Right now, we’re talking to teams and brokerages of 400, 500, 600, 700 agents. So, obviously, in those discussions, we’re very active. We track the pipeline, but I think that, again, on the solo agents, it’s pretty predictable. Without us having any visibility into what’s happening on the large teams and independent brokerages, we do have full visibility.
Stephen Sheldon: Got it. Yeah. That’s really helpful. As a follow-up, just curious how the One Real consumer app build-out is going relative to what you would have expected. When do you think it could start to have an impact on attach rates for ancillary solutions like Mortgage and down the road, but eventually Title? What are some of the important milestones that we should be thinking about?
Tamir Poleg: Sure. So, obviously, we’re putting a lot of focus on the One Real app. The challenge there is that nobody has tried it before. So we are doing everything from scratch. We’re designing everything from scratch. We’re building all of the internal building blocks, all of the integration between Title, Mortgage and Brokerage. Those things take time. I think that on the back end, we’re doing good progress. On the front end, which is the user interface, we have not released a new version of the app just because, as I said before, we are somewhat back to the drawing board and trying to design the additional building blocks of the consumer or the user interface. So, home search, collaboration with the agent, paperwork, all of those things.
I expect that process to complete in about eight weeks, I would say. I think we will see more progress on the One Real app in the second half of the year. When it comes to attaching ancillary services, this year, both Title and Mortgage, will grow — their growth will outpace the growth of Brokerage. So, I expect those two companies to grow at a minimum of 200% year-over-year. I can tell you that Mortgage has had the best month ever in February. So, this is a good sign. February is typically a very slow month for real estate. So, we are seeing attach rate going in a very positive and promising direction. On top of that, we have some of our biggest teams already committing to using Real Title. So, we will probably see the effect of that starting in Q2 and then for the remainder of the year.
But as we said before, we are very bullish on those two businesses, and I think, that 2024, their impact on our financials will become much more significant.
Stephen Sheldon: Great to hear. Appreciate the detail. Thanks.
Tamir Poleg: Thanks.
Operator: Thank you. Your next question is coming from Matthew Erdner from JonesTrading. Your line is live.
Matthew Erdner: Hey. Good morning, guys. Thanks for taking the questions. Can you talk about the commission splits that you guys are seeing with your agents and how the recent suits have had an effect on those operations?
Tamir Poleg: Hi, Matt. Thanks. It’s interesting because we’ve been trying to monitor and look at some patterns in the market. I can say that we have not seen any change thus far. So we actually have seen a little bit of a decline in commission rates in Canada, which was surprising, because it has nothing to do with the antitrust lawsuits. But in the U.S., for our agents, business as usual when it comes to commission rates. So, we’re not seeing that pressure. Also, reports from our agents suggest that they’re not feeling that pressure from their clients. Maybe yet, maybe it wouldn’t come at all, but it’s still not being felt in the business or by the agents.
Matthew Erdner: Yeah. That’s good to know. And then turning to The Real Wallet, when do you expect this to kind of be fully scaled? What impact is this going to have on your guys’ margins overall as a whole? And then could you talk a little bit about the banking partners behind it?
Tamir Poleg: Could you repeat the first half of the question, please?
Matthew Erdner: When do you expect The Real Wallet to kind of be fully scaled up, adoption rate? What’s the impact on the margins going to be when you do get it fully scaled and then the banking partners as well?
Tamir Poleg: Sure. So, the banking partner — the banking service partner we work with is a company called UNIT [ph]. They have banks that they work with, which are kind of behind the scenes. We are going to go somewhat slow with the Wallet. As I said, we’re starting alpha testing within a couple of weeks and then we will roll it out to more and more agents. The question is not how many agents will use it, it’s how much credit do we feel comfortable giving to our agents? So, at the beginning, we will be ultra conservative with our underwriting, and then as we get more and more experience with the Wallet and patterns around that, we can offer more credit to the agents. So, I think that probably that will evolve over time.
I think that 2024 is going to be somewhat of a test year for the Wallet, even though it will have a positive effect on our financials in 2024. Long-term, I think that it’s a little bit early to predict, because the Wallet can evolve in so many different directions, and it can go even into the consumer realm as well. So, offering Wallet-related products to our agents’ clients, I think that on a gross margin basis, the Wallet can have an impact of 1% to 2% in total gross margin.
Matthew Erdner: Got it. That’s good to note. And then as a follow-up to that, as you get this thing off the ground, are there any front-loaded expenses that you guys are expecting to incur or just expenses going forward that we should put into the model for the Wallet?
