Old vs. new real estate firm



The old model

This model is based on offices and agents.

In obsolete training manuals, real estate firms are judged by the number of agents, wrong calculations are made measuring the financial capacity of a firm from the monthly amount each agent is perceived to generate.

Nothing could be further from the truth, in a market that has experienced a sharp downturn, most agents are broke and have abandoned the trade, the largest real estate firms have been obliged to shut down offices and consolidate their remaining agents in offices that are still open.

In this model, responsibility for the office is shifted to an office manager, who is not necessarily a broker, while the broker stays away from everyday transactions.

Such offices survive because of the monthly fees they collect from their agents, and the obligation they impose on agents to pay a portion of the Errors and Omissions insurance policy the firm has to carry, since the broker does not supervise transactions.

What kind of training do these firms give to their agents?

  • First and foremost, agents are told to tap on their Sphere of Influence, labeled with the ridiculous acronym SOI, meaning the close circle of family relatives and friends, by letting them know that they are now an agent for that firm.
  • Next, they suggest to send periodic mailings to a "farm", meaning an area that they specialize in. Needless to say, those mailings go to the garbage most of the time, out of the sheer number of mailings that residents receive touting what a great service the agent can provide.
  • We have even seen trainers suggesting agents to wear a button with a realtor sign in order to generate business.

In short, the onus of business generation is shifted to agents, who are also tasked with carrying out the whole transaction, even up to the point of closing.

The new model

This model looks at facts.

  • Because of automation, offices are no longer necessary, agents and customers can meet anywhere where there is a wifi connection, with a laptop. We do have an office, because that is mandatory under Florida law.
  • Agents work from home, no need to pay office fees.
  • Business is generated from the internet presence of the firm, and passed over to agents.
  • Transactions can be made remotely, no need to sign documents in person. Not to the exclusion of other methods, we use the third-party dotloop system.
  • Brokers supervise every aspect of the transaction, no need to pay for Errors and Omissions insurance.

In short, responsibility is shifted from agents to brokers.

This model is cost-effective, so we do not need to charge our clients for additional items apart from our commission, many firms are doing that at present.
This model produces results because our resources go to Internet advertising for our listing's website, we shall explain this further.


We know that some realty firms who follow the old model are charging sellers a hefty processing fee apart from the standard commission.

This happens because they lure realtors to their firms promising a 100% commission, they do this in order to tap some transactions from their sphere of influence..

So if the pay the agent 100% of their commission, where do they get their money from?

From the extra charges they bill naive sellers.

DOn't fall inot this trap, list with a firm that only charges the customary commission and pays a portion of your closing costs, like us.