In a recent Inman article, Mike Delprete makes the dire prediction that most brokerages are heading into a long, cold winter.
Declines in revenue are being driven by both market conditions and seasonality.
Many of the big brands are experiencing the largest declines in revenue along with the iBuyer companies who are fighting for their survival.
Buried in this depressing article was some good news for a certain company who is successfully bucking this negative trend.
Compared to last year, most brokerages experienced a significant revenue decline in Q3.
The exception is eXp, which is benefiting from tremendous growth in agent count, transaction volume and market share.
eXp’s year-over-year growth stands in notable contrast to industry heavyweights Anywhere and Compass, which both experienced year-over-year declines in revenue.
Mike confirms the age-old real estate principle:
Transaction growth (especially during difficult times) is directly correlated to recruiting (i.e. increasing the number of agents on your team).
You can move the needle a small amount by increasing agent productivity, but the significant gains in transaction volume come from adding agents.
If you want to create your own silver lining to these dire predictions, focus time, effort, and resources on recruiting.
eXp is leading the way on a national level.
Who is going to lead the way in your local market?
