As agents and leaders consider what Real Brokerage’s planned acquisition of REMAX means for them, some may look to Compass International Holdings’ acquisition of Anywhere for clues.
In some areas, little change may be expected. You may also feel pressure in the future that you don’t currently feel.
To uncover industries headed for consolidation, Intel examined three months of recent research and company reports across four major brokerage networks: Compass, Anywhere, Real Brokerage, and REMAX.
Read what real estate experts and executives have to say in the full report.
agency remuneration
As soon as Compass International Holdings completed its merger with Anywhere Real Estate, Intel began tracking how closely the company adhered to the pledges CEO Robert Reffkin had made to the Anywhere brand.
In a survey of former Anywhere distributors, Intel also sought to determine whether they had heard that their compensation could be adversely affected by the merger.
So far, there is little sign that agents will see any change in their net compensation.
In all three surveys conducted since the merger was completed, only 1% to 2% of former Anywhere agents said they had heard their compensation could change in either direction.
Instead, nearly all of Compass’ newly acquired brokerages and branded agencies have either not heard that management is addressing the issue, or have been told that their existing compensation agreements will be honored without change.
The Real Brokerage says it intends to follow the same path with its merger with REMAX Holdings.
“The REMAX agency will maintain its brand, franchise model and existing economics,” Real CEO Tamir Poleg said on a conference call with investors. “Real agents will also maintain the model.”
In one of its financial filings, Real cited “the ability to retain agents, franchisees and talent” as one of the risks it was monitoring after announcing the merger.
In other words, Real, like Compass before it, is likely to face enough pressure to keep agents in its newly integrated network, and is unlikely to tinker with agent compensation any time soon.
technology stack switch
Real is not asking REMAX agents to switch technology.
But if Compass’ public filings are any guide, Real will likely face financial pressure over time to spend software labor resources on its own core technology stack, rather than splitting it with maintenance of REMAX’s legacy systems.
In the case of Compass, Intel’s research suggested at the time that agents and brokerages were relatively willing to switch.
Answer share among former Anywhere brokerage agents
January survey → Changed to March survey
Switch to Compass technology now or later: 37% → 60% Stay with current technology stack: 23% → 18%
News of the Real-REMAX merger was announced during Intel’s research period, so there is no word yet on whether REMAX agents will be willing to switch to the new parent company’s technology like their previous Anywhere agents.
What we do know is that Real currently has no plans to require REMAX agents to migrate to the acquiring company’s technology stack.
Ravi Jani, Real’s chief financial officer, also took pains on a call with his first investors to stress that he wasn’t expecting a wholesale switch to Real’s technology stack to justify the acquisition. The benefits of switching agents simply “represent further potential benefits,” he said.
Still, Poleg said in an interview with Inman on the day the merger was announced that the two companies [REMAX agents] They will take advantage of our technology,” he said.
Only time will tell if that gamble pays off.
Non-MLS listings
Although once vocally resisting the idea of a private listing, representatives for brokerage firms that once worked with Anywhere report that their companies’ executives no longer resist the practice.
No major opposition to the private monopoly has emerged among the brokerage leaders of the former Anywhere network.
Answer share among agents at the former Anywhere brokerage firm
January survey → Changed to March survey
Strongly recommend private-only use: 1% → 9% Open to private-only use, but not pressured: 26% → 44% Do not recommend private-only use: 7% → 4% No guidance yet: 66% → 42%
It seems clear that whatever internal resistance has been building among the acquired brokerages and leaders of the former Anywhere-owned brands, it has not yet reached the distributors.
On Real’s side, there is no indication that it intends to expand its pre-marketing partnership beyond REMAX’s existing participation in the upcoming Zillow Preview program.
Rather, Poleg said efforts in this area will be led by discussions with agencies within its currently expanding network.
“If the agents decide there’s merit in doing something in that direction, we’re going to do it,” Poleg told Inman in an interview.
Methodology note: This month’s Inman Intel Index survey was conducted from March 24th to April 2nd and received 474 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, brokerage leaders, financiers, and proptech entrepreneurs. Results reflect the views of our passionate Inman community and do not necessarily align with the views of the broader real estate industry. This survey is conducted monthly.
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