Rebounding Home Sales Grow Real Estate Agency Totals

by George Waldon  on Monday, Apr. 14, 2014 12:00 am  

Keller Williams Market Pro Realty of Fayetteville leapt into the ranks of the top 10 residential realty firms in Arkansas, with a sales volume of more than $158 million.

“We had a nice pop in the second and third quarter last year,” said Jody Hendrix, principal broker/co-owner of Keller Williams Market Pro Realty. “It actually got feverish.”

The 2013 move was powered by the merger of Keller Williams Realty of Northwest Arkansas of Fayetteville (No. 28 in 2012) and Market Pro Realty of Rogers (No. 35 in 2012).

Even taking into account the combined operations, sales at the post-merger firm blossomed by 60.1 percent. Helping the cause was a sales staff further expanded by a healthy dose of individual agents joining the post-merger firm.

“We’ve grown our agent base,” Hendrix said. “We acquired some top talent. It’s going to fatten anyone’s sales.

“Sometimes when you have a merger of agents, you have some breakage. We really didn’t.”

Big sales gains were common among the leading firms in Benton and Washington counties, where the market is averaging about 500 home sales per month.

“We’re all enjoying a general growth in business,” Hendrix said. “Hopefully, we’ll be having this same conversation in the first quarter next year.”

Weichert Realtors-The Griffin Co. of Springdale (No. 7 at $213.5 million) enjoyed a 33 percent increase in its 2013 dollar volume.

“The two most vibrant markets for us right now are Bentonville and Fayetteville,” said Brandon Long, executive broker at the firm’s Bentonville office. “The list-to-price ratio is 98 percent in Bentonville and 97 percent in Fayetteville. New construction is really ruling the roost in Bentonville.”

Big Sales Gains in Northwest Arkansas Real Estate Market

  2013 2012 Change
Keller Williams Market Pro Realty $158.38 million $98.92 million 60.1%
Fayetteville      
       
Re/Max Real Estate Results $171.37 million $124.50 million 37.6%
Bentonville      
       
Bassett Mix & Associates Inc. $90.60 million $66.66 million 35.9%
Fayetteville      
       
Weichert Realtors-The Griffin Co. $213.50 million $160.00 million 33.4%
Springdale      
       
Lindsey & Associates $473.54 million $358.92 million 31.9%
Fayetteville      
       
Coldwell Banker Harris McHaney & Faucette $547.12 million $423.80 million 29.1%
Fayetteville      
       
Re/Max Associates $86.00 million $67.00 million 28.4%
Fayetteville      
       
Crye-Leike Realtors $316.00 million $252.00 million 25.3%
Memphis      


Residential Mathematics


The real estate community double-counts the sale of a house in recognition that the buyer and seller are often represented by different agents and companies.

The doubling reflects a system that rightfully acknowledges two sides to every transaction. However, instead of dividing the sales price of a property between the buyer’s agent/company and the sale’s agent/company to determine sales volume, both agents and companies get credit for the entire amount.

If a $100,000 house sells and one company is home to both the listing and selling agents, the company is credited with $200,000.

With this backdrop, the real world dollar total of houses sold is more like half the sales volume reported by companies and agents. Take 5 percent of that total to get a feel for what that translates into in terms of commission revenue, money that actually flows through firms and agents. The dollar volume threshold for this year’s list of top-selling agents remains $4 million, and the minimum for team sellers is $8 million.

 

 

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