Today’s podcast is a wake-up call for ALL real estate agents. Here is the bottom line, now more than ever it’s absolutely critical you become a listing agent. Being with the wrong broker, buying buyer leads, branding are all leading to what may be the biggest agent failure rate in history. When you listen to todays show you will have facts that will help you make the right decisions.
More than 90% of potential real estate buyers and sellers, according to the National Association of REALTORS®, connect with a real estate agent to help them buy and/or sell their house.
That equals about $100 Billion in agent commissions every year.
It shouldn’t surprise you then, that real estate tech companies want a bigger piece of that agent commission pie for themselves.
Here are some strategies real estate tech companies have to get more commission money from YOU, the country’s hard-working real estate agents and brokers. We’ll look at Zillow, Compass, and Opendoor specifically.
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1) I am ready to join EXP Realty.
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* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
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What is Zillow’s ‘Back to Basics’ strategy, and how might it affect you?
Zillow has stated that it is going back to its roots by focusing on “extracting” an additional $1.5B annually from agents by 2025 via its Premier Agent program. This “extraction” from agents paying for Zillow’s Premier Agent Services would generate a total of $2.9B annually for Zillow. That eclipses its entire 2021 revenue from all combined sources.
- 2021 Revenue = $2.1B
- Plus, +800M from Adjacent Services such as Mortgage & Title
- Plus, +600M from Other IMT (Internet, Media and Technology)
- Plus, +1.5B from Premier Agent Services – or between $250M – $300M per year from agents
- A total of $5B in 2025 Revenue is their stated goal.
Well, good for Zillow for making their goals ‘SMART’: Specific, Measurable, Attainable, Realistic and Timely… but maybe you can disrupt the ‘Attainable’ part by choosing not to participate in their agent-soaking goals.
Just a quick search about the quality and quantity of ‘leads’ that agents are paying for will garner you an endless supply of not just agents complaining about inappropriate, low quality ‘leads’, but perhaps just as alarming are the complaints by actual homeowners about Zillow. For Sale By Owners who were only allowed an aerial view picture, severely inaccurate Zestimates, ‘Zillow-assigned agent’ who knows nothing about the listing someone calls on, etc. The quantity and variety of complaints is astonishing.
Solution? Become your own best generator of commissions by learning to be a proactive lead generation machine. Listing agents don’t have any lead generation issues.
Mike DelPrete, a well-regarded real estate strategist and advisor on real estate tech, said that Compass, “in its own words,” wants and intends to “improve its own company’s economics with agents…” kicking in or “giving” Compass more than +1%/year of their commission earnings. DelPrete said, “If you’re a Compass agent, the company’s plan for profitability hinges on reducing your commission split over time. Sorry!”
Compass’s medium-term goal of a 2.5% commission split on its 2021 revenues would total for Compass an additional +160M annually.
Wouldn’t it make more sense to work at a brokerage that looks for ways to INCREASE your profitability versus taking more and more from you? What if you’re a Compass agent AND you’re buying leads from Zillow? Yikes.
OpenDoor is an IBuyer company, that makes all-cash offers on houses and offers flexible closing timelines. Sellers call Opendoor to find out what they could get immediately for their home and to potentially sell faster with less hassle.
If you are an eXp agent, you can offer the same, using the Express Offers program available to 100% of eXp agents.
According to Opendoor’s Q4 2021 earning report, the company sold 20,000 houses in 2021. As this largest iBuyer company uses its scaling efforts to push buyer agent commissions down, Opendoor would obviously generate more revenue.
Why? Because a savings of -0.75% in buyer agent commissions would result in approximately +$53M year over year for Opendoor.
Zillow, Compass, and Opendoor see your profitability as a potential honey hole for them to dip into. With every transaction being more and more competitive and the already downward slide of buyer agent commissions, isn’t it time you become serious about your listing skills?
Question: Are you (finally) ready to become a LISTING AGENT? Of course, you are. Great news, this podcast is sponsored by Tim and Julie Harris’s favorite SELLER Lead systems. You read that correctly, this trusted company will provide you with the names, addresses, phone numbers of homeowners who want to sell….truly motivated seller leads. Best part? NO referral fees. What are you waiting for? Go there now and become a member. CLICK HERE NOW. When you do you will save $150 because you are a Harris podcast fan.
P.S. This is the same system Tim and Julie used when they were top-producing agents.