Compiled by Recruiting Insight in collaboration with BoldTrail, the recently released Agent Migration and Brokerage Model Performance Report found that 13% of active real estate agents changed brokerages last year. The study reveals concerns surrounding leadership and a growing competitive landscape, resulting in a need to introduce or redouble recruitment and retention strategies.
“This report puts the facts on the table: agents are on the move, and you must have a clear plan to attract and retain top talent,” said Mark Johnson, who authored the report for Recruiting Insight. “In today’s market, a strong attraction and talent acquisition program is no longer an option, it’s survival.”
The Impact of Lost Talent
The Agent Migration and Brokerage Model Performance Report focused on four major multiple listing services (MLSs), which combined accounted for nearly a third of all real estate agents in the United States. By analyzing patterns in agent movement, brokerage performance, and business models, the study identified several factors that could lead to lost talent and market share for real estate brokerages.
According to the report, 13% of agents who switched companies in 2024 accounted for more than 129,000 home sales transactions. The 26,363 agents who switched brokerages in the report completed an average of 4.83 transactions each, though the difference between top producers and other agents was significant. For any real estate firm to lose that much business would be severely impactful, but what can be done about agent turnover?
The Impact of Strategic Leadership
The study showed that every brokerage model, whether it took a traditional approach or one like a capped revenue share, was represented among high-agent gain and loss firms. What this suggests, then, is that leadership could be a core element of a real estate firm’s success.
While real estate firm models remain relatively even in terms of agent gain and loss, the study revealed that tech-driven brokerages were more successful at attracting high-performing agents. These tech-driven companies reportedly nearly doubled the median sales volume of their competitors, who followed different models.
Traditional firms and other market approaches may still be competitive, but high-performing agents will almost always be more effective at attracting customers than others. That said, it can be more impactful to lose them. An effective leader will be more capable of retaining the right team for the right model or approach.
Forces Driving Recruitment and Turnover
The study put forth the “8 Ds” (direction, de-risking, development, differentiation, dynamics, digital and data dominance, dollars, and dissatisfaction) as motivators behind agent mobility. Most agents focused on a lack of support (direction/dissatisfaction), slow commission payouts (dollars), and outdated technology (digital and data dominance) as reasons for leaving firms. By addressing these agent concerns with effective leadership strategies, a brokerage may be able to stay ahead of future challenges.
“Forget the preconceived notions about agent movement,” Jay Teresi, Inside Real Estate’s vice president of back office sales, stated. “This report shows success boils down to leadership and a strong conviction in your value proposition. From there, it’s about solid planning and execution.”
