BrokerageIndustry News

Realogy’s focus on agent retention, productivity boosts revenue

  • Realogy's revenue was $1.2 billion in the first quarter, up 6 percentage points from Q1 2016. Operating expenses were also higher; the company operated at a $28 million net loss in Q1.
  • Recruiting and retaining top agents are boosting the company's bottom line, while underwriting standards and inventory remain problems.

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Realogy, the company that operates some of the biggest brokerage brands in real estate, is in the midst of CEO succession-planning -- but even though that big project can often derail focus, the company reported revenue growth and a significantly smaller net loss in its earnings call for the first quarter of 2017 (Q1 2017) today. Realogy's revenue "was $1.20 billion, an increase of 6 percent as compared with the first quarter in 2016, driven by transaction volume increases at the Company-owned brokerage segment (NRT) and Realogy Franchise Group (RFG)," the company reported. And although operating expenses were higher in Q1 2017 ($1.23 billion) than in Q1 2016 ($1.2 billion), tax benefits and equities offset the expenses to a net loss of $28 million in Q1 2017, compared to $42 million in Q1 2016. The company said this was to be expected as it embarks on initiatives to retain and recruit top agents and acquire strategic brokerages. Realogy CEO Richard Smith said in an earni...