06/04/2026
We are seeing a lot of consolidation in the real estate industry right now. One of the larger M&A deals involved Compass and Anywhere Real Estate (and its affiliated brands: Coldwell Banker Residential and Commercial, Sotheby's International Realty, Century 21, Better Homes and Gardens Real Estate, Corcoran, and ERA Real Estate).
What is interesting is that the parent company, Compass, took on a massive amount of debt to get this deal done.
What does this mean for brokers? Well, they now fall under a massive corporate umbrella that, ironically, has always taken great pride in the mantra, "We only take the best agents in the business." They were previously noted for being very picky with their independent contractors. How do you maintain that same image when you purchase two-thirds of the brokerage world? Just a thought... but back to my point!
What has happened is that Compass wants all listings to be controlled within their ecosystem, claiming that private listings are the best way to go for home sellers. Prior to this, that strategy was only considered "best" if you were a high-end, high-priced seller, but now it is apparently for everyone. A little sarcasm from me? Well, yes. Of course, it is all "well-intentioned," but we have to call it what it is, don't we? It’s about data, control, and the narrative.
Compass wants to control the listings so they can control the deal with their agents on both sides, including lending on both sides. It seems like it could be good, but is it?
For Compass, it certainly is—they get double the brokerage fees, double the listing "side," and the ability to control the market. In some larger markets, they have shown control over 60%+ of deals.
What could go wrong, you ask? Well, the consumer loses choice, negotiation power, and quite likely a true, transparent stance from which to operate.
If this ecosystem is so great, why is it that, per Compass’s own data, 95% of their private exclusive listings fail to sell? I’m not making this up—this is from their own data (see the attached).
The main point I’m getting at is this: the large M&A deals happening right now are driven by debt and the consolidation of choice—all being done under the guise of "what’s best for the consumer." I don’t like it. I don’t like it when you tell someone something is good for them when it isn't. Be honest. Be transparent. This is about paying off a massive pile of debt and controlling the marketplace.
I’m not sugar-coating this—I truly feel bad for consumers in markets where all these companies exist. The Compass umbrella will overlay all of them; to think otherwise is naive to a fault.
Take another look at these names: Coldwell Banker (Residential and Commercial), Sotheby's International Realty, Century 21, Better Homes and Gardens Real Estate, Corcoran, and ERA Real Estate.
They all exist in our town, and I’m sure they exist in yours. Now, add Compass to that list. How many of your town’s brokerages are now really just one big brokerage? What happened to your choice? What happened to the protection of the consumer?
If you are wondering where it went, I am too. It’s getting lost in the shuffle and, to me, it’s not an acceptable outcome.
Cheers,
Steve
