Compass aims to become a central hub for real estate listings to drive future success. During the third-quarter 2024 earnings call, brokerage founder and CEO Robert Reffkin outlined the company’s strategy to investors and analysts.
Reffkin emphasized the importance of listing inventory in the residential real estate market, stating that Compass already boasts unmatched inventory in many local markets. The firm’s goal is to achieve an average market share of 30% in its top 30 markets, which would enhance its competitive edge by increasing listings and contacts in its CRM platforms.
By expanding its listing inventory, Compass plans to attract more buyers to its website and agents, positioning itself as the go-to platform for real estate listings. This strategy includes leveraging the Make Me Sell program, which allows clients to set an aspirational sales price for their homes in Compass’s CRM.
Reffkin believes that the Make Me Sell program, set to launch fully in 2025, will not only increase inventory but also establish Compass as a key player in the real estate market. The ultimate goal is to use this inventory depth to benefit sellers, buyers, agents, and shareholders.
However, a challenge to Compass’s vision is the National Association of Realtors’ Clear Cooperation Policy (CCP), which Reffkin criticizes for limiting sellers’ marketing choices.
Reffkin’s vision aligns with protecting homeowners’ interests by providing exclusive marketing opportunities through Compass’s platforms. He argues that exposing properties on the MLS can potentially harm homeowners by revealing sensitive information.
While some industry professionals support CCP for its benefits to buyers, Reffkin advocates for its repeal to level the playing field for existing homeowners. Despite this, the NAR advisory committee has deferred a decision on CCP, leaving the policy intact for now.
In the meantime, Compass continues to see growth, with revenue increasing by 11.7% year over year in Q3 2024. The firm’s transaction count and market share have also shown positive growth, demonstrating its resilience in the competitive real estate market.
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