San Diego San Diego

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Ten-X Realty is a new brokerage firm with aunique business model: 100% broker commissions. The San Diego firmlaunched in November of last year and has already grown to animpressive 100 agents. It is serving as an example of the newbrokerage concepts emerging in the wake of real estate technology,which in some ways threatens the brokerage business.

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"We felt that in order for us to really grow in the luxurymarket, we needed a brand that was independent and could reallygrow on its own," Burke Smith, founder of Ten-XRealty, tells GlobeSt.com. "We needed a brand that was notassociated with any other previous business model and to establishourselves as a full service brokerage firm. The impetus was that wewanted the ability to grow without restrictions that are put on afirm when it is franchised." Smith is the former chief strategyofficer at Realty One Group, and left the position to launch thisfirm.

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Smith launched the company to have the flexibility to serveclients in new geographic markets and create a new business model."We created a fee structure that under the franchise model wouldnot have been allowed," he says. "We had the flexibility to do thatas an independent. The response has been very good. We have hadmore than 100 agents join the firm since we launched inNovember."

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According the Smith, the rapid success of the firm hasunderscored the demand for strong agents. "More and more buyers areseeing that the real estate agent is valuable, but technologycompanies like Redfin are putting downward pressure oncommissions," says Smith. "It has become increasingly important foragents to retain as much of their hard-earned commissions aspossible."

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While the model was designed to target the luxury market, Smithsays the model would work in any segment of the market. "We knewthere was a void for the 100% commission model in the high-endmarkets, but this model would work for the average transaction," hesays. "This really was designed for every agent at every level. Wearen't exclusively targeting the high-end market."

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Ten-X is currently based in San Diego, but serves the majormarkets in Southern California. "We expect to double our agentcount by the end of the year," says Smith. "We are pretty confidentthat we will be able to cover Santa Barbara to the border of Mexicoand out to the desert markets in Palm Springs by the end of theyear."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.