“We built our offices for Easter Sunday”

A quote that I will never forget which came from former HomeServices CEO, Ron Peltier – “We built our offices for Easter Sunday.” The quote was from a conversation we had at a Realty Alliance meeting when the crippling housing foreclosure economy collapsed brokerage operating profits. The quote really stuck with me.

This quote has evolved into a broader implication for me today. It applies to every expense of the business. In a recent WAV Group 2025 M&A Outlook webinar with Howard Hanna and Compass, we talked a fair amount about brokerage valuations. It’s commonly understood that brokerage buyers pay a multiple of profits. It’s more complicated than that, but in general, firms are trading for 3x to 9x profit. In context, expenses cost you between $3 and $9 dollars for every dollar spent… If you are selling – keep this context in mind.

Today’s brokerage is aggressively chasing technology. At times, it’s a strategy to recruit and retain agents. It also delivers system improvements and automation which should sell more real estate, more effortlessly. In today’s market, brokerages need to stay curious about tools that will deliver these benefits. For example, many brokers who were competing against Compass Concierge launched HouseAmp (normally whitelabeled under their own product name). Similarly, although many brokerage firms had already launched Rayse, more brokers are jumping on that platform because of Compass One. 

Monitor Outcomes

When you see a leading competitor launch something new, pay attention and determine if they’ve gained an advantage. Tech vendors give demos to sell benefits. It’s normal for vendors to provide testimonials of existing customers. Be sure to call them – but do more than that. If possible, look into the MLS and see what happened to the firm’s agent count and transaction volume. Is the technology living up to the vendor’s promise of benefits? Better yet, if the broker is not in your market and you cannot see their agent count and transaction data, find a few of their agents that seem to be doing transactions and call them. They will absolutely tell you the truth. 

For more than two decades, WAV Group has been a great partner to help brokers make the best possible decisions to improve the success of their business. We review the firm holistically – operations, agent satisfaction, technology satisfaction, back office audits, recruiting efforts, and more. These reviews inspire strategy. But the keynote is always execution, something we can also help with. Feel free to reach out!