Thursday, July 16, 2020- Yesterday at the July monthly company update meeting Anthony Lamacchia announced higher splits for agents, lower fees for purchased services, a faster path to higher splits for new and upcoming agents and elimination of any term agreements that are meant to prevent agents from leaving the company.
These changes come during what Anthony refers to as the toughest time ever to be an agent working with buyers due to the excessively low supply of homes for sale caused by the COVID-19 crisis. Back at the height of the crisis, Lamacchia Realty made some temporary adjustments to help their Agents weather the storm. Now that a few months have passed, it became evident that the industry would feel the effects of COVID well into next year so it was decided that more long-term changes were needed right away.
“This is a tough time to be a Realtor especially if you are one who works mostly with buyers. Unfortunately, I don’t see it getting much better anytime soon and that’s why we decided to roll out these adjustments now so that agents will immediately see bigger paychecks to help them through this,” said Lamacchia.
Many of the changes that were made were already planned or being considered. However, due to the current circumstances, they were enacted even sooner than planned. Management wanted to provide financial relief right away which is especially important for the agents that focus more on working with buyers. One of the adjustments made was to the starting split for brand new agents. All of those agents got an immediate 5% raise and they were very excited about it.
Another area where fees were lowered, which impacts many mid-tier and top agents, is the very unique suite of services the Company offers to its agents which enables them to sell a lot of homes but not have to get involved in so many details. These very popular services are loved by many agents who consistently take advantage of them and subsequently dramatically increase their businesses. They can accomplish this without having to work more because with these services such as Listing and Buyer Assistance or the Company’s decade-old Pre-List services do the work for them.
A path to getting to higher commission splits quicker was also created by allowing agents to apply a certain portion of commissions earned from the agent’s sales from company leads to their own split for their business. For a decade, and as is customary with many companies, agents had to do more of their own business to grow their own split. This change allows agents to take advantage of various company lead products and apply some of the dollars earned to their own commission dollars brought in so they can climb higher, faster. This split adjustment for the lower end of the commission ladder comes on the heels of a recent adjustment on high producing agents and teams commission splits which kept Lamacchia competitive with any other brokerage while STILL providing the best support and training in the business.
Senior management has been planning to lower costs for agents as time goes on and the Company’s scale grows. Anthony refers to their plan as Amazoning Real Estate and says what they are doing now is just the beginning. Now that the Company is larger and operating at a much larger scale than even a year ago it is easier to lower costs.
“This is step one to enabling our REALTORS to be able to take advantage of our scale. We have always been competitive but I am extremely excited to be able to put even more money into the pockets of our agents so they can continue to focus on their families and their businesses. The more our scale grows the more we will look at ways to save agents money.” – Anthony Lamacchia, Broker/Owner Lamacchia Realty
Lamacchia’s service offerings and lead products are just two of the companies many unique offerings that set the Company apart from its competition. Lamacchia Realty has 47 full-time employees who work with the agents to help them in their day to day, support them in growing their business, all while supporting them to have a life outside of real estate.
“Lamacchia Realty, Will Guide You to Your Success” is the Company’s mission that is not only meant for buyers and sellers but for the agents and staff that work there as well.
“If our agents are successful, we as a company are successful so we will continue to do whatever we can from training, to assistance and fee reductions to guarantee that they will continue to grow their businesses.” – John Millen, Manager of Business Development
The company prides itself on not having any secret deals for anyone. Every single agent from the new agents to top agents work off the same exact split schedule and pay the same tiered fees for services.
“Secret deals are an epidemic in our industry, and they do not and never will exist at Lamacchia Realty. That has been a core principal of ours since day one and it will never change and agents appreciate it,” said Lamacchia.
Another change Lamacchia made was eliminating any term contracts that may exist in the company. Over the last few years, as the company has grown and opened many offices, there have been a small amount of agents who agreed to some sort of term contract to provide the company with assurance as it was signing long term leases, etc. Anthony and Jackie Louh, the company’s Vice President of Business Development, recently decided that they do not want to utilize those contracts anymore.
“We want people to be here with us because they want to be here based on our merits as a Leadership team that supports them, not because of some contract. Over the last two years, we have spoken to many agents at other companies who are in these contracts and many of them really dislike them and they tell us they will be over as soon as the term is up. We have full confidence in our ability to retain agents and it is clear based on our very high retention rate, so we won’t be using these agreements anymore,” stated Jackie Louh Vice President of Business Development.
Why is the current market more difficult for agents?
Buyers may have taken a pause when the state shut down but once the phases to reopen began, buyer demand grew exponentially. Sellers, however, have been reluctant to put their homes on the market. Whether this is due to uncertainty of the market, concerns about not finding a place to move to, or not wanting buyers in their homes, the majority decided to put a pause on their plans to sell.
This drastic decrease in inventory of homes for sale has caused the following domino effects:
- Multiple offers and bidding wars, meaning that Sellers that do put their home on the market sell at a higher price
- Buyers are left placing offer after offer without landing a home
- Agents are pulling out all the stops, working harder than ever and not getting paid for their diligence
These financial changes will not only provide relief for agents but will also set them up for success for years to come. Lamacchia Realty prides itself on offering its agents innovative and top-notch training and support to help them reach and exceed their professional goals. Along with a company culture that is unmatched, the Company believes in treating its agents with respect and compassion, especially during challenging times like these.
To learn more about Lamacchia Realty or to learn more about how to join, click here.