Most recently, Homie announced its decision to divest its brokerage services and terminate the employment of its real estate agents, once again bringing the discussion of alternative models to real estate to the forefront. As an investor in this industry, I believe that this development is not a failure of one company, but a testament to the continued development and diversification of the real estate industry.
I clearly remember when Homie first entered the market. I think about how they can provide the help buyers and sellers need at such competitive prices. While I remained confident in my skills and the value I brought to my clients, I couldn’t help but question how I could compete with a company that could offer such low-cost representation.
From disruption to recent restructuring, Homie’s path to date highlights the complexities and challenges inherent in introducing different types of business models to the industry, particularly those that reduce fees. The company initially attracted attention and gained traction by offering fixed fees and leveraging technology to streamline the process, promising to change how real estate transactions were completed. Limited service brokerages like Homie have played an important role in challenging the traditional norms of the real estate industry. By providing consumers with more affordable options and greater flexibility, these models expand access to real estate services, especially for individuals and families struggling to survive in what may be a more difficult housing market.
However, as Homie’s recent statement illustrates, the path to innovation is always fraught with obstacles. Despite the initial success, limited service brokerages do face significant challenges, which for Homie include a post-pandemic market, changes in leadership, and ultimately the fluctuating need to re-evaluate business models based on market conditions at any given moment. .
Here, let me reiterate, we need to recognize that Homie’s current problems are not unique to them. Many limited-service brokerage firms face similar obstacles as they seek to disrupt the status quo. However, their presence in the market has undoubtedly impacted the wider real estate community, prompting traditional companies to adapt and evolve in response to changing consumer expectations.
These alternative models suggest the end of the real estate model of the 1980s, 1990s, and early 2000s, in which real estate agents received a large portion of the sales price by putting a sign in the yard and entering some data into the MLS. . . That’s what’s happening with discount brokerage right now. For others, consumers expect more, and rightly so! Brokers that command a premium in the market need to be able to demonstrate their value through their experience, skills, connections and the level or service they provide.
When Homie arrived in town, I recognized the need to differentiate myself by providing a level of service and representation that buyers and sellers could not find at a limited service brokerage. I am committed to improving my professional knowledge by receiving additional training to obtain certifications in skills such as negotiation, market analysis and interior design. Additionally, I increased my marketing investment for each listing and offered my clients free staging and cleaning services at no additional cost. Later, when I built my team, I structured them to ensure that each client received personalized attention from multiple highly skilled real estate agents, each with a comprehensive understanding of their own unique situation. Through my game, I have developed a loyal client base who regularly recommend me and my team to their friends and family and would never dream of going anywhere else for their real estate needs. In this sense, I am grateful to my competitors who inspire me to constantly raise the bar and maintain excellence in my field.
As real estate professionals, we must evaluate the value that alternative models bring. Competition breeds innovation, and the limited-service brokerage industry has prompted traditional companies to reassess their practices and invest in areas such as technology, marketing and customer experience. Applying this to your day-to-day work translates into practical actions such as investing in online and print advertising, refining your personal skills and certifications, and devoting people and resources to each listing or client to ensure they receive a tailored, expert service . In an age where artificial intelligence is all the rage, we prioritize human involvement at every stage of the process, from making marketing decisions to communicating with and coaching customers. While other companies favor artificial intelligence for scalability, we understand the irreplaceable value of a personal touch.
Full-service brokerages must now take a hard look at these disruptors and focus on what ultimately matters: providing exceptional service and value to their clients. While limited-service brokerages may emphasize cost-effectiveness and efficiency, the importance of providing each client with personalized attention and a customized experience remains a factor in ultimately closing the deal for the client, along with a high level of experience/professionalism, The agent’s reputation and strong track record, as well as the agent’s willingness to invest in their clients and the community. A limited service brokerage’s approach includes large listings and high transaction volumes and all real estate agent experience levels, rather than the traditional emphasis on personal service and quality that some consider. The argument often made is that experienced real estate agents at traditional firms prioritize customer satisfaction by providing a tailored experience, rather than emphasizing transaction volume, as we read in the news about Homie reporting overwhelmed agents The problem.
Regardless, the growth of limited-service brokerages like Homie is a reminder of the changing nature of the real estate industry. While not every innovation will be successful, each one contributes to the collective progress and advancement of our industry. By embracing alternative models, we can continue to push the boundaries of what is possible in real estate, ultimately benefiting consumers and practitioners alike.
Alexandra McEwen is a real estate agent with McEwen Realtors.
This column does not necessarily reflect the opinions of the HousingWire editorial staff and its owners.
To contact the editor responsible for this article: [email protected]
