Episode summary
Ricky Carruth on changing the infrastructure of real estate
HousingWire Daily
· · 27 min · Hosts: Sarah Wheeler · Guests: Ricky Carruth
Summary
Ricky Carruth argued that real estate is moving from a centralized MLS-and-portal model toward a more fragmented system shaped by Compass, ARRA, Google, Kelley Blue Book, Bed Bath and Beyond, and AI. He said the old MLS structure was built for transparency, but today’s fights over private listings, syndication, and platform control are pushing the industry into a “portal war” that will make it harder to see every home in one place.
He tied that change to the aftermath of the Burnett trial and broader commission dynamics. In his view, the lawsuit mostly changed paperwork and negotiation mechanics, not the underlying economics, and he said commission rates are actually at 5.44, which he described as the highest in history. He also said the last three years each produced more commission dollars for agents than pre-pandemic years, with the bottom 85% of agents fighting over a tiny share of the overall pool.
Carruth’s advice for agents was to focus less on shiny new tools and more on conversations, follow-up, and strong referral partners. He said new agents should build business through outbound activity first, while AI and new entrants may increase confusion for consumers but ultimately raise demand for knowledgeable agents and stronger networks.
Key takeaways
- Ricky Carruth said the industry is moving toward fragmentation, with Compass, ARRA, Google listings, and AI challenging the old MLS-centered model.
- Carruth said commission rates are 5.44 and claimed that is the highest in history, even after the Burnett-related changes.
- He said the real money is concentrated at the top: 5% of agents make half of the commission pool, while 15% make 99%.
- Carruth argued new agents should start with outbound prospecting and conversations, not social media or AI.
- He said AI and more information may increase consumer confusion, which could raise demand for skilled agents and trusted referral partners.
Notable quotes
“Do you know right now Sarah that commission rates right it's 5.44 44 is kind of the average commission rate right this second. That's literally the highest in history”
“the real data is 5% of agents are making half literally 50% 5% are making 50% of that commission pull and 15% are doing 99%”
“the thing that never changes is that or or the way to protect yourself against the everchanging market is your own private network, right? Your own network of people, right”
How the episode opens
Welcome everyone. My guest today is Ricky Kut, chief housing analyst for Realy Co., top producing real estate agent and a very successful real estate coach as well as the host of the Ricky Kut Show podcast to talk about some of the new challengers looking to upend the real estate transaction or at least get a piece of the pie and how agents should be prepared. Ricky, welcome to the podcast.
How are you doing, Sarah? — I am doing great. Thank you so much. I know how busy you are and um I follow you on social. love seeing what you're doing and and uh just just all the industry knowledge you have and how you're doing that for agents. So, really appreciate you being on.
No, my pleasure. My pleas Where you at? Look like you're in a — I am at the uh Florida Association of Mortgage Professionals in Orlando. I'm at the Ritz Carlton. Very nice. — Fancy. Are we — Yeah. So, but look at you. You have your great studio. So,
Yeah. Yeah. Yeah. Absolutely. No, I I was in Dallas last week. That's where your home base is, right? Yes, it is. Yeah. — Yeah. Yeah. I was in Dallas last week speaking at Build and uh I've done I think I've been on I was trying to add it up the other day. I think I've done 16 I've been on 16 stages this year, you know, traveling around speaking to agences and agents and conferences and stuff like that. So, we're always on the move, aren't we?
Always on the move. And I mean, your uh your social presence is really impressive, too. So, I I don't even know how you uh managed to do all that.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- real estate transaction portals
- google listings
- agent preparation
- infrastructure changes
- portal wars
Companies and tickers mentioned
- GOOGL
- GOOG
- RLTYco
- Kelley Blue Book
Watch the episode
Watch “Ricky Carruth on changing the infrastructure of real estate” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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