DeLeon Realty’s Mike Repka on the firm’s salaried agent model

On this week’s episode of the RealTrending podcast, we welcome Michael Repka, CEO and managing broker of DeLeon Realty, a Palo Alto-based brokerage with a unique business model of salaried agents. 

In this conversation, Mike and Tracey talk about DeLeon’s brokerage model and its place in the market post-NAR commission lawsuit settlement, as well as scalability and sustainability of the salaried agent model. They also talk about the future for buyer’s agents and what agents should do to demonstrate their value to consumers.

Here’s a glimpse of what you’ll learn:

• Value-added services, such as providing legal and contractor support, can set a brokerage apart and offer additional value to clients.
• The recent NAR settlement may lead to the emergence of new business models and services.
• Buyer’s agents may need to demonstrate their value and offer unique services to justify their commission.
• The future of buyer’s agents may involve a shift towards a more à la carte approach and specialized services.

Here’s a small preview of today’s interview. The transcript below has been lightly edited for length and clarity:

Tracey Velt: What was your initial reaction to the announcement of the NAR commission lawsuit settlement?

Michael Repka: We’ve had the policy of not taking commission from both sides of any transaction. That gives a buyer the opportunity to buy a home from us directly without a buyer’s agent. So let’s say someone finds a property on the MLS. They’re not working with an agent. They would contact me. I would send them to the buyer side of our company. They sign a statement saying that they’re not working with an agent. And then one of the buyer’s agents would represent them.

That alleviates some of the concerns that the Department of Justice and the plaintiff attorneys have been arguing. Which is, basically, if a buyer finds a property completely on their own, they’ve not been working with an agent, they haven’t received any services. There should be a way that they can buy it without the cost of a buyer’s agent. Now that the settlements have come out, we’re already fairly well poised for what to us will be very minor adjustments going forward. But to the industry, they seem earthshattering.

The RealTrending podcast features the brightest minds in real estate. Every week, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.