R
uss Cofano, CEO of Collabra, shares his insights on the future of real estate in a recent episode of Real Estate Insiders Unfiltered. As a seasoned proptech executive with experience as state association CEO, president and general counsel at eXp, and head of industry relations at Realtor.com, Cofano warns that the industry is facing a leadership void and increased scrutiny from regulatory bodies.

    Cofano predicts that the real estate industry will become a "bullseye" for lawsuits, with more litigation on the horizon. He notes that agents are struggling to adapt to the post-settlement era, particularly when it comes to managing commissions and navigating complex regulations. Cofano attributes this struggle to the lack of support from brokerage companies, which have shifted their business models to prioritize individual agent ownership.

    This shift has led to an overabundance of agents in the industry, with low oversight and high turnover rates. Cofano identifies Keller Williams and eXp as two examples of successful but problematic business models that have contributed to this issue. He also criticizes NAR for failing to fill the leadership void left by brokerage companies.

    Cofano advocates for abandoning cooperative compensation, which he believes is a major contributor to the industry's problems. However, he suggests that some elements of clear cooperation, such as getting all listings in a marketplace, can still be beneficial for consumers and the industry as a whole. Ultimately, Cofano warns that without strong brokerage entities, the real estate industry could undergo a fundamental transformation.