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An Insider's Guide to North San Diego County's Coastal Real Estate
Jim Klinge, broker-associate
858-997-3801
klingerealty@gmail.com
Compass
617 Saxony Place, Suite 101
Encinitas, CA 92024
Klinge Realty
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Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Jim Klinge
Cell/Text: (858) 997-3801
klingerealty@gmail.com
701 Palomar Airport Road, Suite 300
Carlsbad, CA 92011


Category Archive: ‘Compass’

NRT Rips Compass

Today, Ryan Gorman, the CEO of NRT which owns Realogy (Coldwell Banker, Century 21, Corcoran, etc.) took a major shot at Compass.

He released this two-page ‘questionnaire’ for his agents to use when interviewing with Compass, but he sure comes off as desperate and paranoid:

Help-Agents-Avoid-Being-Thrown-Off-Course-by-a-Spinning-Compass-CB-NRT

Our CEO, Robert Reffkin, shrugged it off, which is fine and what he should do:

“What you talk about is a representation of what you are focused on,” Reffkin said. “We don’t tear down competitors, we don’t pay attention to the noise, what we focus on is empowering agents.”

But as a Compass guy, I’m going to address some of Ryan’s specific concerns for those consumers and agents who might be curious and want to know the truth:

1. Robert Reffkin told us that because we’re in the Top 20 markets, the company was going to concentrate on supporting and growing those already in play – which sounds great to us agents.  I don’t know how you rate the Top 20, but here’s where we are: Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, New York City, Orange County, Philadelphia, San Francisco, San Diego, Seattle, and Washington D.C., plus nine other smaller cities – which makes 24 markets.  Close enough.

2. Compass agents grow their business quickly after joining Compass? I don’t remember that claim specifically, but every agent knows your business usually takes a hit when you change companies.  Ryan said York at MoxiWorks contradicted the claim, but that’s not true. York said that the Compass market share was lower than claimed, but he checked the Compass production only, when Compass said it was the agents’ cumulative total for the year.  Agents count their annual sales volume, regardless of their brokerage, so the Compass and MoxiWorks measurements were apples and oranges – for Ryan to misconstrue what happened is disingenuous.

3. Ryan says Cigna isn’t our insurance company, but looks like they are to me:

We saved $4,000+ per year and have a lower deductible.

4. Ryan claims Compass is losing money and wants to know about the turn-around plan?  There’s $1 billion in the bank, and Compass will likely do an IPO in the next 24 months.  But agents are focused on selling homes – if we make any money on stocks or stock options, it will be icing on the cake.

5. Ryan said that Compass ‘strongly encourages’ agents to use the in-house tools. Nobody has ever asked or told me to use the Compass tools.  Furthermore, the Compass agents I know are all seasoned professionals who used their own tools long before working at Compass.

After his release went public, Ryan said this:

“I believe competition raises the level of play, and I welcome it,” Gorman said. “But when a competitor fails to uphold the basic ethics and integrity that this industry has together worked so hard to build, and puts the people I care about in jeopardy, I cannot sit on my hands.”

“The ‘talk’ coming from Compass behind closed doors is disturbing, and yet even in public forums, such as this publication, the inconsistencies, exaggerations and flip-flops by Compass executives are deeply concerning.”

The NRT sales volume is around 5x what we sell at Compass, and this guy goes ballistic over half-truths and innuendo, most of which is wrong or inconsequential?  Why?

Posted by on Feb 21, 2019 in About the author, Compass, Jim's Take on the Market, Realtor, Realtor Training, Realtors Talking Shop | 0 comments

More Tidbits

More tidbits, mostly from Leonard’s daily Compass email:

Here are some interesting Los Angeles-area market stats:

  • There were 580 closed sales of $5 million+ in 2018, versus 602 in 2017.
  • There were 157 closed sales of $10 million+ in 2018, versus 185 in 2017, (down 15%).
  • 43 of these were $20 million+ in 2018, versus 52 in 2017, (down 17%).
  • 19 of the sales were $30 million+ in 2018, versus 23 in 2017, (down 17%).  Both years had 9 sales of $40 million+.
  • Of the 43 sales of $20 million+ this year, 34 of the buyers were American, (79%).  The other 9 buyers were from Monaco, China, Australia, Saudi Arabia, Switzerland, Japan,
  • The majority of the 43 sales were in Beverly Hills with 12, followed by Malibu with 9,  There were 5 in Bel Air, 5 in the Sunset Strip, 3 each in BHPO, Palisades, Brentwood and Holmby Hills.
  • 21 of the 43 sales of $20 million+ sales were not officially listed when sold.

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Read More

Posted by on Jan 30, 2019 in Compass, Jim's Take on the Market, Market Buzz | 2 comments

Compass San Diego

Today we attended the soft opening of the new Compass office at 1953 San Elijo Ave., Suite 101 in Cardiff By-the-Sea (next door to Cicciotti’s).  More than 100 Compass agents will occupy both floors eventually (63 now).

