High-tech real estate brokerage Compass has announced plans to open up a three-floor office in Boston, continuing an aggressive expansion push fueled by generous funding.
Since launching in 2013, Compass has already expanded out of New York City’s Manhattan into Washington, D.C., Miami and Brooklyn, New York, and is “actively exploring” opportunities to set up shop in markets including Atlanta, Chicago, Dallas, Houston, the Hamptons, Los Angeles, Philadelphia, Phoenix, San Diego, San Francisco and Seattle.
Compass’ recent $50 million funding round, which valued the company at $800 million, will help fuel this expansion effort.
Robert Reffkin
The firm could carve out a presence in new markets by either launching with a “great manager,” launching with a “great agent” or acquiring a local brokerage, Compass CEO Robert Reffkin has previously told Inman.
Compass appears to have opted for the second approach in its push into Boston. Defecting from the local brokerage Otis & Ahearn, Jeannemarie Conley will help run Compass’ Boston office as managing director. She’s notched more than $200 million in sales, including a $12.5 million condo sale, hailed by Compass as the “highest priced residential sale statewide in 2012,” according to Compass.
Compass claims to provide proprietary technology that helps its agents save time “by reducing reliance on multiple platforms.” Reffkin has told Inman that examples of this technology include:
- A valuation and comparable market analysis (CMA) tool that allows agents to “value properties better than any tool in the country.”
- A listing strategy tool that provides insights into what month is best to list a property and the best pricing strategy by month.
- An open house and “show sheet” tool that allows agents to create “high-quality collateral in seconds, not hours.”
“We are confident that Boston’s real estate leaders and consumers alike will find that working with our mobile-first technology eliminates many obstacles, resulting in a faster, easier and more efficient home-buying experience,” Reffkin said in a statement.
Compass has said it envisions bringing market intelligence to players across the real estate value chain, including mortgage bankers, real estate developers and investors and actuaries. The firm has also said it might consider licensing its technology to brokerages in markets outside of its coverage.
Compass has grown rapidly on the back of several eye-grabbing funding rounds. The brokerage recently raised $50 million at a valuation of $800 million, bringing its total funding to $123 million.