Tree.com shutting down real estate brokerage business

RealEstate.com will continue as lead-generation network

Power up your Indie Brokerage
Don't miss our Indie Broker Summit SF, July 17, 2018

Tree.com Inc. says it will close all of the field offices of its brokerage company — RealEstate.com, Realtors — by the end of the month, but will continue to operate RealEstate.com as a lead-generation network.

Tree.com announced last month that its real estate brokerage posted an $11.9 million fourth-quarter operating loss as revenue fell 67 percent from a year ago.

In a regulatory filing this week, Tree.com said results from the first two months of this year convinced management team that "the difficult mortgage and real estate market conditions are too weak to support our brick-and-mortar real estate brokerage business at this time."

RealEstate.com, Realtors, was operating in 15 markets at the end of February, and Tree.com will rack up $1.6 million in charges related to the cost of closing field offices in those markets, including $500,000 in termination benefits.