{"id":3164,"date":"2022-06-07T11:00:00","date_gmt":"2022-06-07T11:00:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/07\/special-report-secrets-of-high-growth-real-estate-brokerage-firms\/"},"modified":"2025-03-13T02:43:32","modified_gmt":"2025-03-13T02:43:32","slug":"special-report-secrets-of-high-growth-real-estate-brokerage-firms","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/07\/special-report-secrets-of-high-growth-real-estate-brokerage-firms\/","title":{"rendered":"Special report: Secrets of high-growth real estate brokerage firms"},"content":{"rendered":"\n
Real estate companies grow in many ways: sales volume, transactions sides, agent count, agent productivity and mergers and acquisitions, to name a few. Many firms excel in one or two forms of growth, yet struggle with \u2014 or don’t put a high focus \u2014 on those other growth activities.<\/p>\n\n\n\n
Only a few companies excel in all growth strategies. In fact, in this entire report, only two firms did so.<\/p>\n\n\n\n
RealTrends examined data from 2011 through year-end 2020 \u2014 a 10-year period. Our sources were the RealTrends 500 and Nation\u2019s Best rankings, which cover the largest residential brokerage firms in the United States that closed more than 500 transaction sides, along with 10-year data from the National Association of Realtors<\/strong> (NAR) housing sales and membership studies and other proprietary RealTrends data collected over the past 30 years regarding commission revenue and other factors. <\/p>\n\n\n\n
We then inquired of the 100 best-performing brokerage firms as to the methods, strategies and tactics they used to achieve their results. Twenty firms responded to our questionnaire.<\/p>\n\n\n\n
What was measured<\/strong>:<\/h4>\n\n\n\n
Growth in Agent count<\/li>
Growth in Closed Transaction Sides<\/li>
Growth in Closed Sales Volume<\/li>
Growth in Agent Productivity<\/li><\/ul>\n\n\n\n
There were 731 of the largest brokerage firms in the country who we had complete data on for calendar years 2011 and 2022. The firms represented on the study included brokerages from every business model and state, virtually every nationally branded real estate enterprise and independent brokerage firms.<\/p>\n\n\n\n
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During the period of the study, according to the National Association of Realtors<\/strong> data:<\/p>\n\n\n\n
The number of Realtors grew 49%<\/li>
The number of Closed Transactions grew 41.1%<\/li>
The total Closed Volume of housing sales grew 119.9%<\/li>
Average productivity was essentially flat<\/li>
The total of gross commission revenues grew 101.5% (Source: RealTrends commission data analysis)<\/li><\/ul>\n\n\n\n
We used this data to compare the success of the brokerage firms. <\/p>\n\n\n\n<\/figure>\n\n\n\n
Some surprising findings<\/strong><\/h4>\n\n\n\n
Only 390 brokerage firms (53.3%) grew their total closed transaction side count more than the total number of existing home sales transaction sides count grew over the past 10 years. <\/li>
Only 334 brokerage firms (45.5%) grew their agent counts as fast as the growth in Realtors\u00ae over that same period of time. <\/li>
197 brokerage firms (27%) more than doubled the number of agents over the 10-year period. <\/li>
216 brokerage firms (29.5%) more than doubled the total closed transaction sides in that same period.<\/li><\/ul>\n\n\n\nMedian<\/figcaption><\/figure>\n\n\n\n
Who are the firms ranked in the top 50?<\/strong><\/p>\n\n\n\n
To avoid duplicating, we accounted for the firms that were on more than one of the top 50 ranked firm lists \u2014 growth in agents, transaction sides, sales volume and agent productivity \u2014 and ended up with 107 firms.<\/p>\n\n\n\n
There were affiliates of Berkshire Hathaway HomeServices<\/strong>, Better Homes and Gardens<\/strong> Real Estate<\/strong>, CENTURY 21<\/strong>, Coldwell Banker<\/strong>, ERA<\/strong>, Keller Williams<\/strong>, RE\/MAX<\/strong> and Sotheby\u2019s<\/strong>. <\/p>\n\n\n\n
There were numerous independent brokerage firms as well. <\/p>\n\n\n\n
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