The greatest asset of any real estate brokerage is the group of agents and brokers who are a part of it. In our view, those agents and brokers should be owners and at eXp Realty, they are. Our family of agents and brokers build their own businesses. They work, attend classes, strategize, collaborate, innovate, enjoy water-cooler chats, build teams, build unity and share experiences across geographic borders inside of our Cloud Office Environment.
Together, we’re leveraging systems and tools in order to grow an agent and broker-owned international, publicly-traded company.
The Changing Face of the Real Estate Consumer Requires a Fundamental Change in the Way Real Estate Professionals Approach their Business.
Advances in Internet technology and the proliferation to the masses of information and imagery concerning residential properties (historically in the exclusive possession of real estate brokers and agents) has created a real estate consumer who is armed with more knowledge, context and understanding than ever before.
Real Estate Consumers Still See Value in Working with Professionals.
Even with advances in technology, the home buying and selling process remains unfamiliar and often times emotional for most consumers. Consumers still depend on agents to help navigate the process, give insight into and lend a comparative perspective on properties, provide local market expertise, and negotiate and advocate on their behalf. Because of the magnitude of the buying or selling decision, the size of the asset that underlies that decision, and the emotional responses it frequently triggers, the vast majority of consumers will continue to rely upon agents and brokers for the foreseeable future.
Physical Brick and Mortar Offices Are of Diminishing Utility but Represent a Steady and Escalating Expense that Erodes Profits.
With the emergence of the internet as the most powerful property marketing and advertising medium and the growing independence it has instilled in the consumer, the utility of the brick and mortar office location continues to diminish. Increasing numbers of consumers have little use for, and even less interest in visiting, a traditional real estate office. As a natural and inevitable consequence, substantial and growing numbers of real estate professionals are exiting traditional brokerage models, providing further evidence of the decline of the brick and mortar office.
Thousands of eXp consumers leverage eXp’s internet marketing and cloud technology to find, buy or sell homes without a brick and mortar office. And finally, millions of Americans understand the benefits of technology and decreasing reliance on the traditional office. Despite these trends most traditional brokerages continue to allocate significant resources to physical bricks and mortar and all of the ancillary costs associated with it, including utility, insurance, rent, CAM, furnishings, and staffing costs, ultimately keeping downward pressure on profits.
The Erosion of Profits and the Rapid Pace of Industry Evolution Prevents Traditional Brokerages from Making Necessary Investments in and Adaptations to their Business.
Broker-owners have faced fiscal challenges prior to 2007, however the housing market’s sharp decline left profits vulnerable when weak sales revenue intersected with fixed expense office locations. The cyclical nature of the real estate industry has often been defined by a protracted period of depressed revenues, values, and demand; inflated rates of foreclosure, then economic relief. The inability of traditional brokerages to achieve desired or sustainable profit margins has prevented many agencies from adequately investing in the technologies, systems, training, support and professional development that today’s agents need to remain competitive and which the consumer marketplace demands.
There is wide recognition among those in the industry (regardless of length of tenure) that its complexion has forever changed and a willingness, even among its greatest stalwarts, to change with it. But most agents lack access to a cost-effective and agile infrastructure that provides in-house systems and professional development opportunities where the perpetual emphasis is on keeping the agent ahead of the evolutionary curve.
The eXp Realty Solution – Shared Ownership among a Synergistic and Collaborative Group of Forward-Thinking, Entrepreneurial Professionals.
From eXp Realty’s inception, the Company has been engaged in the marketing and sale of residential real estate with the goal of being the first truly agent-owned, cloud-based, full service, global real estate brokerage company delivering around-the-clock access to collaborative tools and professional development for managing real estate brokers and agents. The business model was created in order to increase brokers’ and agents’ listings and sales and reduce their overhead and capital requirements.
As a cloud-based real estate brokerage eXp Realty has embraced and adopted a number of cloud-based technologies in order to grow an international brokerage without the burden of physical bricks and mortar and/or redundant staffing costs.