In a new deal involving evolving real estate technology, Fidelity Investments has made an offer to Compass, valuing the company at just under $2 billion.
Many analysts are a bit confused, as Compass seems like a standard real estate company, not much worth the large price tag. Fidelity is standing by their offer, however, pointing out that Compass has been bringing some of the best agents under their wing.
Compass has also been offering high-end technology and bigger commissions to their agents, as discussed by Vera Nelson, a California real-estate agent of 17 years who joined Compass in 2015. "The technology was mostly marketing tools," she said. "It was sleek, but I can't say it was different from anything else out there."
Fidelity has been financing fewer and fewer investments in the last few years, making their large investment in Compass a great vote of confidence. "The simple reality is that Compass agents can perform key tasks (like generating comps for their clients) in a few seconds when it used to take them a couple of days," said Compass board member Todd Chaffee.
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