BrokerPulse: Leaders see opportunity in the market; focus turns to agent productivity - RealTrends

Real property leaders surveyed for the RealTrends Q4 BrokerPulse are expanding pessimistic astir the marketplace done the extremity of the twelvemonth and into 2023, with 66% of each respondents predicting that location income volition beryllium down much than 5% and 48% noting that location prices volition beryllium down much than 5%, arsenic well.

However, careless of what happens successful the market, brokerage owners are looking to beef up marketplace share, hone successful connected providing worth and summation cause grooming to boost productivity.

RealTrends BrokerPulse requests surveys from immoderate 19,000+ existent property brokerage leaders astir the federation connected marketplace trends and brokerage opportunities and challenges. Of the 175 completed surveys, 29% were from the Southeast, 21% from the Southwest, 23% from the Midwest, 17% signifier the Northeast and 10% from the Northwest. RealTrends BrokerPulse is simply a forward-looking, quarterly survey.

Recruiting precocious producers and expanding productivity stay key

Despite the pessimism astir location prices and sales, immoderate 37% of each those surveyed were neutral astir the adjacent 3 months and 33% were optimistic.

That optimism is apt from leaders who instantly made changes to operating budgets and intelligibly outlined however they would find occurrence successful today’s market.

As portion of that concern outline, expanding per-agent productivity is cardinal for galore brokers, who besides mentioned it arsenic their top situation successful the survey. RE/MAX and eXp Realty some cited recruiting much productive agents and helping existent agents boost their transactions were cardinal initiatives successful 2023.

“We’re grooming our agents connected dialog regarding the existent stats successful our community, which we’ve extracted from our MLS for each municipality by period and 4th this year,” says Doris LaBeau, broker of RE/MAX Masters successful Flat Rock, Michigan.

“Months ago, we updated societal media, web pages, and selling materials to grip today’s changing market. We’re besides grooming agents connected however to inquire for referrals from past clients and customers with thank-you notes and good wishes, which is thing we bash annually.”

Ready to capitalize connected today’s market

And, galore of the leaders surveyed are excited astir the imaginable that comes with a slower market. When asked what opportunities brokers planned to leverage, comments specified as, “Reducing fees to compression retired competitors,” “recruiting agents from accepted models,” “increasing mid-tier agents into higher producers,” “supporting and increasing teams from $50 cardinal and up, ” and “creating a second referral company for agents to bent their licence without incurring MLS and different fees.”

Aggressive recruiting, rolling successful smaller brokerages (aka walkovers), expanding globally and processing a institution pb programme for higher margins per woody were different strategies mentioned by leaders to seizure marketshare.

Challenges for brokerage owners

When it comes to challenges, this survey reveals that expanding per-agent productivity is the biggest situation brokers person implicit the adjacent 3 months, with 32% saying it’s their No. 1 challenge.

That hasn’t changed from past quarter; however, successful Q4 2022, the challenges that moved up the database see keeping agents motivated, reducing operational expenses and competing with caller concern models, apt the low-fee and flat-fee model.

In a National Association of Realtors broker’s forum successful Orlando, a brokerage proprietor with 50 agents questioned however helium tin clasp agents who take to permission for a little costly concern model. “People enactment due to the fact that they consciousness determination is value,” says Cindy Ariosa, elder vice president and determination manager for Long & Foster Real Estate in Maryland.

Christina Pappas, vice president of The Keyes Company successful Florida, agreed. “We inquire our astir loyal agents, what is astir invaluable to you today? And, we inquire this frequently. What bash they similar and what bash they value?”

In the forum, she told the assemblage however she met with 1 cause who told her helium was leaving for much money. “But, they were really lowering his divided but giving him a bonus. So, I did the mathematics with him and helium stayed.” That’s because, she notes, it’s not ever astir the money, but erstwhile it is, you indispensable beryllium capable to articulate the intangibles that you connection and not conscionable split.

Other challenges include:

• Increased regulation, involvement rates and Inflation: 23%
• Keeping agents motivated: 14%
• Pressure connected net/gross margins: 11%
• Reducing operational expenses: 9%
• Difficulty recruiting: 5%
• Competing with caller concern models: 5%
• Retaining agents amid accrued competition: 5%
• Restructuring bureau space: 3%
• Increasing marketplace stock done M&A: 2%
• Increasing seizure rates connected ancillary services: .71%

RealTrends recently added an AgentPulse survey which volition assistance brokerage leaders gauge what agents recognize astir the services brokerage’s connection and connection agents a somesthesia of the market. 

If you person questions about BrokerPulse, email RealTrends Editorial Director Tracey Velt at tracey@hwmedia.com. Also, beryllium definite to sign up for the caller RealTrends Daily, a roundup of news, tips and strategies for success. Each Tuesday, we merchandise a brokerage-focused issue.