Serving Clients Across Connecticut
Since 1996

Real Estate Myths

X “My company has a book of buyers, so list/sell with me.”

  • Today, 89% of home buyers used the Internet to search for homes. (source: National Association of Realtors, 2008 Profile of Home Buyers and Sellers for Connecticut)
  • 29% say they found the house they bought online, according to a survey by the National Association of Realtors. Additionally, 84% of buyers use an agent and 34% of buyers credit their agent with finding the home they purchased. (Source: Hartford Courant, 5/11/08).
  • www.Realtor.com is the most used real estate website in the United States. This site includes MLS listings from realtors across the nation (National Assoc. of Realtors), and it is updated every 24 hours.
  • In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than the listing agent provides the buyer.

X “Bigger real estate companies are better.”

  • There is no evidence of performance advantages for larger firms, in either listing or selling functions.²
  • 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 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
  • 33% of realtors work for independently owned franchises.³
  • In large agencies, many realtors work independently or compete against the other agents in the office, rather than assist each other.

Sources:

1 Source:  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 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.

3 National Association of Realtors Member Profile 2008