When Compass merged with Anywhere in January, CEO Robert Refkin reiterated his pledge that the newly acquired brokerage firm would not be required to use Compass’ technology platform or private exclusives.
But even if these pledges hold, Compass leaders acknowledge they face strong business incentives to get as many agents on board as possible on the new technology stack as quickly as possible. And the company is working with special urgency to provide newly acquired brokerages and brands early access to its Coming Soon and Private Exclusive networks.
Intel’s review of Compass’ agent survey responses and the company’s statements to investors reveals how agents from the former Anywhere-owned brokerage are rapidly becoming integrated into Compass’ technology ecosystem, and in some cases are even being encouraged to use private exclusive platforms, many of which they previously opposed.
Additionally, some timelines published by Compass may delay rollout at franchise brokerages by just a few months.
This week, Intel will examine how tensions between Mr. Refkin’s non-delegation pledge and his promise to investors last month to “unify more than 340,000 real estate professionals onto one connected platform” are playing out at the ground level, according to leaders of agencies and brokerages in transition.
It’s all in the latest results of the Intel Index study.
Technology deployment timeline
Compass plans to roll out its technology to brokerages owned by the former Anywhere in July, and owners of franchised brokerages will have access a few months later in January, Mr. Levkin told investors last month.
While Levkin had previously sought to assure agents and intermediaries that they would not be forced to use the Compass platform, Intel’s research found that many former Anywhere intermediaries responded warmly to the idea of eventually moving to Compass technology.
And a relatively small number (and a declining trend) of intermediaries surveyed in February said they would stick with their existing platforms.
In February, 18% of agent respondents said their brokerage firms indicated they were not changing their technology stacks to the Compass platform, or at least not pressuring agents to switch. This percentage decreased from 23% last month. Meanwhile, 48% of agents responding to the February survey said their brokerage plans to switch to Compass Technology at some point, up from 37% immediately after the merger closed in January. An additional 33% of agent respondents said they were still waiting for guidance on their brokerage’s technology plans, down from 39% previously.
This apparent willingness by brokerages to adopt the popular Compass technology stack is of great business importance to Compass, as the company has repeatedly stated in its financial filings and management comments to investors and analysts.
One of the key financial benefits of the merger “is that it will expand our business.” [lifetime value] “Bringing over 340,000 real estate professionals onto one connected platform reduces the burden on each agent,” Levkin said on a conference call with investors in February.
He continued, “By connecting our franchise broker owners and real estate professionals on one seamless platform, we will provide best-in-class listing tools, innovative marketing program coaching, and expanded AI capabilities to help them grow their businesses and increase revenue by better serving their clients.”
The need to migrate from the traditional Anywhere platform went beyond the efficiencies and benefits of an integrated system.
Compass also acknowledged in a statement to investors that failure to disseminate its technology widely or quickly enough could pose risks to the success of the merger.
In its latest quarterly financial report, Compass specifically reminded investors that there could be “challenges and risks associated with bringing real estate professionals and Anywhere-affiliated franchisees onto our platform in a timely manner or at all.” The company added that the “increased complexity and risks associated with maintaining Anywhere’s products and services while such onboarding is pending” presents new challenges.
Regarding the second point, Compass Chief Financial Officer Scott Wahler told investors on the earnings call that Anywhere will spend approximately $80 million in technology labor in 2025 that will be treated as capital expenditures, an investment in the legacy Anywhere technology stack that Compass is currently working to significantly reduce.
“As part of the cost synergies, we will be reducing a significant portion of our previously capitalized projects as we shift our technology focus to the Compass platform,” Wahler said.
None of these are necessarily inconsistent with a commitment without obligation. But this illustrates the tension at the heart of the merger, whose success hinges on balancing a rapid transition to Compass technology with the need to retain as many agents as possible.
And while full access to Compass technology is still months away for many agents, decision makers have suggested that access to coming soon and private-only platforms could come sooner.
pressing priorities
Private exclusives is another area where Compass has promised not to impose obligations on newly acquired intermediaries.
Still, Compass officials plan to release the upcoming and closed lists as early as late March, Levkin said on a conference call last month.
If this access is granted, agents of newly acquired brokerages and brands will also be able to acquire a portion of the pre-MLS listings on Redfin as part of a new partnership with the listing platform’s parent company, Rocket, Levkin said.
In February, 38% of acquired broker respondents said their brokerage was open to brokers using the Private Exclusives network, up from 27% the previous month. This change was driven in part by the (still small) percentage of agents who said they were “strongly encouraged” to consider private exclusive products by the leader of the acquired brokerage firm, which rose from 1% in the previous month to 6% in February. In February, only 5% of respondents said their brokerage firm was preventing them from using Private Exclusive, down from 7% in January.
Breaking down the former Anywhere brokerage by type, it’s clear that it’s driven almost entirely by leadership within the acquired Compass-owned brokerage, rather than franchise broker owners.
16% of agents at acquired Compass brokerages said their leaders had “strongly encouraged” them to consider private exclusive products. Only 2% of agencies with acquired franchise brands said the same.
Compass did not provide a more detailed timeline for access to private exclusives in its earnings call, but the pattern is generally consistent with that of technology deployment. While former Anywhere-owned brokerages, regardless of brand, may seek to adopt private exclusives first, franchisors may offer different guidance or act on a later timeline.
Intel will continue to track these questions in the coming months.
Methodology Note: This month’s Inman Intel Index survey was conducted from February 19th to 26th and received 914 responses. The entire Inman reader community was invited to participate, and a rotating selection of randomly selected community members were encouraged to participate via email. Users answered a series of questions about their self-proclaimed niche in the real estate industry, including real estate agents, brokers, financiers, and proptech entrepreneurs. Results reflect the views of our passionate Inman community, but do not necessarily align with the views of the broader real estate industry. This survey is conducted monthly.
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