During the Sept. 12, 2024, Walker Webcast hosted by Walker & Dunlop President and CEO Willy Walker, Compass Inc. Founder and CEO Robert Reffkin discussed his company’s unique qualities compared to other residential real estate firms. The hour-long live event took place at the Zelman Housing Summit in Boston, MA.
The conversation began with a brief overview of Reffkin’s background as a single mother raised him and he went on to graduate from Columbia University before becoming a White House Fellow among other careers. Then they delved into the founding of Compass in 2012.
Initially envisioned as an apartment rental service, that idea did not take off for Reffkin so he shifted focus to traditional residential real estate sales firms where he identified their target client – not buyers or sellers directly but rather agents who generate income for Compass through contractual agreements with brokerage firms.
Reffkin then embarked on finding differentiators for his company by asking agents what they wanted from a brokerage firm since he was new to the industry without any preconceived notions. In 2012 top requests were positive corporate culture followed by marketing help support technology which has now become indisputably essential according to agents today when asked why they choose Compass over others.
This led them towards investing $1.6 billion into creating their own technology platform which is constantly growing thanks also in part due its end user being agent focused rather than buyer or seller based like many others currently available platforms are designed around making it easier for multiple tasks such as comparative market analysis (CMA) sites listing sites customer relationship management (CRM) software transaction management platforms open house apps etc all combined seamlessly onto one platform eliminating repetitive data entry across various areas saving time while allowing business transactions entirely on mobile devices something few options exist currently but have been successfully implemented at Compass already making it possible via taking actual workflow processes used daily by agents putting them onto phones instead further streamlining their work.
Regarding corporate culture, Walker pointed out that agents are independent contractors yet Reffkin responded saying it didn’t matter as they’re salespeople constantly training and needing to feel like they belong which is why Compass invests in coaching events cultural activities economic summits even hosting weekend barbecues Shabbat dinners at his house regularly for agents.
Compass also has a strict work-in-office policy since according to Reffkin “You can’t build a great culture virtually.”
Walker then asked about the current state of the housing market with Reffkin mentioning how mortgage rates have dipped leading people into thinking things are picking up while discussing results from settled broker commission lawsuits against National Association of Realtors. When asked by some agents about potential impact on business due to changes 10% said decline 30% remain same but majority indicated growth. The idea that buyer’s agent would need negotiate commissions with clients did not bother him either stating “They’re professional negotiators extremely good at what they do being paid for.” An agent willing accept discounted rate leads questions how well will perform negotiating value home added.
Final question was where does he see Compass by 2032 twenty years after founding company mentioned thirty-thirty vision – thirty percent market share in top markets plus integrating all services during/after real estate transactions onto single platform so no one ever needs input same information twice additionally elevating perception country’s view towards real estate agents thanks full platform offered providing so much value clients never challenge commission conversations again.
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