The 2023 Realtrends Brokerage Ranking report reveals a year of steady growth for low-cost brokerages. The report was conducted and released by RealTrends, an industry leader in residential real estate research.
The report found that 68% of all U.S. residential transactions were handled by independent brokerages, with the majority of transactions accounting for 69% of the total transactions accounted for by four firms. These firms include Keller Williams, Realogy, HomeServices of America and RE/MAX. The report also found that low-cost brokerages, such as Redfin-owned “payment-at-closing” brokerages and flat-fee brokers, grew at a faster rate than the top brokerages in 2020.
Low-cost brokerages saw a shift in market share of almost ten percentage points, growing by 56.6%. This is in comparison to the growth of the top brokerages, which grew by 36%. Flat-fee and pair-fee brokerages particularly saw an impressive 77.7% growth in market share, 60.5% of which came from Redfin’s payment-at-closing model.
The 2023 Realtrends Brokerage Ranking report highlights the shift towards low-cost brokerages in the residential real estate market, with independent brokerages increasing by almost 10% in market share. This growth was primarily driven by flat-fee and pair-fee brokerages, with Redfin’s payment-at-closing model leading the way. This increase in market share for low-cost brokerages highlights a changing trend in the residential real estate market, and is a trend that is likely to continue as brokers look to provide increasingly affordable services to their customers.
You can read this full article at: https://www.housingwire.com/articles/2023-realtrends-brokerage-rankings-show-growth-in-low-cost-firms/(subscription required)
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