{"id":2531,"date":"2021-09-29T11:47:31","date_gmt":"2021-09-29T11:47:31","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2021\/09\/29\/can-real-estate-brokerages-survive-without-mortgage\/"},"modified":"2025-03-13T02:39:14","modified_gmt":"2025-03-13T02:39:14","slug":"can-real-estate-brokerages-survive-without-mortgage","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2021\/09\/29\/can-real-estate-brokerages-survive-without-mortgage\/","title":{"rendered":"Can real estate brokerages survive without mortgage?"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/preprod.realtrends.com\/blog\/wp-content\/uploads\/sites\/9\/2025\/03\/HW-real-estatejpg.jpg\" alt=\"HW-real-estatejpg\" class=\"wp-image-303443\"\/><\/figure><\/div>\n\n\n\n<p>Real estate brokerages can survive, but only if they seriously invest in mortgage.<\/p>\n\n\n\n<p>So said members of a panel Tuesday on the evolution of the real estate brokerage during <a href=\"https:\/\/preprod.housingwire.com\/engage\/event\/hw-annual-2021\/\" target=\"_blank\" rel=\"noreferrer noopener\">HousingWire Annual<\/a> in Frisco, Texas.<\/p>\n\n\n\n<p>Today the value of a single mortgage origination is that of 10 real estate sales, said Chris Kelly, president and CEO of <strong>Ebby Halliday Companies<\/strong>.<\/p>\n\n\n\n<p>\u201cIt is increasingly important for agents to align themselves with a business model that includes brokerage,\u201d Kelly said.<\/p>\n\n\n\n<p>The Plano, Texas-headquartered Ebby Halliday is a subsidiary of the mighty <strong>HomeServices of America<\/strong>, the most prolific real estate brokerage in the country by <a href=\"https:\/\/preprod.realtrends.com\/blog\/real-trends-500\/\" target=\"_blank\" rel=\"noreferrer noopener\">number of sales in 2020<\/a>, according to RealTrends.<\/p>\n\n\n\n<p>But Kelly made clear that the only way HomeServices can make money is through mortgage, and through a lesser extent, to providing title insurance.<\/p>\n\n\n\n<p>\u201cA good title capture rate\u201d is presently \u201c70 to 80%\u201d of customers who buy a home with an Ebby Halliday agent, Kelly said, describing title as a commodity that most consumers only dimly understand and want to finish up so they can nab their house key.<\/p>\n\n\n\n<p>The contemporary brokerage ought to also provide home insurance, the company president said. But Kelly also called that division a \u201cwild card,\u201d which cannot be profitable until after four years when customers begin renewing policies.<\/p>\n\n\n\n<p>A company in every corner of a housing transaction is <a href=\"https:\/\/preprod.housingwire.com\/articles\/better-expands-real-estate-explores-ibuying\/\">the business model<\/a> of <strong>Better<\/strong>, a seven-year-old New York City outfit that has become profitable largely thanks to the <a href=\"https:\/\/preprod.housingwire.com\/articles\/could-the-great-refi-boom-finally-be-over\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage refinancing boom<\/a> of the past year.  <strong>Article continued on <a href=\"https:\/\/preprod.housingwire.com\/articles\/can-real-estate-brokerages-survive-without-mortgage\/#\" target=\"_blank\" rel=\"noreferrer noopener\">HousingWire.com<\/a>. <\/strong><\/p>\n\n\n\n<p><em>This article was originally published by HousingWire. The\u00a0<a href=\"https:\/\/preprod.housingwire.com\/articles\/kw-president-marc-king-on-gary-keller-social-unrest\/#\" target=\"_blank\" rel=\"noreferrer noopener\">f<\/a><a href=\"https:\/\/preprod.housingwire.com\/articles\/can-real-estate-brokerages-survive-without-mortgage\/#\" target=\"_blank\" rel=\"noreferrer noopener\">ull article is available on HousingWire.com<\/a>\u00a0for HW+ Members.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate brokerages can survive, but only if they seriously invest in mortgage. So said members of a panel Tuesday on the evolution of the real estate brokerage during HousingWire Annual in Frisco, Texas. 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