BAM Key Details:

  • The new 2024 Delta Real Estate Leadership Survey reveals the top five challenges for real estate brokers this year, based on the responses of more than 130 brokerage leaders representing firms collectively responsible for two-thirds of all residential real estate transactions in 2023. 
  • For the second consecutive year, “Recruiting new agents” ranked as the number one business challenge, with 65% of the vote—compared to 63% in 2023, followed by “reduced profit margins” and “agent adoption of brokerage-provided technology.” 
  • The “impact of commission lawsuits” rose to the number four spot this year with 52% of brokerage leaders citing it as a top challenge in 2024. 

According to the 2024 Delta Real Estate Leadership Survey, there were three common themes  real estate brokers pointed to for their top leadership challenges for 2024:

  • Keeping agents engaged and productive
  • Attracting and retaining new talent
  • External market pressures—including high interest rates, inventory shortages, as well as legal and economic uncertainties

Top 10 Challenges for Real Estate Brokers in 2024

More than 130 brokerage leaders responded to the survey, representing firms responsible for about two-thirds of all residential real estate transactions in 2023. 

According to their responses, these are the top 10 challenges for real estate brokers in 2024: 

  1. “Recruiting new agents” (65% — up from 63% in 2023)
  2. “Reduced profit margins” (60% — up from 48%)
  3. “Agent adoption of brokerage-provided technology” (55% — up from 39%)
  4. “Impact of commission lawsuits” (jumping to 52% this year)
  5. “Cutting the right expenses” (47%)
  6. “Recruiting top producers” (47%)
  7. “Retaining top producers” (44%)
  8. “Recruiting younger agents” (35%)
  9. “Providing higher quality leads for agents” (35%)
  10. “Making sure you have the right technology” (35%)

It’s no surprise that recruiting remains the largest challenge for real estate leaders and that the majority see the industry lawsuits as another top challenge. What is a bit of a surprise is seeing the importance of agent tech adoption catapult into the top three business challenge. This indicates that real estate technology will be under a microscope in 2024, and it had better benefit the brokerage’s bottom line.

Michael Minard

CEO and owner of Delta Media Group

Rating all-in-one marketing technology platforms

The Delta survey also asked brokerage leaders to rate the value of all-in-one marketing technology platforms on a scale of one to 10. 

Considering challenge number three was getting agents to adopt brokerage-provided technology, it’s not all that surprising that the average rating was seven. The ease of use and effectiveness of these platforms can vary widely from one brokerage to another. Usage of these platforms to their fullest potential also varies from one agent to the next. 

That said, a more detailed breakdown of the survey responses reveals some interesting trends: 

  • Brokerage leaders aged 30 and under gave the centralized tech platforms a perfect 10.
  • Leaders aged 60 and up gave the lowest rating: 6.6.
  • Female leaders ranked the platforms significantly higher (7.03) than male leaders (6.73).

Other findings

Roughly one in 10 leaders consider “managing teams” or “managing the impact of AI” to be a top business challenge in 2024. And fewer than one in seven say “increasing the speed of agent lead follow-up” or “recruiting a more diverse workforce” is a top challenge this year. 

The Delta survey also challenged brokerage leaders to name the single best thing their brokerage has done so far in 2024. 

Responses tended to focus on these three things: 

  1. Activities related to streamlining operations and cutting costs (same as in 2023)
  2. Integrating new technology and expanding digital marketing activities
  3. Agent support—training, coaching, and marketing assistance

This brings to mind recent announcements from Real Brokerage on their two new programs for real estate team leaders and brokerages: Private Label and ProTeams

It also ties in to our first major event of the year—BAM Pro Bowl—where more than one speaker addressed the impact of artificial intelligence on the industry and spoke on what agents and brokerages can do to leverage the best tools available and spend more time on income-producing activities.

Read the full breakdown of the survey results in the latest issue of Delta Media’s Real Estate and Marketing Technology Magazine