Real estate tech firm eXp World Holdings Inc (NASDAQ: EXPI) is devoted to constructing a “totally different kind” of residential actual property brokerage mannequin by providing cloud-based platforms for its brokers as an alternative of bodily retail workplace house.
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Fast Development: CEO Glenn Sanford entered the true property market by leveraging his prior entrepreneurial expertise and information of expertise, he mentioned Thursday on Benzinga’s “ZingerNation Power Hour.”
When the true property market crashed within the late 2000s, Sanford noticed a chance to construct a brand new mannequin higher fitted to the surroundings.
“Our outdated mannequin wasn’t working,” he mentioned.
Workplace house was too costly and whole transactions have been a fraction of what they have been just some years in the past, the CEO mentioned.
These have been among the many extra main “ache factors” lots of the 2 million licensed brokers throughout the U.S. felt, Sanford mentioned.
As an alternative, Sanford created a brand new digital mannequin with a handful of brokers in 2009 that supplied a income sharing program that compensates brokers on revenue earned by different professionals they attracted into the corporate.
Many brokers resisted the brand new mannequin and felt that workplace house is a requirement to function, the CEO mentioned.
Even when eXp turned a public firm in 2013, it nonetheless had many doubters who felt the enterprise mannequin was unsustainable, he mentioned.
After 2014, the corporate’s development accelerated to just about 200% year-over-year after it launched new agent possession initiatives.
Taking On Greater Gamers: The actual property firm continues to construct itself out to raised place in opposition to bigger actual property friends like Zillow Group Inc (NASDAQ: ZG).
Particularly, eXp expanded a three way partnership to supply title, escrow and settlement providers in late 2019, and it additionally has a separate mortgage three way partnership, Sanford mentioned.
“We have now been making an attempt to determine methods to make all these connect to the true property transactions,” the CEO mentioned. “If we will crack that code then, as you may think, our income per transaction goes up dramatically for the brokers.”
The corporate’s ExpressOffers service is one other instance of the way it can counter related instantaneous supply platforms from rivals, he mentioned.
In contrast to its rivals, eXp is not assuming any of the “stability sheet dangers” by working with consumers on the back-end who are motivated to purchase properties throughout the U.S., Sanford mentioned.
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