BrokerageTechnology

How hybrid brokerages are changing real estate [Special Report]

Our in-depth report on the rise of new real estate business models -- and what they mean for the industry
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A large California real estate broker was recently on a listing presentation for a multi-million dollar home when the seller said, “Now let’s talk about your commission. You just aren’t worth $350,000.” The veteran and respected broker woefully thought to himself, “He is right. I am not.” Commission compression is common in a seller's market, but something else may be at work as the Internet makes consumers smarter and emboldens them to challenge almost every aspect of a real estate transaction. Read the special report in its entirety. Further muddling the picture for the traditional brokers is a horde of new hybrid brokerages, which expressly offer lower commissions as part of their business models. “The noise doesn’t help,” said the California broker. Hybrid brokerages provide an alternative to the traditional broker commission and service model, offering everything from discounted listing fees and buyer rebates to innovative technology and...