Seeing the down trend in property market since last two years and after going through the recommendations in the 2009 budget that has no specific relaxation for builders, we can't expect boom in property market in near future. What would be the future of small real estate brokers?

there will always be a place for small brokerages -- how little or how much of a percentage of the market they can control depends on their efforts

IMO, small real estate brokerages are working out much better than independent franchises....esp. 100% brokerages, I've had quite a few agents inquiring about positions with my biz that have worked for these type of brokerages for years. Many of the larger franchise brokerages do not provide any time of lead support which is crucial in this type of market.

The small company I work for is doing great and keep hearing some of the big boys singing the blues. I guess it just depends on many different factors as to whether or not a small brokerage can make it.

I am a 100 percent brokerage and we are kicking butt. I am getting many agents fleeing the high monthly fee brokerages. The agents don't want to fund the old dinosaurs nice offices and buildings when the can work from home and meet clients out in the field.

I've worked for both large and small companies. My observation is that the large companies have way too much overhead and try to control the business of their agents. Over the years some large brokerages bought up many of the smaller companies just to get their market share.

I have found that the smaller company is more relaxed and flexible. Being flexible has always been necessary in my business.

The latest startups are the "internet" companies. It looks to me like that may take a bite out of the large companies that are nickel and dimeing their agents.

Too small is a bag thing, too big can be a curse too. Big enough to service your agents and clients without losing the flexiblity needed to keep evolving.

In our market, we have several large franchise groups (one company has 15 or 20 offices under one franchise banner). Most of these office have 30 to 50 agents. Each has a manager that also sells and lists. So when you really needs help or advice or a solution, that manager is out listing and selling.

To me, that is a problem, especially for newly licensed agents.

The large brokerages also have large overhead. In my area I have seen many of them downsizing and consolidating offices. We are also a 100% brokerage and have seen a big uptick in recruiting. With less business out there, many agents see getting a bigger split on each deal a plus.

This may be a stupid question but when you offer 100% commission how do you make money? Are you charging an upfront fee with 100% or ????

There is usually a fee per transaction ($250 - $500)...though I can't see how that would be enough to fund an office unless it's a really tiny office with minimal rent/utilities...and I don't see how a broker turns a profit unless they get a bunch of top producers that are each closing a couple deals a week! I know that my broker pays a fortune just for software licensing and other fees.

I think many of the 100% houses will do good right now in this market however as soon as agents income increases they will want additional training, support and high energy offices.

My small brokerage is 100% + $250/transaction and $25/month desk fee. They provide training and mentors and have 2 small offices that are serviced by a receptionist. The rest is up to the agent. I've never worked for a large brokerage, so I would have no idea what I would need a nice office for. I work from home and of course my car! I stop by the office to drop off paperwork, but that's about it.
Having never worked for a large brokerage, I couldn't imagine giving a huge split of each transaction.
I can tell you that agents are flocking to our company to get away from the large fees.

From a listing standpoint it's hard to say what the future holds. Many home sellers erroneously believe that large brokers have some special magical ability to sell homes that smaller brokers do not, when in reality what gets a home sold is the MLS and the agent. From a buying standpoint, there's no reason to think that smaller brokers can't compete every but as well.

That's right, every BUT as well, AND every BIT as well too!