About Coldwell Banker Residential Real Estate
Realogy Holdings is one of the largest franchisors of residential real estate offices in the world with about 16,600 offices in around 115 countries. Its brands include Century 21, Coldwell Banker, ERA, Better Homes, and Gardens Real Estate, and Sotheby's. In addition to franchising, the company owns and operates about 760 offices under those brands and the Corcoran Group and Citi Habitats labels. It also provides relocation, title, and settlement services and mortgages. The company derives almost all its revenue from its US operations.
Realogy Holdings operates through the four business segments: Company Owned Real Estate Brokerage Services (known as NRT), Real Estate Franchise Services (called Realogy Franchise Group or RFG), Title and Settlement Services (entitled Title Resource Group or TRG), and Relocation Services (dubbed Cartus).
Realogy's revenue is heavily weighted in its NRT segment; it provides some 75% of sales. The segment houses the company's real estate brokerage business under the Coldwell Banker, Corcoran, Sotheby's International Realty, Citi Habitats, and ZipRealty brands in many of the largest metropolitan areas in the US.
RFG generates about 15% of the company's revenue. It franchises the Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA, Sotheby's International Realty, Better Homes, and Gardens Real Estate brand names.
Representing around 10% of Realogy's revenue, TRG offers full-service title and settlement services to real estate companies, affinity groups, corporations, and financial institutions. Those services are often rendered in conjunction with the company's real estate brokerage and relocation business.
Cartus accounts for roughly 5% of Realogy's revenue. It markets home sale assistance, client-guaranteed home equity advances for transferees, home finding, intercultural and language training, and group move management.
Approximately 75% of the company's revenue derives from gross commission income; about 15% comes from services.
Based in Madison, New Jersey, Realogy operates through 16,600 offices in about 115 countries; however, substantially all its revenue comes from the US.
Sales and Marketing
Realogy's franchise system has nearly 300,000 independent sales associates worldwide, including more than 190,000 independent sales agent in the US. Its largest brand is Century 21, with roughly 9,600 global offices and 127,500 brokers and agents. Its other brands include Coldwell Banker, Era Real Estate, Sotheby's International Realty, and Better Homes and Gardens Real Estate.
In tandem with the strengthening US housing market, Realogy's revenue grew steadily for the last several years until 2018 when it ticked down 1% compared to the year prior. Since 2015 its net income has slipped 4% due to a large reduction in 2018.
Realogy's revenue fell to $6.1 billion in 2018. Sales were depressed by stagnancy in US home purchase volumes which the company attributed to limited inventory and higher average prices and mortgage rates.
The company's net income slid 68% to $137 million that year due to the weakened revenue combined with a high income tax expense (compared to a benefit in 2017), higher commission and agent-related costs, restructuring costs, and interest expense. At the beginning of 2018 the company began a restructuring which included employee terminations, facility closures, and technology investment.
Realogy added $4 million to the top of its cash in 2018. Operations contributed $394 million. Financing activities—mainly common stock repurchases—used $297 million; the company spent $91 million on investments, primarily additions to property and equipment.
Embracing the rapidly expanding role of new technologies in business applications, Realogy Holdings' strategy in recent years has centered on launching software platforms that improve the productivity of its independent sales associates.
In 2019 the company announced that it would begin offering two new technology platforms to its agents: OfferBOOST and Fast Track. OfferBOOST facilitates cash home buying by qualified buyers. Fast Track speeds closings to as little as a week by preparing house-specific mortgage and title work in advance. Realogy launched its Social Ad Engine in partnership with Facebook that year. The program generates ads for agents' listings on social media based on users' data analytics. The company also announced a partnership with OJO Labs through which it is introducing an AI-driven mobile and digital customer support assistant.
Realogy partnered with Home Partners of America in 2018 to offer the company's cataLIST program via Coldwell Banker. cataLIST gives property owners the option of a cash offer for their home purchase within one business day. The owner may accept the offer within five days of receipt; closing can occur in as little as 10 days.
The company also expanded its franchise lineup in 2018 with the additions of Corcoran and Climb Real Estate.
Mergers and Acquisitions
One of the ways Realogy Holdings has achieved record-setting revenue growth over the years is through the use of acquisitions. In 2015, Realogy acquired Coldwell Banker United, realtors in the active markets of Texas, Florida, North Carolina, and South Carolina. Coldwell brought 60 offices staffed by 2,000 affiliated sales associates to Realogy. It continues to operate under the Coldwell Banker brand.
In 2012 Realogy Holdings raised $1 billion in its IPO, a vote of confidence in the recovery of the residential real estate market in the US. Realogy used the IPO proceeds to reduce its more than $7 billion in debt. Despite losing $540 million in the two years prior to its IPO, the firm believed the real estate market was poised for recovery. Its strategy included growing all segments of its business though it offered no specifics on that front. The company's name changed from Domus to Realogy in 2012.
27271 LAS RAMBLAS
Mission Viejo, CA 92691-8041
Phone: 1 (949) 367-1800
Employer Type: Privately Owned
Pres: Robert Becker
Realtor Associate Notary: Joseph Marando
Realtor And Sales Associate: Jan Palya
Employees (This Location): 410
Employees (All Locations): 8,000
Mission Viejo, CA