Flat-Cost Brokerage Homie Can make Outstanding Pivot Amid Upheaval

Flat-Cost Brokerage Homie Can make Outstanding Pivot Amid Upheaval

The Utah-based disruptor “moved our actual estate brokers from W2 to 1099” though other “non-Homie” brokers ended up laid off final week thanks to “role redundancy,” a Homie spokesperson confirmed to Inman.

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Amid a tumultuous housing industry, flat-fee brokerage Homie has laid off employees, transformed its salaried agents to contractors, and is now apparently functioning without a main government.

In a sequence of e-mails Friday and Monday, Homie spokesperson Sarah Edelman characterised what is taking place at the enterprise as a strategic “shift.” However, the changes show up to be a important divergence from in which the organization stood a number of years back when it was in the system of using the services of 1,000 brokers and experienced a workforce of hundreds.

Relating to agents, Edelman reported the firm has “moved our authentic estate agents from W2 to 1099, a prevalent change within the serious estate field.” She also said the corporation has 18 this sort of brokers, as well as a “handful” of W2 personnel. Four “non-Homie” agents were laid off final 7 days because of to “role redundancy.”


The news will come on the heels of a report past week from the Salt Lake Tribune that claimed the firm was contacting it “quits.” Edelman blasted the Tribune short article, saying in an first email to Inman that it was inaccurate. Questioned for further details, she adopted up by saying that “there are also lots of inaccuracies to address” but the “main difficulty is their deceptive headline that we really do not have workers any more, which is wrong.”

The Tribune, which experienced based its tale on remarks from an unnamed personnel, afterwards modified its headline. The Tribune piece also reported Homie will continue on to do referrals.

Inman questioned about the present-day measurement of Homie’s employee workforce, but the business did not give further more facts. Presumably, a “handful” of W2 staff is a lesser workforce than the hundreds of folks who worked at Homie in 2022. The organization also did not deliver specifics about the timeline of workforce reductions.

CEO Mike Peregrina has also left the enterprise. Though Peregrina’s LinkedIn profile lists Homie as his present-day employer, Edelman claimed in reaction to a question about Peregrina that he actually remaining in November. Inman asked about Peregrina soon after emailing him straight and obtaining an apparently automated reaction declaring he no more time performs at the business.

“We deeply thank Mike for his a must have contributions as he played a pivotal job in founding the corporation and navigating its early a long time,” Edelman reported in an email.

Inman asked if the business is currently searching for a new CEO, but Homie did not provide a reaction to that dilemma.

Inman also achieved out specifically to Greg Hriso, who according to his LinkedIn page is currently serving as Homie’s head of genuine estate. That electronic mail bounced back again, building a concept stating it could not be sent.

Inman questioned Homie usually about executive departures, including Hriso’s, but the business did not deliver extra information.

Instead of a CEO, Edelman said Homie is “currently managed by its board of directors, co-founder Johnny Hanna, and the vice presidents of each and every division.” Hanna is a previous CEO who resigned in 2022 amid the company’s second spherical of layoffs that 12 months.

Even though inquiries keep on being about what is going on internally at Homie, the company’s seemingly diminished form highlights the tough situations the proptech area faces. Homie was established in 2015 and more than the a long time lifted tens of millions across a number of different funding rounds.

Homie grew on the back of its promise to listing homes for a relatively very low flat price, instead than by way of percent-foundation commissions a la common brokerages. It was a model that was successfully optimized for a time when charges ended up small and need seemingly bottomless.

On its household turf in the Salt Lake suburbs, Homie billboards ended up also a typical fixture, normally making jokes or pop tradition references to drivers along Interstate 15.

Nonetheless, Homie appears to have suffered as the increase periods of the pandemic decades waned in 2022, the firm embarked on various rounds of layoffs.

Homie is far from by itself in facing recent struggles. Thanks to rampant inflation and rising house loan prices, real estate organizations laid off 1000’s of staff in 2022 and, additional not long ago, investors have grow to be appreciably a lot less enthusiastic about proptech startups.

Flat-rate brokerages have also lost major intellect share compared to a few many years ago, when they were hailed as significant disruptors. Nowadays, the businesses regularly earning headlines are inclined to be additional standard brokerages like Compass or franchisors this sort of as RE/MAX. And most talked-about possible disruptors are not tech startups, but somewhat lawsuits and government regulators.

For its part, even though, Homie says its days of disruption aren’t more than. In a single of her e-mails to Inman, Edelman explained “Homie stays open and dedicated to its mission to empower shoppers by maximizing value cost savings.”

“The organization carries on to work,” Edelman included, “with an unwavering devotion to furnishing disruptive alternatives in the real estate area.”

Email Jim Dalrymple II

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