Why Local Matters: Understanding Business Ownership in Today's Changing Market

January 20, 2026•12 min read

A guide to making informed decisions about who you choose to work with, in real estate and beyond

The way Americans do business is changing. From the plumber you call when your pipes freeze to the real estate agent you trust with your home sale, the landscape of service industries is undergoing a quiet but significant transformation. Understanding these changes helps you make informed decisions about where your money goes and who you choose to support across Michigan and beyond.

A Shift in American Business

On January 9, 2026, Compass completed its $1.6 billion acquisition of Anywhere Real Estate, bringing together iconic brands including Century 21, Coldwell Banker, Sotheby's International Realty, ERA Real Estate, Better Homes and Gardens Real Estate, and Corcoran. The combined entity now represents approximately 340,000 real estate professionals across the United States and 120 countries.

This merger represents one of many consolidation trends happening across service industries nationwide. From real estate to HVAC companies, plumbing businesses to electrical services, private equity firms and large corporations have invested heavily in acquiring local service businesses: Nearly 800 HVAC, plumbing, and electrical companies alone since 2022, according to PitchBook data.

The strategy is straightforward: acquire multiple smaller businesses, combine operations to create efficiencies, and build larger regional or national companies. In many cases, the original business names remain unchanged, maintaining the appearance of local ownership while operating under corporate umbrella structures.

Understanding Different Business Models in Real Estate

Today's real estate marketplace includes several distinct business ownership structures, each with different characteristics that affect your home buying or home selling experience:

Independent Local Businesses

These are businesses owned and operated by individuals or families within the community they serve. Decision-making happens locally, profits stay within the community, and owners typically live in the area where they work.

Franchise Operations

Franchise businesses operate under a nationally recognized brand but are owned by local franchisees. These owners pay ongoing royalty fees (typically 6-8% of gross revenue) to the parent company in exchange for brand recognition, systems, and support.

Corporate-Owned Operations

Some businesses are owned and operated directly by large corporations. These companies make decisions at corporate headquarters, which may be in different states or regions from where the business operates.

Private Equity-Backed Businesses

Private equity firms purchase businesses with the goal of improving profitability and eventually selling them for a return on investment. These businesses may retain their original names but operate under new ownership structures.

Each model has its own characteristics, advantages, and considerations. Understanding these differences helps you make informed choices aligned with your values and priorities.

The Economics of Local Business Ownership

Where business profits flow has real implications for Michigan communities across the Southern Michigan corridor. Here's how different business models affect your local economy:

Independent Local Businesses: Research consistently shows that locally owned businesses recirculate approximately $68 of every $100 spent back into the local economy through local wages, suppliers, and community investment.

National Chains and Franchises: According to similar studies, national chains recirculate approximately $43 of every $100 spent locally, with the remainder flowing to corporate headquarters, franchise fees, and out-of-area suppliers.

These differences add up. When you spend $10,000 on any service with a local business, approximately $6,800 continues circulating in your community. The same $10,000 spent with a national chain means approximately $4,300 stays local. That represents a difference of $2,500 per transaction.

What Corporate Consolidation Means in Real Estate

The Compass-Anywhere merger has sparked discussions throughout the real estate industry about consolidation's effects on agents and consumers. According to industry reports, the merger brings together companies with a combined 2024 sales volume of $415 billion, more than the next five largest brokerages combined.

Some real estate professionals have expressed concerns about corporate consolidation trends in the housing market, citing:

Changes in commission structures as companies work to meet investor expectations
Mandatory technology fees that may reduce agents' ability to invest in individual client marketing
Franchise fees and royalty payments that leave local markets
Standardized systems that may not account for unique local market conditions

Conversely, corporate leaders point to benefits including:

Access to advanced technology platforms
Professional training and development programs
National brand recognition
Broader networking opportunities

At Home 1st Real Estate, we represent a different model. We are a Michigan-grown brokerage with no franchise fees or corporate royalty payments. While our heart is in Jackson, our experts are strategically placed across the Southern Michigan corridor to ensure that no matter where you are, you have a neighbor in the business. This structure allows us certain advantages:

Greater Marketing Investment: Without franchise fees leaving our market, our agents can invest more resources directly into marketing your property. This includes professional photography, video tours, targeted digital advertising, and premium listing exposure.

