With Commission Rates Still at Record Lows, Brokers Shift Focus
With commissions no longer a reliable source of growth, big brokers are emphasizing one-stop shopping, particularly on the mortgage front.
(Boonton, NJ, April 6, 2017) — Commission rates remained at or near the lowest levels on record in 2016, according to Real Estate Broker’s Insider’s analysis of regulatory filings by Realogy Corp., the nation’s largest broker.
At Realogy’s company-owned operations the average commission rate remained at 2.46 percent in 2016. That matched the record low in 2015.
For Realogy franchises, the average commission slipped slightly to 2.50 percent, down from 2015’s 2.51 percent, but still a bit above 2006’s record low of 2.47 percent.
In response to falling commissions, some big brokers are emphasizing one-stop shopping, particularly on the mortgage front.
Realogy in February announced a new mortgage origination joint venture with Guaranteed Rate, one of the nation’s biggest retail mortgage companies.
RE/MAX also has begun to stress mortgages. Its new Motto Mortgage brand is a franchise system of mortgage brokers.
Insights into current commission rates and the renewed emphasis on one-stop shopping appear in the April issue of Real Estate Broker’s Insider newsletter.
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