The annual Real Trends 500 list of top brokerages by sales volume and transaction sides provides insight into which brokerages are growing, which are slowing down and where companies are investing their money. HomeServices of America overtaking NRT LLC as the top brokerage in transaction sides was perhaps the biggest shock on the list.
In a statement to Inman, NRT CEO Ryan Gorman declined to address the slide to No. 2 and instead focused on NRT once again retaining the top spot in sales volume, at $176 billion.
“We are proud of our No. 1 ranking in sales volume,” Gorman told Inman. “We made a conscious and strategic decision to realign our focus from growing territory through acquisition to instead investing heavily in the technology and services to keep our agents at the center of the transaction and enable them to demonstrate their value to their clients every single day.”
Since Ryan Schneider took the helm of Realogy – the parent company of NRT – more than a year ago, much of his focus has been on creating a juggernaut that can move swiftly, rather than one that continuously grows in size and cannot quickly adapt. Gorman said the increase in sales volume shows that NRT is making progress towards those goals.
“We believe it imperative to support our agents’ productivity, help them build more personal wealth, and enable them to act more nimbly and competitively in a dynamic industry,” Gorman said. “This announcement demonstrates that we are achieving our mission.”
Compass was the biggest grower on the list, settling into the third spot on the list in sales and volume – and also now the largest unaffiliated brokerage in the country in that category. The company also jumped to sixth from 45th in transactions.
Compass’ growth was led by major acquisitions and recruiting some of the most highly productive agents and teams across the country.
“This milestone is a humbling moment as we build Compass to be the very best it can be,” Compass CEO Robert Reffkin told Inman. “None of this would be possible without the tireless efforts of the 12,000 plus agents and staff that comprise our wonderful Compass family. It is a privilege to work for the thousands of great entrepreneurs around the country in our 240 plus offices from coast to coast.”
EXp Realty was another brokerage that climbed the ranks, hitting fourth in transactions after finishing seventh last year.
“It’s pretty humbling to think that an idea that was a bit of an experiment nine-and-a-half years ago could turn into something so impactful for so many,” eXp CEO Glenn Sanford told Inman. “Working in a decentralized way it’s interesting to think about what this size of an operation translates into more traditionally. I didn’t expect the growth this quickly, even though on paper it made sense back then.”
In the battle for franchise supremacy, RE/MAX boasted that the list proves its affiliated brokerages outsold competing agents on average by 16.3 transactions to an average of 7.1 transactions for agents from other brokerages.
“In an industry where world-class customer service matters, RE/MAX agents continue to deliver,” RE/MAX CEO Adam Contos said. “As part of a network of 125,000 agents in more than 110 countries and territories, RE/MAX brokerages that qualified for the REAL Trends 500 report embrace innovative tools, training and technology to stand out from the competition.”
Keller Williams had more affiliated brokerages that appeared in the top 500 in transactions than any competitor, with 174 brokerages. But RE/MAX takes the cake when considering all 1,700 brokerages that were surveyed for the list – not just the top 500 – with 559 qualifying.