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)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.