brokerages Archives - Citizen Watch Report

Real estate brokerage is tough; brokerages lose 82% of revenue to commissions and corporate fees.

September 6, 2024 6:12 pm

Most Compass agents in California/NY pay more than 18% to the company There must be some accounting magic in there to get those numbers 😂 But yeah, brokerage has low margins. Hiring agents w/ their own clients is basically a break-even business. Generating leads & charging… — Nick El-Tawil (@tawillionaire) …

80% of real estate brokerages face profitability risks with 2% agent commissions; 60% at 2.5%.

July 2, 2024 9:34 am

According to a study published by AccountTECH, real estate brokerages face profitability challenges if agent commissions decrease. Here are the key findings: Commission Rates and Profitability: If the terms of the National Association of Realtors’ (NAR) nationwide commission lawsuit settlement lead to typical agent commissions dropping to 2%, approximately 79% of brokerages would be unprofitable. Even …