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Compass + Anywhere = 340K Agents? What This Means for Realtors · The Real Estate Agent Playbook

• 0:00
  compass just announced that it is buying the anywhere
• 0:02
  brand of real estate for 1.6 billion
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  on the surface this is a massive headline
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  a deal that could create a 340,000 agent
• 0:12
  powerhouse in the industry
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  but let's flip the script
• 0:16
  compass
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  who reported 81.6 million dollars in debt obligations
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  just in quarter two of 2025
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  is taking on anywhere as 2.1 billion
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  plus a 750 million dollar bridge loan to make this work
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  all while being a brokerage with just 25,000 agents
• 0:31
  acquiring an umbrella of companies
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  of a brokerage already housing 300,000 agents
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  paints a very different picture
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  doesn't it and yes
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  this will affect agents
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  but only the ones who care enough to look
• 0:44
  beyond the headlines
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  and understand the ramifications that
• 0:49
  are in front of us we're gonna break all this down
• 0:52
  and more today on the Real Estate Agent Playbook
• 1:00
  I wanna first start this off by saying
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  there is going to be some positives
• 1:05
  there are some positives to compass taking over a brand
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  such as the anywhere brand
• 1:10
  which houses Sotheby's era
• 1:12
  Better Homes and Gardens Coldwell Banker
• 1:14
  among others
• 1:15
  and the honest truth is there will be positives
• 1:18
  there will be negatives just as in any acquisition
• 1:21
  and I'm not here to tell you
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  that this is going to completely destroy the industry
• 1:26
  or be the greatest thing ever
• 1:28
  what I'm here to do is break down the differences
• 1:30
  and
• 1:31
  talk to you a little bit about options that may occur
• 1:34
  for you whether you're inside
• 1:36
  the anywhere brand or maybe outside
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  so first and foremost
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  I really wanna hammer in on these 300
• 1:42
  and forty thousand agents
• 1:44
  a decent amount that are national
• 1:47
  and another
• 1:48
  hundred and forty thousand that are international
• 1:50
  that could be affected
• 1:52
  Compass's brand was not in all 50 states and was
• 1:55
  for the most part a
• 1:57
  you know luxury market specific brand Denver
• 2:01
  you know the southern states Seattle
• 2:03
  New York and so on and so
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  as we look at this and people are hammering home
• 2:09
  this 340,000 agents well
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  the truth is is that the anywhere brand housed
• 2:15
  you know over 300,000 agents alone
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  and so this huge
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  behemoth of a brokerage umbrella has always been there
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  now arming them with some of the tech
• 2:27
  things that compass offers
• 2:29
  and so on is
• 2:31
  you know something that could make that 300,000
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  you know
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  agent brokerage or umbrella a little bit more powerful
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  and I understand that
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  but the fact that it's just because of sheer numbers
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  alone that we're saying
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  this could be a monopoly and all of this stuff
• 2:49
  well I mean
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  adding 25,000 agents estimated to this
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  from the compass brand
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  doesn't really make a lot of sense to
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  you know that being the
• 2:59
  the thing that pushed the 300,000 person
• 3:02
  brokerage over the edge I get it
• 3:04
  tech is different and you know
• 3:06
  compass is very tech forward
• 3:08
  compass does have you know
• 3:10
  several irons in the fire with
• 3:12
  you know clear cooperation and Zillow and all
• 3:14
  of those things and so I understand why
• 3:17
  you know looking at this and you know
• 3:19
  the the headlines that there's gonna be this one
• 3:22
