On Monday, Sept. 22, I woke up to a text from a colleague that said “Compass is buying us!” I thought it was some attention-getting joke. I replied “What”? And my friend sent me the link to one of numerous articles that had hit the newswires.
I started frantically scrolling through my email and started seeing the headlines from various real estate publications. I eventually landed on a memo from my Coldwell Banker brokerage in Florida that had been sent about what was transpiring.
You know that uncertain feeling you get in your stomach when you aren’t sure which way the wind may be blowing? This was not something I would have ever imagined, and a ton of questions started racing through my mind.
15 questions this Coldwell Banker agent still has about the Compass-Anywhere deal
Here are 15 things I’m wondering about:
1. What does this mean for me as an agent?
It’s hard to know if things will truly be “business as usual,” and I would predict some tools and technology, along with management, office and leadership changes will occur.
2. Will offices consolidate?
On the company-owned side, will office locations close or consolidate? On the franchise side, will some Coldwell Banker franchise owners or other brands under the Anywhere umbrella end up selling and become part of the Compass brokerage side?
3. What will local brokerage management and support look like?
Mergers are sure to cause some consolidation and retooling in this space. Who will stay and who will go either by chance or choice? Will some look for other brokerages to work for?
4. Which brands will stay and which will go after the merger?
The merger will bring a lot of different brands under the umbrella company. It remains to be seen how they will all “fit” after the merger is complete. Surely some streamlining and reorganization will take place.
5. How many brands will be under Compass?
This relates to question number four. How many different real estate brands will Compass want? Will each one truly offer something else that the other cannot? Will there be a higher concentration of certain brands by region versus other areas?
6. Will any of leadership be retained from Anywhere or any of their brokerage brands?
It is inevitable that some of the executives who were brought on to run Anywhere will move on to their next venture. But there are some key leaders in the Anywhere space who would be invaluable assets to the newly merged company due to their extensive knowledge and experience with the brands.
7. What will the leadership of the newly merged company look like?
This relates to question No. 6. This one is impossible to predict as to who will stay and who will go, other than Robert Reffkin heading up the holding company. What leadership (if any) will be integrated from Anywhere and the various brands into the merged company.
8. Will Compass change the name of its holding company to something else?
I would think the newly merged company will need a different name to distinguish itself from the brokerage side of Compass.
9. How will Anywhere’s relocation piece be integrated with the merger?
Will it stay within the Anywhere brands that were acquired, or will relocation opportunities expand to Compass and the other brokerages that they own? Will this merger generate more leads through the system as a result, generate the ability to form more partnerships and affiliations that drive more business, or will there be a shrinking pool of referral/relocation business for those who are part of the team?
10. How will this merger play out with Zillow, given the battles between them and Compass?
This is going to be fascinating to watch considering Anywhere’s position on Clear Cooperation and private listings. There is incredible leverage with this merger. Will Zillow cave to Compass or will they go to the wrestling mat in the court of law? Will Compass create its own portal for all of the brokerages under its umbrella that can share private or public listings?
11. What kind of leverage will Compass exert over NAR, state and local Realtor associations, the portals and governmental relations issues?
Given the power of this newly merged company, how does this impact NAR and MLS policies and procedures? Will they have a direct line to NAR and a larger role in shaping policies? Will they even need to be members of NAR? Will they want to get involved with the American Real Estate Association that just brought on Douglas Elliman to their management board?
12. Will we have access to Compass’s technology platform?
What will tech look like for the merged companies? Will Compass’s tech replace what Anywhere’s brokerages have been using? I see new CRM’s, agent websites and marketing tools in our future.
13. Will Compass acquire more brokerages or make other bold or strategic moves with acquisitions of large lenders or portals?
There’s no doubt this merger may spark the need for other industry mergers, acquisitions and partnerships. We are watching a game of chess unfold in real time. What additional plans does Compass have, or will it make moves based on what other industry players do in response to this?
14. How will AI play into the newly merged company as far as what agents are able to do?
Compass’s tech stack and what may evolve from all of this may generate some incredible ways to utilize AI in a slew of tools and technology for the brokerages it owns.
15. Will this merger drive agents away or attract more into the newly merged company?
There’s a lot of speculation here as to how the merger will affect agents wanting to stay or go. Everyone is going to put their spin on it to create the narrative they want. Ultimately, each agent will have to decide on their own time and terms if this new company is the right fit for them and their business. Some agents thrive in large structured organizations with lots of tools and tech and others prefer the feel of a small brokerage.
No matter how anyone views this merger, multiple things can be true. Disruption and innovation can be messy and controversial in an industry that’s always having its cheese moved.
Just when you are getting comfortable after a major change (post-Sitzer | Burnett), the cheese moves yet again. Will being one of the industry’s largest players with an anticipated 18 percent market share change the day-to-day workings of agents under the Compass umbrella? How will this merger reshape the real estate industry? Much remains to be seen.
Being a 23-year veteran of this industry, I have been through a variety of market cycles. The good, the bad and the ugly. No matter the bells, whistles and behemoths, the consumer turns to those they know, like and trust when it is time to buy or sell a home.
No matter what brand you work under, relationships, credibility, knowledge and reputation will always matter. In the meantime, I’m going to keep pushing forward, taking it all in and will be monitoring what transpires from all of this. I’m sure I will have more questions. Stay tuned.
