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Better.com Exiting Real Estate Business By Laying Off Real Estate Team
Digital mortgage lender Better.com has laid off its real estate team on June 7th in a move that has been speculated for a while now. Instead of the in-house agent model, the company now wants a partnership agent model. The real estate agents that were laid off are said to receive little to no severance pay after getting a more than 50% salary cut in November 2021.
Rumors of Better.com Exiting the Real Estate Business
The housing market is experiencing a major slowdown due to rising mortgage interest rates. reported as early as April 2022 that it was suspected that all of Better Real Estate could be scrapped. Better Real Estate aimed to be competitive with the likes of Zillow and Redfin, and the company reportedly followed the same salaried-agent model.
Focus on Building a Better Purchase Experience
Better.com had been vocal about its desire to build out its purchase experience and move beyond digital lending to help people find and purchase homes — hence changing its name from Better Mortgage to just Better. It was also working to expand value-added offerings like title and homeowner’s insurance as part of its product suite. The company invested resources in building out consumer experiences and agent-facing tools for the Better Real Estate business, including its first native mobile app, not all of which came to fruition, given the trajectory of the business.
Multiple Layoffs by Better.com
Better.com has been making headlines for its layoffs, from laying off about 900 employees over Zoom on December 1, 2021, to conducting its fourth round of layoffs since the previous December. The company is not exactly known for its tactful approach to letting employees go; it has let go of thousands of workers, saw numerous senior executives step down, and delayed a SPAC that it still claims to be working toward.
Better.com’s SPAC Deal with Aurora Acquisition Corp.
In March, reported Better.com’s SPAC deal with Aurora Acquisition Corp. extending its timeframe to close the transaction through the end of Q3 2023.
FAQ
What is Better.com?
Better.com is a digital mortgage lender that helps you buy or refinance a home.
Why did Better.com lay off its real estate team?
The company is shifting from an in-house agent model to a partnership agent model.
How many people were impacted by Better.com’s layoff?
It is not clear how many people were impacted.
What was Better.com’s plan for its real estate business?
Better.com aimed to be competitive with the likes of Zillow and Redfin by building out consumer experiences and agent-facing tools for the Better Real Estate business, including its first native mobile app.
Has Better.com conducted previous layoffs before?
Yes, Better.com has done multiple rounds of layoffs since December 1, 2021.
What is Better.com’s focus now?
Better.com is now focusing on digital lending and moving beyond digital lending to help people find and purchase homes.
Conclusion
Despite being a prominent player in the digital mortgage lending industry, Better.com has struggled to find its footing and is now in the process of restructuring its business. The company’s shift from an in-house agent model to a partnership agent model has led to layoffs of its real estate team. While the company has been vocal about its focus on building out its purchase experience and expanding its product suite, its recent layoffs signal a shift in priorities. It remains to be seen how this restructuring will affect the company’s overall strategy and future prospects.
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