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It’s sometimes argued that in lean times, real estate agents tend to hunker down and remain at their brokerage, then go on the hunt for other opportunities only when market conditions improve.
In reality, these decisions are more complex than any simple adage can capture.
But in the down year of 2023, at least, the vast majority of agents did elect to remain with their brokerage, according to the latest results from the December Inman Intel Index real estate sentiment survey, or Triple-I.
- Only 6 percent of real estate agents who responded to the Triple-I said they switched brokerages in 2023.
- The other 94 percent of agents reported staying put at their brokerage as they rode out the down market.
But as the page turns to 2024, today’s uncertain market outlook could either pressure agents to ride out the storm at their brokerage or launch a wave of new recruiting efforts and competition over the services of top performers.
Read the thoughts and insights of 808 respondents to Intel’s flagship real estate sentiment survey — including 586 agents — below.
When is the grass really greener?
What prods an agent to leave their brokerage amid a down market?
Agents who reported leaving their brokerage in 2023 said in the Triple-I that their decision was motivated by the desire for a culture change or brand-related considerations.
- 41 percent of agents who left their brokerage named a change of culture as one of the chief reasons — the highest of any response choice.
- 24 percent of agents said a better commission and compensation structure influenced their decision to leave.
- 21 percent pointed to better technology and training resources at their new brokerage.
- 17 percent said that brand recognition or reputation was an important part of their decision to leave.
Agents who left their brokerage were also given the option to provide a written explanation, and 45 percent of respondents chose to offer one.
- Just over half of these “other” responses said their decision was related to a major change in their brokerage, such as a sale, merger, closure, relocation or broker retirement.
- Most of the remaining “other” responses pointed to an issue with their former broker or concern over their former brokerage’s business model.
These responses help clarify why some agents felt driven to leave their brokerage last year.
But most had a different experience — and if they were to move on in 2024, it might be for different reasons, the survey found.
The landscape ahead
Despite a broad expectation that the home market may begin to improve in the year to come, very few agents report seriously considering a brokerage move in 2024.
- Just over 5 percent of agent respondents indicated they were likely switching or definitely switching brokerages in 2024 — a similar number as last year.
- Another 10 percent of agents expressed the prospect of moving brokerages as somewhere around 50-50.
- 12 percent of agents on top of that saw it as unlikely but possible that they would make a change.
In total, that means 27 percent of agents are at least somewhat open to a brokerage change, while the other 73 percent are nearly certain they’re sticking with their current one.
That’s a wide gap, but it provides both a ceiling for agent movement in the year to come — perhaps 1 in 4 agents — as well as a floor that is roughly equivalent to the number of departures last year.
What agents value
From this we can conclude that for the vast majority of agents, a brokerage change is barely in consideration heading into 2024. But what are the specific things that are keeping agents at their current brokerage?
Two factors stood out among all others, Intel found.
- Just over 27 percent of agents said that the working culture was the thing they valued most in their current brokerage.
- Just under 27 percent of agents reported that brand recognition was the element of their brokerage that provided the most value to their business.
For other agents, their current brokerage’s existing policies and systems represented the major draw.
- 17 percent of agent respondents said that the technology and educational resources at their brokerage provided the most value to them.
- Another 17 percent said the commission structure was the most attractive part of their brokerage’s value proposition.
And despite the challenging real estate climate, agents generally reported a high degree of confidence in their brokerage’s business model — perhaps another argument for staying put for now.
- 51 percent of agents said they were totally confident in their brokerage’s business model.
- 26 percent described having a great deal of confidence in the business model.
- Only 7 percent reported having either a low level of confidence in their brokerage’s business model, or no confidence at all.
Methodology notes: This month’s Inman Intel Index survey was conducted Dec. 21-31, 2023. The entire Inman reader community was invited to participate, and Intel received a total of 808 responses. Respondents for this survey were directed to the SurveyMonkey platform, where they self-identified their profiles within the residential real estate market. Respondents were limited to one response per device, but there was no limitation to IP addresses. Once a profile (residential real estate agent, mortgage broker/banker, corporate executive/investor/proptech, or other) was selected, respondents answered a unique set of questions for that specific profile. Because the survey did not request demographic information for age, gender, or geography, there was no data weighting. This survey will be conducted monthly, with both recurring and unique questions for each profile type.