  you know exclusive agency to list with
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  because it's all gonna go exclusive
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  the truth is is that even within compass
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  their exclusive offerings
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  you know are only used by a certain percentage
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  and that's where this kind of breaks down
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  a lot of these you know
• 3:39
  agencies and 340,000 agents in the anywhere brand yes
• 3:43
  there is luxury markets obviously
• 3:45
  Sotheby's a very luxury recognized brand
• 3:48
  Coldwell Banker has their luxury department and so on
• 3:51
  but
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  the majority of those agents are not in luxury markets
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  so to speak
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  and so when we're stepping back and looking at this and
• 3:59
  you know
• 4:00
  the exclusivity of the exclusive marketing platforms
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  that you know
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  have been in the news I'm not sure that you know
• 4:07
  that is going to you know
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  articulate to
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  the grand majority of those 340,000 agents
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  not to say that they have to use it
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  the current compass you know
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  set up does not have to go exclusive and there are
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  you know different things that happen for each of those
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  but when you really start to look at this
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  as an international piece
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  the exclusivity of marketing a you know
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  quote unquote luxury listing just isn't you know
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  the best for a lot of these different markets
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  so that's the first thing I want to say yes
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  there may be some you know
• 4:43
  fear of that and you know
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  let compass and Zillow do their thing
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  the real key here is the MLS disruption
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  and will the 340,000 agents and the agent voices
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  you know stand for you know
• 4:58
  trying to you know depopulate the MLS
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  I don't think that's you know
• 5:03
  where we're going
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  I don't think that that's in its nature
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  and if you want my honest opinion
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  the MLS system has needed a a rejuvenation or a re
• 5:12
  you know restructure for a long time right
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  there's doesn't make any sense to have you know
• 5:17
  neighboring counties on different MLS's
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  and things like that
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  but that's neither here nor there as we see
• 5:23
  let's focus on this MLS disruption right
• 5:26
  worry less about you know
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  if all these listings are going on this side
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  or that side or whatever
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  but when the MLS starts to break down
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  that's when we'll really see real industry change
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  in my opinion so on a global scale
• 5:40
  does it make sense for you know
• 5:42
  the house and wherever
• 5:45
  in a farm town in the middle of Iowa
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  does it make sense for that one to only be seen by
• 5:50
  you know
• 5:51
  people that are housed and have access to you know
• 5:54
  this brokerage's network I I mean
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  I don't think that makes a lot of sense
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  from the consumer and
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  and honestly I don't think that
• 6:01
  that agent from the compass brand
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  or the anywhere brand or even my brand would
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  would suggest like
• 6:08
  we should go exclusive with this
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  because in those smaller populated areas
