Proptech Pulse

Proptech Pulse: Phil Price on Independent Brokerage Strategy in a Consolidating Market

• Lone Wolf Technologies • Season 1 • Episode 8

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In this episode of PropTech Pulse, host Kyle Hunter welcomes Phil Price, CFO of Smith & Associates Real Estate and LUXE Title Services. Price brings a distinctive perspective to real estate technology and operations, combining his CPA background and experience at KPMG with eight years leading finance, operations, technology, and ancillary services for one of Tampa Bay's premier independent brokerages.

Smith & Associates Real Estate represents a powerful case study for independent brokerage success. Now in its 55th year, the company was founded by Mary Smith Conover as a women-led organization and has evolved into Tampa Bay's most productive brokerage, with approximately 300 agents maintaining an average selling price of $1 million. Under CEO Bob Glasser's leadership and Price's operational guidance, the company has maintained significant market share in the luxury segment while staying true to its independent roots and family-oriented culture.

The conversation addresses critical questions for brokerages navigating today's consolidating market. How do independent brokerages compete against national franchises and well-capitalized competitors? What role does culture play in retention and recruitment? How should brokerages approach technology adoption and investment? Where do ancillary services like title and insurance fit into the value proposition? Price's insights reveal that success comes from prioritizing agent support, maintaining operational excellence, capturing clean data for strategic decisions, and building genuine relationships over chasing market share through volume.

Topics Covered

  • Career transition from public accounting (KPMG) to real estate and the unique perspective it provides on brokerage operations
  • Smith & Associates Real Estate's 55-year history and evolution from Mary Smith Conover's founding vision
  • Independent brokerage strategy in a consolidating market dominated by franchises and well-capitalized competitors
  • Culture as competitive advantage through the "if the agents aren't here, we're not here" philosophy
  • Luxury market positioning as a service standard rather than a price point
  • The role of units per agent and volume per agent as key productivity metrics
  • Technology adoption strategy focused on agent support and administrative efficiency
  • Back office and transaction management as data capture opportunities for market analysis
  • Strategic data collection following NAR settlement changes and MLS data restrictions
  • Commission structures and compensation models for recruiting and retention
  • Growth from recruitment focused on value proposition alignment and culture fit
  • M&A strategy for acquiring brokerages with compatible cultures and compensation models
  • Ancillary services integration through LUXE Title Services and insurance joint ventures
  • Title company capture rates from internal listings and external agent relationships
  • Building external agent relationships despite brokerage affiliation through service excellence
  • The future of AI in real estate operations, focusing on administrative efficiency over agent replacement
  • Repurposing staff toward relationship-building and cultural support as automation handles routine tasks
  • Technology vendor partnerships that prioritize forward-thinking development and continuous improvement


Key Quotes

  • "I would go into accounting, but I'm a people person, so I get to compete against non people people."
  • "We don't really care how many agents we have. We just want the most professional agents in the market, and we want our roster to look that way."
  • "He looks at the associates as his family. When we have been approached, his tone is always, I can't do that to my agents."
  • "If an agent needs something, you drop what you're do

https://www.lwolf.com/podcast

SPEAKER_01:

From the entrepreneurs to the industry frontline and into real world operations.

SPEAKER_00:

I'm Aaron Cardell, joined by Kyle Hunter and Jake Hamilton. And we're here to take the pulse of real estate technology in just 20 minutes.

SPEAKER_01:

Welcome back to PropTech Pulse. Very excited to have my friend Phil Price on with us today. So Phil brings a unique perspective as a CFO and COO of a large brokerage, independent brokerage in Central Florida, Tampa area. Phil, tell us a little bit about yourself before we jump in.

SPEAKER_02:

So I kind of stumbled into the real estate industry. I started in public accounting for about seven years, many of those years with KPMG. Was recruited to be the CFO of a pool franchise owner and pool manufacturer, chemical manufacturer. Got to a point where I wanted something different and met my CEO Bob Glaser, who brought me on to be his CFO. And I would say over the eight years of as the CFO of Smith and Associates Real Estate, I've certainly added hats to my repertoire. You know, I started with finance accounting HR, dabbled in a lot of the processes that we do here at Smith and Associates Real Estate. At some point, we decided that I would run the title company and the insurance joint venture. I think sometime before that, we threw technology onto my plate. So really just drinking from the fire hose for the past eight years of learning real estate and operating a real estate brokerage, title company insurance joint venture, and trying to keep us moving and growing in the Tampa Bay market.

SPEAKER_01:

Yeah, good deal. And you know, I was uh had the was lucky enough to meet Phil. Um, I think it was uh maybe at a gathering of evils um, you know, some years back or something.

