B
arry Spizer, managing partner of SRSA Commercial Real Estate, is taking a bold step into the housing market with the launch of SRSA Residential. Despite challenging conditions in the local market, including stubbornly high interest rates and rising homeowners insurance costs, Spizer believes that the changing landscape presents new opportunities for his firm.

    The New Orleans area's stagnant housing market has seen home values remain flat and sales decrease over the past two years. Additionally, national real estate firms like Compass have entered the market, purchasing local brokerages such as Latter & Blum. However, Spizer sees these shifts as a chance for SRSA Residential to capitalize on its strengths.

    The firm's entry into residential real estate is also driven by changes in the commission structure of agents. A new state law requires homebuyers to have a written agreement with an agent before looking at a house, spelling out how much the agent will get paid and who will pay it. This change has created uncertainty for some brokers but presents opportunities for experienced negotiators like those at SRSA.

    Spizer believes that commercial brokers' ability to negotiate commissions on the front end of deals could give SRSA Residential an edge over competitors in the residential market. The firm's focus will be on the higher-end segment, catering to its existing clients who want representation when buying or selling a home.

    SRSA Residential will operate out of the company's existing offices and initially have three brokers. Spizer is confident that his team can leverage their commercial experience to succeed in the competitive residential field. "We think we have a unique niche and decided to seize the moment," he said, adding that they are taking a conservative approach to expansion.