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  there's less buyers so
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  we need to make sure we're getting in as
• 6:14
  front of as many eyes as possible
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  and so I think that there's a rush to conclusions here
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  of why they're doing this
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  and that and I think when we step back and look at it
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  and look at the population
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  and the breakdown
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  and the densities of different markets that
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  you know this isn't just gonna be a one size
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  fits all acquisition I think a lot of the
• 6:37
  you know
• 6:39
  information that is out there
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  is really focused on this 340,000 agent piece
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  but I really
• 6:45
  also want to talk about how this was performed right
• 6:48
  a 1.6 billion dollar purchase
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  this is an all stock purchase
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  so it's not like you know
• 6:54
  there was there was other you know
• 6:56
  they're incurring more debt
• 6:58
  obviously
• 6:59
  they're taking on the 2.1 from anywhere within the deal
• 7:03
  but when we're talking about stock purchases
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  and purchasing with debt
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  or purchasing debt and creating that piece
• 7:12
  we have to really step back and say okay
• 7:14
  how is this going to affect the players that are inside
• 7:18
  the the
• 7:19
  you know stock portfolio
• 7:21
  the players that are outside
• 7:22
  and the truth is that the you know
• 7:25
  same old names are kind of dialed in there
• 7:28
  and I think that that's you know
• 7:30
  the vanguards the Fidelity's
• 7:32
  the this that they owned all the companies they owned
• 7:35
  some of my companies they owned
• 7:37
  you know both of these brands and you know
• 7:39
  certain stock portfolios and so
• 7:42
  this is something that
• 7:43
  we have to kind of step back and look at
• 7:46
  the real you know
• 7:48
  thing that comes up here
• 7:50
  that I'm looking at is the institutional ownership
• 7:53
  right where for instance
• 7:56
  you know
• 7:56
  the institutional ownership of compass is around 75%
• 8:00
  where the institutional ownership of anywhere is
• 8:03
  around 96% and then you have companies like EXP
• 8:07
  that are cloud based that
• 8:09
  you know the institutional ownership is
• 8:11
  you know
• 8:13
  40% and
• 8:15
  and we start to kind of look at the insider ownership
• 8:18
  and how this this looks
• 8:20
  and you know the truth is is that
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  when we step back and look at this
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  and there's something called float in this process
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  which is essentially the
• 8:32
  you know ability
• 8:33
  for an individual to actually purchase this stock right
• 8:37
  making it more
• 8:39
  you know market based and not as you know
• 8:42
  institutionalized the truth is
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  is that anywhere has an
• 8:45
  institutional float rate over 100%
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  meaning it's very hard for an individual to
• 8:52
  you know make a ton of changes within this
• 8:54
  it's just kind of what it is
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  meaning that it's really controlled
• 8:58
  mostly by Wall Street and you know
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  as we kind of step back and we talk about you know
• 9:04
  some of the other cloud based brokerages
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  I'll use mine just because
• 9:08
  you know we have insider ownership
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  where the founder of the company and you know
• 9:13
  his family owns you know
• 9:14
  approximately 40 some percent of
• 9:17
  you know the
• 9:19
  the stock
• 9:20
  and then you have some institutional ownership
• 9:22
  in this case about you know
• 9:24
  30 or 40% uh
• 9:26
  and so the institutions don't have quite as much power
• 9:30
  so ultimately
• 9:31
  at compass and anywhere Wall Street type like now
• 9:35
  especially kind of are are making the plays
• 9:38
  they're the major players in the ownership group
• 9:41
  whereas at you know
• 9:43
  EXP an agent can own this and they own the company
• 9:46
  as well as some of the insiders
• 9:48
  which happen to be the founder and so on
• 9:51
  so it's a little bit more
• 9:53
  you know fluid
• 9:54
  it's a little bit more you know
• 9:56
  accessible to the general public or the individual
• 10:00
  instead of the institutional
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  you know Wall Street big dogs
• 10:05
