"By late 2024, Reffkin was blunt about what he sees as Compass's core asset: listing inventory. Listing inventory remains the lifeblood of the residential real estate marketplace, he said, arguing that Compass already has a depth of inventory in many of our local markets that is unmatched. That statement matters because it reveals the company's North Star not merely recruiting or revenue, but the control point Compass believes can reshape consumer behavior and, potentially, the real estate industry."
"Reffkin's target early in the game was ambitious: an average of 30% market share in its top 30 markets. The logic? That inventory advantage will eventually pull buyers into Compass.com, not as a brokerage site but as a destination for property search. But inventory-first doesn't scale nationally on an island. Compass scales through acquisitions and in 2024, the firm made it clear that M&A is the main route, not a side quest."
"One of the firm's early acquisitions was Pacific Union in 2018, which established Compass as a major player in the California luxury market. Another turning point is when the firm entered Louisiana and Mississippi through its purchase of Gulf Coast-based brokerage Latter & Blum. The acquisition also added more than 3,000 agents, a meaningful jump after Compass reported an average of 14,689 principal agents in the final three months of 2023."
"In the final weeks of 2024, Compass announced plans to acquire Christie's International Real Estate and @properties a deal it framed as both domestic strength and an international leap. In a filing with the Securities and Exchange Commission, Compass said it would purchase the companies for $150 million in cash at closing, plus roughly 44.13 million shares of Compass Class A stock, with additional adjustments tied to share price after the one-year anniversary"
Reffkin identified listing inventory as Compass's core asset and described listing inventory as the lifeblood of the residential real estate marketplace. He positioned the company's North Star around control of inventory rather than recruiting or revenue. He set an early target of an average 30% market share in Compass's top 30 markets to use inventory advantage to attract buyers to Compass.com as a destination for property search. Compass pursues an inventory-first scaling strategy through acquisitions, moving from agent-incentive deals to larger brokerage purchases, including Pacific Union, Latter & Blum, and planned acquisitions of Christie's International Real Estate and @properties for cash and stock consideration.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]