Compass and 8.0

Compass intends to comply with NAR’s Clear Cooperation Policy MLS 8.0. In addition, the corporate staff will work the MLS to see if we can create a Coming Soon section, like many other areas are doing.

The 8.0 policy legitimizes the Coming Soon marketing, and allows for the Office Exclusives, which is already set up on our internal website.  This is why we went to Compass, because it was clear that the game was changing, and the biggest brokerages with the best listing agents would be the most successful – while the little guys get squished.

After less than two years in business, here’s how Compass is doing in Encinitas. Year-to-date sales:

Click to enlarge

Compass Game

Robert is committed to building the end-all platform for real estate – more details on the AI feature haven’t reached the west coast yet, but the game plan is clear. Hire the best agents, give them the money to spruce up the properties, and feature those new listings on the company’s website first to build the audience.

We are going to out-zillow Zillow:

Compass Concierge Update

We used the Compass Concierge to pay for improvements at our new listing in Auberge just for the convenience.  It meant that the seller didn’t have to bother with arranging and paying contractors – we took care of that for him, and Compass will get reimbursed out of the proceeds at closing.

The program has become very popular, and was just expanded:

Concierge Approval Guidelines for Residential Resales:

For new residential resale listings under $3 million, Concierge requests up to $150,000 are guaranteed to be approved if:

(a) the request is 5% or less of the list price (up from the previous 3%);

(b) the equity in the home is at least 2x the budgeted Concierge amount; and

(c) the home will be ready to list within 3 months of when Concierge starts paying vendors.

It makes sense to spruce up a home before putting it on the market, but it also works after we find the buyer because we can repair/improve/customize the home to their needs to help justify them paying a higher sales price.

The program is helping to grow the Compass brand too.

There are now 650 Compass agents in San Diego County, with six main offices and several satellite locations too. Here’s a look at the new office downtown:

Back to the Wall?

The way this is going, Realogy is going to get stripped down and sold for parts:

With his back against the mats, Realogy CEO Ryan Schneider considered selling the brokerage to its chief rival: Compass.

In a statement Friday, the SoftBank-backed brokerage said Schneider even proposed a plan where the arch enemies would form a joint venture — a proposal Compass said it declined.

The statement was made in conjunction with Compass’ motion to dismiss an explosive lawsuit filed by Realogy earlier this summer. In the suit, Realogy accused Compass of illegal business practices, including “predatory” poaching and attempts at collusion.

“The motion reveals the lawsuit for what it is: an act of desperation in response to Realogy’s rapidly eroding market share,” a Compass spokesperson said in a statement Friday.

In the statement, Compass said if Realogy’s suit is not dismissed, Compass intends to file counterclaims against the New Jersey-based conglomerate, the parent company of the Corcoran Group and Coldwell Banker.

Link to Full Article

JtR Goes Retail

The Compass office at the La Costa Resort began as a P.S. Platinum office, and then Julie and her team were there until a few months ago. The Klinge Realty Group is next!

It’s only worth being there if you can find ways to take advantage of the location and opportunity – and I have some ideas. Stay tuned!

We should be up and running there within the next 30 days. Stop in and say hello.

Whisper Listings

Pocket listings should keep the excitement level higher for now.

From the Business Insider:

The ultra-wealthy are known for being exclusive, and the way they handle the purchases and sales of their multimillion-dollar homes is often no exception.

Now, that’s not to say the market hasn’t seen some very prominent, top-level listings. There’s the most expensive home for sale in the Hamptons, which is listed at $150 million, and, of course, Los Angeles’ Chartwell Estate, which was listed at $245 million and, before getting a major price cut, was the most expensive listing in the US.

But for those looking to keep the sales of their homes a little more under the radar, there are whisper listings.

Whisper listings, also known as pocket listings, are for-sale homes that aren’t available to the public. Off-market listings are popular among the ultra-wealthy and are bought and sold by word of mouth.

Los Angeles real-estate agent Aaron Kirman recently told Business Insider that he’s a veteran whisper-listing agent -and revealed three main reasons why sellers keep their homes off the market.

Kirman is a top real-estate agent at the real-estate company Compass. He’s been in the industry for 24 years and has sold over $4.5 billion worth of real estate since the start of his career. In 2019, REAL Trends named him the 10th-best real-estate agent in the country by sales volume.

Here’s a look at what compels wealthy homebuyers to keep their houses off the market and to instead opt for whisper listings.

1. Sellers can list their homes for higher prices through whisper listings.

By not putting a home on the market, the seller avoids value expectations, Kirman explained to Business Insider. With whisper listings, sellers have the advantage of pricing their homes above an area’s median listing price.

According to Kirman, sellers see this as an advantage because they are able to price their homes as high as they want regardless of the current state of the market.

