For real estate agents, choosing the right brokerage to work for is one of the most important decisions in building a successful career. Two of the major national real estate brokerages agents may consider are HomeSmart and Keller Williams Realty.
Both companies have strong national presences, but they operate differently and offer unique advantages. This comprehensive guide examines the key differences between HomeSmart and Keller Williams to help agents select the best brokerage for their needs.
A Brief Comparison Table
| Category | HomeSmart | Keller Williams |
| Founded | 2000 | 1983 |
| Business Model | 100% commission; pay-for-service fees | Commission split |
| Commission Splits | No splits; pay 7.5-25% transaction fees | Varies by market center, typically 50/50 – 70/30 |
| Fees | $49/month minimum broker fee | No monthly broker fees |
| Lead Generation | eEdge platform; Lead Machine program | Varies by market center |
| Training Programs | Ignite online courses; Shift workshops | Keller Williams University; Market center training |
| Technology | eEdge platform; no mobile app | Keller Cloud; Command CRM mobile app |
| Company Culture | Collaborative; local office-focused | “Family of associates”; established culture |
| Brand Recognition | Growing nationally | Largest real estate franchise |
| Agent Count | 20,000+ | 200,000+ globally |
Company Overviews
HomeSmart was founded in 2000 in Arizona by current CEO Matt Widdows. It is a 100% commission brokerage, meaning agents keep their entire commission check and pay fees to the brokerage for services, lead generation, training, and support.
HomeSmart promotes a supportive, collaborative environment for agents through profit sharing and a strong network of local offices. The company has over 20,000 agents in 45 states.
Keller Williams Realty was founded in Austin, Texas in 1983 by current Chairman Gary Keller and CEO Carl Liebert. With over 1,100 market centers globally, Keller Williams is currently the #1 real estate franchise by agent count in the United States.
The company runs on an agent-centric business model that rewards agents as shareholders. Keller Williams offers agents education, training, and technology to support their success.
HomeSmart And Keller Williams: In-depth Comparison Of Key Features
- Commission and Fees
One of the biggest differences between the two companies is their commission structures.
At HomeSmart, agents pay a monthly fee that covers brokerage services, as well as additional fees for any additional services or lead generation programs they enroll in. This allows agents to keep their entire commission check. HomeSmart commissions typically start at $49/month for basic services. Agents pay 7.5-25% on each transaction side they represent, 9-12% for buyer agent commissions, and $199 E&O insurance annually.
Keller Williams operates on a split commission model, ranging from 70/30 to 50/50 depending on market center policies. For example, agents may pay a 50/50 split on their first $30K gross commissions, then increase to a 70/30 split after reaching certain commission thresholds.
This entitles agents to brokerage services, training, and Keller Williams’ profit sharing program. There are no monthly or annual broker fees.
For newer agents who need to closely watch expenses, HomeSmart’s pay-for-service model may be more cost effective. Top-producing agents at Keller Williams may benefit from the increased commission splits.
- Lead Generation and Support
HomeSmart provides lead generation through their eEdge platform, which agents can enroll in starting at $99/month. eEdge provides leads, non-dues CRM, and automated marketing services aimed at helping agents nurture leads. HomeSmart also offers its Lead Machine program for $199/month which pre-qualifies buyer and seller leads.
At Keller Williams, leads are mainly generated at the market center level. Many market centers have in-house buyer specialists who prospect for leads and distribute them to agents. Keller Williams offers some lead generation tools through their technology platform, Command, and promotion of agents’ personal brands and businesses.
However, lead generation support can vary more between individual market centers.
For newer agents who want brokerage-provided lead generation, HomeSmart may have an advantage. But for established agents with their own lead sources, Keller Williams provides the training and infrastructure to convert leads independently.
Also Read: Comparison Between Weichert And Keller Williams.
- Training and Education
Keller Williams is known for its robust real estate training, even amongst major national brands. The core agent level training program is called Keller Williams University. It focuses on models like the Winning Productivity Cycle and BOLD Goals to help agents build their business year by year.
Many local market centers provide free weekly sales meetings and training classes. The RED Day program also offers free continuing education and motivational sessions open to all Keller Williams agents across the country.
HomeSmart provides two main training programs: the Ignite online learning center, and Shift workshops held in local offices. Ignite covers topics like lead generation, transaction management, contracts, and business planning. Shift classes provide interactive training and roleplaying for new agents.
