Competition in the Real Estate Brokerage Industry - #2

The report begins with a section on background of the real estate brokerage industry. Section A provides an overview of the "typical" real estate transaction. Overall, it's a pretty accurate description.

One quibble though. Here's a quote: "Although the terms may vary by state, there are two principal categories of real estate brokerage professionals: “agents” and “brokers.” Generally speaking, agents work directly with consumers and brokers supervise agents. Typically, agents solicit listings, work with homeowners to sell their homes, and show buyers homes that are likely to match their preferences. Instead of working with customers directly, brokers often provide agents with branding, advertising, and other services that help the agents complete transactions." Though they do say "generally", it seems a bit of an oversight to omit that brokers actually compete with their agents in many cases. After all, we are reporting on competition in the business.

They do a credible job in this section of explaining the decline of sub-agency and the rise of buyer agency and transaction brokerage.

Entire series: #1, #2, #3, #4, #5, #6, #7, #8, #9, #10, #11, #12, #13, #14, #15, #16, #17, #18, #19 & final