Flexible Technology Choices: We're not locked into a corporate-mandated tech stack. Instead, we use what we call the "Build Path" philosophy. We select the best tools for our specific markets and clients, tools that help our agents build their businesses while delivering superior service to you.

Rapid Adaptation: When you need a creative solution or market conditions change, we can implement new approaches immediately without navigating corporate approval processes.

Community Reinvestment: Every dollar of profit generated by Home 1st stays in Michigan. It supports local families, sponsors community events, and circulates through the economy of our shared home.

Local Decision-Making: Our broker, Lynn Sajdak, isn't a distant corporate figure. He's accessible, involved, and invested in every transaction because his family's success is tied directly to community relationships.

The Broader Service Industry Trend

Real estate isn't alone in experiencing consolidation. Private equity investment in home services has surged, with firms purchasing HVAC, plumbing, and electrical companies across America. The Wall Street Journal reported that private equity firms see these businesses as stable, recession-resistant investments because people always need essential services.

The "roll-up" strategy works like this: Acquire an anchor company in a market, then add smaller competitors to create a larger entity with improved margins and efficiencies. Often, the original business names stay the same, creating what some describe as an "illusion of choice." Multiple businesses with different names may all be owned by the same corporation.

Some business owners have embraced these acquisitions, citing better resources, improved wages for employees, and significant financial payouts. Others express concerns about maintaining service quality, preserving company culture, and keeping decision-making local.

How to Identify True Local Ownership

In an era where corporate ownership often maintains the appearance of local business, here are questions to help you identify genuine local ownership:

Direct Questions to Ask:

"Who owns this company?"
"Are you franchised or independent?"
"Where do the profits from this business go?"
"Do you pay franchise fees or royalties to a parent company?"
"Where are major business decisions made?"

Observable Indicators:

Community Involvement: Truly local businesses typically sponsor local teams, participate in community events, and their owners are visible in civic organizations
Decision-Making Speed: Local owners can make decisions quickly and adapt to unique circumstances
Marketing Voice: Local businesses speak specifically about your community, reference local landmarks, and demonstrate genuine familiarity with neighborhood characteristics
Owner Accessibility: Can you meet the actual owner, or is the "owner" really a manager reporting to distant corporate offices?

The Value of Supporting Local Business

Supporting locally owned businesses creates several positive effects:

Economic Multiplier: More money stays in your communities, supporting local jobs, schools, and infrastructure through a stronger tax base and increased economic activity.

Community Stability: Local business owners are invested in community success because their personal and professional lives are intertwined with local health and vitality.

Entrepreneurial Ecosystem: A diverse business environment creates opportunities for new entrepreneurs and fosters innovation tailored to local needs.

Authentic Expertise: Local business owners develop deep, nuanced understanding of their market through daily experience. In real estate, this means knowing neighborhood characteristics no corporate database can replicate. From Chelsea's downtown district to Ann Arbor's variety of housing options, from Dexter's residential developments to the lakefront communities throughout the Southern Michigan corridor, local knowledge matters.

Responsive Service: Local owners can adapt their services to meet unique community needs and build long-term relationships rather than pursuing short-term transaction counts.

What This Means for Your Michigan Real Estate Transaction

When choosing a real estate professional in Michigan, understanding business structure helps you make informed decisions. Consider these factors:

Agent Support: How is the agent compensated? Do commission structures allow them to invest adequately in marketing your property? Are they required to pay substantial fees to corporate entities?

Technology and Tools: Does the brokerage choose technology based on what works best for the local market, or are they locked into corporate-mandated systems?

