Massive merger shakes up real estate industry

The real estate “Goliath”

Another day, another massive development in our industry. Compass have announced that is is acquiring Anywhere Real Estate and creating the largest brokerage in the world

As our friend Glennda Baker put it best, “Compass acquiring Anywhere Real Estate doesn’t just create a bigger brokerage, it creates a real estate Goliath.”

Below, we’ll lay out everything you need to know about this merger, and what it could possibly mean for our industry.

We get into that and much more in today’s edition of The Blueprint!

- James and David

Summer was strongest buyer’s market in more than a decade

In August, there were an estimated 506,000 more home sellers than buyers–a 35.2% gap–giving buyers more negotiating power than they’ve had in decades. That’s according to Redfin’s latest update. Here are the key takeaways from August:

• The number of buyers fell to an estimated 1.4 million, which was the lowest level since 2013 excluding the start of the pandemic.

• The housing market has shed 50,000 sellers since May, but there are still 1.9 million active sellers, about 35% more than buyers.

• Florida and Texas are home to the strongest buyer’s markets, while just five seller’s markets remain, mostly on the East Coast.

• Of the 50 most populous metros, 33 are buyer’s markets, 12 are balanced, and five are seller’s markets.

Our take

Buyers finally have leverage, but only if they can afford to play. Mortgage rates have eased to around 6.3%, trimming payments and sparking more refinances, yet affordability remains the biggest barrier keeping buyers sidelined. That’s why, even in the strongest buyer’s market on record, activity feels sluggish. For agents, this environment means longer negotiations, more walk-aways, and buyers who are picky because they can be. In hot buyer’s markets like Florida and Texas, it is critical to set realistic seller expectations and prepare listings which will stand out.

Compass creates world’s largest brokerage with acquisition of Anywhere

Compass and Anywhere Real Estate have announced one of the largest transactions in residential brokerage history — a $1.6 billion all-stock acquisition that will create the world’s largest brokerage. The combined company will have an enterprise value of roughly $10 billion, including debt. Here’s what we know so far:

• The deal brings together Compass’s technology-driven platform with Anywhere’s portfolio of legacy brands, including Century 21, Coldwell Banker, Corcoran and Sotheby’s International Realty

• Together, the firms will represent about 340,000 real estate professionals across the U.S. and in more than 120 countries and territories.

• Each share of Anywhere common stock will be exchanged for 1.436 shares of Compass Class A stock, valuing Anywhere shares at $13.01.

• Compass shareholders will own approximately 78% of the combined company, while Anywhere shareholders will hold about 22%.

• The transaction is expected to close in the second half of 2026, subject to shareholder approval and regulatory review

Our take

This deal doesn’t just merge two giants; it fundamentally reshapes the residential brokerage landscape. Compass’s tech-heavy model and Anywhere’s stable of legacy brands form a firm powerful enough to influence everything from agent recruitment to how MLS systems operate. The ripple effects will take months to unfold and evaluate, but the competitive pressure on Zillow, NAR, and regional brokerages will be immediate.

Home flipping profit margins hit 17-year low

Q2 home flipping activity declined only slightly from Q1, but profit margins fell to their lowest level in 17 years, according to ATTOM. Here’s a summary of Q2 national sales and price trends:

Sales Trends:

• Total flips: 78,621 single-family homes and condos flipped

• Share of all sales: 7.4% of total home sales from April through June

• Quarter-over-quarter change: Down from 8.3% in Q1 2025

• Year-over-year change: Slightly below the 7.5% share in Q2 2024

Price Trends:

• National ROI: 25.1% gross return (down from 26.4% in Q1 2025) —the lowest since Q2 2008

• National gross profit: $65,300 (down 4% from Q1; down 13.6% YoY)

• Median purchase price: $259,700 — highest on record since 2000

• Median resale price: $325,000 — unchanged from Q1

The metro areas where home flips accounted for the largest shares of sales in Q2 2025 were: 

• Warner Robins, GA: 18.5% 

• Macon, GA: 15.5% 

• Atlanta, GA: 13.6% 

• Columbus, GA: 13% 

• Memphis, TN: 12.5%

Our take

Flipping is no longer the easy profit play it was a decade ago. ROI has fallen from nearly 63% in 2012 to just 25% today, the lowest level since 2008. Chalk that up to higher acquisition costs and intense investor competition, which are squeezing margins. With fewer distressed deals and starter homes available, many investors are paying top dollar up front, limiting room for profit on resale. For agents, this means more cautious flippers in the market and tighter negotiations, particularly at the lower end where affordability challenges are sharpest.

Schematics

The news that just missed the cut

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• New Zillow Showcase tool lets buyers restyle rooms with AI

• Second-largest homebuilder in US says it's 'time to pause and let the market catch up”

• New $10B luxury development in Beverly Hills

• Why Jen and Ben stand to sell their mansion for a $9M loss

Foundation Plans

Advice from James and David to win the day

Today, we want to focus on webinars. They can do a lot to help agents build trust and authority with their clients by showcasing their knowledge and expertise. In today’s edition, we explain the benefits of using webinars as part of your marketing strategy.

1. Establish Authority Through Education – Webinars allow agents to share insights on home buying, selling, financing, or market trends in a professional format. Attendees are more likely to reach out for personal advice when they see the agent as a reliable expert. Over time, this creates a reputation that extends beyond the single event and strengthens long-term brand recognition.

2. Engage a Wider Audience – Unlike in-person events, webinars remove geographic and scheduling barriers, enabling agents to reach clients across the city or even the country. A recorded session can be repurposed for future marketing campaigns, posted on social media, or emailed to prospects. This multiplies the agent’s exposure far beyond the live event itself. A single well-executed webinar can deliver ongoing value through replays and follow-up communications.

3. Generate and Nurture Leads – Hosting a webinar naturally requires registration, which provides agents with valuable contact information. This creates a warm lead pool of individuals who have already signaled interest in real estate topics. Follow-up emails, personalized outreach, and additional resources can nurture these leads into clients. Because the initial interaction was educational, prospects are more likely to respond positively and view the agent as a trusted guide.

4. Differentiate from the Competition – Many agents rely heavily on open houses, postcards, or cold calls—strategies that often blend together in the eyes of consumers. Webinars provide a fresh, modern way to stand out by showing initiative and digital savvy. Agents who regularly host high-quality webinars demonstrate adaptability in a changing market, which appeals to younger, tech-friendly buyers and sellers. This differentiation helps agents remain top of mind when clients are ready to act.

One of the best agents who uses webinars to generate over a million in CGI every year is Bradley Pounds. We encourage you to take a look at how he integrates webinars into his overall marketing strategy.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.” — Warren Buffett

Don’t let events or other people set your agenda. Stay ruthlessly focused on your goals — your time is limited, and you only get one life. Make the most of it. Have a wonderful week. We’ll see you back here on Friday!

- James and David