And the agents who have been driving the machine all along.
Two of the biggest names in real estate are flexing their muscles. Compass and Zillow are engaged in major legal battles involving listing access, business practices and antitrust issues. Redfin has also faced regulatory scrutiny surrounding its Flex lead-generation programs.
On the surface, these cases may look like battles over the future of real estate and, perhaps, even the protection of the consumer.
But I have a different question:
How much of this is really about the consumer — and how much is about who gets to control the real estate business?
That distinction matters.
When brokers sue brokers
Let’s keep something in perspective.
These are not consumers suing brokers because they were mistreated in a transaction. These are major real estate companies fighting major real estate companies over business practices, market access and, ultimately, money.
And there is nothing inherently wrong with competition. Competition can be healthy. Change can be healthy. Challenging the status quo can be healthy. But when enormous amounts of money are spent on legal battles between some of the largest players in the industry, I can’t help but wonder:
Who is actually benefiting from all of this?
Compass has grown into one of the largest real estate brokerages in the country, with a massive network of agents. Zillow, through its various programs and partnerships, also has an enormous reach into the real estate agent community.
These companies have the resources to fight these battles. These resources are coming from the hard working real estate agents.
What about the people driving the machine?
I have been in the real estate business for more than 35 years, and I have watched this industry change dramatically.
Technology has changed it.
Marketing has changed it.
The way consumers search for homes has changed it.
Commission structures have changed.
And now the biggest companies in the industry are fighting over who controls access, listings, leads and the marketplace.
But through all of these changes, one thing hasn’t changed:
The real estate agent is still the person sitting across the table from the buyer or seller.
The agent is the person answering the phone at 8 p.m.
The person showing homes in triple-digit Palm Springs heat.
The person driving from one end of town to the other for an inspection.
The person negotiating when a transaction starts falling apart.
The person dealing with the emotional side of buying and selling a home.
The agent is the human being who actually has to get the deal across the finish line.
So here’s my question:
If hundreds of thousands — or potentially millions — of dollars are being spent fighting legal battles over market dominance, why couldn’t some of that money be invested in the people who actually drive the business every day?
I’m not suggesting that a brokerage should simply hand money to its agents. I’m asking whether the industry could think differently about what it means to support the people who generate its revenue.
For example:
- Help offset the enormous cost of driving for business, particularly in markets where agents spend countless hours on the road.
- Reduce the annual cost of professional liability and legal insurance for agents.
- Explore affordable health insurance options for independent contractors.
- Consider childcare assistance or other programs that could help agents with families.
- Invest more in education, technology and professional development that actually helps agents build their businesses.
These aren’t glamorous ideas.
They probably wouldn’t make headlines.
But they could make a real difference to the people working on the front lines of this industry.
The independent contractor dilemma
There is another uncomfortable reality.
Real estate agents are generally independent contractors. We don’t have the same traditional employment protections that many other workers have.
Teachers have unions.
Nurses have unions.
Many other professions have collective bargaining organizations and employer-sponsored benefits.
Real estate agents often have none of that.
We are responsible for our own health insurance, retirement planning, business expenses, transportation, marketing, licensing and a long list of other costs.
And when business slows down, there isn’t necessarily a paycheck waiting for us at the end of the week.
Yet the industry continues to depend heavily on these independent contractors to generate its business.
That makes me wonder whether the industry should spend a little more time asking:
What can we do for the agents?
I’m not taking sides
To be clear, I’m not taking Compass’s side.
I’m not taking Zillow’s side.
And I’m certainly not suggesting that companies shouldn’t defend their business interests or challenge practices they believe are unfair or illegal. That’s what courts and regulators are there for.
After more than 35 years in this business, I can tell you that these kinds of battles feel very different from the industry I entered decades ago. Real estate has always been competitive.
But today, the competition increasingly seems to be about controlling the platform, controlling the leads, controlling the listings and controlling the marketplace. And somewhere in the middle of that battle are hundreds of thousands of real estate agents trying to make a living.
Maybe the biggest real estate companies should remember that while they’re flexing their muscles against each other, there is another group of people who deserve some attention:
The agents who have been driving the machine all along.