September 27, 2007 Elad Bushari

Newsday.com reports today that a real estate company in West Long Beach, NJ is closing due to the housing market and cannot operate anymore.

Here is the full article:

WEST LONG BRANCH, N.J. – Foxtons is closing because of the slumping housing market.

The West Long Branch-based real estate company says it’s contemplating bankruptcy protection for an orderly shutdown.

It will lay off 350 of its 380 workers and intends to keep 4,400 listings on the market.

Senior vice president John Blomquist tells The Asbury Park Press the company no longer has the liquidity to operate as a going concern.

Foxtons was founded in 1999 on the principle that consumers shouldn’t pay a 6 percent commission. Agents were paid salaries and customers were charged 2 percent.

The company was sold in 2004 and eventually commissions were raised to motivate agents to show Foxtons’ homes.

A private-equity firm bought it in May.

…I don’t see it happening in Boston in the near future.

Source: Newsday.com: Real estate company closing, victim of housing slump

Elad Bushari

Elad Bushari is the Broker / Owner of Bushari Group Real Estate and a National "30 Under 30" Honoree by REALTOR Magazine in 2009.

Comment (1)

  1. Jay

    Agents getting a salary? Customers paying 2%? Well, I never heard of that hut with a slow market, it doesn’t seem to me a good idea to run a company that way.

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