The discussion about affiliating with Compass included trying to predict the future of the market, and realtors in general.
Historically, there has been a lack of widespread advertising because the realtor business was mostly mom-and-pop operations. But now that big money is here, the advertising has grown. Zillow has nailed it with their heart-felt messaging, which is appreciated by all.
But Purplebricks is running ads like this, and I think they are starting to have a negative impact on the industry in general:
Unfortunately we don’t have a truth meter or quality checker in this country, so people can say whatever they want, no matter how harmful to the consumer.
The problems with this series of commercials – they try to make you think:
- All realtors are the same.
- All houses sell for the same price, regardless of agent.
- You should shop for an agent based on cost.
These lies have been around for years, but this is the first time we’ve seen millions of dollars spent on TV ads to spread them.
I doubt they are going to make many consumers go to Purplebricks and pay up front for service (which is not mentioned in ad), but the damage to the consumer’s subconscious mind is being done.
The truth:
- Realtors, and the services they provide, are all different.
- The sales price of a house depends on who is selling it.
- Consumers should investigate what they are getting for the money.
I’m hoping that Compass will assist us with spreading the truth about selling homes. Klinge Realty having a bigger corporate presence is a start, but some institutional advertising to re-affirm the truth would be helpful too. I haven’t seen any Compass TV ads yet, but an educational advertising campaign would be very helpful for us, and the industry.
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Two things I found impressive in my first day at Compass:
- Compass has recruited 168 top San Diego agents since opening in January.
- The Compass CEO, Robert Reffkin, called me to welcome us aboard.
Selling homes is an individual sport, so I know that the benefits of being with Compass will be determined by what I do with them. Stay tuned!
Selling homes won’t be an individual sport in the future. Sadly, I think the Klinge era of service to clients is coming to an end. Only a few astute people understand the difference the agent can make.
Eventually the big guys will own the entire process from beginning to end and the consumer will suffer and pay more to do so. Compass will eat your lunch and then you.
Thanks for the positivity.
Hey Jim, is Compass more like an Amazon where they offer a platform that gives you bigger exposure to make your sales while taking a commission or are they more like an InBev to the craft brew scene?
Compass offers both, depending on size and location. They just did an InBev-type buy in SF:
https://therealdeal.com/la/2018/07/09/compass-buys-2-3b-resi-firm-in-san-francisco/
I took the Amazon version, with them taking a reasonable fee to use their platform.
Hey, I want you to succeed and grow. If I were moving to SD, you are the guy I would call. Service in any business is a dying quality, unfortunately. The big guys are focused on the money. Streamlining (dumbing down) the process makes them more money.
You have another 10 to 15 active years in the business just based on your age. In your shoes, I would invest as much as I could, under the assumption the income will start to decline over that time and at some point you will have to exit.
Although the forces were different, the appraisers were effectively reduced to lower income robots. It won’t happen to agents to the same extent, but the field will be occupied by a different population by the time you exit.
Hey, I want you to succeed and grow. If I were moving to SD, you are the guy I would call. Service in any business is a dying quality, unfortunately. The big guys are focused on the money. Streamlining (dumbing down) the process makes them more money.
Thanks, and I totally agree – the big guys are taking over the economy in general. They don’t want us to think, or know too much – just enough to keep profits high.
It’s also a gamble to keep the dream alive for our daughters. They could get eaten too, and then what?
I gotta tell you at first I was turned off by the idea of the big guys poaching one our best local agents. I guess the real estate business isn’t what it used to be anymore and anything coming out of Goldman will become a disrupter. Best wishes to you Jim!
I guess the real estate business isn’t what it used to be anymore…
Thanks for the well wishes!
I was resistant myself at first, but wifey is an old Proctor & Gamble employee so she is better at seeing the benefits from the corporate gloss. There is trust that we can turn the whole package into a next-level enterprise.
I can’t rely just on people coming from the blog, so I want to have a better chance with those who don’t know me. I gotta get more listings too, and my past buyers aren’t moving like they used to. After the 2-out-of-5 tax-free package was passed, I had a great run of going back to my buyers every two years and help them move up (some again and again!). But now, everybody buys once, and gets everything they want and need (including a 3-something mortgage rate).
Cool beans. Will there be any neato branded golf swag to push the branding?
Seriously. What will the branding look like? Klinge Realty stays and adds “A Compass Member/Affiliate” or something else?
I have actually seen a Santa Barbara Compass property.
Warn them that putting VenCo in the LA/OC bucket is the kiss of death.
Warn them that putting VenCo in the LA/OC bucket is the kiss of death.
They need to buy a VenCo office, quick!
Seriously. What will the branding look like? Klinge Realty stays and adds “A Compass Member/Affiliate” or something else?
It’s ‘Klinge Realty, Powered by Compass’ for now, but that’s a mouthful. We’re going to see how it looks on a golf ball!
(meeting graphic designers next week – we’ll see)
As cool as their name sounds have nothing to do with “Metes and Bounds.” Those are the same people who had the giant Hummer and Cigar boat in the previous bubble.
I guess my Titlest 11 is a collectors item now.
They still like their boats:
https://yachtharbour.com/news/william-kallop-s-66m-yacht-seized-by-goldman-sachs-1908
Are you still going to answer your own phone, JtR?
Yes, always.