New research by industry tech strategist Mike DelPrete released this week reported that United Real Estate (United) pays its agents 96% of total gross commission earned—more than any other national residential brokerage. According to the company, the residential brokerage is able to do so while also delivering a full complement of agent productivity tools, lead-generation, transaction support, training and brokerage support to its tech-enabled base.
The independently verified findings, published by DelPrete, examine agent compensation at the top U.S. brokerages. DelPrete’s analysis shows that brokerages keep from 4% up to 23% of what agents earn in their home sale transactions. Especially important to note and not surprisingly: the top five brokerages that grew agent count during the period were also those who paid agents the most.
United’s technology strategy is a boon for the agents it serves, the company noted. Significant efficiencies were created by developing its proprietary technology platform, Bullseye™ Cloud. The software’s core was developed in-house and adds the best-in-class plugin functionality procured efficiently at no cost to its agents. It has allowed the company to save and therefore return tens of millions of more dollars to its agents from their transactions that legacy brokerage models would otherwise extract as agent commission splits and fees, they said. The firm is able to deliver all the services and brokerage support agents need while retaining only 4% of gross commission generated on the sale.
Operating profitability on an incredibly thin margin is made possible through scale and volume. Since 2019, United has experienced a 268% growth in agent count and an 826% increase in revenues. According to unadjusted GAAP EBITDA reported by publicly traded peers, United believes it was more profitable in 2022 than any other competitor, the company stated.
“Next-generation brokerage models that prioritize technology and maximize agent compensation now provide equal or superior services compared to traditional commission-split models,” commented Dan Duffy, CEO of United Real Estate Group. “Understandably, agents are migrating to where they receive better compensation and all the services required to grow their business. United was purpose-built to scale without increasing costs as we add agents. That competitive advantage allows us to continue to invest in agent services, innovation and agent compensation in any market cycle. We are making significant investments while other real estate brokerages are scaling back or stagnating.”
Rick Haase, president of United Real Estate, commented:
“United’s mission is to improve the financial trajectory of our agents’ careers and sometimes their lives. It informs every decision and every initiative in which we engage. We are laser-focused on our promise to create better outcomes for our agents and their clients. Our operations and executive teams have invested an incredible amount of energy and dedication to deliver on this promise while making sure we don’t overburden the finances of the organization. We’ve developed superior agent services complemented by the industry’s best compensation. To have our staff and leadership recognized for the achievement is truly rewarding.”
To read the full report, click here.
To learn more about United Real Estate, brokerage succession planning, brokerage valuation and sale or franchising opportunities, visit GrowWithUnited.com or call 888-960-0606. Agents interested in learning about career opportunities with United Real Estate can visit JoinUnitedRealEstate.com or call 888-960-0606.