Realty ONE Group’s flat-fee model and positivity fuel success

For Realty ONE Group, 2025 is poised to be a year of growth, but according to company chief operating officer and chief financial officer Mike Clear, that isn’t anything out of the ordinary.

“We are a company that always tries to play offense,” Clear said. “We are always trying to grow and provide more for our agents and for all of our customers, whether that is on the brokerage side or the franchisee side, so we are always looking forward.”

Over the past year, looking forward has not been an easy task as the industry at large and Realty ONE Group have faced several challenges including the commission lawsuits, business practice changes and market headwinds. While Clear notes his firm has taken some defensive actions to shield the company from these challenges, such as cutting expenses and working on improving efficiency, he says Realty ONE has never lost sight of its goal to grow and pick up market share.

“On the franchise side, we will continue with a pretty rapid expansion of selling to the right franchise owners to open new brokerages throughout the county and overseas. On the brokerage side, we [work to] attract agents to the brand and expose them to our unique model.” Clear said. “Since 2017, we’ve had a pretty consistent pace of selling new offices, so that will continue in 2025, regardless of what the market gives us.”

Unlike traditional brokerages, which take a cut of an agent’s commission through a split, Realty ONE Group operates as a flat-fee model, where agents pay a set fee per transaction. With the number of home sales coming in at near 30-year lows the past two years and many anticipating some downward pressure on commissions due to the NAR settlement, some in the industry have speculated that agents and brokers may be interested in alternative business models, such as Realty ONE Group’s. According to Clear, there may be something to that speculation, as the firm has received an uptick in interest from many industry professionals.

“We already expected [positive] growth regardless of the commission lawsuits because we think our model is attractive — we think we provide the most for a flat fee — but there has been an increase in interest,” Clear said. “We are a very attractive place for people to join right now. In this market, if there is downward commission pressure for people, I think a flat- fee model makes a lot of sense. We are preparing for more growth. But right now, we are gaining agents and gaining franchisees.”

Clear also attributes some of Realty ONE Group’s success to the positive outlook the firm fosters within its agents, and he believes this will help fuel the company’s growth going forward.

“I go to a lot of events and talk to a lot of people. [There is a lot of] negativity about the market. Now, I don’t need it to be a 2021 market, but I’d love to see a normal market. No matter what, we are going to do our best to make the right decisions and the tough decisions and lead with positivity,” Clear said. “We believe that our culture matters, and we really believe in the team we have assembled. We have a wonderful leadership team and are very much customer focused.”