How A Local Brokerage is showing there is a new way of Doing Business
How A Local Brokerage is showing there is a new way of Doing Business
Real estate compensation is often a hot button issue. Customers often say they pay too much. Agents often say they are underpaid.
So where is the disconnect? KRG residential, a Phoenixville based brokerage, was designed to address this question. In doing so, the brokerage has adapted to a client-focused model that promises a superior service at a lower cost.
This new model was inspired by founder Alec Kearns’s time at a traditional brokerage where he wished he could provide more transparency to his clients but felt stuck in the system. Before founding KRG Residential, Alec was a top producing agent working at a leading luxury brokerage. From the outside, his business seemed to be a success, however, as time went on he saw that the current system was not designed to prioritize his client’s financial interests.
“Real estate agents owe their clients a fiduciary duty,” Alec says. “That means putting the client’s financial interests ahead of your own. And once I really started paying attention to how money moved behind the scenes, I couldn’t reconcile that obligation with how the industry actually works.”
The Old System:
The Old System:
Under the traditional real estate model, there is no itemized receipt. This is by design. If you did walk away with a receipt, it might be surprising to see the majority of dollars going toward things such as: high franchise fees, recruiting new agents, and referral fees.
These are costs layered quietly into transactions that most clients never see, but often pay for. To agents, those deductions are framed as the cost of doing business. To clients, they are largely invisible.
Not only can this create an inflated bill, but the structure can also impact service. Many people sign on with an agent through an online home searching platform, a referral, or a recognizable brand, expecting a certain level of responsiveness and expertise. But because most agents operate as independent contractors, brokerages have limited ability to enforce consistent service standards across their brand.
That variability creates a disconnect in expectations. Clients often assume that because a transaction involves a large commission number, the agent handling it is being paid accordingly and should be able to dedicate significant time and attention.
In reality, what an agent earns and how much support they can provide depends heavily on backend structures the client never sees. The result is frustration on both sides.
“As an example, I once did a deal where the client saw their agent walk away with a check for about $10,000 after closing. The reality was, once the agent paid everyone behind the scenes, that agent told me her cut was only $1,600 before taxes and expenses.”
This challenging environment and pay structure means many agents are just as frustrated as the clients. Many agents feel financially stretched, overworked, and misunderstood. Real estate has one of the highest failure rates of almost any profession. According to the National Association of Realtors, 87% of new agents will fail out of the industry in their first 5 years.
Because of these challenges, Alec set out to design a brokerage that prioritizes the client while also providing solutions for the agents.
Building a Brokerage Around the Client (and the agent)
Building a Brokerage Around the Client (and the agent)
KRG Residential launched in Phoenixville in 2025 as a deliberate test. One market. One year. A chance to see whether a brokerage built around transparency, efficiency, and true collaboration could deliver a better experience at a lower cost.
Rather than centering the business around agent recruitment to maximize immediate profit, KRG was designed around the end consumer with cost savings in mind.
By flipping the old brokerage model on its head, they have eliminated inefficiencies to pass savings along to clients and invest back into customer experience. According to Alec, this has resulted in stronger outcomes for his clients and fees that are, according to Bankrate, about 35% lower than area averages.
The firm operates with an innovative structure. Instead of a conglomerate of independent agents, each transaction is handled by the Managing Director and supported by specialists who focus on specific areas of the business. The team is comprised of members with unique talents, consistent training and expectations rather than independent agents competing for the same deals. Everyone has a defined role. Everyone is accountable.
One team member Kim Jones says,
“Over the course of my career, I saw too many inefficiencies behind the scenes in real estate, especially systems where individual gain mattered more than client outcomes. I was close to stepping away from the industry altogether until I found KRG, where a true team structure with shared accountability and a client-first mindset brought me back to why I got into this business in the first place.”
The outcome of this test?
The outcome of this test?
Kearns says it has been better than he ever expected. “The model works and is really resonating with our customers at every price point, from $400,000 to above $4,000,000.”
“While I’m proud of the money we’re putting back into people’s pockets, what I’m most proud of are the results we’re delivering,” Kearns says. “In a highly competitive market, our buyers are getting under contract in fewer than two offers on average, with many securing their home on the first try. On the listing side, we’re not just charging less, our homes are consistently outperforming comparable sales, selling faster and for higher prices.”
And Kearns has the data to support those claims. In one Phoenixville townhome neighborhood, KRG Residential represented 50% (6) of all new listings in 2025, creating a rare, almost apples-to-apples comparison. When those homes closed, KRG’s listings outperformed the rest of the market by a clear margin, with average sale prices reaching five figures higher than competitors listings, higher price-per-square-foot figures, and significantly shorter time on market than those listings not represented by KRG Residential.
The measurable results of KRG’s first year, including significant client savings and improved outcomes, are detailed in an article here.
Continuing Community Involvement And Dialogue
Continuing Community Involvement And Dialogue
After a strong first year, Alec says the focus is on continuing the momentum.
“We want to keep proving that there is a different, and in our opinion better, way to do business,” he says.
Alec’s vision also extends beyond a typical real estate brokerage, centering the Phoenixville community in his work.
Because KRG Residential first started here in Phoenixville, he wanted to spread the word on the local businesses and community events our unique and vibrant town has to offer. The firm is the official and exclusive real estate partner of Phoenixville.com, helping power a platform dedicated to long-form community storytelling. The partnership allows Phoenixville.com to remain ad-free and provide a completely free opportunity for local businesses and nonprofits to share their stories.
And his biggest takeaway message?
And his biggest takeaway message?
“Just call us.”
Alec continues, “Even if we never end up working together, I want people to understand how this business actually works, what’s happening behind the scenes, and what questions they should be asking. Real estate is too important and too expensive for consumers not to have clarity. If nothing else, we want to give people the information they need to do what’s best for them, and to show that there is a different way of doing things.”
Find them on their website, Instagram, Youtube, call them at 484-222-0470 or send an email directly to the Managing Director, aleckearns@krgrealestate.com.
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