine percent of REALTORS® worked for a firm that was bought or merged in the past two years.

49. Office and Firm Affiliation of REALTORS ® Firm Affiliation of all REALTORS® (Percentage Distribution)

50. Office and Firm Affiliation of REALTORS ® REALTOR® Affiliation with Firms (Percentage Distribution)

51. Office and Firm Affiliation of REALTORS ® Median Size of Firm By Number of Commercial and Residential Brokers and Agents (Percentage Distribution)

52. Office and Firm Affiliation of REALTORS® Size of firm, by number of commercial and residential brokers and agents

53. Office and Firm Affiliation of REALTORS®

54. REALTOR® Changed Firm as a Result of a Merger (Percentage Distribution)

55. Office and Firm Affiliation of REALTORS® TENURE OF CA REALTORS ® AT THEIR PRESENT FIRM (Percentage Distribution) MAIN FUNCTION IN FIRM All REALTORS® Broker- Owner (no selling) Broker- Owner (with selling) Associate Broker Manager (without selling) Manager (with selling) Sales Agent 1 yr. or less 9%*2%**20%12% 2 yrs. 9%*4%***12% 3 yrs. 11%*5%13%**14% 4 yrs. 7%*5%7%**8% 5 yrs. 7 %* 3%*20%7% 6 to 11 yrs. 29%20%32%43%*20%26% 12 yrs. or more 29%80%46%33%100%40%21% Median (yrs.) 71613926105 *Less than 1%

56. Office and Firm Affiliation of REALTORS ® Benefits Received Through Firm

57. DEMOGRAPHIC CHARACTERISTICS

58. Key Findings In 2012 the typical REALTOR® is 58 years old, up from 55 years of age in 2012. The majority of members are women, comprising 53 percent of respondents. Seventy-six percent of REALTORS® said that real estate was their only occupation, and that number jumps slightly to 78 percent for those with 16 or more years of experience. Nationally, the median gross income of REALTOR® households was $99,400 in 2012, up from $94,100 in 2011. For California, the median gross income of REALTOR® households is $106,100 in 2012. A substantial majority of REALTORS®, 79 percent, own their primary residence.

59. Demographic Characteristics Gender of REALTORS®, By Function (Percentage Distribution)

60. Demographic Characteristics GENDER OF REALTORS®, By Main Function in Firm 2012 (Percentage Distribution) Broker-Owner (without selling) Broker- Owner (with selling) Associate Broker Manager (without selling) Manager (with selling) Sales AgentAppraiser CAUSCAUSCAUSCAUSCAUSCAUSCAUS Male 43%56%63%59%60%39%33%42%50%47%41%39%100%73% Female 57%44%37%41%40%61%67%58%50%53%59%61%*27% *Less than 1% GENDER OF REALTORS®, By Type of License 2012 (Percentage Distribution) All REALTORS ® Brokers/ Broker Associates Sales Agents CAUSCAUSCAUS Male 47%43%57%48%40%37% Female 53%57%43%52%60%63%

61. Demographic Characteristics Formal Education of REALTORS® (Percentage Distribution)

62. Demographic Characteristics Prior Full-Time Careers of REALTORS® (Percent Distribution)

63. Demographic Characteristics Real Estate is Only Occupation (Percent “Yes”)

64. Demographic Characteristics REAL ESTATE INVESTMENTS OF REALTORS ® (Percentage Distribution) All REALTORS ® Vacation Homes None86% One10 Two2 Three or more2 Residential Properties (except primary residence and vacation homes) None46% One19 Two25 Three or more10 Commercial Properties None72% One11 Two10 Three or more7

65. Demographic Characteristics Racial and Ethnic Distribution of REALTORS® (Percentage of Respondents)

66. Demographics of A Typical CA REALTOR ® Percent of REALTORS ® in the category All REALTORS® Gender of REALTOR® Male 47% Female 53% Age Median Age 58 39 or younger 11% 40 to 59 44% 60 or older 45% Education: Bachelor's degree or higher 54% Real estate is only occupation 76% Marital Status 65% Married Race/Ethnicity White 77% Hispanic/Latino 9% Black/African American 3% Asian/Pacific Islander 11% American Indian/Eskimo/Aleut 1% Other 3% Homeownership rate 79% Real Estate Investments At least one vacaction home 14% At least one residential property 54% At least one commercial property 28% Fluent in other language 25% Country of birth US 79% Outside of US 22%