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Boutique Brokerage LG Fairmont Joins Compass

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LG Fairmont CEO Aaron Graf and Compass CEO Robert Reffkin (LG Fairmont, Getty)

Last month, a boutique brokerage firm joined Compass, and a team of 60 people joined the brokerage giant.

LG Fairmont will change its name to LGF in Compass and hand over a portion of that fee to Compass. This provides support staff, a technology platform, and auxiliary services that the company has struggled to build on its own.

“Brands offer the highest yields in outbound marketing,” said Aaron Graph, co-founder and CEO of LG Fairmont, a brokerage giant.

Partnerships were born when the world of securities firms overcame market slowdowns and the ripples of economic uncertainty.

Last month’s compass 10% dismissal Of the staff after the report Loss of $ 188 million In the first quarter. It’s not just the company that won the top spot in the number of transactions among New York City housing brokers last year.

Redfin recently fired 8% of its staff, and Anywhere, the parent company of several major brokerage firms, including Corcoran and Sotheby’s, fell about 50% from its February peak.

“I think they have a strong cash position,” Graf said, referring to the compass. “It’s different if all other brokerage firms are up and down.”

This is also the second partnership created by a growing brokerage firm in recent weeks. Level Group merged with Oxford Property Group In June, Larry Link, President and CEO of Level Group, said it was partly done to scale up.

“We wanted to be able to provide more tools to our staff and agents, but frankly, we were limited because we didn’t have enough size to pay for them,” Link said. ..

Graf co-founded LG with Derek Lee in 2010 with the aim of establishing a boutique broker that provides a wide range of hands-on support and training for brokers.

The company A handful of startups favorite Triple Mint When Elegran Real Estate Make waves by approaching potential customers. Instead of paying the highest amount to a connected broker, LG bought leads from proptech companies such as Zillow and Trulia and handed them to inexperienced brokers. Brokers trying to level the competition..

But by 2018, LG’s relationship with Zillow had deteriorated, and companies that once bought $ 125,000 worth of leads a month have withdrawn most of their business from listed sites.

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