Key Findings from the Agent Migration Report

The Agent Migration and Brokerage Model Performance Report provides an extensive overview of agent transitions within four major Multiple Listing Services (MLS) which collectively represent 31% of U.S.-based agents. The report analyzes factors influencing agent mobility and identifies successful brokerage models amidst the ongoing market evolution.

Insights from the Report

• Leadership is Critical: The analysis found that firms with the largest agent gains and losses included a variety of brokerage models, emphasizing the role of leadership in these transitions.
• Agent Churn is Significant: The movement of 26,363 agents contributed to 129,056 transactions in 2024. The average agent who moved completed approximately 4.83 transactions, posing a considerable financial burden on brokerages.
• Tech-Driven Brokerage Success: Firms that leverage technology attracted higher-performing agents, effectively doubling the median transaction volume compared to less tech-savvy competitors.
• Traditional Brokerages Remain Competitive: Established traditional models continue to thrive due to strong brand identities and stable agent loyalty.
• Capped Revenue-Share Models Experience High Turnover: While these models attract many agents, they also deal with significant outflow, indicating areas for improvement in culture and support systems.
• Importance of Seasonality: The first quarter is highlighted as a peak time for agent recruitment, with notable differences in agent switching rates across regions, particularly in MLS4 (West).

Factors Influencing Agent Movement: The 8 D’s

Market dynamics affecting agent migrations are summarized by the ‘8 D’s’, which illustrate the motivations behind these decisions:

1. Direction: Agents value clear leadership and a well-defined vision.
2. De-risking: Stability and compliance are crucial for agents switching firms.
3. Development: Opportunities for training and mentorship are significant for career advancement.
4. Differentiation: Unique value propositions from brokerages are vital for attracting talent.
5. Dynamics: A positive workplace culture is essential; agents prefer to work in supportive environments.
6. Digital and Data Dominance: Advanced technology and lead generation tools draw high-performing agents.
7. Dollars: Competitive compensation models are a key concern for all agents.
8. Dissatisfaction: The primary reason agents leave is often due to inadequate support and inefficient commission structures.

Implications for Brokers and Team Leaders

As agent movement continues to evolve, brokerage firms are encouraged to reassess their recruiting and retention strategies. The report advocates for the following actions:

• Enhance Recruitment Messaging: It’s vital to offer more than monetary incentives; agents are looking for quality leadership and development opportunities.
• Understand Market Niche: Different brokerage models attract various types of agents; firms should ensure they are targeting suitable candidates.
• Address Onboarding and Retention: Effective onboarding processes and ongoing support are necessary to keep agents engaged and productive.

The Real Estate Agent Migration and Brokerage Model Performance Report is an essential resource for brokers, team leaders, and real estate executives aiming to transform recruitment into a strategic advantage.