Who’s Winning (And Losing) The Agent Count Race? Mike DelPrete
The true property business is altering, pushed partly by adjustments in brokerage affiliation, writes Mike DelPrete. Learn how agent migration patterns can provide important perception into the way forward for actual property brokerage progress.
This video was shared right here with the permission of Mike DelPrete for Inman Intel, an information and analysis arm of Inman providing deep insights and market intelligence on the enterprise of residential actual property and proptech. Subscribe right now.
The primary quarter of 2023 noticed quite a lot of winners and losers by way of brokerage agent depend – the numerical manifestation of agent recruitment and retention.
Why it issues: As I’ve beforehand asserted, brokers are central to the actual property transaction; progress in transaction volumes goes hand in hand with progress in agent depend, as a result of brokers promote homes.
Dig deeper: Disruptive, low-fee brokerages like eXp Realty, Actual Brokerage, United Actual Property, and RealtyOne all added brokers throughout the first three months of the yr.
- In the meantime, among the largest incumbent brokerages and franchises — Keller Williams, RE/MAX, and Anyplace — all misplaced brokers.
The 5 largest brokerages and franchises on this checklist — Anyplace, Keller Williams, RE/MAX, Compass, and eXp Realty — account for over 427,000 brokers, down 1.1 p.c from the earlier quarter.
- Amongst them, solely eXp Realty grew its agent depend from the final quarter.
- Redfin, with lower than 2,000 salaried principal brokers, is the draw back outlier after three rounds of layoffs.
Actual Brokerage is the clear upside outlier, rising its agent depend over 20 p.c — to 10,000 brokers — from the earlier quarter.
- 10,000 brokers is significantly fewer than Anyplace’s 58,000 or RE/MAX’s 82,000, however Actual is catching as much as Compass’ 28,000 brokers.
Talking of Compass, Q1 2023 was the primary time that the brokerage’s agent depend decreased.
- Context is necessary: Many brokerages misplaced brokers.
- However Compass is not within the ranks of “fast-growing brokerages,” a class it dominated over the previous three years. That mantle now passes to eXp Realty and Actual (and several other different low-fee brokerage fashions).
What to observe: Agent migration patterns are a big main indicator of future brokerage progress.
- In a interval of belt-tightening and fewer transactions, brokers are transferring away from conventional manufacturers and flocking to comparatively newer fashions the place they’re capable of hold extra of their fee.
The underside line: Brokers — and never AI, machine studying, a complicated CRM, a one-click transaction, nor some other tech buzzwords — promote homes.
- This era of market shortage reveals the brokerage enterprise fashions capable of thrive in a downturn, in addition to these going through extra elementary challenges.
- To determine the brokerage enterprise fashions of the longer term, one merely must comply with the brokers.
Notice: On account of reporting limitations, the agent depend included for eXp Realty is a worldwide determine, whereas Keller Williams and RE/MAX embody the U.S. and Canada.
Mike DelPrete is a strategic adviser and international professional in actual property tech, together with Zavvie, an iBuyer provide aggregator. Join with him on LinkedIn.