Compass CEO Robert Reffkin Comes Out In Favor Of Houses.com
On Thursday, in dialog with Brad Inman at ICNY, Reffkin weighed in on the portal wars, predicted an improved market in 2024 and revealed he takes public transit round New York.
Inman Join New York is LIVE this week! Expertise the heartbeat of the true property business in individual or be a part of us from anyplace on this planet — the way forward for actual property is unfolding now. Get your virtual ticket here.
As a battle of phrases and philosophies rages between major real estate portals, Compass CEO Robert Reffkin on Thursday jumped into the fray and threw assist behind the latest entrant within the house, Houses.com.
Reffkin made the feedback whereas on stage for a session of Inman Join New York. Close to the top of the session, moderator Brad Inman requested Reffkin about Houses.com’s “your itemizing, your lead” technique that goals to direct shoppers to itemizing brokers, and about Andy Florance, CEO of Houses.com dad or mum CoStar.
“Do you agree with him?” Inman requested.
“Sure,” Reffkin merely replied.
Reffkin then went on to say that “brokers are my prospects” and he needs what they need. Then a second later, he reiterated his assist for Florance.
“I’m very supportive of Andy and Houses.com and I need to assist his success,” Reffkin stated because the session wrapped up.
Although the second was temporary, it was important. The contest between the various big portals has been one of many defining tales in actual property over the previous a number of years, starting with Florance’s pugnacious comments at Inman Connect in 2021 through which he accused Zillow of “hijacking” brokers listings. Across the identical time Florance also claimed Zillow’s StreetEasy model “blackmails” brokers.
Florance appeared at Inman Join this yr and again offered some criticism of Zillow, however this time he additionally focused Redfin and Realtor.com.
Alternatively, Zillow President Susan Daimler appeared at Inman Join Thursday as effectively, and stated that her firm has a program that successfully does the identical factor as Houses.com’s “your itemizing, your lead.” Nevertheless, she characterised this system as one thing of a distinct segment product and, in an implicit critique of Houses.com, expressed doubts that the technique would work effectively scaled up throughout the whole actual property business.
Brad Inman, left, and Robert Reffkin at Inman Join New York on Thursday. Credit score: AJ Canaria Artistic Companies
The forwards and backwards — a lot of it within the type of veiled and implied criticism, reasonably than express bashing — highlights how the foremost portals are, in truth, competing philosophically to outline the best way shoppers interact with actual property professionals. On high of that, Florance’s operation specifically has been aggressive in touting its rising attain, regardless of being newer than its rivals. CoStar acquired Homes.com in 2021.
All of that’s background data. However it’s additionally vital context for understanding Reffkin’s feedback Thursday; to voice assist for Houses.com is to wade into a much wider and long-simmering battle. That stated, it’s maybe not stunning that Reffkin would specific solidarity with Florance. Each executives lead firms which are highly effective and well-funded, however which have additionally performed the position of disruptor to actual property’s establishment.
In Reffkin’s case, Compass has also managed to grow into the biggest brokerage of its form within the U.S. by gross sales quantity — a reality Reffkin talked about on stage Thursday.
“We’re the primary brokerage agency within the nation, for the second yr in a row,” Reffkin instructed the packed Join ballroom.
A second later, Reffkin pushed again towards Compass’ naysayers.
“Each single yr for 11 years folks have stated Compass is in bother, and each single yr we’ve continued to carry out,” Reffkin argued. “There’s not a single bone in my physique that thinks we’re in bother.”
Brad Inman, left, and Robert Reffkin at Inman Join New York on Thursday. Credit score: AJ Canaria Artistic Companies
Along with weighing in on the portal wars and defending Compass towards critics, Reffkin additionally mentioned the market Thursday. Amongst different issues, he stated that 2023 was extraordinarily tough and that he noticed many top-producing brokers undergo robust instances. He recalled seeing profitable brokers cry, contemplate retirement, and even “query their manhood” as a result of they couldn’t present for his or her households.
“Final yr, I’ve by no means seen so many high brokers query whether or not they need to go away the enterprise,” Reffkin stated.
However, Reffkin stated the market is recovering and he expects 2024 to be about 10 % higher than 2023. Circumstances ought to proceed to enhance even additional in 2025, he added.
Reffkin moreover famous that as time goes on, fewer and fewer owners are “locked” into their current properties with low charges.
“In two years, solely a 3rd of individuals might be locked out, or restricted by their low mortgage fee,” he stated.
At one other level through the session, Reffkin touted his firm’s recruiting efforts, noting that Compass has had 300 brokers go away after which return a short while later — a phenomenon sometimes referred to as boomeranging. Reffkin stated most of the brokers have returned to Compass as a result of brokerage’s proprietary know-how and despite the fact that the company no longer offers money and stock-based incentives.
Although a lot of Reffkin’s session centered in the marketplace and different main actual property points, he did provide a number of fleeting private particulars. His household just lately obtained a canine, he revealed close to the start of the session. And when Inman requested Reffkin how he deliberate to journey from the Join venue again to his Manhattan workplace, Reffkin — in a considerably stunning reply given his position on the head of a serious company — replied that he’d be taking the subway.
“You,” Inman replied, “are an actual one.”
