Technology and Realtor Income

Posted: 30 Apr 2002

See all articles by John D. Benjamin

John D. Benjamin

American University - Kogod School of Business

G. Donald Jud

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance

Kevin Roth

National Association of Realtors

Daniel T. Winkler

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance

Abstract

The ever-expanding use of the Internet and various other information technologies may directly impact the income levels of the real estate brokerage community. With a database of more than 6,000 usable observations from the 1999 National Association of Realtors member profile, we examine the impact of technology usage on the incomes of Realtors. In a two-step procedure, we first develop factor loadings, using factor analysis, for multifaceted technology usage by Realtors. Then we perform a regression analysis of Realtors income incorporating a variety of independent variables representing licensee (brokers and salespersons) demographic and brokerage firm characteristics as well as the factor score for technology usage. Our results show that the use of the Internet and other information technologies is positively related to the earnings of Realtors. In a second regression analysis, we use our technology factor score to determine which of a variety of individual Realtor demographic and brokerage firm characteristics are more related to technology usage than other characteristics. We find that technology usage increases with schooling, number of firms for which the agent has worked, marriage, franchise affiliation, firm size, ownership interest, and hours worked. By contrast, technology usage falls with age, and usage is lower for females and nonwhites. The results of this paper expand our knowledge concerning familiarity with and use of real estate technology and related income.

Keywords: internet, earnings, realtors, technology, income

Suggested Citation

Benjamin, John D. and Jud, G. Donald and Roth, Kevin and Winkler, Daniel T., Technology and Realtor Income. Journal of Real Estate Finance & Economics, Vol. 25, No. 1. Available at SSRN: https://ssrn.com/abstract=301081

John D. Benjamin

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Department of Finance
Washington, DC 20016
United States
(202) 885-1892 (Phone)
(202) 885-1946 (Fax)

G. Donald Jud (Contact Author)

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance ( email )

P.O. Box 26165
Greensboro, NC 27412
United States
336-334-3091 (Phone)
336-334-4141 (Fax)

Kevin Roth

National Association of Realtors ( email )

700 Eleventh St. NW
Washington, DC 20001

Daniel T. Winkler

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance ( email )

Greensboro, NC 27412
United States
336-256-0122 (Phone)

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