Brokerage consolidation, leading tech of 2020 + the ultimate hiring process
In addition to the articles, here are a few items we are reading from across the internet.
In some ways, iBuyers are well-positioned to serve consumers in an environment when speed and certainty become even more important. In other ways, they face a big burden as they have large carrying costs and dampened homebuyer demand in many markets.
Redfin's deep furlough of employee agents reveals one of the key vulnerabilities of the employee agent brokerage model. Many agents, like their brokers, face dampened income with real estate all but coming to a halt in many markets, but the employee relationship reveals a tighter bond, and a deeper cut when severed.
Many brokerage companies are finding ways to ease the burden on business partners as the web of COVID-19 spreads into nearly all levels of the economy. Brokerages and agents can apply this same thinking to their own partners, if even on a smaller scale. This will help everyone weather the storm together.
Like other companies who offer competitive compensation packages to agents, Realty One Group has seen large growth recently. The company, founded in 2005, ranked as the ninth largest franchise brand with a 2019 sales volume of $28.10 billion, according to the 2020 Real Estate Almanac.
Every real estate company faces daunting challenges now. In some ways, this difficult time allows firms to reevaluate their businesses and focus on their core competencies.
EXp Realty has grown wildly in last few years, on the back of its relatively low annual commission cap for agents ($16,000), its revenue-sharing model and its virtual design. As a completely virtual company, the brokerage operates more nimbly without one of the main expense line items for traditional brokerages. Agent count grew 63 percent in 2019 to 25,423 agents.
Constellation Real Estate Group continues to amass a growing suite of real estate tech tools. T3 Sixty represented Constellation Real Estate Group on the transaction.
While companies have implemented virtual showing technologies, this chart emphasizes the demand drop caused by the coronavirus pandemic. While real estate activity is down, brokers and agents can refine processes and cultivate contacts with their spheres.
Like many real estate companies, Realogy has made aggressive moves to add liquidity and cut costs. COVID gives brokerages a chance to reevaluate their operations in a digital world, it also requires decisive quick leadership, and cash. Realogy moved relatively quick on both
Anyone response for their real estate organization's P&L should carefully review their financials on a frequent basis and refine their operations to sustain a downturn.
Enabling Intelligent Change.
