Real Estate Brokerage Profitability In prehistoric times, prior to the 80’s, real estate brokerage was a very profitable business. Brokers bought and sold without disclosure, real estate commissions were believed to be a so-called standard of x. The public only knew what it knew and that was what the brokerage firm wanted them to believe.Then came the 100% commission companies: Realty Executives, RE/MAX, and many other franchise companies promising Real Estate Brokers a better identity. Read more…

When you read the newspaper or watch TV one cannot help to think the Real Estate business is collapsing.

In many parts of the country it is, however there are many markets whereby Realtors are not sitting still or rolling over. The smart Realtors are merging with the weak brokers and picking up more and more market share. Now is the time to grab market share by finding those offices that have solid seasoned agents with good referral bases. Agents are the key to building a successful Real Estate Company. Brokers get into trouble not because they don’t have good agents but because they over extended themselves with investments and building monuments to themselves. So when a broker says they will give you their franchise or company you have to know they will give it to someone, it might as well be you if your cash flows warrant such an endeavor.

Most offices with an agent count of 25 or less are typical candidates. The odds are the Broker only started the company to have some agents assist in covering the cost of the overhead. They really would love to go back to sales. Why not give them what they want.

Now is the perfect time to start your negotiations. Let them start the New Year on a clean slate.