Realogy hit a rough patch this quarter losing 132 million dollars. Not a surprise for the largest real estate company in the United States.
The method of saturating markets with different branded real estate offices is a great strategy in a climbing market. You are able to segment buyers while providing a dominant footprint on homes sold.
However, when the market turns upside down you then are carrying additional costs in overhead that can not be recouped. That is where Realogy is until the market turns around.
The company in March announced plans to cut costs through office consolidations and other actions in response to the reeling real estate market. After consolidating about 67 company-owned brokerage offices in 2007, Realogy said it was consolidating or reducing the size of an additional 70 company-owned office locations during the first two quarters of 2008.
Year-over-year home-sale transaction sides declined by 25 percent at the Realogy Franchise Group and by 27 percent at NRT, the company’s brokerage unit, during the three months ended March 31, 2008, compared to the same period a year ago. via Inman News.
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