SPEAKER_02:

It was it had to be because I know we were at 2020 Inman together right before COVID picked up. Um and we were in New York, like when COVID. Um and we were there for the Lone Wolf Customer Advisory Board in 2020 in min. And so it had to be before that because I knew we were we knew each other then. Must have been like 2018-2019 gathering of the Eagles.

SPEAKER_01:

Yeah, I think yeah, 2018 something, and and we happened to both be uh alumnus from Florida State University, so we kind of hit it off. And um, you know, filth rings, you know, as a CFO and you know, additionally coming from outside of real estate, um, you know, it's a different perspective. And learning real estate, you know, is tricky. It's a different uh animal than you know, a pool company or or KPNG where you're kind of doing a little different things. And so um you've been very interested in kind of following how you've moved just well beyond the CFO role because it's it's a very you know belly-to-belly person industry, and you really you know embody that in you know the things that you do. Um, so I've enjoyed you know, kind of watching you and following you and help Smith and Associates grow to kind of what they are today and and you know take over that market, um, which kind of leads me to the first thing we want to discuss. And you know, as an independent brokerage and a consolidating market, you know, how are you navigating that? And I I know a company like yourself, um, you know, without naming names, I'm sure you've been approached by a lot of different areas to try to you know come on board, whether it's a franchise or acquisition or whatever. And you know, how do you navigate that market and continue to uh you know keep that sustained strong brand in uh in a market like Tampa?

SPEAKER_02:

Well, I think it I think it starts with the brand and ultimately the leadership behind the brand. Um, our CEO, Bob Glasser, has been running Smith and Associates Real Estate since early 90s, and the company has existed. I think we're going on our 55th year. And it's a cool story. It was founded by a lady by the name of Mary Smith Conover, whose family owned a bunch of real estate in Tampa Bay, and it was really a women-led company. She founded it, brought on a bunch of her friends to sell real estate and selling the family real estate. But, you know, I think as the markets consolidate and us independents are out here, it's really pouring back into our associate base. Um, you know, you joked about me um being an accountant, and I always joke that I would go into accounting, but I'm a people person, so I get to compete against non-people people. Um so I think for me, it's been and the team just pouring into our associate base. We always say that we don't really care how much many agents we have, we just want the most professional agents in the market, and we want our roster to look that way. Um, you know, one of the things we always look at is units per agent and volume per agent to know that we're the most productive agent in Tampa in Tampa Bay. And then it's really our leadership team from our managing brokers, from top down the CEO. It's a family company. All the all of our CEO's children either have worked or work in the company, and it's his legacy and it's what he wants for the company. And you know, he looks at the associates as his family. We uh when we have been, you know, approached. Um his tone is always, I can't do that to my agents. And it's like, you know, he cares so deeply about the human aspect of the business that, you know, that's what we do. We tell our staff if an agent needs something, you drop what you're doing, because if the agents aren't here, we're not here. So I think that's been our success is really investing in people, both staff and agents, and building a culture that understands all the support we can give the agents, all the community involvement and things of that nature. You know, you know Tampa Bay, Central Florida, it's a it's a loyal local mindset. So I think we operate in a market that's a little bit different than maybe in New York, Chicago, LA. So that's definitely been something that I think has helped us maintain our strength in a consolidating market.

SPEAKER_01:

Yeah, and you know, you you hit on it. Um, you know, your customers are your agents. Um, sure. You know, the buyers and sellers are uh you know our customers as well. But the reality is, you know, as a brokerage, as a as a company that's that's running a you know day-in-day-out business, you need to make sure the needs of your agents are are met and you know the culture is provided that they can fit and thrive in. Um, and you know, uh it's all about making sure that they're there. Um, I do want to touch on something. Um, you're in primarily the luxury market, or you know, you're you're more on the higher end, or how does that how are you shaking out these days?

SPEAKER_02:

Um we always say luxury is a service set. Um, you know, so you know, we're certainly we sell high houses at all different price points. Um, and we support agents that serve all different price points, and they're all incredible. I will, you know, candidly, our average selling price is about a million dollars. Um, we do serve many of the high-rise condos that go up in Tampa Bay, um, you know, exclusive listing agent for those. So we do have we have a luxury presence, you know, our market share over a million dollars in the Hillsborough and Pinellas counties is very significant compared to any competitors. And and it certainly does drive the business and also it drives our mindset in the sense that everything we do, whether it's marketing, service, financial decisions, technology, brand, everything we do is luxury. Um, now that doesn't necessarily mean a price point. It just I think it's a culture that we've driven from a production standpoint and from a professionalism standpoint that we we anchor to.