Other offices being built include a 22,000sf, ground-level office in One Paseo in Carmel Valley, which will be the central hub for San Diego.  Compass will be the exclusive residential real estate office in One Paseo, and have the valet parking right in front, along with 100 parking spaces.

The downtown Encinitas office on Coast Highway 101 will probably be the next to open early next year, plus there is another 11,000sf office being built out at the Equinox center in La Costa, which will be the new HQ for the Klinge Realty Group.

Compass started in San Diego in January, and we joined in July when there was 160 agents.  By the end of this week, there will be 320 Compass realtors in the San Diego area!

Wow!

Donna and I with our manager Steve Salinas

Posted by on Dec 10, 2018 in About the author, Compass, Jim's Take on the Market, Klinge Realty | 8 comments

Compass Convention

We attended the Compass REtreat in Los Angeles over the last day and a half.

It was a quick get-together to roll out the future plans, participate in four breakout sessions on the usual topics – social media, team-building, scripts, and risk management – and attend the thank-you party last night.

I appreciate the effort, because the party itself was pretty impressive.  Gourmet-food stations, open bar, and a 12-piece live dance band for the 2,000 Compass agents who attended (out of 7,500).

But the thing I respected the most was that the CEO, Robert Reffkin, stood by himself at the entrance and personally greeted every agent as they arrived.

No assistant, no senior staffers or entourage – just Robert by himself, fully focused on expressing his appreciation to each of us.  Nobody does that.

They will be investing a boatload of money into the business, primarily in support of the agents being more effective in the coming years.

But it is the human connection with the agents, and commitment to our future together that will make Compass the leader in the industry.

Compass offices, nationwide:

End of 2017: 30

End of 2018: 150

End of 2019: 300 (projected)

Six months ago the company goal of 20% market share in the Top 20 markets nationwide sounded far-fetched.  Today it seems very real – we have offices in each of those Top 20 markets, and just need to grow further.

I think it’s going to happen.

Posted by on Nov 30, 2018 in Compass, Jim's Take on the Market, The Future | 2 comments

Pocket Listings / Coming Soon

More tip-toeing around the Coming Soon topic in Realtor Magazine yesterday:

The surge in off-market “pocket listings”—those held off the MLS in favor of secret channels and networks between agents or within a brokerage—is a growing issue in the real estate industry.

In markets starved for inventory, real estate professionals are struggling with being kept out of these secret dealings for homes that their buyers could potentially want.

In markets such as Los Angeles, for example, reports say that up to 30 percent of sales are being withheld from the MLS for the sake of more private channels, according to some brokerage estimates.

In response, some brokerages—and even MLSs—are looking for ways to expose these listings to a larger audience. One of many recent launches in the past month came from the brokerage Compass, which allows its real estate agents to post their listings to Compass’ website days before sharing them with the local MLS and third-party portals, like realtor.com®. “Compass Coming Soon” is available nationwide in markets where the brokerage operates.

“This will help our agents get a head start on marketing while still getting the property ready for market,” Compass CEO Robert Reffkin reportedly shared with Compass real estate professionals in an email. “By harnessing the power of pre-marketing, [the listing] actually shows up twice in everyone’s alerts: once when it hits Compass.com, and again when it hits the open market, doubling potential exposure.”

Pacific Union International, which Compass acquired in late August, had launched its own solution to handling the disruption from the growing prevalence of pocket listings in May with “Private View,” debuting $400 million worth of exclusive property offerings. But its portal of off-MLS listings can be viewed by any registered users—real estate professionals from other brokerages as well as the general public. Registered users can see exclusively signed listings before they’re publicized on the MLS. The portal is currently available in northern and southern California.

In September, Long & Foster launched its own exclusive Coming Soon Portal to promote upcoming listings to its agents before they are on the market. It’s a way to gauge interest and create early demand for a property before it hits the MLS.

“Our agent-to-agent portal allows our sales associates exclusive access to Long & Foster properties that are not yet in the MLS,” Barry Redler, chief marketing officer for The Long & Foster Companies, said in a statement announcing the portal. “Having this platform not only allows us to respond to certain seller requests but also gives our agents a leg up on the competition by helping their buyers more easily find a home in a tight inventory market.”

MLSs are searching for the answer to expose these homes listed for sale, which the seller may wish to keep secret. The Chicago area MLS, Midwest Real Estate Data, launched the Private Listing Network in 2016 as a separate feed to share information to registered brokers about “coming soon” listings. These are not displayed publicly. MRED officials cite it as a way for real estate professionals in their area to premarket listings that aren’t ready to show yet or that are in the process of being renovated, repaired, or staged prior to being marketed publicly. It’s also a way to test the price, as a range can be entered.

But some brokerages and MLSs are taking a firm stance against the practice of pocket listings or “coming soon” forms of premarketing. Since 2013, Northwest Multiple Listing Service—serving the Seattle area—has prohibited its members from promoting or advertising a property until it is listed in the MLS.

Off-MLS deals amplify concerns about limiting exposure of the property “to a select group of agents to the detriment of the seller and other MLS members,” Tom Hurdelbrink, president and CEO of NWMLS, told REALTOR® Magazine.

