Real Trends: Real Trending

From REAL Trends, the trusted source for real estate industry trends and news, this is REAL Trending episode 68. We're analyzing the most important trends affecting brokerage companies, teams, and agents. I'm Steve Murray, president of REAL Trends, and today we're discussing gross margins, brokerage performance and the cost of being distracted. What do these trends mean, and how can brokerage firms best deal with them? Gross margins, the money that a brokerage company has left after outside referral sources, agents and co-brokes have been paid, declined to a seven-year low as of calendar '19 year-end results. REAL Trends develops this data from the 100 plus valuations we do a year, plus another 50 to 60 firms who submit financials to us for other reasons. So broad spectrum of different kinds of brokerage companies from a flat fee to cap company dollar, to graduated commission plan and 100% commission plan brokerage companies.