Expert speaks on Compass-Anywhere market share, consolidation

"It seems to me that with transaction sides, Compass and Anywhere Advisors, the brokerage-owned companies, were doing about a half a million transactions, he said. I looked at the second quarter report for Anywhere, and annualized their franchises in the U.S. That may add another half a million transactions in the U.S. I'm being generous. So, the way I look at it is the combination of these two companies, they'll do a million, maybe 1.1 million transaction sides."

"Murray places transaction-side market share for the combined company in the low- to mid- teens about 13% to 15% of U.S. existing-home transaction sides, based on RealTrends Verified ranking data and public earnings reports. He notes, however, that because Compass and Anywhere concentrate in higher-priced coastal and metropolitan markets, the combined firm's share of total dollar volume is materially larger. If you look at the volume numbers, then the combination of companies is in the mid-20s in terms of total volume, Murray said."

"Murray says evidence doesn't support a wholesale change in compensation models simply because of scale. The competition among (the largest brokerages) for agents, even in markets where any one of them had a strong market share, hasn't affected that particular company's ability to have a higher retained gross margin in their relationship with agents. It just doesn't work. There's no impact and there never has been, he said."

Compass and Anywhere combined are expected to handle about 1.0–1.1 million transaction sides annually, representing roughly 13–15% of U.S. existing-home transaction sides. Concentration in higher-priced coastal and metropolitan markets boosts the combined firm's share of total dollar volume into the mid-20s percentile. Scale alone has not produced wholesale changes to compensation models or tighter control over agent splits and team pay. Agent decisions remain driven by concrete benefits and personal fit with a brokerage. Small and mid-sized brokerages retain nimbleness to tailor offerings and adjust to competitive pressures.

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