SPEAKER_01:

Yeah. Yeah, I know it, you know, there's different needs, and and obviously there's a lot of uh competitive pressures that can come in that market. Um, obviously there's big names out there, and to really uh grow and thrive and be you know the top um independent in that segment is is you know uh something to be very proud of and to really maintain that pressure. Um switching gears a little bit, you know, as a CFO, you you mentioned that you took over technology, um, and you know, you're in charge of uh really understanding what helps all aspects of your company uh be competitive, stay competitive. Um but from uh you know technology and back office operations, um I know that you know obviously you need to know and have data uh to make decisions because you you know the markets are changing, you have to be agile. And tell me a little bit about you know what goes into that, you know, how how much of an the a factor that is you know within your day-to-day operations.

SPEAKER_02:

Well, I think if you think back office, we're talking really transaction management and back office accounting, right? So, you know, our intent is to put a staff member at every point where an agent is doing something administrative where they could be outbuilding relationships and selling. I mean, our value proposition, one of our value propositions is support. And what we do on that side of things is we support it with the best solutions and humans to take that agent position on managing the administrative. The you know, from the financial data perspective, I guess I look at I look at the needs twofold. Um, internally, we want to capture the data as much as we can, all financial information, and utilize that to analyze the market, ourselves, and where we can grow and get better. On the other hand, for the agent, we really want to make sure we're capturing clean, leverageable data to for them to use in their business and stay top of mind and keep their sphere close. I think sometimes I joke that it's not really the back office and the transaction management that matters. It's what you can bolt onto it and do for your agents with that data that you're capturing, because those are your data backbones, right? Like we ran into a situation back in the day, but like when I first got here, all the buyer addresses were the address, or sorry, all the seller addresses were the address they were selling. Um, and all the buyer addresses were the addresses they were buying. And we're like, well, we want to know where they're coming and we want to know where the sellers are going. So we kind of coached our team to capture that information in a better way. So we also did that with the NAR changes. There's certain data points that were no longer leverageable through certain aspects that we had. So we kind of started capturing everything into our back office system so that we could export that and analyze the market, not just ourselves, and understand from a practicality perspective what's going on in the market. And that's kind of something that has really helped us over the past six to nine months responding to the changes in the market.

SPEAKER_01:

Yeah, no, and I know that's um, you know, there's always changes, but there's been a lot of changes in the last couple of years and you know, a lot of needs. Um, I saw some interesting stats the other day and talked to some folks um about just some of the changes in you know, um buying side commissions and the fact that in many cases in many markets they've actually gone up. And so that was very contrary to what was predicted um, you know, when the judgment came down 817 last year. And I think that it it really shows that, you know, number one, um, there was some education going on, and and but also, you know, things kind of stay the same, but you have to know how to address that, and you got to know what's going on using the data.

SPEAKER_02:

So and that was our big thing, is is let's capture everything we can so we know what's going on in the market, not just ourselves.

SPEAKER_01:

Yeah. Yeah, you know, as a as an independent, as a company like yourself, you know, um, and and obviously we're not gonna talk commission rates, but commission schedules and how agents are paid and and transactions, you know, a lot of that goes into recruiting and retention. You know, what what is your role with Smith? Like, do you play any part of that um in you know, on your side of the fence as far as you know, strategies and recruiting and retaining agents?

SPEAKER_02:

I think we've looked in the past nine to 12 months, we've looked at every financial metric that we can think of to look at to strategize. And absolutely, I think between our managing brokers, our CEO, and myself, we're meeting quarterly to review those figures and determine what kind of what kind of changes or really just tweaks to do. Because I think what you can the trouble with it is you can you can try to figure it out so much that you create complexities that actually create friction for the agent. And generally speaking, most brokerages' compensation structures or split structures, they are what they are. The company runs at it as it is, unless you're making a big business change or like changing your value proposition, you kind of are what you are. But I do think that you have to stay on top of those things to make sure you're competitive in the market. Your value proposition is meeting what you're setting up for your associates. And then, you know, from a recruiting perspective, you've got to make sure that you're competitive in the market. But we really feel strongly that our value proposition lines up really well with how we have it have it set up. I I don't think that, you know, I don't know that we'll stay exactly the same in the next three to five years of how we do it, but we feel really confident in it right now. But we are always evaluating it.

SPEAKER_01:

Yeah. No, I know it's I mean, it's used to be always the the mouse, uh, the mouse trap, you know, that uh that you create, and and there's so many changes and ebbs and flows. Um, you know, you got to keep it growing. But having that uh backbone and having something that can retain and make sure that everything is done uh properly is is super critical to a company. Uh, what do you have like 200, 300 agents now? How many agents you have?

