T
he DANGER Report, written by Stefan Swanepoel ten years ago, highlighted significant risks facing residential brokerages. While some of its projections have come to pass, others haven't materialized as predicted. The report identified the rise of teams as both an opportunity and a threat for agents and brokers.

    Teams have disrupted the traditional brokerage model, offering agents greater autonomy and business success. However, they also pose a risk to brokers, who face increasing costs, risks, and competition from tech-savvy companies. Swanepoel notes that teams are essentially companies within companies, which can shift the balance of power in the industry.

    The report's predictions about alternative fee structures and technology-powered brokerages have come true with companies like eXp, Real, and Redfin. These firms offer flat fees, salaried models, or agent-centric approaches that challenge traditional brokerage structures.

    One threat that didn't materialize is the IRS reclassifying agents as employees instead of independent contractors. However, some brokerages, such as Redfin, have adopted employee-based models, offering benefits like healthcare and paid time off while providing high splits to their agents.

    The report also warned about the "masses of marginal agents" damaging the industry's reputation. This concern remains valid, but it's not the only issue facing the real estate world. The value of agents has become a significant concern in the commissions lawsuit era, with professionals highlighting the services they provide to consumers.