New York, NY CollabNet and Compass produced “The Future of Real Estate Brokerage” featuring an intimate fireside chat between Paul Massey, Jr. and Robert Reffkin at 100 East 53rd St., a new luxury condominium by owner/developers RFR and Vanke and designed by Foster + Partners.
Massey, who recently launched B6 Real Estate Advisors, a sales and capital advisory commercial brokerage firm, sat down in conversation with Robert Reffkin, CEO of Compass, a technology-driven real estate brokerage that now operates in 30 offices across 10 regions, to discuss the future of real estate brokerage.
The discussion revealed, while technology will continue to have a growing impact on the brokerage business, brokers would not be eliminated. “There is a human component in dealing with a broker that no technology can replace. It is an emotional and human connection. Your broker is your psychologist and advisor when you are dealing with the stress of finding a new space or home. Human judgment is critical.” said Massey.
Reffkin added that in order for brokers to have a better future, the industry needs to find a way to come together and find better ways to collaborate. Instead, there are often thoughts of how to get rid of broker commissions. “The most successful brokerage firms are the firms that support their agents.” said Reffkin.
The industry has evolved to where teams are replacing individual agents in order to access greater commissions. With the rising costs of real estate expenses, splits are getting higher and agents are not getting the same value they used to. On the technological side, brokerages are buying software that is not comprehensive enough to serve their needs fully and this technology is costly in a low-margin business.
Reffkin added that an important aspect of technology on their website is the ability to gather feedback from their agents to create a conversation on ideas or creating change. This collaborative community allows agents to type in ideas and vote on change in the company.
“I believe in the future of brokers,” said Massey “The companies that survive are all about the agents and support their agents. For brokerage firms to succeed, they must treat their brokers as clients.”
The event, attended by 100+ senior professionals in real estate, was produced by CollabNet. The event was powered by Ellipsis, LLC, a PR and Strategic Media Advisory firm based in Brooklyn.
Compass is on track to expand to the 20 top US cities with access to 20% market share by the year 2020. B6 recently signed a 12,000 s/f lease at 1040 Sixth Ave. with plans to hire 50 brokers. Both B6 Real Estate Advisors and Compass have a strong focus on balancing data and technology with agents in the field.
CollabNet is a cutting edge professional networking platform, which delivers compelling experiences and exclusive access to high achievers. CollabNet selectively partner with world-class organizations to collaborate and produce engaging events and Compass: a modern real estate platform, pairing the industry’s top talent with technology to make the search and sell experience intelligent and seamless.
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