“If you go live on the market, you have to publish a price. By not going live, you’ve never been public on a price so you don’t necessarily have to go down,” Kirman told Business Insider. “I’ve had sellers up the price of a whisper campaign because they have nothing to lose.”

2. Whisper listings can be used to keep a seller’s personal business out of the public eye.

Whisper listings can serve specific purposes, particularly when it comes to privacy.

For example, if a seller doesn’t want to put a home on the public market for political reasons, such as a divorce, they’ll use a whisper listing instead.

“Sometimes there’s political reasons as to why people don’t like them on the market whether it’s divorce, business reasons, or they just want to keep it quiet,” Kirman told Business Insider.

3. Whisper listings are exclusive and often viewed as a symbol of wealth.

Some sellers prefer to use whisper listings because they are more exclusive than public listings and, as such, are oftentimes seen as a symbol of wealth. However, Kirman told Business Insider that he doesn’t think using a whisper campaign, for the sake of exclusivity, is effective in today’s market.

And within that, there’s the potential downside of missing a prospective sale simply because the agent is not connected to the right person.

“The thing is, I don’t know everybody. So I always tell people there may be that one multimillionaire or billionaire that, because you’re not out there [on the public market], you missed – and they will go buy another house that was public,” Kirman told Business Insider.

https://www.businessinsider.sg/how-the-ultra-wealthy-sell-mansions-whisper-listings-2019-7/

More talk here:

Link to Discussion of PLS.com

More Funding

Here’s the official announcement, but the WSJ said that bringing in Dragoneer probably means that the IPO is getting close:

On Tuesday, Compass announced its $370 million Series G round of fundraising at a valuation of $6.4 billion —  a 45% increase in valuation in 10 months. This brings its total capital raised to more than $1.5 billion.

New and returning investors cited Compass’ consistent growth, proven scale across the largest real estate markets, and proprietary technology as the key reasons why they invested. They view Compass as uniquely positioned to build a real estate platform that makes the search and selling experience intelligent and seamless to deliver superior results for you, the Compass client.

This round of financing positions Compass to:

  • Fuel our technology investments and advancements, including hiring additional Product & Engineering talent and accelerate software development, such as our upcoming launch of a revamped consumer search experience, which will help me get the best offer for your home.

  • Further invest in programs like Compass Concierge, which empowers home sellers to sell their home faster and for more money by fronting the cost of home improvement services like staging, painting and more, which will help sell your home faster and for a better price.

This investment brings us steps closer to realizing our mission to help everyone find their place in the world, and I am excited for this next chapter!

FAQs

Q: Why did Compass decide to raise more capital?

A: Funding from investors makes it possible to invest in our proprietary technology to create a next generation platform for home transactions and ownership, and also to support other programs such as Compass Concierge, which help us empower our agents and grow the company.

As with past rounds, the decision to fundraise was not made due to lack of capital. We will use this funding to drive investment in industry innovations that attract both sellers and buyers to the Compass platform, delivering superior results that, in turn, empower our agents to grow their business.

Q: Who are the investors?

A: Participating investors include a select group of longstanding partners and new investors including Canada Pension Plan Investment Board (CPPIB), Dragoneer Investment Group, Softbank Vision Fund and Qatar Investment Authority (QIA), among others.

Q: Why did investors decide to invest?

A: New and returning investors cited Compass’s consistent growth, proven scale across the largest real estate markets, and proprietary technology as key drivers of their investment. They view Compass as uniquely positioned to build a modern real estate platform making the search and selling experience intelligent and seamless to deliver superior results for buyers, sellers and their agents.

One-Year Anniversary @ Compass

We’ve been at Compass for one year!

How’s it been, and where are we going?

I was the 160th agent hired in the region.  Now there are 565 Compass agents in San Diego County!

In the beginning, we thought that Klinge-Realty-Powered-By-Compass had a nice ring to it, but it proved to be a mouthful, so we changed to the Klinge Realty Group for ease of use.

We’ve hired Brittnie Dixon to be our licensed assistant.  She has been doing a wonderful job with marketing and special projects!

We’ve joined the company’s sponsorship of the Del Mar Thoroughbred Club, which means you will see Donna and I in the race program this weekend.

We are also contemplating a move to the office at the La Costa Resort.

We have a new website being developed that should launch in the next few weeks.  I was hoping to combine it with bubbleinfo.com but formatting them together is still being explored.  There will be a blog!

Most of all, I’m glad Compass has a strategy to dominate the real estate universe.  It’s not perfect, but at least we have a strategy!  I’ll get into our Coming Soon program in more detail as time goes on, but consider how the entire industry has rushed to Coming Soons as a primary marketing device.

Want a sample of how the public perception has changed about selling homes?

A consumer (not an agent) said this month, “If you don’t sell your home off-market, and have to put it on the MLS, then people think something is wrong with it…..or the price.”

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