HomeSmart is a revolutionary real estate enterprise powered by our proprietary end-to-end technology platform. We provide integrated real estate solutions to agents, brokerages, franchisees and, ultimately, the consumer. Our cloud-based platform empowers our users to succeed by providing a full suite of technology offerings covering nearly every aspect of the real estate transaction. The drive towards a seamless home buying and selling experience is the catalyst for our growth. Technology and automation are at the core of our DNA—grounded in fiscal responsibility and operational excellence. We have been developing our software in-house over the last 20 years and have a 100% adoption rate across our agents. All of our franchisees and agents are automatically added as users and all transactions are processed through our technology platform. Our technology platform is focused on scalability and automation to drive transaction velocity, volume, and operating leverage for our brokers, franchisees, agents and consumers. Our business model has fueled our expansion, and we have over 23,000 agents across 194 offices in 47 states. According to RISMedia, HomeSmart was ranked in the top five residential real estate brokerages by number of transaction sides in the United States in 2020.

The market for residential real estate transactions and home-related services is highly fragmented, local and complex. Real estate agents generally operate in local markets as independent contractors and typically move from brokerage to brokerage, across disparate external systems and databases, and use a multitude of services to close a single transaction. To use these services, agents are charged numerous fees and are subject to high commission splits, which may ultimately get passed on to the consumer. Operating profitability of agents is further reduced by ongoing competitive dynamics that allow consumers to push agents for lower commissions on transactions. According to the National Association of REALTORS^® (“NAR”), 75% of all agents in the United States are being charged traditional commission splits by their brokerage that typically range from 16% to 39% and can be more, demonstrating there is a clear void in cost-effective and scalable solutions available to agents.

We have built a cost-effective, agent-centric real estate business model powered by our cloud-based, end-to-end platform for the residential real estate transaction. Our business model and platform empower brokers, franchisees and agents to provide a seamless transaction process for consumers, while offering a flat transaction fee for franchisees and agents. Our RealSmart technology suite includes RealSmart Broker—brokerage and agent management; RealSmart Agent—business and transaction management; and RealSmart Client—buying and selling transaction management; through which franchisees, agents and consumers are connected in order to conduct all aspects of the real estate process. We believe our technology delivers a full end-to-end experience for the consumer, including virtual tours, marketing, document management, process (sale, purchase, mortgage, title and escrow) tracking, education and training, listing management and more. Additionally, our RealSmart platform allows data to be aggregated for accurate insights, decision making, real-time reporting, business management and transparency for the consumer. We have used the power of our technology, the structure of our fees and our dedicated customer service team to create a technology-enabled model that drives the success of real estate professionals.