In 2007, listings by full-service brokers were 34% less likely to expire than the top 5 limited-service brokers.
- Full-service: 18% expirations (26% – 2006)
- Limited-service: 27% expirations (33% – 2006)
In 2007, homes sold by full-service brokers were 14% higher than the top 5 limited-service brokers.
- Full-service: $339,645
- Limited-service: $297,769
The Top 5 Limited Service brokers’ market share has fallen from 5% in 2005 to just over 2% in 2007. The number of limite brokers nationally decresed by 8%.
Foxtons a discount brokerage company that operated primarily in NJ, NY and CT – announced its intent to file for Chapter 11 bankruptcy. Bankruptcy court allowed them to auction off about 4,300 of listing agreements to the highest bidder.
The median commission rate for full service brokers was 5.09% in 2007, down from a high of 5.21% in 2003.
Conclusions reached:
- Full Service Agents bring their seller more money and a much greater likelihood that the home will sell
- There is an apparent decreasing number of discounting agencies and with declining market share.
- Commission rates and income per sale are stable
Data Sources: NAR & KW Realty
2007 Real Estate 2008
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