Decision-Making Authority: Can your agent and their broker make quick decisions to address unique situations, or must they seek approval from regional or national offices?

Community Investment: Where do profits go? Do they recirculate in Michigan or leave for corporate headquarters in other states?

Relationship Continuity: Is your agent building a long-term practice in your community, or are they part of a larger corporate structure where loyalty is to the brand rather than the place? Meet our team of locally invested professionals.

The Home 1st Difference: Independent Real Estate Across Michigan

At Home 1st Real Estate, our independent structure creates specific advantages for home buyers and sellers across Michigan:

We aren't a national franchise. We are a network of local experts connected by one mission: Putting your home first, from the Lakes to the D.

We don't pay franchise fees to distant corporations. We don't send royalty checks out of Michigan. We don't answer to private equity investors demanding quarterly profit increases. We answer to our neighbors and to the Michigan communities we call home.

This translates to:

Agents who can invest more in marketing your property because they're not paying corporate fees (check out our free home valuation tool to see what your property could be worth)
Technology chosen specifically for Michigan's market conditions
Rapid response to unique situations without corporate approval delays
Profits that stay in our state, supporting local families and events
Long-term relationships because our business success depends on reputation and referrals within our communities

Our broker and agents live here, serve here, and are invested in the Michigan neighborhoods we all call home.

Making Informed Choices About Your Real Estate Partner

Every transaction you make represents a choice about the kind of community you want to support. There's no "right" or "wrong" choice. There are simply different priorities and values that matter to different home buyers and sellers.

Some people prioritize national brand recognition and standardized systems. Others prefer local expertise and community connection. Some value the resources of larger corporations. Others appreciate the flexibility of independent businesses.

The key is making informed choices rather than assuming familiar brand names automatically mean local ownership.

Looking Forward: The Changing Landscape

Industry analysts expect consolidation trends to continue across service industries. As more businesses are acquired by larger entities, truly independent local businesses may become less common.

This makes understanding ownership structures increasingly important. The window for consciously choosing to support locally owned businesses may narrow as fewer remain available.

In real estate specifically, the Compass-Anywhere merger represents a significant shift in industry structure. Whether similar consolidation will continue depends on many factors: Market conditions, regulatory environment, and consumer preferences among them. Stay informed with our monthly newsletter for ongoing market insights.

Your Role in Shaping Michigan's Real Estate Market

Consumer choices ultimately shape market dynamics across Michigan. When enough people consciously support local businesses, those businesses thrive. When people don't differentiate between business models, market forces favor larger entities with greater marketing budgets and broader name recognition.

Your choices matter:

Asking about ownership structure signals that you care about where your money goes
Supporting businesses aligned with your values encourages those business models
Sharing information with others helps them make informed choices
Providing feedback to businesses you work with helps them understand customer priorities

Ready to Work with a Local Michigan Real Estate Team?

At Home 1st Real Estate, we believe informed consumers make better decisions. Whether you ultimately choose to work with us or another brokerage, we encourage you to ask questions, understand business structures, and make choices aligned with your values.

Home 1st is a Michigan-grown brokerage. While our heart is in Jackson, our experts are strategically placed from Grand Rapids to Detroit to ensure that no matter where you are in the Southern Michigan corridor, you have a neighbor in the business.

If you value local expertise, community investment, and an independent approach to real estate in Michigan, we'd welcome the opportunity to serve you.

Our commitment is straightforward:

No franchise fees leaving Michigan
Technology chosen for our specific market
Decision-making authority right here at home
Profits reinvested in our communities
Relationships built to last decades

Call Home 1st Real Estate today at 517.780.8090 to schedule a conversation about your Michigan real estate goals. We'll discuss your specific situation, answer your questions honestly, provide local market insights, and show you what true local expertise looks like.

Or contact us online and one of our locally invested agents will reach out within 24 hours.

The choice is yours. The communities are ours. Let's build something great together.