Nobody wants to project how this will play out, but it seems obvious.  Every brokerage will operate a Coming Soon program, and the MLS will become the marketplace of last resort.

https://magazine.realtor/daily-news/2018/10/23/brokerages-wrestle-with-growth-of-pocket-listings

The photo from the article:

Posted by on Oct 24, 2018 in Coming Soon, Compass, Jim's Take on the Market, Listing Agent Practices, Pocket Listings, Realtor, Realtors Talking Shop | 1 comment

Compass 2

When we made the decision to join with Compass, it was the future of the business that was a primary concern.  The I-news summed it up well in their profile of Nick Segal,  the founder of one of the SF brokerages recently purchased, and we could relate to what he said:

“The independent brokerage is going to face a very, very difficult time in the next three to four years. They don’t have enough money to invest in the growth of the business, their key people are going to start to realize they need to sacrifice the relationship with the brokerage (and go to a bigger firm),” Segal said.

“In order to take our agents to the next level we needed more tools, tech and a greater reach. We had to align ourselves with a bigger player, that was the mindset. Selling our baby was emotional but we knew it was best for the company and for individuals who were facing stiffer competition.”

In the beginning, Donna worked for Proctor & Gamble, one of the best-run corporate-sales teams ever.  She appreciates the benefits of working within a structured environment, and with staff who provide meaningful support.

We want to be supported in being on the forefront of the tech revolution in real estate.

People complain that Compass isn’t really a ‘tech’ company, but all we need is a platform where all of the latest technologies are packaged up and linked together – and that’s what Compass is doing for agents.

Donna had these thoughts on the decision:

Our industry and the world is so dependent on tech – it doesn’t replace the importance of the agent/person and our relationships – but it is critical to our success.  Having access to the best technology available is something that Jim and I both valued and knew that to have it – it would mean paying for it or working for a brokerage that offered it to its brokers/agents.  Finding the best tech platform was a factor.

In the two short months here, Compass has rolled out more tools and technology to assist us than I ever thought possible, and the staff (which is significant) is 100% committed to making the lives of agents better.

We have staff dedicated to design/marketing, product education, agent operations, concierge, IT, etc. – all full time staff employees who’s job is to assist, help, support, and do what they can – so we can go do what we do – sell houses.  It’s impressive the commitment Compass has to supporting agents.  You will hear the CEO say, ‘agent-centric company’, and so far it is very true.

 The decision wasn’t an easy one for us to go work for someone else – but as we made the choice – it felt right, and it still does.

The disruptors/discounters in our industry is another reason.  It’s easy for the consumer to assume that small brokerages must discount their service and fee to compete.  We wanted to align ourselves with a company that was all about being a full-serviced brokerage which is what we’ve always been – we do a lot for our clients.  Compass is all about being a full-service company and is saying this loud and clear publicly – we want to be on that side of the equation.

Last and not least, as we considered companies to work with, we noticed who Compass has hired in San Diego County and we were honestly impressed with the list of agents in our area – top notch listing agents with great reputations.  We also heard that they were not taking everyone; they were vetting their prospective agents carefully; and were committed to maintaining the culture of their company.  This is something that mattered to us.  Jim started Klinge Realty after being frustrated with some of the agents we worked with and not being proud of their business practices and ethics.

Mentioned yesterday in our meeting was the likelihood of Amazon getting into the real-estate selling business.  It’s the only major industry that they aren’t involved with, and it seems inevitable that they will be a player some day.  No one is sure yet how they will participate, but it’s coming.

The Great Real Estate Consolidation is upon us, and the landscape will look very different in the next 2-3 years.  Small and medium brokerages are finding it difficult to keep up, and their agents are leaving for greener pastures.  We are glad to have made the move early on, and appreciate what has been a great system and group so far!

Posted by on Oct 4, 2018 in Compass, Jim's Take on the Market, Why You Should List With Jim | 5 comments

Compass

Today was our Compass Day.

We met our CEO, Robert Reffkin, and we were thoroughly impressed.

We come from different backgrounds – I’m the scrappy street guy, and he is the Wall Street wunderkind – but we see the future of real estate the same way.

He mingled for longer-than-necessary during the breakfast warm-up, and then spoke for about an hour on his vision of Compass, and creating a platform for top-producing agents to best serve their clients.  Then he hung around for another extended period during happy hour, shaking hands and making himself very available to agents and support staff alike. He exemplified leadership in the best way.

It is a contagious environment!

Since January, Compass has hired 210 top-producing agents in San Diego (when we signed two months ago, there were 160). Most importantly, there are also 54 full-time support staff, which is unheard of in typical real estate brokerages.

There will be some consolidation coming to the real estate industry, and eventually the consumers will have a choice between taking their chances with discount fees for minimal service or hiring top professionals to deliver superior service and results (Wal-Mart vs Nordstrom).

We’ll do a second post on this topic, which won’t include how old I feel. I was the only one wearing a tie, and black shoes.  This is a younger crowd!

Posted by on Oct 3, 2018 in Compass, Jim's Take on the Market, The Future | 9 comments