Most brokers said they had heard from rival brokerages in recent weeks. Intel explores what goes through their minds when deciding to stay or leave.
This report is available to subscribers only Inman Intelis the data and research arm of Inman, providing insights and market intelligence into the residential real estate and proptech businesses. Subscribe now.
The number of real estate agents is on a downward trend and is likely to decline further as market forces and industry shifts push newcomers and veterans to the edge.
At the same time, most brokerages appear to be actively working to grow their ranks with those who remain in the game.
According to the latest Inman Intel Index industry survey, 6 out of 10 agency respondents Said they were recruited by a competitor within the first 60 days of 2024.The same proportion rises to more than three quarters When you look back at the beginning of last year, the number of real estate agents.
While respondents cited a continued hiring push as the industry norm, at least in their experience, others said the pace of hiring is accelerating.
Here is a sample of quotes from anonymous people who answered questions in the February survey, which included 563 real estate agents out of 811 respondents:
Recruitment efforts typically go hand-in-hand with tenure, track record, experience navigating previous downturns and industry knowledge.
The survey did show a significant decline in recruiting among the longest-tenured agents in 2024, but that group was consistent with other groups of senior agents 14 months ago.
The proportion of brokers who say they may change brokerage companies in 2024 has doubled month by month and is now close to 10%.For broker owners focused on the other side of the coin – retentionThe Intel Index survey reveals emerging trends there, too.
Except for agents who have been engaged in the industry for less than one year, at least 55% All other groups completely ruled out the possibility of a company change. Conversely, with the exception of the newest brokers, no group has more than 7.5% saying they are 100% certain they will switch brokerages.
One of the prominent agent groups of particular interest to offensive and defensive personnel is the group with 1-2 years of industry experience.
While a slim majority is at the most determined end of the spectrum, more than a quarter rate their likelihood of switching brokerages at 3 or higher. This is the highest concentration in the tenure hierarchy.
- among those who joined in the past 24 monthsNearly a third of respondents said “better cultural fit” would be their primary motivation for change.
- other 18% Select “Better Commission/Compensation Structure”.
- 14% It said that increasing consumer awareness and recognition of the new brand will bring about changes.
Among those who actually experienced the real estate downturn, it’s also worth noting that the highest number of respondents will switch brokerage firms in 2023.
Their reasoning behind the move largely aligns with what the organization says are likely drivers of change this year, firstly a change in culture and secondly better commissions/compensation. Some relocation workers also cited “better technology and training.”
The number of agents admitting to brokerage changes increased last year, with more than 10% of agents saying they had switched firms in February for the second month in a row, according to the Intel Index.
For brokerage owners, recruiting and retaining talent ranks far below their current top business concerns. Nearly 30% said interest rates were their biggest concern, a full 10 percentage points higher than retaining talent or finding new stars.
But when asked specifically about recruiting talent, multiple owners and executives pointed to generational issues as the biggest pain point. Their answer choices pointed them toward issues that younger and older agents may face, such as work ethics and technical complexities.
Intel will explore these insights and more in an in-depth series on recruiting in April. The series will be based on new, more detailed questions from the March survey and conversations with experts in the field.
Email Chris LeBarton
Methodological Notes: Inman of the month Intel index poll Taking place from February 20 to March 3, 2024.Invite the entire Inman reader community to participate, and Intel 811 replies received.Respondents to this poll were directed to the SurveyMonkey platform where they self-identified their profile in the residential real estate market. Respondents were limited to one response per device, but there was no limit on IP addresses. Once a profile is selected (residential real estate agent, mortgage broker/banker, business executive/investor/proptech or other), respondents answer a unique set of questions for that specific profile.because poll There is no requirement for demographic information such as age, gender, or geographic location, and there is no weighting of the data.this poll Will be conducted monthly, with recurring questions and unique questions for each profile type.
