The top four brokerages in the nation by sales volume and transaction side were, just like in the 2022/21 rankings, still Anywhere Advisors (formerly Realogy), Compass, eXp Realty and HomeServices of America. Steve Murray, a senior advisor at RealTrends Consulting said that these four firms accounted for more than 20% of the U.S. market by sales volume in 2022.
The rest of the market and RealTrends 500 may seem to be taken up a variety other firms. However, when they are grouped by affiliate network or franchise network, Keller Williams, RE/MAX and Anywhere Brands emerge as the top four firms: Berkshire Hathaway HomeServices, Berkshire Hathaway HomeServices, RE/MAX and Berkshire Hathaway. These four firms also occupied the top spots last season.
The top 500 firms by transaction side had 359 franchise affiliates, or approximately 72%, which is roughly 72% of all 500. This is an increase of 69% from a year ago.
Keller Williams had the highest number of transactions sides in 2023 (based upon 2022 numbers) at 811 076, and the highest sales volume in 2022 with $342.5 billion. The Gary Keller-led firm had the highest number of franchise affiliates at 191, with Dallas-Fort Worth-based Keller Williams Realty GO Network Offices being the No. 1 Keller Williams affiliate. 12 by transaction sides and No. 16 by sales volume.
Anywhere Brands, which include the Coldwell Banker and Sotheby’s brands, ERA, Better Homes & Gardens and Century 21 brands, ranked 2nd among franchise networks with 399.481 sides for a $225.8 million sales volume. There were 87 firms in top 500.
RE/MAX was third with 255.361 sides and a volume of $111.6billion. BHHS was fourth with 117.906 sides and $47.9b in volume.
These four companies have a strong grip on the franchise affiliate market, but they could be in direct competition. Compass CEO Robert Reffkin revealed to investors in late February that the company’s executives are looking into franchising to expand their brand and reduce costs.
Reffkin stated that franchising is a more profitable option to growing in new markets than hiring a lot of people and building out office space before you have the revenue to cover it. “But it is important to remember that we wouldn’t do it in a manner that would negatively impact the experience of our existing agents. We would not franchise in the same area as our own brokerage.
Reffkin’s latest play with Compass, which topped the RealTrends 500 rankings for sales volume for the second consecutive year, has the potential of strengthening the firm’s position as the top-ranked firm in terms of sales volume.