RealTrending Podcast
Issue 116 - December 30th, 2022
I had the honor of joining Tracy Veldt on the “RealTrending” Podcast recently, and our episode was released this week! In this 30 minute episode, we discuss our “BaaS” (brokerage as a service) platform for residential and commercial real estate agents at Pinnacle Realty Advisors, and how I view the future of the real estate brokerage industry.
I have copied the text from the preview in the RealTrends article below and have provided direct links to check out the episode!
Thank you! Happy New Year!
Pinnacle Realty Advisors’ CEO on brokerage as a service business model
“Today’s RealTrending features Sam Sawyer, CEO of Pinnacle Realty Advisors. Working in both the real estate side as a founding agent with Compass in Dallas, and then with a FinTech mortgage start up, Sawyer had an idea to flip the traditional real estate model on its head.
Sawyer discusses the death of today’s traditional real estate model, how he views brokerage as a service and reinventing the brokerage relationship with the agent.
Here is a small preview of today’s interview with Sam. The transcript below has been lightly edited for length and clarity:
Tracey Velt: Talk to me a little bit about why you think traditional brokerages aren’t sustainable.
Sam Sawyer: I don’t think this is a zero sum game. The commission split business model when it started out in the 1970s made a lot of sense because access to information wasn’t readily available. Consumers couldn’t go on Zillow, they couldn’t access listing information. I remember when I was in high school and my parents would circle houses in the newspaper, because the way you found access to information was through brokerages.
Brokerages had a lot more tasks to do for the agents back then. I think when Zillow launched, it changed the industry more than people want to admit, because of access to information. When I was an agent my clients knew just as much about listings as I did. Over time, I think the brokerage role has changed and a lot of people haven’t rethought the relationship between broker and agent.
RealTrending features the brightest minds in real estate. Twice a month, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.”
Newsworthy Links To Share
PODCAST: Pinnacle Realty Advisors’ CEO on brokerage as a service business model: This episode features Sam Sawyer of Pinnacle Realty Advisor to discuss the reinventing of the brokerage relationship with the agent. (Real Trends)
Multifamily developers in the U.S. added over 400,000 new apartment units this year. Expect more of the same in 2023, with projected new units for the year at 494,000—the highest total supply in over 35 years (CRE Daily)
Rams Owner Buys Village Mall for $325M for Second Major Complex in LA
Venture Firm Fifth Wall Raises Record Real-Estate Startup Fund (WSJ)
Redfin’s Last Wall Street Bull Throws in Towel After Rout (Bloomberg)
Marks first time since IPO that stock has no buy ratings
Truist’s Khan said company has to endure housing slowdown
Fifth Wall’s Brendan Wallace On What’s Next After Closing $866M Proptech Fund (Commercial Observer)
Cash-out refinancing volumes rose to a post-financial crisis high in 2022, but higher rates will likely reverse the trend next year. Plunging equity withdrawals could wreak havoc in the home remodeling industry.
“The mountain of money that kept contractors busy won’t last forever. Cash-outs dried up this year as interest rates rose, with volume in November down 81% from January…. A quarterly gauge of future market conditions compiled by the National Kitchen & Bath Association last month hit its lowest level in four years excluding early 2020, when Covid lockdowns caused market panic.”
And lumber prices will face more downward pressure. “About 40% of the lumber in North America is used for remodeling and repairing houses, up from about 25% in 2000.” (WSJ)
The NAR's November Pending Homes came in as the second-lowest monthly reading in 20 years (Apr. '20/COVID impacted) with a reported index reading of 73.9 (-37.8% YOY, -4.0% seq.) vs. consensus' 77.1 (-35.1% YOY, +0.1% seq.). While '20 and '21 were clear housing boom years that will be tough to match in the years ahead, the market is still currently trending well-below pre-COVID years with the Nov. '22 rate of PHS running ~29% below the 10-year Nov. avg. prior to COVID (Nov. '10 to Nov. '19). The recent pullback in rates and the encouraging development in the MBA weekly purchase app index (up +13% since early Nov.) has yet to make an impact on both closings and pending home sales, but we do believe that Dec. activity could exhibit a modest recovery. (Stephens)
Trends 2023: An inside look at the nation's most profitable brokerage: HSA operates a massive business, and its well-defined, consistently executed management style may just be the key to the company's success. (RealEstateNews.com)
Newmark Invests in Boosting Single-Family Rental Sales As Demand Weakens
Investment in Housing Niche Boomed in First Two Years of Pandemic Before Easing