BrokerPulse

RealTrends Q4 2021 BrokerPulse: Office consolidation, boosting agent productivity and core services capture rates continue…

2021 Website Rankings Now Live!

RealTrends website rankings highlights the top real estate websites across the country in 6 total categories for our annual brokerage website rankings.

Building more diversity and inclusion into your brokerage firm

Real estate brokerage strategies to create a diverse and inclusive company.

Study: It’s true, real estate teams outperform brokerage firms

Surveyed real estate team gross margins were an average of 61.8% compared to an average of 13.8% for real estate brokerage firms.

Findings From 2020 The Thousand & America’s Best Real Estate Professionals Rankings

For the first time, we ranked teams in our reports by their size based on the number of licensed Realtors® they had on the team. Small teams had 2-5 members, medium teams had 6-10, and large teams had 11 or more. We’ve measured the relative production and productivity of these different-sizes teams and found some interesting data:  

                                    Sides per         Volume per        Average # of All
Size of Team            Realtor®             Realtor®                   Realtors®

Small team                     31.3               $9,035,723                       3.5

Medium team               18.1               $6,110,378                       7.5

Large team                     12.8               $4,776,607                     17.8

Overall                             17.1               $6,981,540                       7.2

Now look at the average productivity per team:

Size of Team                        Total Sides                      Total Volume

Small teams                             109.6                                $31,625,030

Medium teams                       135.8                                $45,827,835

Large teams                             227.8                                $85,023,604

If we assume a national average commission rate of 2.45% for each of these teams, then small teams are averaging $777,976 in gross commissions (before splits or cost-sharing with their brokerage firm), $1.2 million in gross commissions for medium teams and $2.1 million for large teams.

Looking at teams on our 2020 REAL Trends + Tom Ferry America’s Best Rankings, the aggregate numbers of sides, volume and gross commission income estimates are as follows: 

Total transaction sides                             116,759

Total sales volume                                     $47,669,955,120

Total gross commissions                          $1,167,913,900

We thought these data numbers would be of interest to our readers.

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