Serving Clients Across Connecticut
Since 1996

Real Estate Agencies - Size Doesn’t Matter

  • There are approximately 2.5 million licensed real estate professionals in the U.S. Nine of ten real estate professionals are independent contractors who represent a real estate brokerage.1
  • The majority of agents are affiliated with independent, non-franchised firms.1 51% of realtors work for independent brokerages. 4
  • Franchised brokerages are still independent local brokerages, owned and operated by a local broker, who makes final decisions on firm policies and prices. 1 33% of realtors work for independently owned franchises.4
  • In 2004 there were 236,000 locally owned real estate offices and branches of real estate firms in the U.S.1
  • There are approximately 2,500 real estate firms in Connecticut.2
  • There is little concentration in the real estate industry:
    The top 100 real estate firms had only 17% of the market share,
    The top 20 real estate firms had 10% of the market share, and
    The top 10 real estate firms had 9.1% of market share.1
  • Brokerages with a sales force of 5 or less agents currently hold 60% of the real estate market. In contrast, brokerages with a sales force of 50 or more agents have yet to reach over a 5% of the market share.1
  • There is no evidence of performance advantages for larger firms, in either listing or selling functions.3
  • There is no measurable performance difference between male and female agents in either listing or selling functions.3
  • The ability of agents to specialize in different market segments often leads to higher returns for sellers.3
  • Influences on the brokerage process are incomplete without controlling for how individual agents influence the selling and transaction process through their unique skills and specialization areas.3
  • In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than the selling agent represents the buyer.

Sources:

1 Structure, Conduct & Performance of the Real Estate Brokerage Industry, Research by National Assoc. of Realtors, November 2005National Association of Realtors, “Structure, Conduct & Performance of the Real Estate Brokerage Industry”, 11/2005

2 Greater Hartford Association of Realtors, January 2008

3 National Association of Realtors; Geoffrey K. Turnbull, Georgia State University; Jonathan Dombrow, DePaul University; “Identifying Agent Specific Influences in the Brokerage Process”; May 2005; based on a study of a mid-sized market determined to be representative of many mid-sized markets across the country.

4 National Association of Realtors Member Profile 2008