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CLICK HERE TO READ THE FULL ARTICLE. From Inman News: MoxiWorks CEO claims Compass agents become 16% less productive when they move to the company.
MoxiWorks, an open real estate tech platform funded by two of the top three regional brands in the country, took a sharp jab at Compass this week, claiming its agents report a 16-percent decline in productivity shortly after moving to the New York City-based national brokerage.
The charge comes on the heels of a June CNBC interview with Robert Reffkin, in which the Compass CEO made several claims that drew ire from many in the real estate industry, including a bold statement that agents at the tech-forward brokerage net a 24.9-percent boost in transactions in their first year.
“We’re the only company that is empowering agents,” Reffkin said during the interview. “Our only customer is the agent.”
The remark drew the suspicion of MoxieWorks Chief Executive York Baur, who promptly dug into the first six months of Compass’ agent productivity.
MoxiWork’s data scientist, according to a spokesperson for the company, took data from all listings sold on or after Jan. 1, 2016. The analysis only included agents who stayed with Compass at least six months and had “substantial” transaction records before or during their Compass tenure, but the company did not elaborate on what it considered “substantial.” The same six-month period was used year-over-year to adjust for seasonal market shifts.
By Tiana Baur
eXp Realty is an agent-owned cloud brokerage. It is quoted as one of the “most innovative real estate companies in the world” by Inman News. At eXp, there are no desk fees, no royalty fees, and agents get to keep somewhere around 80-100% of their commissions. What’s more is they offer every single agent the opportunity to buy into the business and become a shareholder. A “we’re in it together” mentality, surely leaning towards trying to make traditional brokerages look bad. Never heard of them? They’re kind of a big deal. They’re listing agents for properties like these, so you can bet their agents know what they’re doing.
And they’re probably plucking some of your agents (or trying to).
eXp Realty is growing – and fast. Currently in 46 states across the country, they are further proof that clouds are winning. The company increased the number of agents and brokers on the eXp Realty platform by 171 percent to 6,511 agents in 2017, compared to their 2,401 agents in 2016. A 171 percent increase year over year is impressive and it’s alarming. How are traditional brokerages meant to combat this?
Time to get a cloud.
A cloud, or an “open platform” is what it takes to get on the same level as eXp and other cloud brokerages alike. An open platform uses the cloud to connect all of your brokerage systems. This means saying goodbye to tool fatigue and no freedom to change. With an open platform, you get to choose whichever tools you want and they work together – seamlessly, with one sign-in. What’s more is you can change the tools whenever you please, no pain involved. Think of it like a power strip where you can plug-and-play the tools and services you want, and unplug tools and services you aren’t happy with anymore. It’s simple, it’s the future, it’s what you need for your brokerage technology so you don’t end up with a bunch of tangled cords.
“Stop talking to me about clouds.”
You’re tired of hearing the term “cloud” and “brokerage platform,” we get it. While you’re annoyed with the technology industry and having to change and “disrupt” your brokerage, the rest of the world is wondering why the real estate industry is so incredibly far behind. Technology adoption in the industry has historically been depressingly slow, and there is no “tortoise and the hare” analogy that works here because the slow-to-adopt brokerages certainly have not won the race. In fact, many of them have shriveled up and died or are currently clinging on for dear life, losing their agents to cloud brokerages like Compass, eXp, and Keller Williams with the Keller Cloud.
“My brokerage is fine. It’s been fine the last 30 years and it will be fine the next 30.” Answer: We’ll look you up someday in the archaeology archives.
By York Baur, CEO of Moxi Works
If you’re reading this, you have no doubt seen the news about Softbank (the world’s largest tech investment fund) investing $450 Million into the tech brokerage Compass – emphasis on the brokerage. This morning I sent out a note to all of our employees here at Moxi Works, and have decided to share them here. As a true “techie,” I’m sure it surprises no one to learn that I have some opinions about this.
For starters, Compass is a brokerage, not a tech company. However, like Redfin (who has continually overpromised and undelivered), they’re being valued as a technology company, not a brokerage, which means it’s valued at several times the valuation of brokerages.
This fundamental disconnect will work for a while, but gravity is pervasive, and the valuation will fall back to earth soon enough, particularly when there is a real estate market correction.
In short – this is the Greater Fool Theory at work.
What does this all mean?
To quote Inman, “Compass touts itself as “the first modern real estate platform, which reduces the friction and frustration associated with selling, buying, or renting a property by providing real estate agents with a set of powerful tools to increase efficiency and sales volume.”
They have to pay off agents with large sums of money to consider leaving their current brokerage for Compass and their platform. Hence, they are a brokerage, not a technology company.
Here’s a fact: You don’t have to with a true open platform and the technology that embodies it.
There’s nothing Compass has that we don’t already have or that isn’t available today from our more than 35 partners. Our success, the success of the Moxi Cloud open platform isn’t a theory – we can prove that our stuff makes agents more productive and brokerages more profitable. To that end, their CEO Robert Reffkin said today that agents that come to Compass do 24.9% better the year after. We know that agents that adopt Moxi Engage do 39% better, and are happy to walk you through that data.
News like today’s strikes fear in the heart of brokerages, as it probably should. Like every problem, there is a solution. That solution is the Moxi Cloud, which takes Compass head on and gives agents exactly what they need to be more successful than their competition.
I encourage you to contact us – we’d be happy to answer any questions you have, whether it’s about Moxi Works are not. We’re here to help the brokerage.
By Tiana Baur
“Alexa, find me the best real estate agent for our neighborhood.” Another giant might be joining the real estate industry madness with Google and Facebook, providing more referrals and lead generation to real estate agents. An Amazon placeholder page was discovered, which has since been removed, that gave people the option to “Hire a Realtor.”
The webpage was found in their Home and Business Services section, which is a newly rolled out vendor marketplace. According to Inman, “If the marketplace works for agents like it does for other professionals, then agents would pay referral fees to Amazon in exchange for new business. Amazon did not respond to a request for comment.” The general public can already hire home inspectors and interior designers via the marketplace, so adding real estate agents to the vendor list actually makes a lot of sense.
Reviews, Reviews, More Reviews
Amazon is review rich. It’s what makes buying from them easy and painless. Like everything else with them, their Home and Business Services section also has reviews for their vendors, meaning that real estate agent reviews might have yet another place to live. Instead of agents asking for reviews, they might start receiving them unprompted.
Move Over, Zillow
If Amazon really is going to get into the lead generation game, this agent referral page might be able to create extremely strong leads, meaning more competition for Zillow, making leads more affordable across the board. In fact, according to GeekWire, “When reports of the Amazon page surfaced, Zillow’s stock price slumped from $46.15 a share to $44.54.” They also declined to comment on the surfacing of this new service.
York Baur, CEO of MoxiWorks, said, “Monopolies are never good and competition is the antidote. If anyone can give Zillow a run for their money, it’s Amazon, and knowing them they’ll be incredibly price competitive.”
Plus, let’s face it: Amazon finds ways to make everything more affordable. Even on Thanksgiving, they were able to provide turkeys at a lower price at Whole Foods (the used-to-be most unaffordable way to buy groceries) since they recently acquired the company.
The future of real estate in general could get a lot more exciting and fun with Amazon in the mix. Actually, Amazon might just take over the world – and we’re kind of excited to watch them do it. “Hey Alexa, close this transaction for me.”