{"id":3668,"date":"2022-11-12T17:53:04","date_gmt":"2022-11-12T17:53:04","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/11\/12\/brokerpulse-leaders-see-opportunity-in-the-market-focus-turns-to-agent-productivity\/"},"modified":"2025-03-13T02:47:58","modified_gmt":"2025-03-13T02:47:58","slug":"brokerpulse-leaders-see-opportunity-in-the-market-focus-turns-to-agent-productivity","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/11\/12\/brokerpulse-leaders-see-opportunity-in-the-market-focus-turns-to-agent-productivity\/","title":{"rendered":"BrokerPulse: Leaders see opportunity in the market; focus turns to agent productivity"},"content":{"rendered":"\n<div class=\"infogram-embed\" data-id=\"b814837f-cb1b-45b0-a2f9-6491509eccac\" data-type=\"interactive\" data-title=\"Q4 RT Broker Pulse\"><\/div><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName(\"script\")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(\"script\");o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,\"infogram-async\");<\/script>\n\n\n\n<p>Real estate leaders surveyed for the&nbsp;<a href=\"https:\/\/preprod.realtrends.com\/blog\/category\/brokerpulse\/\" target=\"_blank\" rel=\"noreferrer noopener\">RealTrends Q4 BrokerPulse<\/a>&nbsp;are increasing pessimistic about the market through the end of the year and into 2023, with 66% of all respondents predicting that home sales will be down more than 5% and 48% noting that home prices will be down more than 5%, as well. <\/p>\n\n\n\n<p>However, regardless of what happens in the market, brokerage owners are looking to beef up market share, hone in on providing value and increase agent training to boost productivity.<\/p>\n\n\n\n<p><strong>RealTrends BrokerPulse<\/strong>&nbsp;requests surveys from some 19,000+ real estate brokerage leaders around the nation on market 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% form the Northeast and 10% from the Northwest. RealTrends BrokerPulse is a forward-looking, quarterly survey.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-recruiting-high-producers-and-increasing-productivity-remain-key\">Recruiting high producers and increasing productivity remain key<\/h3>\n\n\n\n<p>Despite the pessimism about home prices and sales, some 37% of all those surveyed were neutral about the next three months and 33% were optimistic.<\/p>\n\n\n\n<p>That optimism is likely from leaders who immediately made changes to operating budgets and clearly outlined how they would find success in today&#8217;s market. <\/p>\n\n\n\n<p>As part of that business outline, increasing per-agent productivity is key for many brokers, who also mentioned it as their greatest challenge in the survey. <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/re-max-looks-to-its-experienced-agents-to-guide-it-through-the-market-shift\/\" target=\"_blank\" rel=\"noreferrer noopener\">RE\/MAX<\/a> and <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/as-profits-dip-exp-looks-to-attract-higher-performing-agents\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>eXp Realty<\/strong><\/a> both cited recruiting more productive agents and helping current agents boost their transactions were key initiatives in 2023.<\/p>\n\n\n\n<p>&#8220;We&#8217;re training our agents on dialogue regarding the actual stats in our community, which we&#8217;ve extracted from our MLS for each town by month and quarter this year,&#8221; says Doris LaBeau, broker of <strong>RE\/MAX Masters<\/strong> in Flat Rock, Michigan. <\/p>\n\n\n\n<p>&#8220;Months ago, we updated social media, web pages, and marketing materials to handle today&#8217;s changing market. We&#8217;re also training agents on how to ask for referrals from past clients and customers with thank-you notes and well wishes, which is something we do annually.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ready-to-capitalize-on-today-s-market\">Ready to capitalize on today&#8217;s market<\/h3>\n\n\n\n<p>And, many of the leaders surveyed are excited about the potential that comes with a slower market. When asked what opportunities brokers planned to leverage, comments such as, &#8220;Reducing fees to squeeze out competitors,&#8221; &#8220;recruiting agents from traditional models,&#8221; &#8220;increasing mid-tier agents into higher producers,&#8221; &#8220;supporting and growing teams from $50 million and up, &#8221; and &#8220;creating a <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/creating-value-with-a-real-estate-license-holding-and-referral-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">second referral company<\/a> for agents to hang their license without incurring MLS and other fees.