A down market can be hard on small & medium-sized brokerages; we saw this play out in 2008-2009. More and more, many of these brokerages are considering a move to eXp Realty. These brokers get to reduce their expenses, shift the broker liability, technology & training to eXp, and still love on their agents. Brokers get to keep their agents, keep their branding, & reduce their expenses.
In most cases, the small & medium-sized brokerages who move their brokerage into the eXp umbrella net more money than their current operation. This will play out even more so with the market downturn as agent production goes down, low producing agents exit the business, yet brokerages still have their fixed costs with space, staff, & technology.
Many small & mid-sized brokerages are losing money right now & need to right that ship. Some of them will declare bankruptcy in 2023 (we saw this in the 2007-2009 downturn) ... it's just that the economics of their model & current agent count & reduced sales has pushed their P&L in to the red.
Some of these brokerages maintain their leased commercial space (typically very expensive), many get out from under that enormous expense and shift to virtual.
The eXp compensation model often creates more upside for the broker & the broker leaders than they did running their individual office.
Some of the brokerages that have joined eXp:
Houston's Abby Realty with 200 agents
Fresno's Jason Farris with 50 agents
Phoenix Angela & Chuck Fazio ... their brokerage had over 800 agents
and new ones in the process every week
We have a team in place that specifically (& confidentially) helps brokerages run a custom financial assessment, no commitment. For those with the right match, we work to help them where they are at with a soft on-ramp to the eXp platform & then help their agents create opportunity with their businesses.
Interested or curious? Call me direct at 512-848-5881 or set up a call HERE.