The Final Offer Pivot: Why Building Against Industry Stakeholders Almost Killed Their Product
Sometimes the most obvious product strategy is exactly wrong. In a recent episode of Category Visionaries, Final Offer co-founder Tim Quirk revealed how their initial direct-to-consumer approach nearly derailed their entire business – and how pivoting to embrace industry stakeholders unlocked explosive growth.
The Consumer-First Trap
Like many proptech startups, Final Offer began by focusing on consumer pain points. As Tim explains: “We started looking at it that way. But we do nothing about it other than being consumers, right. And so for us as consumers, we’re like, hey, we can do this. This is easy.”
Their initial test market in Boston allowed buyers to submit offers directly through their platform, bypassing agents. It seemed logical – after all, buyers don’t legally need agents to submit offers. But the market reaction revealed a crucial blindspot.
The Industry Backlash
“When we first launched, when we test marketed this in Boston two years ago and we allowed buyers to come in and make offers on their own if they so chose… guess who got really upset with us? Real estate community,” Tim recalls. The pushback wasn’t just emotional – it revealed a fundamental misunderstanding of market dynamics.
The Critical Insight
Through this resistance, Final Offer discovered something surprising about their market. Tim shares: “We weren’t doing it as a way to cut them out. We weren’t doing it as a way to destroy their income generation. We were doing it simply because that’s the way that it works today in the world.”
But reality proved different: “Every offer that came in, these buyers were working with a licensed real estate agent.” What seemed like optional middlemen were actually essential market participants.
The 90-Day Pivot
Within three months, Final Offer made a decisive pivot. “We made a decision within two, three months to say look, this is for the agents, this is who we’re for. Let’s require that buyers and sellers work with licensed agents regardless,” Tim explains.
This wasn’t just a product decision – it was a complete strategic reorientation. Instead of trying to disrupt the industry, they would empower it. The results were transformative.
Building Trust Through Empowerment
The team discovered that the real opportunity wasn’t in disintermediation, but in solving deep industry problems. As Tim notes: “If you could help the real estate industry provide transparency to the consumer base, could everyone win? Could real estate agents and the brokerages grow their businesses by being more transparent and providing more trust in the space, which is one of the least trusted industries in the country?”
This insight led to the development of their agent certification program and other features specifically designed to enhance agent capabilities rather than replace them.
The Results
The pivot’s success is evident in the numbers. From September 2023 to March 2024, they:
- Grew from 93 subscriber agents to over 10,000
- Signed 50 enterprise brokerage accounts
- Manage over 12,000 active listings
Lessons for Founders
Final Offer’s pivot reveals several crucial lessons for founders entering regulated industries:
- Don’t mistake legal possibility for market reality
- Test assumptions early with real market participants
- Be willing to make dramatic strategic shifts based on market feedback
- Look for ways to empower existing stakeholders rather than replace them
As Tim concludes: “Too many tech companies have tried to take the real estate community out of the equation, but it’s just not going to happen. The best real estate agents in the world, they’re amazing and they do great job.”
For founders entering regulated industries, that might be the most valuable lesson of all: sometimes the path to disruption runs through empowerment, not displacement.
Twitter
facebook
linkedin