Real estate is in a period of transition.
Massive consolidation, policy changes, and big moves by those in power are turning the tide in favor of more influential companies. But Laney Austin, president of The Agency, believes there’s still a big place for brands that don’t belong to large conglomerates, especially those that keep the consumer at the forefront.
“I think the value proposition for agencies is stronger than ever before,” Austin said.
She recently told Inman that she’s not really interested in the massive consolidation that’s hurting the industry, but thinks it could help differentiate agencies. She also talked about how brokerages are currently incorporating AI into their operations and why she is optimistic about the spring market.
The following is an abridged version of her conversation with Inman, edited for brevity and clarity.
(Editor’s note: This interview was conducted ahead of several major announcements in recent days from portals and brokerages regarding upcoming listings.)
Inman News: What are the biggest challenges facing government agents today?
Rainy Hake Austin | Agency
Lainey Austin: A lot of what we talk about with agents is just the idea of standing out. Naturally, there are fewer properties per agent and everyone has seven real estate agents they know, which increases competition in acquiring properties and working with buyers. So why did they choose you as their advisor?
So there are some things that we’ve actually been talking about with people. It’s not like you’re just sitting around waiting for someone to come to you, it’s as much an opportunity to create your own inventory as it is an obstacle.
We have a global partner, Nurit [Coombe]In her Washington, D.C., office, she said: “I have all my employees live in their homes, so I know their preferences and their family situations. I’m in touch with them. I know what’s going on. I know what’s going on in the market.” She said, “Well, you should actually move somewhere bigger. You need something different. You’re going to like this person’s house, so I don’t know yet, but I’m going to move.”
So she literally makes these things happen and ends up representing buyers and sellers on both sides. Because she knows her employees very well.
How do you feel about the spring market overall?
I’m still very optimistic. I know I was hoping for a really great start to the year considering December was up and January was on that trend as well. Then, due to the war and a number of geopolitical and economic factors, we began to feel market uncertainty again.
There are a lot of things pending. Although there are many listings scheduled, the number of deals closed in the first two months of this year has not been as high as expected. But I think that was somewhat expected, given how the world has changed.
I’m already seeing people coming off the sidelines and starting to come back into action with the increase in pending and listings, so I’m hoping this is just a moment of people catching their breath and the market will come back to life in the spring.
You mentioned earlier that you’re having your agents use AI to scan social media, but how else are you teaching your agents to use AI?
As president, my philosophy is to utilize the staff first and foremost. We need to narrow our actions, and quite frankly, the more effectively and efficiently our staff can use AI and technology to perform their roles, the more time they have to provide highly personalized service to agents.
What do you think about the ongoing industry consolidation? Is it good or bad for agencies? What about consumers?
I think this is good for The Agency, but it may not be good for the consumer, but that’s the reality of where we are. I think the value proposition is stronger than ever for The Agency.
We started as a local boutique [firm] Founded 15 years ago in Beverly Hills, we have since grown into a global luxury lifestyle boutique brand. We have 155 offices in 15 countries and less than 3,500 agents. So we’re still very much a boutique. Each of our offices has highly productive and high-performing agents, and we have some of the most popular locations around the world.
But most of the international companies now are huge, right? And they don’t know each other. So when I say; [our] Turks and Caicos Islands [agents] They share it with Seattle, they share it with Marbella, and they know each other. I have monthly leadership meetings with them where everyone comes together to share ideas and discuss best practices. We talk about talking points, everything that’s going on in the industry.
In fact, we feel like we are breathing rare air because we believe we are the only small global real estate company to survive. Everyone else is either a small mom friend or a giant conglomerate. There is nothing in between anymore.
Even Douglas Elliman and SERHANT., which are growing domestically, don’t have the international reach that we do. And obviously, Compass didn’t have international before, and they didn’t really have luxury brands before. And with the @properties acquisition and now the Anywhere acquisition, they’ve got both of those things, and in doing so, they’ve really become a huge company.
So it’s like everyone owns their own place in the ecosystem, and the great thing is, there’s a place for everyone, and for us, there’s a very specific place that we’ve carved out.
I also wanted to hear about this battle that’s going on right now between Compass and MLS and Zillow. Do you think this new partnership between Compass and Redfin, which will soon feature Compass on the portal, is a good thing?
I don’t think that’s good for consumers or for the industry as a whole. It has always been my belief that I have never been a big fan of Clear Cooration. When Clear Cooration was created, it had nicknames like “Compass Rules.” They were trying to stop Compass from creating its own MLS.
Since then, they’ve evolved the idea and method of pocket or off-market listings, almost turning Clear Collaboration on its head and leveraging the power of our technology to do so.
I think there is value in allowing real estate professionals to advise their clients on how to best market their homes. And if that means selling off-market for a short period of time, or permanently in rare special circumstances, that should be allowed.
I don’t think that’s the right strategy for all publicly traded stocks. I think as a brokerage firm, we’ve taken the approach that everyone should do this and that’s the best approach for everyone, and that’s just not the case.
Currently, brokerage profit margins are highly compressed, forcing brokerages to diversify their models into core services. Of course, I worked at Compass for a few years and I think they’re a great organization with very smart people, but they openly position themselves as a technology company. So what they’re promoting is a technology platform and a website, and they’re not shy about it.
But consumers and agents don’t always understand that it’s their priority. They are first and foremost not a real estate company trying to drive the consumer experience. It’s kind of secondary. So for me, I think that shows in this strategy.
What else has been on your mind lately?
With so much uncertainty in the world and so much change in the industry, I think it’s easy to get caught up in all the noise in the headlines. I want to focus on what’s good for the team and the industry. And doing good is good business.
Stay focused on your clients and agents, be creative and innovative, stop resting on your laurels and try to disrupt yourself so you don’t lose control by being constantly disrupted by others.
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