Independent brokerages are more concerned with nurturing agent performance than stock prices or building platforms, writes First Team CEO Michelle Harrington.
I’ve been talking to a number of independent brokerages recently who fear consolidation and are concerned about off-market listings and the potential collapse of the MLS. But what I’m trying to say here is that there’s a big difference between the companies that currently dominate real estate and the local independents, and it’s not what you might think.
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Try saying the quiet parts out loud. If you’ve never sold real estate, you really don’t understand real estate. In theory, it’s not. It’s not a spreadsheet. It’s not a boardroom.
You know it when you’re sitting at your kitchen table, trying to win that list you so desperately want. When a deal falls apart on the eve of closing. When your income depends entirely on your performance ability.
That’s business.
Yet more and more industries are being shaped by people who have never lived them.
So what does this mean?
A look at major real estate companies
Now, let’s take a look at Compass, the world’s largest real estate company. Compass was started by Robert Reffkin. I have met him and I think he is a very smart person. But he has never used a lockbox. We have never held an open house.
So do you think he would choose someone who has this as a member of his board of directors? no. SaaS, technology and finance.
But in their defense, they’ve always been clear about it. Their mission revolves around technology, data, AI, stock prices, and market share. The goal is not necessarily to create the best agent. Our goal is to create the most powerful platform agents can connect to.
Take a look at Anywhere (now part of Compass). Former CEO Ryan Schneider comes from Capital One. Again, you need to be smart, competent, and experienced, but not when it comes to selling homes.
Machines everywhere: large franchise networks, global brand portfolios, public company accountability, and operational efficiencies at scale. Their focus is exactly what you would expect: growth, profits, shareholder value, system optimization.
But when leadership is optimized for company performance, questions arise: “How can I run my company better?”
Not so: How can we make our agents better?
These companies are not failing. they are not wrong. they’re not bad. In fact, it’s doing exactly what it was designed to do. But they share the same DNA: platform-first, scale-focused, investor-focused, and consumer-focused. And in that model, the agent is not the center of the system, but can secretly become a participant in the system.
Now let’s talk about independents
Companies like John R. Wood Properties, Michael Saunders & Company, and Brown Harris Stevens: Companies behave differently when leadership is true to the business.
Consider my company, First Team.
Founded by Top Producer Agents and led by Top Producer Agents and a CEO who is the owner of a brokerage firm. Branch Manager? Not a career manager. former top performer
That changes everything.
Because today’s training is not theoretical. There is no script in coaching. Accountability is not optional. That’s true. Because they did it.
There is a real divide in our industry right now. It’s not about big or small. It’s not about technology and old-fashioned thinking.
It is as follows: Is this a platform or a profession?
Some locations are designed for you to plug in to access tools and close deals. Other places are designed to train, stretch and coach you. One is where you hang your driver’s license. The other is a place to build a career.
So, congratulations to all the independents. Be proud. You’re getting noticed because agents are starting to understand the simple things. So, at the end of the day, this is not the tech industry. It’s human. And there’s a big difference between being led by people who built a platform and being led by people who have made a career out of the business itself.
Michelle Harrington is First Team CEO. Connect with her on LinkedIn.
