The combination of rising costs of everything and a still depressed market is putting both brokers and agents in financial trouble.
We often talk about how the tight real estate market is impacting individual agents, but it’s also impacting teams and brokerages. Real estate industry leaders must weigh the cost-benefit of everything from new AI implementations to top real estate agents.
This week’s download looks at how brokers are weathering rising prices and razor-thin margins.
Volumes in many markets remain below historical norms, transactions are slower and more competitive, and the costs of meeting agent and client expectations continue to rise. Coldwell Banker Warburg regional vice president Kevlin Guzman wrote that this calculation doesn’t work the way it used to.
Guzman said there is a disconnect in the industry because agents see commission numbers and brokers see income statements. The public conversation is limited to recruitment and market share. A private event taking place behind closed doors at securities firms across the country is how to keep the lights on.
The culprit, she argues, is years of confusing growth with profitability. Brokers can add agents, open offices, and gain market share while secretly draining funds. At some point, it impacts not just the agent’s commission split, but all the technical and operational bells and whistles that the agent expects.
Whether you’re a real estate broker trying to make the numbers work or an agent trying to decide how to maximize your split, we’re here to help you earn more and learn more from Inman contributors every day.
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The agency’s Laney Hake Austin writes that leaders who perform well across the cycle are those who build habits that stick with the business during tough times, ask better questions, and allow their teams to act quickly when windows open.
AI Productivity Gap: Which Tools Really Deliver ROI?
Inman Intel data shows a disconnect between the AI tools offered by brokerages and those actually used by agents, writes Coach Darryl Davis.
Email Christy Murdock
