What are the Implications of the Compass Acquisition of Anywhere?
To those outside the industry, how does this merger matter? To those in real estate, how does it affect how you look at things, and how does it align with your values?
Here's what I know:
1. Our industry is shifting. The franchise model built around brick and mortar offices used to be the foundation of the residential real estate brokerage industry. No more.
2. Buyers and sellers begin their real estate journeys online, not by popping into local real estate offices or looking in store windows. Physical presence is less important than it used to be.
3. Market data is readily available. Brokerages and agents are no longer the information gatekeepers.
4. Data is generalized and averaged. By contrast, markets are hyperlocal and the data needs to be "crunched" and personalized to be most valuable. Comprehending the data, putting it into perspective and making it relevant to individual buyers and sellers requires thought, analysis, personalization and a deep understanding. An agent's input and insight is critical, more so than a brokerage's aggregation of the data.
5. Sophisticated agents who know the subtleties of their markets, as well as their clients' unique needs, will continue to provide indispensable value.
6. The trusted relationships between agents and their clients will become ever more important as markets become more nuanced. The brokerage name on the door is and will continue to be secondary to the agent client relationship.
7. The Compass Anywhere deal still has a long way to go before anything changes. There will be discussions, reviews, approvals, etc., and nothing will finalize before late next year. Lots of chatter and noise, but little action before then.
8. So - what does all this really mean? Probably fewer independent brokerages which will result in fewer options for consumers. Fewer marketing strategies. Less commission flexibility and less creative problem solving. Buyers and sellers may face more situations where dual agency or divided loyalty creeps in which may compromise the trust and transparency clients deserve.
9. Does bigger mean better? Not always. Although a merger may look good on Wall Street, the buyers and sellers on Main Street may face more hurdles than opportunities.
10. For me, it is business as usual. I will continue to focus on what matters most: showing up for my clients, being in touch, following up, negotiating and closing deals and serving my communities.
The drama, noise and housing headlines are click bait. They fail to accurately reflect what's happening in our industry. The truth requires a deeper analysis, drilling deeper, asking questions, and thinking ahead.
