New NAR Study: Brokerage Profits Drop

January 1, 1996

Average residential real estate company profits dropped to 2.6 percent in 1994 from 6.7 percent in 1991, according to the recently released Real Estate Brokerage Income, Expenses, Profits survey conducted by NAR's Research Group. More than 300 NAR members representative of REALTOR® companies across the country responded to the survey, which was mailed out in the spring of 1995. Results of the survey were released in late 1995.

Reasons cited in the survey for the profit drop: higher commission splits with sales associates, intense competition for listings and sales among companies, and an increasing number of transactions involving broker-to-broker referral fees.

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