Agent Migration and the Power of New

/
 
 

I recently wrote about Learning From A New Generation of Brokerages, which includes the migration patterns of tens of thousands of agents across the industry. 

Why it matters: Agents change brokerages for a variety of reasons – technology, compensation, support, brand – but it turns out one of the biggest factors may simply be that agents are attracted to new things.

  • During 2023, agents continued to stream out of the big legacy brands for the lure of low-fee brokerage models, where agents can keep more of their commission.

 
 

Dig deeper: Aside from compensation structures, another factor appears to be at play: the average age of the brokerage.

  • Real, Fathom, United, RealtyOne, Compass, and eXp Realty, with an average brokerage age of 14 years, are all attracting agents.
     

  • While HomeServices of America, Keller Williams, RE/MAX, and Anywhere – the legacy brands with an average age of 43 years – are all losing agents.

 
 

Which raises an interesting question: why?

  • Real estate agents are entrepreneurs, and like the hard-working hustlers they are, appear to always be looking for something new: new ideas, new models, and new opportunities to grow their businesses.
     

  • New brokerages are brimming with actual and perceived potential – the potential to be more and do more for agents.

The bottom line: The industry is shifting, and one powerful trend is the migration of agents between brokerages. 

  • A number of factors are driving that movement, but a major determinant appears to be the relative age of the brokerage.
     

  • Which is a timely reminder of the entrepreneurial spirit of agents and the alluring power, and potential, of something new.