(NEW YORK, NY) — Earlier this month during a second-quarter earnings call, Realogy, a real estate holding company, announced its plan to launch a new franchise brand.
Realogy’s CEO, Ryan Schneider, said the company plans to launch at least one new franchise brand by 2019.
Amongst the company’s well-known industry brands are Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Corcoran, NRT, ERA, and many more.
“There are a couple niches in the market that are both a little bit underserved overall and underserved by Realogy,” Schneider said.
Unlike the majority of the real estate industry, Schneider announced that the new franchise brand will not be built around technology. Instead, the brand will offer a different operating model through its physical presence or customer segment targeting.
Realogy’s homesale transaction volume is up 3 percent from this time last year. However, the company also reported disappointing financial results for its brokerage, NRT.
Realogy plans to standardize commission rates across NRT and charge for some new products for agents.
“We are moving quickly to make strategic changes to improve profitability over time, anchored in growing our base of independent sales agents at both NRT and RFG and providing agents compelling service, data and technology products to allow them to increase their productivity,” Schneider said.
Realogy’s increase in transaction volume has led to a 2 percent increase in revenue. The company reported a net income of $123 million, compared to $109 million last year. The company’s EBITDA was $276 million in the second quarter.