T
he real estate brokerage landscape is evolving, but at its core, the fundamentals remain unchanged. According to Steve Murray, a senior advisor to HousingWire and founder of RealTrends Verified Brokerage Rankings, new models are emerging, but they're not as revolutionary as some might think.

    Craig McClelland, president of Atlanta-based LOCAL Realty, agrees that the industry is refining rather than reinventing itself. He notes that while the game may be changing, only those who can adapt will thrive. "The playing field may look wide now," McClelland said, "but it's narrowing quickly."

    Recent data shows eXp Realty leading in volume growth over the past five years, adding $80.46 billion for a total of $152.66 billion. Compass followed closely with an increase of $79.04 billion, totaling $231.04 billion.

    New low-cost players are gaining traction, and Murray notes that top movers by volume can be split into two camps: flat-fee or low-cost, organic growth players like eXp, United, Fathom, Samson, and LoKation; and those who have grown through acquisitions, such as Compass, Hanna Holdings, and Sotheby's.

    The rise of eXp Realty and Compass represents a fork in the road for brokerage models. eXp has grown rapidly through a decentralized, low-overhead model powered by virtual offices and agent-led recruiting, while Compass has leaned heavily on mergers and acquisitions and lucrative contracts with top agents.

    Despite their differences, both companies are executing on a similar premise: paying agents out of top-line revenue to fuel rapid expansion. "eXp is paying a piece of top-line revenue to bring in another agent," McClelland said. "Compass is paying a piece of top-line revenue to bring in your production."

    The industry landscape is shifting fast, particularly with the National Association of Realtors' commission lawsuit settlement. This could have significant implications for business models that rely on large numbers of lower-producing agents.

    Murray and McClelland agree that relationships, reputation, and understanding what agents need are key to long-term survival in a rapidly changing market. "More of the noise will fall away," McClelland said. "We'll get back to what works: real support, real relationships, real production." Murray summed it up simply: "The names might change, the tech might change. But in the end, it's still about the people."