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Driving Profitabillity
There is a dirty little secret in the real estate industry; a story lost in the headlines about housing bubbles, “tremendous price increases” in “white-hot” markets. It is a story about the significant DECLINE IN BROKERAGE PROFITABILITY, a story about how real estate brokerages have become increasingly less profitable, in spite of the hottest housing market in recent times.
The Internet, the rise of the "Freedom Shop" (low-budget brokerages that provide few services and even less agent supervision), increasing insurance rates, the emergence of third party organizations and players — all of these developments have produced an environment wherein broker profitability has declined dramatically. In a RealtyTimes article, RE/MAX CEO Daryl L. Jesperson summed it up: “[E]ven while we enjoy the longest and strongest real estate market ever, broker profit margins continue to shrink.” The numbers don’t lie: in the past decade, net per transaction broker profit has declined from $300-$400, down to just above $200 per transaction, an almost unsustainable level.
RECON understands these developments, and the forces behind them. Using carefully collected data about the industry, as well as about specific regional developments, RECON can help your brokerage firm adjust operational tactics to realign and regain profitability. Through the use of initiatives designed to meet the needs of your specific brokerage firm, RECON will work to analyze strengths, determine weaknesses, ascertain market vulnerabilities and determine market possibilities to once again empower your brokerage firm to achieve the profitability levels your investors and leaders demand.
Contact RECON today to find out how we can help your brokerage regain profitability today, tomorrow and into the future. |