  so let's talk about that the EXP difference right
• 10:08
  ownership having a little bit of power
• 10:11
  every different thing that's happened in within EXP and
• 10:16
  you know as it pertains to agent life and
• 10:19
  and so on is taken back to the
• 10:21
  to the agents themselves
• 10:23
  through the different leadership groups
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  through whatever
• 10:25
  not every single 90,000 not 90,000 of us
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  but um there are groups that
• 10:31
  you know
• 10:31
  they're running ideas by when co sponsorship came
• 10:34
  that was something that was
• 10:36
  you know
• 10:36
  put together in large part as a group effort by
• 10:39
  you know the
• 10:40
  the corporate leadership team as well as
• 10:43
  you know the top leaders in the company
• 10:45
  this is something that
• 10:46
  shows that the agents have a little bit more power
• 10:49
  they have a little bit more say against something like
• 10:52
  you know a
• 10:54
  a Wall Street investor
• 10:56
  heavily owned and influence operation
• 10:59
  the next piece is the revenue share model right
• 11:02
  at EXP we're not going out and acquiring brokerages
• 11:05
  for high dollar amounts and anything like that
• 11:08
  you've never seen
• 11:09
  EXP acquires anything for any amount of money
• 11:12
  and so
• 11:12
  that's something that we have to take into account
• 11:16
  and understand what that looks like right
• 11:18
  in any acquisition or any
• 11:21
  you know compensation agreement for going to
• 11:25
  you know
• 11:25
  a different brokerage or bringing a brokerage over
• 11:28
  whatever that looks like there is winners and losers
• 11:31
  right if
• 11:33
  if you're an agent who is compensated with stock
• 11:37
  or whatever or an agency that is compensated
• 11:40
  and that money doesn't trickle down to the agents
• 11:43
  that you bring over well
• 11:45
  then there's always that back and forth that's like oh
• 11:47
  you know that person got paid to go there and you know
• 11:50
  that incentive is great for them
• 11:52
  but what's in it for the little guy
• 11:53
  and within the EXP brokerage model
• 11:56
  there is none of that
• 11:57
  there's not a lot of that back and forth
• 11:59
  for the most part every agent is on the same split
• 12:01
  right yes
• 12:02
  there are team you know
• 12:04
  split cap models that are a little bit different
• 12:06
  that have a whole different set of
• 12:08
  you know rules and that kind of stuff
• 12:10
  but there's no there's no favors being handed out
• 12:12
  so everyone is truly on a level playing field
• 12:15
  but then they have the opportunity to bring agents in
• 12:19
  right and yes
• 12:20
  I understand that there's
• 12:21
  you know different
• 12:23
  incentives at different brokerages to bring agents in
• 12:27
  just nothing like the cloud based brokerage that
• 12:29
  you know EXP kind of
• 12:31
  you know shepherded into our industry
• 12:34
  and that's why we have the largest
• 12:36
  you know cloud based brokerage
• 12:37
  it has a revenue share model to this day
• 12:39
  and so as we're continuing to talk about this
• 12:42
  the agents just have a little bit more control
• 12:45
  the agents control the growth
• 12:46
  the agents get compensated when those agents come in
• 12:49
  you know close deals
• 12:51
  and as those agents bring agents on
• 12:53
  they're able to be in this revenue share model
• 12:55
  and there's just more control
• 12:57
  and some people look at it as like oh
• 12:59
  you know I don't want to be a recruiter
• 13:01
  I don't want to do that however
• 13:03
  they're paying for it right
• 13:04
  these companies have recruiters
• 13:07
  if you were a part of owner of one of the stocks that
• 13:11
  you know was involved in this huge acquisition
• 13:13
  on one side anywhere went up a little bit
• 13:15
  on the other side compass went down
• 13:17
  but ultimately they dissolve the stock 28% right
• 13:23
  because now with the merger
• 13:25
  the 28% of the stock that's offered to compass
• 13:30
  you know
• 13:30
  to the anywhere people that come over is a huge deal
• 13:34
  and it's a huge you know
• 13:35
  shot to dissolution of the stock
• 13:38
  which is fine and overall
• 13:40
  they have a plan to get rid of the debt
• 13:41
  and who knows which way the stock will go
• 13:44
  but within EXP
• 13:46
  if there's not this excess money going out
• 13:48
  and this merger and combining of stocks
• 13:51
  the agents are in more control
• 13:54
  and that's that's where it is
• 13:56
  that's why it's an agent centered brokerage
• 13:58
  that's why you know
• 13:59
  that model stands as an agent at E X P
• 14:02
  if I close a certain amount of transactions
• 14:04
  I get awarded stock
• 14:05
  I get awarded stock for closing one transaction
• 14:08
  my in my first you know
• 14:10
  my first transaction of my cap reset
• 14:12
  I get you know compensated in an award every time I cap
• 14:16
  and so as we're kind of breaking this down like okay
• 14:20
  how's this work
• 14:21
  and why is there zero debt with this company and
• 14:26
  you know
• 14:26
  excess amount of debt now with this massive company
• 14:30
