-- Independent real estate brokers face a structural challenge: how do you compete with the relocation departments of major national franchises when you're running a boutique operation? The answer, it turns out, isn't trying to build what the giants have. It's using technology to leapfrog them entirely.
John LeRoy, founder of Realay, a Michigan-based real estate technology platform, is watching a fundamental shift play out across the industry. Independent brokers who historically lost business to national franchises because they lacked referral networks are now closing the gap, and in some cases, outperforming their larger competitors.
"The old model was simple: join a big brand to get access to their relocation department," LeRoy said. "But what we're seeing now is that independent brokers using the right technology are providing better service than those legacy relocation departments ever did."
The adoption gap is creating performance disparities
For decades, independent brokers operated at a structural disadvantage. When a client needed to relocate, agents at national franchise brokerages could call a sister office. Independent brokers had to rely on Facebook groups or simply lose the business.
Julie Moraitis, an associate broker with the Luxe Group, experienced this firsthand. "I was getting three to five referrals a day and using Google spreadsheets, still losing track of deals," Moraitis said. "It was becoming a full-time job just managing referrals, taking away from my actual production business."
The industry paradox is stark: referrals convert at 60-70% compared to 6-9% for typical leads, yet most independent brokers lack the infrastructure to capitalize on them.
Why now is the inflection point
Three factors are converging to make 2025 critical for independent brokerages:
First, remote work has accelerated relocation needs, creating unprecedented demand for trusted referral networks. But clients aren't loyal to brands, they're loyal to relationships.
Second, the cost of referral mismanagement has become untenable. LeRoy's platform reports that agents without systematic tracking often can't even remember who they sent referrals to.
Third, quality control has become the differentiator. "You post that you need an agent in Miami, and 80 people raise their hands," LeRoy noted. "Now you're spending hours trying to figure out who's legitimate. Most agents give up halfway through."
The cost of waiting
After just four months using systematic referral technology, Moraitis reports closing six transactions with five pending, generating approximately $10,000 monthly in referral income with minimal time investment.
"I now see about a referral a week closing," she said. "It gave me my life back while actually increasing my referral income."
The primary barrier remains skepticism. "The biggest objection we hear is that it sounds too good to be true," LeRoy said. "When we say there's no monthly fee, they don't believe it."
But the broader implication is clear: if independent brokers can compete with franchise networks on referrals, historically one of the primary value propositions for joining a national brand, it fundamentally changes the economics of the brokerage industry. Franchise fees, which can range from 6-8% of gross commission income, become harder to justify when network access is available through technology platforms at a fraction of the cost.
For agents making decisions today, the technology exists to compete at any scale. The question is whether individual firms will adopt it before their competitors do.
About Realay
Realay is a SaaS platform that enables real estate agents and brokers to seamlessly send and receive referrals across the United States. Founded in 2023 and based in Michigan, Realay provides independent brokers with referral network capabilities traditionally available only through national franchise systems, with no monthly fees or subscriptions. For more information, visit realay.com.
Press Contact:
Heather Hook
KeyCrew Media
Release ID: 89171737
Google
RSS