This article is shared here with permission from Mike DelPrete of Inman Intel, the data and research arm of Inman that provides insights and market intelligence on the residential real estate and proptech businesses. Subscribe now.
I recently wrote an article about learning from the new generation of brokerages, which includes the migration patterns of tens of thousands of agents across the industry.
why this is important: There are many reasons why agents switch brokerages — technology, payroll, support, brand — but it turns out that one of the biggest factors may simply be that agents are attracted to something new.
- In 2023, agents continue to exit large legacy brands, lured by low-fee brokerage models in which agents keep more of their commissions.
you deeper: In addition to compensation structure, another factor appears to be at play: the average age of the brokerage firm.
- Real, Fathom, United, RealtyOne, Compass and eXp Realty, with an average brokerage age of 14 years, are all attractive agents.
- Traditional brands such as HomeServices of America, Keller Williams, RE/MAX and Anywhere, with an average age of 43, are all losing agents.
This triggered An interesting question: why?
- Real estate agents are entrepreneurs, and like hard-working con men, they always seem to be looking for something new: new ideas, new models, new opportunities to grow their business.
- The new brokerage is rife with real and perceived potential—the potential to do more for agents.
bottom line: The industry is changing, and a strong trend is the migration of agents between brokerage firms.
- There are many factors driving this trend, but the main determining factor appears to be the relative history of the brokerage.
- It’s a timely reminder of agents’ entrepreneurial spirit and the appeal and potential of something new.
Mike Delprete is strategic advisor Global experts in real estate technology, including iBuyer offer aggregator Zavvie.contact him LinkedIn.
