David Lereah, the association's chief economist, said that by adopting new technologies and tailoring services to their clientele while serving the needs of agents, firms are increasing the value of their business and making the economic picture for the real estate industry bright.

"Many firms report they are supporting their staffs by offering technology investment, training and group affiliations that have translated into greater profitability," Lereah said. The survey shows company size has little bearing on the essential services provided, he said.

National Association of Realtors President Walt McDonald said, "Technology is playing an increasingly important role for both consumers and real estate professionals. More than six out of 10 real estate firms said the harnessing of technology was most effective in helping to generate sales and enhance profitability."

"Those technology trends and online resources help homebuyers, sellers and real estate firms to save time and money by increasing the efficiency of the transaction process," McDonald said.

One in eight firms increased spending on technology by at least 25 percent last year, while one-third of firms plan to increase technology spending this year.

"The strong real estate market over the last few years has also led to the creation of new firms," McDonald said. "Six percent of firms have been in the business for less than a year, while nearly one in five has been in the business for three years or less."

The survey provides an inside look at the demographic and business characteristics of the nation's real estate brokerages. The typical firm is a single-office operation specializing in residential brokerage. More than three out of five firms have been in the business for more than 11 years, and 68 percent report their main revenue is from residential brokerage.

Turnover is fairly modest and salespeople tend to stay with their firm, with 84 percent of firms reporting that no salesperson left during 2003; however, 21 percent of firms reported adding to their staff last year. Thirty-nine percent of firms provide in-house training to agents, while 21 percent reimburse salespeople for some portion of real estate sales training expenses.

"This commitment to education aids our members in staying on top of changes in the industry and advancement in specialties, demonstrated through the achievement of various Realtor designations such as GRI held by 19 percent of all Realtors," McDonald said.

The vast majority of real estate firms, 93 percent, are single-office operations. Only 2 percent have three or more offices. Single-office operations have an average of three salespeople, while firms with four or more offices have an average sales staff of 23 per office. The typical sales agent is an independent contractor; 76 percent of firms have a sales force composed entirely of independent contractors.

More than one-third of franchised real estate firms have been affiliated with their franchise for more than 10 years, and 43 percent of firms have relocation departments.

Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.