The article discusses the challenges facing traditional real estate brokerages amid a sluggish housing market. With home sales at historic lows and high mortgage rates, many brokerages, like Keller Williams, are struggling to retain agents as newer firms gain traction. Antitrust lawsuits have drained resources, impacting in-house investments and prompting brokers to seek external funding through mergers or acquisitions. The importance of maintaining strong banking relationships is emphasized as a means to stabilize operations and navigate market fluctuations.
Brokerages that are struggling may be waiting until the housing market recovers to make changes to their businesses, but that is looking less likely in the near term.
The company can operate consistently despite market iterations to maintain their position in the market without over-leveraging a sole proprietor.
Keller Williams has been losing agent count and teams to newer players such as Compass, The Real Brokerage and Fathom Realty, whose agent counts have risen dramatically in recent years.
There’s a bunch of public brokerages and franchise organizations in the marketplace today, and it gives them impressive banking relationships, allowing for better industry stability.
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