&#8221;<\/p>\n\n\n\n<p>Aggressive recruiting, rolling in smaller brokerages (aka walkovers), expanding globally and developing a company lead program for higher margins per deal were other strategies mentioned by leaders to capture marketshare.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Challenges for brokerage owners<\/h3>\n\n\n\n<p>When it comes to challenges, this survey reveals that increasing per-agent productivity is the biggest challenge brokers have over the next three months, with 32% saying it\u2019s their No. 1 challenge. <\/p>\n\n\n\n<p>That hasn&#8217;t changed from last quarter; however, in Q4 2022, the challenges that moved up the list include keeping agents motivated, reducing operational expenses and competing with new business models, likely the low-fee and flat-fee model.<\/p>\n\n\n\n<p>In a <strong>National Association of Realtors<\/strong> broker&#8217;s forum in Orlando, a brokerage owner with 50 agents questioned how he can retain agents who choose to leave for a less expensive business model. &#8220;People stay because they feel there is value,&#8221; says Cindy Ariosa, senior vice president and regional manager for <strong>Long &amp; Foster Real Estate <\/strong>in Maryland.<\/p>\n\n\n\n<p>Christina Pappas, vice president of <strong>The Keyes Company<\/strong> in Florida, agreed. &#8220;We ask our most loyal agents, what is most valuable to you today? And, we ask this frequently. What do they like and what do they value?&#8221; <\/p>\n\n\n\n<p>In the forum, she told the audience how she met with one agent who told her he was leaving for more money. &#8220;But, they were actually lowering his split but giving him a bonus. So, I did the math with him and he would actually be making less at that other firm, so he stayed.&#8221; That&#8217;s because, she notes, it&#8217;s not always about the money, but when it is, you must be able to articulate the intangibles that you offer and not just split.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-other-challenges-include\">Other challenges include:<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Increased regulation, interest rates and Inflation: 23%<\/li><li>Keeping agents motivated: 14%<\/li><li>Pressure on net\/gross margins: 11%<\/li><li>Reducing operational expenses: 9%<\/li><li>Difficulty recruiting: 5%<\/li><li>Competing with new business models: 5%<\/li><li>Retaining agents amid increased competition: 5%<\/li><li>Restructuring office space: 3%<\/li><li>Increasing market share through M&amp;A: 2%<\/li><li>Increasing capture rates on ancillary services: .71%<\/li><\/ul>\n\n\n\n<p><strong>RealTrends<\/strong>&nbsp;recently added an&nbsp;<a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/category\/agentpulse\/\">AgentPulse survey<\/a>&nbsp;which will help brokerage leaders gauge what agents understand about the services brokerage\u2019s offer and offer agents a temperature of the market.&nbsp;<\/p>\n\n\n\n<p><em>If you have questions about&nbsp;<strong>BrokerPulse<\/strong>, email&nbsp;<strong>RealTrends<\/strong>&nbsp;Editorial Director Tracey Velt at&nbsp;<a href=\"mailto:tracey@hwmedia.com\">tracey@hwmedia.com<\/a>. Also, be sure to&nbsp;<a href=\"https:\/\/preprod.realtrends.com\/blog\/newsletter\/\" target=\"_blank\" rel=\"noreferrer noopener\">sign up for the new RealTrends Daily, a roundup of news, tips and strategies for success<\/a>.<\/em>&nbsp;Each Tuesday, we release a brokerage-focused issue.<\/p>\n\n\n\n<script>(function(t,e,s,n){var o,a,c;t.SMCX=t.SMCX||[],e.getElementById(n)||(o=e.getElementsByTagName(s),a=o[o.length-1],c=e.createElement(s),c.type=\"text\/javascript\",c.async=!0,c.id=n,c.src=\"https:\/\/widget.surveymonkey.com\/collect\/website\/js\/tRaiETqnLgj758hTBazgdx_2BVBr8LFY_2FPWk7GyAwLv7zBTd2wWfFdz06U8xAcMvFU.js\",a.parentNode.insertBefore(c,a))})(window,document,\"script\",\"smcx-sdk\");<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Some 66% of brokers surveyed predict that home sales will be down more than 5% in the next three months. Despite that, they are excited about the opportunities to come.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[19],"class_list":["post-3668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>BrokerPulse: Leaders see opportunity in the market; focus turns to agent productivity - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"66% of brokers predict that home sales will be down more than 5% in 2002. 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