Explore BrainMass

US real Estate Brokerage Market - Remax

In the U.S. real estate brokerage industry, brokers employed by large brokerage firms have traditionally worked for a portion of the commissions they generate. That is, if a house sale generates a 6% commission split equally between the brokers for the two sides (standard in many markets in the U.S.), the broker on one side might personally pocket 1.5% with 1.5% going to the firm for which the broker works. In return for a share in the broker's commissions, the firm provides the broker with an infrastructure, such as clerical support, phone services, and office space, and especially for new brokers, a base wage.

In comparison, RE/MAX, a national brokerage firm, permits its agents to keep 100% of the commissions they earn. The firm provides clerical services, phones, and the like, and charges its agents a fixed monthly fee for those services. RE/MAX is known for having the most aggressive agents in the business on average. If you want to find an aggressive, hardcharging agent, going to RE/MAX is usually a safe bet.

Why does RE/MAX attract more aggressive agents?

Solution Preview

RE/MAX has the benefit of being widely known and they use very aggressive marketing tactics both on television and paper ads as well as having one of the largest blimp fleets in order to advertise their services. Agents want to know that they will get the most exposure possible and RE/MAX does just that for its agents. ...