Ideal Agent refocuses priorities, pivots staff
Ideal Agent, a Tampa startup that uses artificial intelligence to recruit top real estate agents, is shifting priorities as interest rates are surging and the housing market is tapering off.
Established in 2016, Ideal Agent is the nation’s fastest-growing full-service real estate company that connects home sellers with top-rated agents at various commission rates, delivering a seamless experience. The company currently has 93 employees; however, as part of its effort to capitalize on creating a more sales-centric model due to the changing residential market, it will be downsizing its staff.
“In the past six weeks, the market has declined even sharper with the election, federal rate hikes and holidays upon us. We’re seeing a stall in the market and expect that to last for at least the next four to six months. The pandemic played a part in fueling the hottest sellers’ market in history and now the market is correcting itself post-pandemic,” Ideal Agent CEO Steve Johnston told the Catalyst. “Our business model was created to withstand drastic downturns in the market; it is necessary to align with the current market and focus on our new products and services for continued success.”
Ideal Agent announced to its staff Monday that it will be eliminating 20% of its existing positions. This move will affect 35 employees, and some of the affected employees will be extended offers.
The new positions will shift the company from a customer service organization to an organization concentrating on sales. The new roles, referred to as agent advisors and agent success advisors, will service the clients acquired during the growth phase of selling and buying a home through offerings such as a mortgage, title, insurance, warranty, move, home security, utilities, cable and internet service installation.
The new sales roles will be open for application immediately.
The employees who will continue at Ideal Agent will receive the same compensation: A base salary of up to $50,000 and bonuses and incentives, which could bump up the compensation to $70,000-$90,000. The company notes the compensation for the downsized staff is based on tenure.
“Compensation plans will be directly tied to revenue of the new services,” Johnston said. “Many of our competitors are in their second round of layoffs. Additionally, some companies have not made it and will not make it. This strategy will allow us to be cash flow positive while continuing a growth plan for 2023.”
In late October, mortgage rates exceeded 7% for 30-year fixed-rate loans – the highest rate in 20 years.
Johnston foresees the rates dropping to 5% mid to late next year.
The news comes after the company has what Johnston describes as a “decent third quarter” with 12% down compared to its record-breaking second quarter performance.
Origin Story: Ideal Agent with Steve Johnston
“Ideal Agent has been on an outstanding growth trajectory due to previous market conditions, and will focus on new growth opportunities by providing all services related to the real estate transaction and move in one place with the very best in class partners at a value,” he said. “The creation of these new positions will once again set us up for success and create an optimal environment as we, as an industry, navigate this new economy.”
