The real estate industry woke up Sept. 22 to find that two of the country’s largest residential brokerages were merging. Compass announced it is acquiring Anywhere in a broad stroke that combines Corcoran, Sotheby’s Coldwell Banker, Better Homes & Gardens and Century 21 under the same umbrella. While yes, this is big news–I cannot say that I am surprised. Compass has made no secret about its desire to be the number one brokerage by size and sales volume and rumors around Anywhere’s future have been swirling. Robert Reffkin certainly deserves credit for this achievement. To me, this was the next logical step in the real estate industry’s “cult of consolidation.”
Of course there is power in numbers, but bigger does not always translate to best. I have never been more inspired as the CEO of one of the last true privately held firms not only in New York City, but in the country. Firms like Brown Harris Stevens will continue to shine and offer connectivity to agents and employees against a backdrop of “more of the same.” In fact, we have recently recruited a number of new agents and teams who were simply tired of feeling like a number in a corporate factory.
Where this acquisition does raise red flags for me is on the issue of Private Listings Networks, and the push by brokerages such as Compass to make them trendy. As I have said all along, seller choice is very much something we believe in at Brown Harris Stevens. But as fiduciaries who work only in the best interests of our buyers and sellers, this also means fully explaining the risks and rewards that come with only quietly marketing your listings off the MLS to a select group of agents for a period of time. I’m not certain that is always happening, and judging by some recent published articles, even Compass agents are questioning the ethical and financial implications of Private Listing Networks.
Buying market share does not always translate into brand loyalty and agents will choose to work at firms that fit their personal ethos. The best agents understand the importance of building trust, and putting clients first, always! If you’ve ever had incredible service, it forms a memory. It sticks with you well beyond the experience. I wish Compass and Anywhere luck in this next chapter. And for all the indies and private brokerages out there wondering what this means for you–now more than ever, be laser focused on the success of your agents in this ever-shifting landscape.
