To all the agents in the house,
It has been an eventful week for real estate brokerage executives. Adam Contos announced he's stepping down as RE/MAX CEO, with a search committee likely being formed to look for a replacement. Ryan Gorman, CEO of Coldwell Banker, was at the center of controversy when an unsealed court exhibit revealed that Realogy disagrees with the National Association of Realtors' mandate that its member listing agents make a compensation offer to buyers' agents. Also, HomeSmart filed financial information with the Securities and Exchange Commission, indicating they want to go public – and revealing the riches and power of their CEO, Matt Widdows.
All these developments raise a question – What is the purpose of a brokerage CEO, and what impact does an especially good or lousy CEO have on agents affiliated with a brokerage?
The recent history of real estate is filled with CEOs who write books and promote themselves to the point that they become the face of the company, from Dave Liniger at RE/MAX to Gary Keller of Keller Williams, and, most recently, Robert Reffkin at Compass. Others like Glenn Sanford at eXp take on a more reserved public role, but are still big names by the level of control exerted over their companies. Still others, like Ryan Schneider at Realogy, are more low-profile. I found it interesting that Gorman, not Schneider, has been the public face articulating Realogy's position vis a vis NAR.
Then there's Widdows, a low-profile figure who up to now has seemingly enjoyed complete control over HomeSmart, to the point that Widdows' live-in acquaintance and workplace subordinate, Angelique Chambers, has received almost $300,000 worth in company restricted stock units.
For an agent, your CEO and other executives could be performing brilliantly or wretchedly, but neither matters if you are doing deals and have negotiated a halfway decent commission split. I could see the performance of executives as similar to the quality of your local government – It's certainly important, but sometimes not directly relevant to your life. There also could be an emotional element to it. Perhaps Keller Williams agents react with pride when they see Gary Keller's "The Millionaire Real Estate Agent" still on bookstore shelves.
Agents, that is my loose speculation, and I might be underrating the importance of brokerage executives in your everyday lives. Please send me your thoughts anonymously (and thank you for the recent wave of insightful emails!). I'm at mblake@housingwire.com.
Sincerely,
Matthew Blake
HousingWire
…P.S. RealTrends, perhaps the authority in U.S. real estate rankings, is starting to put together its 2022 rankings. Please check it out here, and see where your information can help contribute to the accuracy of these rankings, and, well, your own recognition.
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