Company reports record-setting results, including a 567% YTD increase in agent commissions earned
United Real Estate Group announced today better-than-guidance performance for all key financial and operational performance indicators across each of its business units through June 30, 2021. In addition, the company successfully completed the post-merger operational integration and initial Bullseye™ Agent and Brokerage Productivity Platform technology rollout to recently merged companies, resulting in average growth among those merged companies post-closing of 24% (agent growth), 44% (transaction growth) and 65% (EBITDA growth).
“Our team has spent a decade under the radar doing the heavy lifting to refine our business model, deploy our proprietary cloud-based technology stack and build the operational infrastructure to become an exceptionally high-growth organization,” said Dan Duffy, CEO of United Real Estate Group. “We are now realizing the benefits of the efforts of our talented group of dedicated professionals.”Agent growth increased 87% YTD from 7,908 agents at the close of June 2020 to 14,772 agents at the close of June 2021.
- Total revenues increased 472% YTD from $26.81 million at the close of June 2020 to $153.40 million at the close of June 2021.
- Transaction count increased 106% YTD from 18,012 at the close of June 2020 to 37,017 at the close of June 2021.
- Transaction volume increased 110% YTD from $4.032 billion at the close of June 2020 to $8.465 billion at the close of June 2021.
- Agent commissions earned increased 567% YTD from $17.73 million at the close of June 2020 to $118.17 million at the close of June 2021.
A Sustainable Growth Plan
United Real Estate President Rick Haase attributes the firm’s accelerated growth to a “rare assemblage of talent” that encompasses the real estate industry, capital markets and information technology realms. “We think we’ve cracked the code on how to grow assertively in size and sales performance and, at the same time, grow our revenue and EBITDA lines as well. We have also been able to do this while redirecting hundreds of millions of dollars more to our agents compared to what they would earn with more traditional models,” said Haase in an interview with RISMedia.
“We’ve built remarkable scalability and efficiency into United’s technology, support and operational platform. As our growth accelerates, the financial and operational leverage is being realized and margins are expanding even as revenues accelerate,” said Duffy. “It is really exciting to see everyone’s diligent efforts paying off in so many ways to the benefit of our agents, brokers and their clients.”
“There are a lot of companies that grow at all costs and at the expense of net profit margins, sometimes losing tens and even hundreds of millions,” said Haase. “That is very destructive and ultimately does damage to the industry. We are growing, and doing so wisely and profitably.”
While United Real Estate has made significant acquisitions in the past year, Haase explains that the firm’s success is also due to ongoing, strong organic growth. “We’re growing because exceptionally run, powerful companies are choosing to join United, and our network is seeing tremendous year-over-year growth in the day-to-day battle for the best agents in the business.”
The Right Tech Approach
The efficiencies provided by the cloud-based Bullseye Broker and Agent Productivity platform are essential to United Real Estate’s growth. Haase explained that along with the platform’s technological adaptability, his people consistently demonstrate the ability to design, develop and implement against a rapidly changing brokerage environment.
“You have to be willing to creatively abandon what you’ve built out of deference to what’s needed today,” he explained. “We can iterate and reiterate at a rapid rate—it’s an organizational competency critical to maintaining strategic competitive advantage,” Haase added.
“The scale of our business now allows us to double down on investments in innovation with a regular cadence and enhance our value proposition to our stakeholders,” said Duffy. “We are adding new resources, tools and core services to our already robust technology-enabled business services platform. All these efforts are made more efficient with greater effectiveness as a result of moving our technology stack to the cloud.”
Agents Reap the Benefits
The efficiencies presented by Bullseye have helped United Real Estate live up to one of its stated missions: to change the financial trajectory of its agents and brokers.
“Agents clearly feel that franchisors and traditional brokerages have had their hands too deep in the pockets of brokers and agents,” said Haase. “Through the efficiencies provided by our systems, we’ve been able to redirect that money back to the people generating it.”
“Through United Real Estate’s unique, proprietary marketing and technology platform and our low agent fee, full-support business model, we have facilitated nearly a quarter billion more of commission income to our affiliated agents than they would have received from traditional commission-split business models,” said Duffy. “This allows our agents to earn a better living while still being responsive to consumer demands for lower-cost transactions and industry-wide changes as they evolve. Empowering our network of brokers and agents to be nimble and responsive to consumers is a hallmark of our network and our ultimate goal.”
To learn more about United Real Estate, brokerage succession planning, brokerage valuation and sale or franchising opportunities, visit GrowWithUnited.com or call 888-960-0606.
Agents interested in learning about career opportunities with United Real Estate can visit JoinUnitedRealEstate.com or call 888-960-0606.