Where are teams and brokerages heading? Here are my predictions.
What does the future hold for real estate teams and brokerages? I have three bold predictions:
1. The lines will blur. You’re going to see teams acting more like brokerages and vice versa. We’re already starting to see real estate teams offering very high commission splits and very little service. They’re taking out the leads and leverage to get more people on their team. On the other end, we’re seeing brokerages offering more leads and leverage to their agents. As we move forward, I expect we will see those lines blur even more.
2. Teams will take more market share. Ten years ago, 84% of real estate transactions were performed by individual agents. Today, that number is 46%. I predict this trend will continue as teams get bigger and offer more tools, training, and technology. More and more agents are likely to join teams for those services. This doesn’t mean that the individual agent will go away—there will always be room for them, but teams will take a larger share of the market.
“As we move forward, I expect we’ll see those lines blur even more.”
3. You’ll hear more about teamerages. What is that? It’s a small brokerage that runs as a team. They have high accountability, leads, leverage, and all of the things a team offers, while still being a brokerage. This could also be in the form of a large brokerage where a small group of agents will operate as a team. It’s functionally a team owned by the brokerage, where the brokerage will take its profit split from the team as a whole. This word is going to be big going forward.
I would love to hear what your predictions are and answer any questions you might have. Don’t hesitate to reach out and call or email me. I look forward to hearing from you.
