EXP Realty - Do you like it?

46 Replies

Personally, I really enjoy being with EXP Realty. As a Realtor, I enjoy the 80/20 split and $16,000 cap. As an investor, I enjoy not paying any commission to EXP on 3 transactions a year. If your network of exceptional people is small/weak then you could have a rough time at EXP. Isn't that the case anywhere in life though? We have a group of 37 people in our local community and the network is great. There are endless opportunities for open houses, coaching if needed, etc. 

Like in anything and everything, it is what you make it @Graham Andrew

I hope that helps, 

Mike Bargetto

Regarding the rapid growth, I am not sure what will happen in the future. I have been on campus a few times over the last 2 weeks and it seems like they are smoothing out daily operations. The broker's assistant recently shared with me that they have been hiring a lot of support staff to deal with the rapid growth. 

~MB

After 16 years with a traditional Broker, I've been with eXp since April and LOVE it!  I received 50 shares of stock after my 1st closing and purchased stock at a 20% discount with 5% of my commission... and then of course there's the Revenue share!  I received nothing from my former Broker for helping to grow the company...  My advice would be to get in now... it's doubled in agent count since I've joined...there's a reason it's growing so quickly!  Don't you wish you would've been part of Amazon when the stock was $15/share?  -like anything, just do your homework to ensure it'll be a good fit for you.  Good luck!  Marian

My sales have actually picked up since joining eXp...  My clients hire ME as most of my business come from past client referrals or my personal relationships with my sphere.  Although it's important to some, I find that most buyers/sellers don't really have much interest in Brand.

I'm pretty new with EXP and I'm learning the power of being part of a huge referral network. I was able to refer a client out of my area to a fellow EXP agent and will receive a referral fee from that. It was easy to just post my request on the company site! Also we gain knowledge from agents all over the country I'm learning. I never went into my previous office anyway so the cloud based approach works great for me.

@Graham Andrew I’ve heard some negative feedback about it being a multilevel marketing type company at times with pushy sales tactics. If you join make sure you’re getting paid to sell real estate and not recruit others
Originally posted by @Graham Andrew :

@Caleb Heimsoth very interesting! If you had to guess, what percent of people at EXP are focused primarily on recruiting other vs. actually selling houses? Would you guess 80% are just recruiting?

No idea just saying what I’ve read on other threads 

I understand your skepticism with this new business model @Graham Andrew and @Caleb Heimsoth -  I would suggest you look at the eXp Worldholdings Transaction & Sales Volume reported results:  http://expworldholdings.com  As a publicly-traded company subject to SEC reporting & oversight, eXp is clearly focused on selling real estate!  ; )

Originally posted by @Marian Huish :

I understand your skepticism with this new business model @Graham Andrew and @Caleb Heimsoth-  I would suggest you look at the eXp Worldholdings Transaction & Sales Volume reported results:  http://expworldholdings.com As a publicly-traded company subject to SEC reporting & oversight, eXp is clearly focused on selling real estate!  ; )

Yeah and AMway did about 8B in sales last year lol.  Still very much a MLM company 

@Caleb Heimsoth @Graham Andrew Myself switched from Keller Willams to eXp. People may think the thought of a marketing scheme, but its nothing like that. What they are preaching are the real benefits you receive for hanging your license with their broker. As I saw someone mentioned previously: 80/20 Split - $16k annual cap - investment perks - stock options - virtual campus - low fees - connected with everyone under the sun at eXp.

Im an investor/agent in Chicago and joined eXp just a few months ago.   Its great for self starters who create their own value.  I am not the typical residential agent but its the perfect balance of support / independence for me.  

I looked into them and it turned out I would be paying more when all was said and done. You will want to see what the average home sells for in your area because that will make a big difference as well. Especially if you work with investors and move a high volume of low value properties. If you are going to be selling 3 $1 million properties the number is completely different than if you sell 30 $100,000 houses. (There are per transaction fees). 

I would interview a few places and calculate your expected sales into their program and see where you end up.

@James Brown

In my case yes. Some agents in our office are on a 95/5 split. We pay $950 a month and $410 a year. That's it. So I pay 11.810 a year and am just simply 95/5 for the next 12 months. (Now what ever extra advertising, etc is on us). So I guess our CAP is 11,810 a year although it's not a cap like EXP, it is just what it is.

Now from my understanding with EXP there would be a 80/20 until I hit 16,000 that they make off of me. After that I would go to 100% but there is a transaction fee on all of those of like $250. So depending on the size of the transaction the difference between 95/5 and 100 is eaten up by a transaction fee. There is also a minimal monthly fee. 

So if you took a 3 million producer at our average house (120K) 25 transactions. It would be 90,000 in commissions either way. 95 percent of that is 85,500 - 11,810 is 73,690 for a total.

Same situation with them.

420 a year and $50 a month (600 a year) For the first 17 transactions there is a $30 EandO fee (510). they are on a 80/20 so for the first 23 transactions they cap at 16000. Then the next 2 are at a 250 per transaction fee (500). Plus If I understand broker review of $25 per transaction (50) $71,920

I can see where in a bigger market where the houses are selling much higher than 120,000 it would make sense. But at a 95/5 on a 120,000 house the 5% is $180  so even if the agent capped out at 100% they are paying a $250 a transaction (Plus I think $25 broker review) so the divide just gets bigger and bigger if you move to 4 MIl, 5 mil, 6 mil so on. If you are selling lower end investor houses your split could end up real low.

when you are looking for a Broker to sign up with, know what you are looking for and why,interview those that fit the requirements and make a decision, EXP has been a great brokerage for some and not for others as have many other companies I know, ask around and find out from those on the ground.

I was previously with eXp and I left. I felt like more of a recruiting firm then to sell real estate. Plus all of the agents and brokers comparing it to Amazon and Netflix is kind of ridiculous in my personal opinion. Amazon and Netflix changed the experience for their consumers, eXp changes how agents can get paid. The whole industry needs to focus more on their consumers.

The stock share program isn't bad if you're average sales price is in the top tier. My mls average sales price is around $140-160K the last few years. So 5% of gross commission of a $160k house compared to a million dollar home is a big difference so logistically you're at an disadvantage. Also, to sell your stock, you get hit with fees again. I still have about a few hundred shares of eXp (valued around $1,000-2,000, depending on the ticker) but I'm not even going to bother doing anything with it because eXp is asking for around $8-900 just to sell my shares back to the company. 

The cap is slight better then KW ($21,000 in my area) but first my first deal with eXp was a $110,000 condo and my gross commission was $3,200. After all of the fees were taken out, I was paid roughly $750 for that deal because of the anniversary fee (which comes up once a year) was around $7-800, plus all of the other transaction and splits that were taken out. 

I also think that due to the expansion eXp is having cash flow issues. I've had deals where it'd take close to 4-6 weeks for me to get paid out even though I had all of my paper work submitted and the check was sent to eXp immediately after closing. 

It does feel like a pyramid scheme. When your broker is trying to convince you that no one wants to sell real estate for the rest of their lives and that recruiting people is the way to go and to live off the residual income (which some extremely well-connected people are making six figures by doing nothing) then yes, I think it is something that might be trendy now but I don't see it lasting for a long time for most agents. 

My current brokerage (which I think is the way all brokerages should be ran) I pay $300/mo and I get the same exact software and marketing as all of the other firms out there for free. (Your broker is probably lying to you about their costs for marketing and software.) I keep 100% of my commission and I get paid in 48 hours. And it has been close to a year since my change and I couldn't be happier.