A tech-enabled brokerage uses technology as a primary investment to make agents more efficient and/or provide a better experience to clients. Typically, a tech-enabled brokerage has a sizable engineering team. Often, tech-enabled brokerages raise venture capital to support their tech investments.
Tech-enabled brokerages have gained a massive amount of market share over the past 10 years. eXp Realty, Compass, and Redfin are all top-10 real estate brokerages by sides. But all have invested in technology differently. These companies are pushing incumbents towards technology investment.
Tech-enabled brokerages differ from traditional brokerages in their dedication to building in-house technology. That said, some traditional brokerages like Keller Williams have their own engineering teams. Most tech-enabled brokerages raise venture capital to fuel their growth. They also focus their marketing to agents or clients on their technology.
Tech-enabled brokerages employ agents as both independent contractors and full-time employees. Tech-enabled brokerages that focus their investment on buyers and sellers often employ agents full-time. Tech-enabled brokerages investing primarily in agent tools often employ agents as independent contractors.
Redfin, Compass, Side, and eXp Realty are all examples of tech-enabled brokerages. Each invests heavily in technology. They all use tech on some variety of the following outcomes: improve the experience of clients, increase productivity per agent, reduce agent support costs, drive consumer awareness.