Earlier this week, Mike Delprete published an insightful summary the 2022 performance and market data for the major players in real estate industry.
This data paints the obvious picture of declining transactions and subsequent cost cutting.
Transactions were down 18%, and major brokerages cut operating costs 15% to 24%.
The outlier in among the group of brokers Mike highlighted is eXp.
In 2022, eXp grew transactions 12% and increased operating expenses by 19%.
How did they do it?
They grew their agent count by nearly 20% while their competitors’ agent growth was flat.
Mike draws this conclusion:
It’s a numbers game: Less transactions will go to fewer agents–so brokerages with strong agent count growth will outperform the market.
In a market of musical chairs with fewer chairs available, companies with sustainable models, lower overheads, and strong recruiting are more likely to succeed.
While it’s difficult to quickly change your business model, you do have more control over expenses and recruiting.
These are the levers that will make a difference in 2023.
