Compass’s recent performance points for the future of real estate brokerage
Legacy brokers, on the other hand,, on the other hand, did not perform so well. Real estate everywhere, Douglas Elliman and Exp – all to the largest in the country – revenue, respectively, increased sales less than 1%, 4%and 7%years after year.
What explains this difference?
Technology is part of the story. Robert Reffkin, founder and chief executive officer of Compass, explained: “As the market recovers, we believe that the combination of our cost discipline and structural benefits, including our end-to-end own technology platform, national scale, network of top agents and depth of inventory, there is a significant compass on? A more efficient and intuitive customer relationship management system (CRM); Tools to create better marketing material; streamlined customer communication; And a place to manage the deal pipeline, transactions and checklists in one place.
Consumers buy houses, but compass praises his technology at potential brokers. Why? Because agents are the heart of the company. They encourage income and for all purposes the entire company are in the eyes of home and home-selling customers.
“Broker” can be a single term, but it includes a multitude of functions: presentation, negotiation, comfort, problem shot, travel, project management. Agents are sellers, media personalities, psychologists of a kind and drivers all in one, working from cars, restaurants, door steps, telephones and dozens of houses that are not of her. They must be fluent over each of these locations and functions. Every moment of friction is possibly a lost sale. Technology is the lubricant that increases that power. It builds up directly on the Bottom Line and improves the recruitment, retention and performance of agent. The right tools make the best agents better and increase the bar across the board.
Under listed companies, Compass has done better and did the implementation of technology development and implementation than most of his colleagues. But private companies, especially startups at high speed, are usually the harbinger of what is to come.
What future state do these companies create today? Startups in the real estate technology -space push the boundaries of the stage with photo -realistic virtual views of houses; tour personally and remotely; innovative financing options; Better home renovation; And fraud to protect transactions for high dollar value, to name some areas. And among private brokers, Serhant is most effective on what Compass proves on public markets. Camber Creek evaluates hundreds of startups of real estate per year; Serhant. is one of our current investments.
Serhant. Sit on the intersection of real estate, technology and media. Founder and CEO Ryan Serven is a leader in the use of social media to stimulate sales. In addition to one of the fastest growing real estate agents in the Land-Voltooi, the company alone has almost $ 600 million in Sales in the first three weeks of January has three extra mutually reinforcing business lines: Serhant. Studios, which produces the content used by Serhant. agents; Sellit.com, a sales training program; and S.Mple, its own AI workflow automatomatization platform. Serhant. Is his own sales technology -incubator and accelerator. It develops tools that solve problems for his agents, then uses media to share these innovations in the real estate sector and far beyond. S.Mple is a back office in a box. Instead of spending hours performing compositions, refining presentations and planning customer meetings, agents can simply tell what they need, and it does it.
Ryan Serhant says he wants Serhant. To become the first screen -free brokerage. In a world where your voice plus the right AI tools can perform millions of tasks, screens are not fast enough.
Compass is rewarded for leading with technology, and rightly so. The example creates more room for startups to speed up this trend.
Jeffery Berman is a general partner at Camber Creek, an investment firm that sends innovation in the real estate sector.
This column does not necessarily reflect the opinion of the editorial department of Housingwire and the owners.
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