  well the cloud based brokerage model eliminates
• 14:32
  the breaking order eliminates a lot of that stuff
• 14:34
  and that's where it steps in and the agent may
• 14:38
  you know be compensated um
• 14:41
  a little bit more fairly or not
• 14:43
  just depends on what you're looking at
• 14:45
  what you're trying to do with your business
• 14:46
  and how you operate in addition to growing debt free
• 14:50
  EXP also is international
• 14:52
  and this is something that we dive deep into with
• 14:56
  Natalie Salas who will be on the show on Friday
• 15:00
  so stay tuned for that one
• 15:01
  but being an international growth organization
• 15:05
  and understanding how you know
• 15:08
  through the trials and tribulations
• 15:10
  of international growth
• 15:12
  EXP has built a model to not bring just influencers
• 15:17
  to run countries and start countries
• 15:20
  but actual producing agents and brokers
• 15:23
  which has been an absolute game changer
• 15:25
  when it comes to EXP's success
• 15:27
  growing on the global markets
• 15:29
  and so as you know compass has acquired
• 15:34
  you know a large international um organization
• 15:38
  now this is something that again
• 15:41
  it's you know corporate growth versus you know
• 15:44
  organic growth through agents
• 15:46
  and it's going to be a very interesting ride
• 15:50
  and you know a lot of people are saying
• 15:52
  this is terrible for the industry
• 15:53
  this is terrible for the consumer
• 15:55
  let's just wait and see how it plays out
• 15:57
  because I think a lot of people are
• 16:01
  sitting back and saying well
• 16:02
  it's gonna be one way well
• 16:04
  I think that you know the anywhere
• 16:07
  brand operated very separately of each other
• 16:09
  there's franchise models in there
• 16:11
  there's all different kinds of models in that umbrella
• 16:14
  and those brands are very separate
• 16:17
  if you didn't you know
• 16:18
  know that they were owned by the same parent company
• 16:21
  you wouldn't know right
• 16:22
  there's nothing boots on the ground
• 16:23
  and the consumer probably will not
• 16:25
  so until the compass brand comes in
• 16:28
  and completely changes the game
• 16:30
  which I don't think they would do
• 16:31
  I don't think that's you know
• 16:33
  acquisitions 1 0 1 is not come in and just
• 16:36
  you know overtake everything now you know
• 16:38
  the
• 16:39
  infusion of some tech may be good for the industry
• 16:42
  as a whole may be good for the consumer as a whole um
• 16:45
  but I also wouldn't just jump to conclusion and say
• 16:49
  they're gonna come in and it's gonna be this brand
• 16:52
  this way across the board
• 16:54
  because that model doesn't fit the franchise models
• 16:57
  compared to you know
• 16:58
  the brokerage models that they have so ultimately
• 17:01
  mostly brick and mortar there um
• 17:04
  and that's
• 17:05
  you know kind of the difference right now is
• 17:07
  you know where where the industry is going uh
• 17:10
  it very well could be half and half
• 17:12
  I don't think that um
• 17:14
  the mom and pops are completely out of the
• 17:17
  the mix as far as the small brokerage shops
• 17:20
  or the independent brokers
• 17:21
  I don't think that you know
• 17:23
  it's gonna make any difference
• 17:24
  because let's remember that the Anywhere Corporation
• 17:28
  umbrella of Real Estate Group
• 17:29
  had over 300,000 agents already
• 17:33
  and so by just adding the 25,000 and
• 17:38
  you know some tech
• 17:38
  I don't think it's just gonna overnight push it out
• 17:41
  I think the real differences will come with
• 17:44
  you know
• 17:44
  the different settlements with NAR and you know
• 17:47
  Zillow and all of those things
• 17:49
  I think
• 17:49
  that's where we really need to watch and pay attention
• 17:52
  and I think the first you know kind of sign of okay
• 17:56
  maybe you know
• 17:57
  we're seeing an
• 17:58
  a real change will be if the MLS's start to
• 18:02
  you know get affected and you know
• 18:04
  this inclusive listing stuff does kind of take shape
• 18:08
  so we'll keep an eye on it
• 18:10
  like I said change is good not a lot of people like it
• 18:14
  but for the industry
• 18:15
  it's absolutely something to consider
• 18:18
  if you're part of it if you're inside of it
• 18:21
  outside of it want to have a conversation
• 18:23
  and you're able to have a conversation
• 18:25
  please reach out to me directly
• 18:27
  we can have those conversations
• 18:28
  and just see what's a better fit
• 18:31
  because ultimately as an independent contractor
• 18:34
  you have the ultimate choice and you know
• 18:37
  as for for now
• 18:39
  there's all kinds of different options for you
• 18:42
  and I think there will be going forward
• 18:44
  but
• 18:45
  I'm looking to partner with the most amazing agents
• 18:47
  that want to build business
• 18:48
  like I have built it and no matter where you're at
• 18:52
  we can have a conversation so uh
• 18:54
  please book a call below please like comment subscribe
• 18:58
  we'll stay up to date on this situation
• 19:01
  but typically
• 19:01
  we talk about growing your business organically
• 19:04
  and absolutely crushing real estate
• 19:06
  so we'll see you next time bye