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Full-service brokerage model going strong in downturn

Inman News®

The full-service real estate brokerage model has emerged from the downturn largely intact, defying expectations that traditional companies would face stiff competition from brokerages offering commission rebates and discounts or a menu of fee-based services.

When information about property listings and housing markets once available only to Realtors started to become accessible over the Internet more than a decade ago, many predicted that innovation and competition among brokerages would drive down commissions paid by consumers.

If homeowners could market their properties online, the thinking went, more sellers would list with limited service brokers offering a menu of services including "MLS only" listings. And if buyers could go online to find their ideal home, why pay a Realtor full commission to chauffeur them around town?

Internet-based brokerages sprang up offering commission rebates to buyers willing to do some of their own legwork.

Flat-fee and limited service brokers offered sellers a menu of services on an a la carte basis, including "MLS only" listing packages, so that clients could choose to pay only for the services they wanted.

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