SPEAKER_02:

Yeah, we're in about 300. We've uh done a really good job recruiting to our value proposition over the last 12 months. I think we've we've really had some big wins with major agents in the market. And it's fun because we're yes, our structure is a little bit different than than your average brokerage out there. But I think once the agents get in and feel the culture and the support and how we do things, I think it's really well received. And you know, it really goes back to if the associates aren't here, we're not here. So anything they need, we're gonna try to solve for them.

SPEAKER_01:

Well, it's a testament to your uh you know, to your success and growth for sure. Um, we're gonna pivot a little bit. Um, you know, I you mentioned that uh you explored title, and I know just from knowing you that you know you've started to get into some of these other things, integrated models, um, you know, some MA considerations. I'd love to understand, you know, your thoughts on where that's going and having ancillary businesses. Is that a core piece um to your business? And and how does that fit in to you know, kind of your you know what you guys are doing there?

SPEAKER_02:

I think it's definitely a core piece. I'll touch on the MA first. Um I don't think we're selling anytime soon, so I don't really have any considerations there. What about the other side? Buy. So that's where I feel like we're really positioned well, but you also have to find the right brokerages and the right fit. Like compensation models need to be consistent. Um, there needs to be a culture of collaboration. We I had an agent joke with me who came over that uh she made sure her door was locked every time she left the office at her previous brokerage. She wouldn't think in a million years to close her door at Smith and Associates. So we really we're kind of picky, you know, we want and we're definitely interested, if you're listening out there, we're definitely interested in acquiring brokerages in our in our footprint and ones that really fit Smith Associates' real estate from a culture and behavioral perspective. And and we know that the compensation structure has to be a little bit similar because those big changes when you're acquiring brokerages, I don't think they tend to work. Um, on the core service side of things, we do look at it as a major point of our business. Um, you know, that's Bob always tells me that's my role, and that's where I sit is in the core services. I tend to gravitate throughout. But uh we the title company, we want to make sure that our capture, you know, in Florida, this the seller pays for title. So we want to make sure that our listing capture rate from the brokerage is as high as it can be. We want to make sure on the insurance side, we're capturing as many buyers that flow through that we can be. And then recently, my team has done a wonderful job of building relationships with outside agents, which we thought might be challenging, but thankful to the uh kind of the agnostic branding, we've been able to bring on a lot of external agents, the title company. And I think the reason that is is you brought up Smith and Associates Real Estate being a luxury brokerage. And again, we don't really think of that as a price point, we think of that as a service set. Well, throughout all of our entities, that's the same way we go about it. I want to win on service and I want to win on service and relationships every single time. So I think that's ingrained from the top down with our CEO through me into our teams, and it's been successful, and we're gonna continue to push and grow those entities and and you know, along with Smith and Associates Real Estate.

SPEAKER_01:

Good deal. Well, you know, I know you um, you know, appreciate you being a customer of of our back office and several other solutions in Lone Wolf, but I'd love to understand just, and this is kind of I guess closing, um, what technology changes um will do you think are going to matter in the future to kind of maintain you know your ability to stay competitive when you know we we obviously hear about these large consolidations and these you know technology real estate companies and these things. As an independent, like how are you what what are your thoughts about feeling of staying competitive in that kind of you know market price?

SPEAKER_02:

Well, I think as an independent brokerage, I don't think we think of technology as our major value proposition, but you have to be competitive and you have to be at least on par with everyone else. I think for us, we are currently with our vendor solutions, and we have some great vendor partners like Lone Wolf that are forward thinking and development heavy and always improving, and that's what we want. And every technology partner is someone that's thinking ahead and pushing their own boundaries. I think we're gonna have to see where AI goes. I almost feel weird talking about it, but I think the things that you can use AI to do from an administrative perspective, from a nuts and bolts perspective, to take work off of the agents, take work off of the staff. I always tell my staff if you make something super efficient, we'll find something else for you to do that's more relationship heavy and but more cultural. We don't need you pushing the paperwork. We're not going to change our staff count. We've we care for our people so deeply.

SPEAKER_01:

Yeah. Well, I love that answer. I mean, um, instead of uh replace, you're repurposing and you know, keeping that humanity in there. And uh, and so uh Phil, I really appreciate the time today. Thank you, and look forward to continuing to see in the success with Smith and Associates.

SPEAKER_02:

Absolutely. Thank you for having me. This is awesome.

SPEAKER_00:

That's our pulse for today. Keep innovating, keep implementing, and keep moving real estate forward.

Contributor

svalerin@lwolf.com

Producer