We talk a lot about the impact of a tight real estate market on individual agents, but it’s also having an effect on teams and brokerages. Real estate leaders are having to weigh the cost-benefit of everything, from new AI implementation to top-producing agents.
This week in The Download, we’re looking at how brokers are navigating rising prices and razor-thin margins.
The quiet financial crisis happening inside real estate brokerages by Kevelyn Guzman
Transaction volume is still running below historical norms in many markets, deals are slower and more competitive, and the cost of meeting agent and client expectations keeps climbing. The math, Coldwell Banker Warburg regional VP Kevelyn Guzman writes, just doesn’t work the way it used to.
According to Guzman, agents see a commission number, while brokers see a profit-and-loss statement, and it’s creating a disconnect in the industry. The public conversation stays fixed on recruiting and market share. The private one — happening behind closed doors at brokerages across the country — is about how to keep the lights on.
The culprit, she argues, is a years-long confusion of growth with profitability. A brokerage can be adding agents, opening offices and winning market share while quietly hemorrhaging money. At some point, that impacts agent commission splits, as well as all of the tech and operational bells and whistles agents expect.
Whether you’re a real estate broker trying to make the numbers work or an agent trying to determine how to maximize your split, we’re here every day to help you earn more — and learn more from Inman contributors.
Why leaders monetize market pressure while agents ignore it
Want to do more deals? Give renters options they currently don’t even know exist, coach Verl Workman writes, and help make homeownership a reality for more people.
What smart leaders pay attention to during uncertain markets
The leaders who outperform over a full cycle, The Agency’s Rainy Hake Austin writes, are the ones who stayed close to their business during the hard part, asked better questions and built the habits that let their teams move fast when the window opened.
The AI productivity gap: Which tools actually provide ROI?
Inman Intel data shows a disconnect between the AI tools brokerages are providing and the ones that agents are actually using, coach Darryl Davis writes.
