Characteristics and Performance of Real Estate Brokers and Salesmen in the Hawaiian Islands

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[Excerpt] Since 1968, there has been a rapid growth rate in the number of real estate licensees. The total active licensees (brokers and salesmen) has increased 187% from June 309 1968 (3,267 licensees) to January 21, 1977 (9,392 licensees) for an annual growth rate of 22% while the civilian labor force increased by 3% a year. The greater portion of this growth has come from the number of new salesmen entering the business rather than from existing salesmen obtaining a broker's license (27% annual salesmen growth compared to 14% for brokers). In 1968, for every active broker, there were 2 active salesmen. By 1977, this discrepancy has widened to 3 active salesmen. However, for all this dynamic development, very little is known about the Hawaiian real estate industry and its licensees, particularly the nature of licensees activities and the degree to which they are qualified to engage in real estate practice. Yet legislation concerning licensee qualifications has been continually expanding. In part, it has tried to protect the consumer while providing a direction where the real estate industry should be going. For all this increasing legislation, very few have pondered the question Quo vadis. Where is it going now…what is the current nature of the industry and the licensees? The following report attempts to provide a portion of this information that has isolated Hawaii's real estate practice from systematic description. However, the report should be looked upon as only a starting point. Further research is needed to validate subsequent decision making for the consumer - the ultimate basis for legislative power - has not been surveyed to measure the effectiveness of current legislation. The present report has been divided into two sections. The first section, which is based on a questionnaire survey, (see Appendix A, D) presents a statistical picture of licensees in the industry. Information is provided concerning such factors as the proportion of licensees who are actually active in the business, the type of work they do, and their backgrounds and experience in the real estate field. Summary tables and graphs have been included in this section to augment the presentation. The second part of the report contains policy suggestions for government agencies responsible for regulation. To facilitate easier readability, a large portion of the report is presented in a topical outline format.

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real estate; Hawaii; brokers; salesmen; licensees


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