Enter the new kid on the block: Robert Reffkin, co-founder and CEO of Compass, a technology-driven real estate brokerage firm.
Named the youngest Black billionaire, Reffkin just pulled off what is considered to be one of the biggest power moves in real estate: a $4 billion acquisition of Anywhere Real Estate.
Compass’ portfolio now holds Coldwell Banker, Century 21, Corcoran, and Sotheby’s (to name a few) taking their global agent presence to 340,000 estate agents as part of their “war chest.” That means 1 out of 5 real estate agents are with Compass though all acquired entities will retain their independent identity and will not wear the Compass banner. For readers that focus on stock/ownership, this young man owns about 6.3% stock but controls approximately 47% voting power.
I am not sure what this means to you as a seller/buyer/investor; or, to me, as an agent yet. I know, for a fact, that independent, small size firms will have to step up their game because this is now a technology war. More to be revealed…
Let’s visit a few things I have previously mentioned as the time is NOW to shop for a home!
Who is the agent you are giving your business to? If you are the seller, how do you find the right agent for the job of selling your home? Do you go off yard signs, ads you have received (that slick brochure), or is your best friend’s son or daughter now an agent? Do you actually go through the process of interviewing the agents that apply for your open position, that can mean potentially, the largest transaction in your life?
How do you select the right agent? Most of you never worry about who the agent hangs their license with. Real estate agents across the country are NOT employed by any agency. We are independent contractors who have aligned ourselves with whomever they think serves their needs; i.e., marketing, technology, branding, training, visibility, etc.
Miami-Dade County, alone, has over 63,000 licensed agents and not all of the agents are members of the Miami Board of Realtors. That number is roughly 43,000. (Heck, there are only about 218,000 realtors in the entire state of Florida.)
On a side note, I mentioned in another article, sellers are no longer responsible for paying the buyer’s broker (agent’s) compensation. (Remember, this used to be called commission.) In the past, your listing agent advised compensation was negotiable and it could be +/- 6%; and, they would share with the buyer’s broker. As of August 17, 2024, that is no longer the case. The buyer now has to “fend for themselves” unless a seller is willing to agree to pay some, or all of the buyer’s broker compensation. With that said, you can imagine, with the price of today’s homes, that adds substantially more to the cost of the buyer. They will have to be ready to negotiate their agent’s fee and pay all their other closing costs. Or, they can opt out, refusing to visit properties in which the seller does not offer compensation… which is another can of worms.
If you are looking to sell your home, condo or investment property, call me for an evaluation of your property in today’s market. I am Robbie Bell, PA, CIPS, ABR*, SRES, CREPS an award winning broker associate with BHHS EWM Realty; and your urban lifestyle specialist, 305-528-8557 or at bell.r@ewm.com.
