Brokerage

Survey: Recruiting biggest challenge to growing profits

Brokers tell Imprev commission splits, fees and market share are crucial factors for agents

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Recruiting more agents is the biggest challenge facing real estate brokerages seeking to boost profits, according to a survey of nearly 200 U.S. real estate brokerage and franchise executives. About 2 in 5 (42 percent) of the real estate execs polled by real estate marketing software firm Imprev Inc. said signing more agents was their biggest challenge to "driving higher profitability." But nearly as many -- 39 percent -- identified the costs associated with running a brick-and-mortar office as their biggest challenge to growing profits, followed by commission splits with their agents (37 percent). Other factors included support staff costs (31 percent), the need for more top producers (24 percent), the impact of discount brokers (22 percent), technology costs (18 percent) and market share (16 percent). Asked to pick the three biggest competitive challenges when recruiting agents, survey respondents were most likely to identify commission splits (49 percent said competitor...