BrokerPulse

RealTrends Q32021 BrokerPulse sees brokers still optimistic about the market, wary of competition and wondering when inventory will rise.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Knock.com’s Sean Black on the transaction revolution

Real estate is on its third revolution, from the digital revolution of the early 2000s to the information revolution kicked off by Trulia and Zillow to today's transaction revolution.

Newsletter

The RealTrends BrokerSource and HousingWire OpenHouse newsletters deliver twice weekly information on trends, strategies, analysis, people, and news shaping the real estate industry.

Lessons Learned: 2020 REAL Trends + Tom Ferry Agent Rankings

We received over 14,600 applications from agents and teams for the 2020 edition of The REAL Trends + Tom Ferry The Thousand and America’s Best Real Estate Professionals reports. To qualify, individual agents had to do at least 50 closed sides or $20 million in closed sales volume, and for teams the minimum was 75 sides or $30 million volume.

Collectively, these agents and teams closed 10.5% of all closed transactions and 16.5% of all closed volume while representing less than 1.5% of all Realtors® (members of the National Association of Realtors®) in the country.

Here are a few trends we noted:

  1. Co-listings. The types and kinds of associations that agents are forming among themselves are morphing quickly from what we defined as individual agents and teams. Many individual agents now co-list with other agents to gain business and to share the workload and marketing. Groups of agents and teams are forming their own networks to offer broader coverage or custom services while sharing the costs of marketing and operations.
  2. Brokerage teams. There are teams that resemble brokerage firms and brokerage firms that now resemble teams. It’s clear that there will be more diversification among sales professionals than ever before. We also learned that brokerage firms and national networks are struggling with the challenge of using historic definitions of each model, just as we are.
  3. New business models. One relatively new business model entrant, for example, is Side Inc. This brokerage platform provides back-office business solutions to high-producing teams and individuals, including being the broker of record, while also leaving their agent-team clients alone with their own brand and methods of marketing and providing service. They appear to be gaining some traction in the markets where they operate.

We’re planning a wholesale review of how we do these rankings, in partnership with Tom Ferry and The Wall Street Journal, which will involve leaders from across the industry. This review will examine every part of the system, from classification, to collecting the data, verification and publication due to changes in the cross section of how agents and teams are formed and how they operate.

One other important factor we learned is that agents and teams want to be fairly classified and want a real verifiable ranking service. While we may have thought it was important, we learned that is more important than ever before, as is the dissemination of that data. We are also working on new ways to present the data so that searches are easier.

Most Popular Articles

Where is the housing market headed?

Rising incomes, low interest rates and all other factors, including the balance between families looking for housing and the availability of housing, point towards a continuation of the strong housing market of the last 15 to 18 months.

Oct 18, 2021 By

Latest Articles

Climate migration driving more buyers to Burlington, VT

An influx of buyers from California, Colorado, Florida and the tristate area are looking to buy in Burlington, Vermont. There’s just one problem: there’s hardly any inventory.

Oct 23, 2021 By