To deliver the most accurate, meaningful and complete data possible, T3 Sixty starts with the broadest possible set of information, whether it be leaders for the SP 200, brokerages for the Mega 1000, technology providers for the Tech 500 or any of the other sections of the Real Estate Almanac before employing obtaining additional data in a variety of ways, including surveys, franchise reporting, MLS data, public financial statements, interviews, and several other proprietary processes. T3 Sixty strives to verify as far as possible, but, for obvious reasons, cannot guarantee 100 percent accuracy or completeness.
As T3 Sixty is committed to serving as the industry’s foremost provider of business intelligence, and we invite anyone who believes they can contribute to any data set in the Real Estate Almanac to contact our R&D team at firstname.lastname@example.org. We thank you in advance for any input you can provide to make the information we provide better.
A residential real estate brokerage is a company – usually an incorporated firm, a limited liability firm or a sole proprietorship – licensed to sell real estate in the US. As defined in the Real Estate Almanac, a brokerage company’s numbers include subsidiaries in which the company owns a controlling stake of more than 50 percent of the company.
Gathering and analyzing brokerage company data in the Mega 1000 is a rigorous, multistep process. It starts by sending requests for information to the nation’s largest brokerages.
T3 understands it is nearly impossible to identify every brokerage that should be included; that said, T3 has worked persistently to include everyone it is aware of by diligently reaching out to franchisors, networks, organized real estate, any type of list, the media and so on find as many as possible. If a brokerage was inadvertently missed, please reach out to us at email@example.com and the information will be added to the next research cycle.
T3 researches approximately 2,500 real estate brokerages, all real estate franchisors, all real estate holding companies and a selection of large real estate networks. The company annually collects and analyzes over 12,000 data points. T3 examines the numbers, runs algorithms to identify outliers, and tests the gathered information against T3 parameters and benchmarks. This is a huge undertaking; T3 strives to verify data before using it to sort and rank brokerages to ensure that rankings are as comprehensive as possible, as every company not included destroys the integrity of the rankings below that entry.
T3 Sixty ranks for-profit companies (brokerages, franchisors and holding companies) by all three key metrics (sales volume, transaction sides and agent count) although T3 considers sales volume more important as it is the core metric used to calculate agent commission, franchise fees and company revenue. Sales volume is the industry’s best proxy metric for and brokerage overall performance. The Real Estate Almanac data can, however, be viewed from transaction sides and agent count and each provide an interesting vantage point.
In most tables (for example, the top 1,000 brokerages), sales volume is listed in millions of dollars. Due to the large numbers reflected in the top franchisors and top holding companies lists, T3 lists those sales volumes in billions of dollars.
Note that sales volume and transaction sides is calculated by adding the value or number of the homes that a company represented on either the buy or sell side. Therefore, should a company represent both sides of the same transaction, the transaction is counted as two sides. To derive the total size of the market, requires removing this duplication. For reference, the total value of existing home sales in 2019 was approximately $1.65 trillion (5.34 million homes sold (10.64 transaction sides) at a median price of approximately $309,000).
A transaction side is counted as either the list or sell side of a transaction. The rule listed above applies. If a brokerage sells its own listing, two transaction sides are counted; when it co-brokers a transaction, one transaction side is counted. Outgoing referrals are counted by the receiving brokerage and not the sending brokerage.
Agent count is a less important measure but it does, however, still prove insightful. It is also a more verifiable stat than many other numbers and, therefore, provides a valuable benchmark. A large agent count does not guarantee success, but it usually is an indicator of a growing company.
The Mega 1000 does not list office count because in today’s modern technology-driven world, bricks-and-mortar offices are no longer critical to company success. A growing number of companies are consolidating offices and many new models such as Redfin, eXp Realty and United Real Estate serve dozens of markets with no, or only a handful, of actual offices.