Compass, the high-tech brokerage that’s raised $125 million, has rolled into Los Angeles by snapping up 19 “top agents,” marking the firm’s latest push to carve out a national footprint.
Since launching in 2013, Compass has expanded out of New York City’s Manhattan into Brooklyn, New York, Washington, D.C., Miami, the Hamptons and Boston. Compass has said that it’s also “actively exploring” opportunities to set up shop in new markets, including Atlanta, Chicago, Dallas, Houston, Philadelphia, Phoenix, San Diego, San Francisco and Seattle.
Compass’ recent $50 million funding round, which valued the company at $800 million, is helping fuel this expansion effort.
The firm could acquire a presence in new markets by either launching with a “great manager,” launching with a “great agent” or acquiring a local brokerage, Compass CEO Robert Reffkin has previously told Inman.
Compass says its proprietary technology “brings actionable intelligence and transparency to real estate,” saving time for both consumers and its agents. Compass’ mobile search app is the no. 1 downloaded and top-rated real estate app in New York, according to the startup.
In October, the firm rolled out a mobile app that New Yorkers can use to access up-to-date market information, with plans to expand the app’s coverage to other markets.
Leanne Rogan, the former vice president of Douglas Elliman, a New York City-based brokerage with a presence in Los Angeles, will head up marketing efforts for Compass in Southern California as the firm seeks to build out an “exceptional team” on the West Coast, according to Compass.
The firm has also recently put the former director of product management at LinkedIn, Christina Allen, at the helm of its “product creation team.” She’ll focus on new data technology metrics for the Los Angeles market, Compass said.
Propriety tools that Compass offers to agents include:
- A valuation and comparable market analysis (CMA) tool that allows agents to “value properties better than any tool in the country.”
- A listing strategy tool that provides insights into what month is best to list a property and the best pricing strategy by month.
- An open house and “show sheet” tool that allows agents to create “high-quality collateral in seconds, not hours.”
Compass has said it envisions bringing market intelligence to players across the real estate value chain, including mortgage bankers, real estate developers and investors and actuaries. The firm has also said it might consider licensing its technology to brokerages in markets outside its coverage.
Compass has grown rapidly on the back of several eye-grabbing funding rounds. The brokerage recently raised $50 million at a valuation of $800 million, bringing its total funding to $123 million.