Challenging Times For Brokerages — And Especially Indies, Leaders Say

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Agents and executives at indie brokerages take a lot of pride in their business models, their independence and their ability to nimbly respond to new challenges.

But their leaders also acknowledge that today’s market conditions are a bit tougher for their preferred way of doing business, new results from the Inman Intel Index survey suggest.

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Leaders at privately owned independent brokerages are more likely to report downward pressure on their commission rates, weaker confidence in their business models and greater reluctance to prepare for higher transaction levels than their counterparts in bigger real estate networks, according to results from April’s survey.

And their differing paths through this market also have implications for brokerage hiring, recruiting and M&A decisions, Intel found.

For this report, Intel, in April, sought the perspectives of more than 100 broker-owners, executives and investors at real estate firms across the country. 

Their perspectives on a wide range of questions were then broken down by their brokerage’s affiliation — franchises and other big brands on the one hand and private indies on the other.

The full findings are available in this week’s report.

Diverging experiences

Since the NAR settlement rules went into place last August, a number of real estate professionals have reported that declines in their compensation rates have been real, albeit fairly small.

But the latest Intel survey finds that commissions have been a bit steadier for brokerages that are part of a larger network.

• 37 percent of surveyed leaders at brokerages affiliated with franchisors or publicly traded brands reporting commissions have decreased at least slightly since the new rules went into effect.
• Compare that to 52 percent of private indie leaders who have made the same observation.

The reason for this difference is unclear.

But as a result, leaders of private indie firms are more likely than others to name “margin compression” as their top concern, while brokerage leaders in bigger networks point to recruiting and macroeconomic factors as more pressing headaches.

There’s also some evidence in the survey that those brokerages affiliated with bigger networks may be in a better position to respond quickly to a potential upswing in transaction activity, when it arrives.

Leaders at firms in large networks are more likely to say they’ve increased headcount over the past year — and more likely to say that’s likely just the start of their hiring efforts.

• 35 percent of leaders surveyed at bigger brand brokerages said they had a higher headcount in April than at the same time last year. Only 18 percent of private indie leaders said the same.
• Meanwhile, 74 percent of leaders at big-brand-affiliated operations told Intel that they expected their company’s headcount to be higher next year than it is today, compared to 53 percent of private indie leaders who provided the same response.

Generally, brokerage leaders said they felt that their businesses were well-positioned for the market challenges they face today. But leaders at firms affiliated with bigger brands were more likely to report that they were especially confident in their business model.

• 41 percent of surveyed leaders in bigger brokerage networks expressed total confidence in their business model, a bit higher than the 30 percent of surveyed leaders at private indies who said the same.
• Still, most leaders in both groups felt their business model was adequate for today’s market conditions. Only 13 percent of leaders from big networks and 12 percent of leaders at private indies reported having low confidence in their business models.

Through the lens of these two very different experiences and outlooks within the same down market, brokerage leaders also described differing expectations for how their firms would proceed in the year ahead.

Implications for deals

Intel also asked brokerage leaders about how actively their leadership teams are fielding mergers and acquisitions today, and how active they expect negotiations will be a year from now.

Across the board, smaller brokerages were less likely to be actively discussing M&A.

• Only 37 percent of surveyed leaders at private indies said that M&A was even remotely on the radar in April, compared to 70 percent of leaders at brokerages with bigger brands.
• 16 percent of leaders at private indies told Intel they expected M&A talks at their brokerage to be likely 12 months from now, compared to 41 percent of leaders at bigger firms.

Of those brokerage leaders who said M&A is an active consideration in the year to come, most were primarily interested in acquiring other brokerages, not being acquired or merging with another firm. But smaller indie brokerages were open to a wider array of potential deals — including selling.

In most cases, the possibility of their ownership selling was not expected to be due to an impending retirement of the broker-owner. 

• Twice as many respondents at private indies said that they expected their owner to stay on in a leadership role if the brokerage was sold, compared to members of the same group who expected their owner might retire.

Broker-owners and executives at small private indies were also more likely to see M&A as an opportunity to expand market share within their existing territory, and no more likely than larger-network firms to eye an expansion into new markets.

Methodology notes: This month’s Inman Intel Index survey was conducted April 17-May 2, 2025, and received 428 responses. The entire Inman reader community was invited to participate, and a rotating, randomized selection of community members was prompted to participate by email. Users responded to a series of questions related to their self-identified corner of the real estate industry — including real estate agents, brokerage leaders, lenders and proptech entrepreneurs. Results reflect the opinions of the engaged Inman community, which may not always match those of the broader real estate industry. This survey is conducted monthly.

Email Daniel Houston