The Indie Brokerage Endures

This week I attended a Small Broker Forum that was put on by our local Association of Realtors, providing an opportunity to share and compare ideas, insights and stories with the other brokers who showed up.

In this age where mega agencies like Compass and eXP are continuing to merge and grow, independent brokerages continue to make up the majority of the agent population. According to one of the key brokers who helped organize the event, NAR membership rolls show that about 60% of agents nationwide remain independent, and it’s possible their numbers may grow, given factors like the greater flexibility they can allow in services offered over many franchises in an increasingly constrained environment.

Our local rosters show the number of independent brokers running at around half that ratio in our County, with a little over 300 of our Association’s total membership of 1200 or so agents, due to the size of several larger franchised offices whose ranks total 100 agents or more. 

The forum didn’t have a set format, but was instead an informal gathering nearby at Beer Thirty with a small sign identifying the group, which turned out wasn’t needed since all the agents who showed up already knew everyone at the table—no surprise in an industry where a majority of the business is typically dominated by a few key players.

One of the drivers for the forum was to get input on what Associations such as ours can do to better serve the needs of smaller brokerages. Suggestions included an informal network or online forum where local brokerages can seek and share peer advice and recommendations on things like service providers or market data. 

With large numbers of the successful agents even at the franchises choosing to use their own technology platforms over those provided by the agency, it has become increasingly clear in the modern era that an agent doesn’t need the network of a national conglomerate to access tools that effectively handle the analysis, marketing and increasingly complex details of their clients’  transactional needs. Similarly, most independent agents tend to be well-connected within their local community and other brokers across town, and it is these types of connections that enhance the level of service they are able to provide. 

Speaking from my own experience, I have greatly benefitted over the years as a member of the Santa Cruz Masterminds, a closed group of 12 prominent local agents meeting across agency lines twice a month via Zoom to keep each other abreast of both broader industry topics as well as daily operations. And we keep a pretty lively discussion thread in between meetings exchanging advice on everything from service providers to valuation, to advice on situations that can benefit from a qualified second or third perspective.

It would be nice to see an ongoing collaboration amongst independent brokerages at a broader local and national level as the indie brokerages continue to thrive. And perhaps with the help of events like this recent forum and the support of other associations outside the area, such a network can eventually take shape.