Delivered January 20, 2021. Contributor: Melissa C.
To provide a brief competitive analysis for Compass to use in a pitch for business development in the real estate industry.
Competitive Analysis on Compass
Compass, Incorporated's competitors include Trulia, Redfin, Realtor.com, Realty ONE Group, Realty Austin, Zillow, Zumper, Opendoor, Propy, TigerWit, Real Scout, Beike, and Terabitz.
The company's revenue is ranked 2nd at $2.3 billion (a valuation of $6,4 billion) among the top 10 competitors.
Compass is one of the world’s largest prop tech unicorns with over $1.1 billion in venture capital raised.
The self-styled technology-enabled broker is
now the third largest U.S. brokerage by sales volume, with $355.8 million in active listings.
Compass operates by using their competitive advantage in the market- capital over $1.1 billion- to lure the top agents and brokers to its team. Since the start of 2018, Compass’ agent count has increased from 2,000 to
10,000; of those 8,000 new agents, approximately 4,200, or 52%, came from acquired
How Compass has been able to Succeed in the Real Estate Industry Using Technology
Compass for internetwork operating system (iOS) is the first website and mobile app with immediate real-time residential real estate market data, that offers access to the most recent transaction data and historic sales trends and quarterly reports.
The company's technological advancements offer creative market research reports for localities using specific data, that will highlight long-term trends from multi-year transaction histories. Because of the company's investment in technology, the start-up is now active in more than 100 cities within 20 major U.S. markets, recruiting more than 12,000 agents nationally, plus 2,200 support staff — including marketing and technology experts.
The company's success comes from empowering the human interaction and putting creative energy into marketing strategies to attract new agents, and separate themselves from competitors. Over the past eight years, Compass has grown to serve 18,000 real estate agents across 165+ U.S. cities, who were responsible for over $91 billion in real estate transactions in 2019.
Their goal to become a one-stop-shop platform enables them to help consumers buy and sell homes, and also provides mortgage, title, insurance, inspection, move-in services, and more. Their strategy centers on achieving the company’s 20/20 by 2020 plan — 20% market share in the top 20 markets by 2020.
How Compass uses Technology to Attract Brokers, Agents, and Buyers
Compass' experts realized agents needed more support and technology tools from their companies. They created a system to that would attract agents on a global level by building tools for agents through a platform that offers one system. The 500+ Product and Engineering team launched products that empowered agents to host virtual open houses, provide livestream buyer tours, send digital CMAs, integrate 3D home tours into listings, compare homes and home values in a precise and visual manner using artificial intelligence (AI) and machine learning. Consequently, during the height of COVID-19, the technology teams launched twice as many tools for agents as they had been in the six months prior to the pandemic.
Beginning in 2018, immediately after a massive $550 million cash infusion, Compass began acquiring brokerages wholesale; instead of luring away star players, management decided it would be faster to simply acquire entire brokerages, which significantly accelerated the growth of Compass’ agent count- approximately 51%.
Testimonials or Reports from Brokers and Agents Who Chose to Join Compass versus Competitors
Areview on AgentAdvice mentions, 'no firm can beat their technology- one can be assured they are ahead no matter where the field carries you. The company is evolving very rapidly so there is continuous career progression for everybody'.
Basel O'Neal Agency: After 24 years with a previous real estate company, this was a huge move for the Casey O'Neal team. The change is attributed to the impeccable marketing and unparalleled services that Compass has brought to the process of selling and buying homes.
The initial researhc breifly gives an analysis of Compass as a large competitor offering a technology platform for real estate agents, brokers, and home buyers. We suggest a comparison of 2-3 competitors that will show the product offerings and competitive advantages of the chosen companies. If there is a need to provide a competitive landscape of more than 2-3 companies, it will need to be addressed in any reply.
There is limited information regarding case studies centering on the use of Compass as a technology-driven real-estate platform; therefore, we suggest providing 5-7 insights about industry players using Compass as a tool for agents and brokers, and buyers can use the platform to find residential properties.
Only the project owner can select the next research path.