Do real estate brokerage firms have any intrinsic value?

David Goldsmith

All Powerful Moderator
Staff member

Elliman sells most in Chelsea, but Compass leads in resales​

Sponsor sales tip balance in overall neighborhood ranking

Chelsea is one of those neighborhoods where a brokerage’s place in the home-sales hierarchy depends on how much business it does in new developments.
Just 20 percent of Chelsea sales last year were by sponsors, but those shiny new units accounted for nearly 40 percent of the $2 billion in sales volume — and two firms scooped up 64 percent of that business.

Douglas Elliman sold more than $253 million worth of new developments in Chelsea last year, followed closely by the Corcoran Group’s nearly $245 million in sponsor sales. That helped put those two firms at the top of the ranking for overall volume with $510 million and $444 million in sales, respectively.
But looking only at resales — which accounted for 62 percent of 2022 dollars spent — Compass is the clear leader in Chelsea with more than $326 million, besting Elliman’s $257 million in resales and Corcoran’s nearly $200 million.

To measure brokerages’ share of the Chelsea market, TRD tapped into the dataset of 58,000 deals from 2022 in our citywide brokerage ranking, and created separate rankings for resales and new development. On a percentage basis, resale commissions are typically larger.
Behind Compass, Elliman and Corcoran in the resale ranking was Brown Harris Stevens, No. 4 with $94 million in volume, and Sotheby’s International Realty, with over $60 million.

Of the 206 new development deals in Chelsea last year, only 63 were closed by a firm other than Elliman and Corcoran. CORE sold nearly half of that remainder — good for a volume of nearly $152 million and the No. 3 spot. Resale leader Compass placed fourth in new dev with nearly $53 million in volume, and Serhant rounded out the top five with $15 million.

Only seven firms sold new developments in Chelsea last year.