HomeSmart provides some broker and manager training, but more extensive training seems geared towards newer agents.
For in-depth training and business coaching at all levels, Keller Williams stands out. But for developing baseline skills, HomeSmart offers a solid starting program. Watch the video about HomeSmart!
- Technology
As a 100% virtual brokerage, HomeSmart provides the eEdge virtual platform for agents to connect and transact business. eEdge encompasses lead generation, CRM, transaction management, recruiting, and cloud-based phone and email. HomeSmart does not appear to offer a standalone mobile app.
Conversely, Keller Williams has built their own proprietary tech ecosystem called Keller Cloud. Keller Cloud includes the Command CRM mobile app, Market Center mobile app, eTransaction management, and a personalized KW.com website.
The Command CRM organizes contacts, listings data, predictive analytics, email campaigns and more. Keller Williams seems to have the edge on technology integration and innovation.
- Culture and Community
The cultures at both brokerages emphasize collaboration over competition. Keller Williams refers to their supportive community as a “family of associates”. The profit-sharing model rewards agents for helping each other succeed.
Keller Williams also has nurtured a strong company culture around their training programs, events, and a shared sense of identity.
HomeSmart cultivates a collaborative, learning-focused environment at the local office level. The company prides itself on positive office culture and hosts regular networking and social events.
However, as a newer and smaller company than Keller Williams, HomeSmart is still building its company identity and community on a large scale.
For agents who want an established culture and instant community, Keller Williams distinguishes itself. But at HomeSmart, local office culture plays a larger role.
- Financial Stability
As the #1 real estate franchise in the U.S., Keller Williams has proven financial stability and scale. With over 200,000 agents worldwide, Keller Williams earned $375B in global sales volume in 2021. The company is privately held by parent company Keller Williams Realty Inc, and continues to grow its market share steadily.
HomeSmart, while still 1/10th the size of Keller Williams, has also demonstrated financial growth and stability. Since its founding in 2000, HomeSmart has achieved double digit annual growth and remains debt-free.
The brokerage brought in over $28 billion in sales volume in 2021. HomeSmart’s smaller size allows for more agent-level attention and support.
Keller Williams undoubtedly provides unmatched scale, brand recognition and stability. But HomeSmart’s debt-free operations and consistent growth signal financial responsibility as well.
Also Read: Comparison Between Compass And Keller Williams.
Pros And Cons Of Homesmart And Keller Williams
To recap the key strengths of each brokerage:
HomeSmart Pros
- Pay-for-service model may cost less for newer agents
- eEdge platform provides lead gen and CRM
- Strong local office culture and events
- Lower cap means more agent focus and support
HomeSmart Cons
- Less training resources and proven models than KW
- Smaller company culture and identity
- Less name brand recognition
Keller Williams Pros
- Excellent training programs and coaching
- Keller Cloud tech ecosystem
- Established “family” company culture
- Massive brand recognition and stability
Keller Williams Cons
- Commission splits may take more earnings from newer agents
- Lead generation dependent on market center
- Less hands-on support due to huge network
Frequently Asked Questions (FAQ)
HomeSmart agents pay a 7.5-25% transaction fee on each side they represent. There are no split commissions, allowing agents to keep their full commission check minus fees.
Yes, through the eEdge platform HomeSmart provides lead generation and CRM services agents can enroll in starting at $99/month. The Lead Machine program also provides pre-qualified seller and buyer leads for $199/month.
Yes, Keller Williams is the largest real estate franchise by agent count with over 200,000 associates globally. In 2021 they achieved $375B in global sales volume.
eXp Realty, like Keller Williams, operates on a split commission model but is a completely virtual brokerage. Keller Williams is brick and mortar with local market centers, and offers more robust internal training programs.
Also Read: Comparison Between Berkshire Hathaway And Keller Williams.
The Verdict – Choosing The Best Brokerage
When selecting between HomeSmart and Keller Williams, agents should consider their experience level, income needs, training priorities, and technology preferences. Less experienced agents may benefit more from HomeSmart’s financial structure and supportive local offices.
Top producers who prioritize training are likely better suited for Keller Williams. Doing in-depth research and speaking with current agents at each brokerage can provide further insight.
There are many factors that go into finding the right real estate brokerage. By understanding the core differences between national brands like HomeSmart and Keller Williams, agents can make an informed decision to find their best fit.
The ideal brokerage supports each agent’s unique business needs and goals for succeeding in real estate.