United Real Estate Gallery leaders talk about low-fee models and commission lawsuit prep
Oct 9, 2023
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United Real Estate Gallery leaders discuss commission lawsuits, low-fee brokerage models, leveraging economies of scale, changes in NAR, AI in real estate, and the future of the firm and agent compensation.
Regularly evaluating revenue models is crucial for sustainable growth in the real estate brokerage industry.
Low-fee brokerages offer comprehensive services to agents by leveraging existing technology and resources, providing a cost-effective and scalable solution for agents.
Deep dives
The Importance of Evaluating Business Models
Brokers should assess their business models and determine if they are growing or gradually declining. Evaluating revenue models regularly is crucial to ensure sustainable growth.
Misconceptions about Low Fee Brokerages
There is a misconception that low fee brokerages do not offer any services to agents. However, many low fee brokerages now provide essential tools and resources like websites and marketing hubs, offering a full-service feel at a cost-effective and scalable price.
The Viability of Low Fee Brokerages
Low fee brokerages can afford to offer comprehensive services due to economies of scale. By leveraging existing technology and resources, low fee brokerages can maintain their revenue while providing valuable tools to agents.
Growth Strategies in a Changing Market
In a market with shifting dynamics, brokers can pursue growth by targeting smaller brokerages for partnerships, expanding into new territories, and actively recruiting agents who are looking for cost-saving opportunities. Adapting to the evolving market and continually assessing revenue models are key for long-term growth and success.
In today's RealTrending, United Real Estate Gallery CEO Ray Rivera and President Sonny Downey share their perspective on the commission lawsuits. Sonny is a past president of his local MLS and Ray is the incoming 2024 president, so they have a unique view of how things may shake out.
Ray and Sonny also discuss how low-fee brokerage models are able to scale so quickly and offer services to agents, and how traditional brokers have a misguided perspective of the model.
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