The record climb in home sales and staggering increase in home price has not necessarily translated into success for the biggest U.S. residential real estate companies. Zillow, Compass, and Redfin each posted nine-figure losses in 2021.
However, at least one significant player did capitalize on housing’s banner year. Brokerage and franchise conglomerate Realogy reported its yearly financials Thursday, and the Madison, New Jersey-headquartered company tallied $343 million in net income for 2021. The profitability marked a dramatic turnaround from 2020 when Realogy lost $360 million.
In fact, operating expenses were split among Redfin Now, Redfin’s 16-year-old brokerage division, and its mortgage arm.
Realogy’s revenue also grew to $8 billion, a 28% jump from 2020. That revenue figure includes the full commissions on home sales, which mostly are returned to the real estate agent on the deal.
Once the $4.8 billion in commissions and other related costs are subtracted, Realogy’s revenue is just $3.2 billion. Still, the figure compares favorably to bitter rival Compass, which posted $1.1 billion in revenue after deducting agent’s cut of the commissions. >>>>Continued on HousingWire.com
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