Regardless of formidable objectives, the digital brokerage eXp Realty is seeing its development sluggish amid a lagging market — and the corporate is unlikely to hit a goal Sanford set earlier this yr.
All week, Inman is taking a Deep Dive into eXp Realty. We’ll be overlaying the brokerage’s annual EXPCON occasion — going down just about and in Las Vegas this week. Keep tuned within the coming days for extra on eXp, and for future Inman Deep Dives into prime brokerages.
EXp World Holdings founder and CEO Glenn Sanford mentioned this week that his purpose is to extend his firm’s U.S. agent rely to as a lot as 250,000, although he additionally acknowledged that the shifting market has slowed down development “fairly rapidly” — to the purpose that it seems poised to overlook a development goal talked about earlier this yr.
Sanford made the feedback close to the tip of a fireplace chat Thursday night that was held as a part of EXPCON, the corporate’s annual gathering that passed off this week in Las Vegas. Throughout the dialog, Sanford mentioned his firm has been listening to from broker-owners who’re contemplating making the leap to eXp as a result of they will “get higher economics inside” the agency than they will by “attempting to determine the way to assist their bricks and mortar and their staffing prices in a sluggish market.”
The remark speaks to one among eXp’s core tales, which is that it has been a quickly rising brokerage from its earliest days. The corporate additionally introduced at first of EXPCON that it has formally reached 85,000 brokers worldwide.
In that context, Sanford urged that the general variety of Realtors within the U.S. might shrink from about 1.5 million to as little as 1.1 million. However he mentioned eXp remains to be rising now and can proceed to take action sooner or later.
“Our purpose is to get to 200,000, 250,000 brokers over time in the USA,” he added.
Sanford didn’t point out a timeline for when he thinks the corporate would possibly hit that quantity.
The remark got here one yr after Sanford, eventually yr’s EXPCON, mentioned he envisioned eXp reaching 500,000 brokers worldwide inside 5 years. It was unclear Friday if eXp nonetheless believes that quantity is attainable, and if doing so within the unique timeframe Sanford proposed — there are 4 years left on the clock — is real looking.
Inman has reached out to eXp for clarification and can replace this story with any data the corporate gives.
In any case, questions on development are particularly related proper now as a result of, regardless of the purpose of getting considerably extra brokers, Sanford additionally indicated throughout the chat that the slowing market is taking a toll on the tempo of the corporate’s development.
“Due to rates of interest rising so quick, within the U.S. particularly, that did decelerate our U.S. development fairly rapidly,” Sanford acknowledged, although he mentioned most brokers who depart eXp are sometimes low or non-producers. “Our producing brokers are nonetheless tremendous sticky. We don’t have loads of churn within the productive agent class.”
Nonetheless, the numbers are vital. Again in April, throughout Inman Join in New York Metropolis, Sanford mentioned eXp was already at 80,000 brokers worldwide, and that he anticipated the corporate to hit 100,000 by the tip of this yr. Within the six months since then, nonetheless, the corporate has as a substitute solely added about 5,000 brokers — which means development was slower than Sanford anticipated. It additionally means the corporate is unlikely to hit the 100,000-agent goal by yr’s finish.
Sanford did say throughout the fireplace chat that eXp continues to develop whilst “most actual property companies are seeing their agent rely go down for the time being.” And, he added, the brokerage is working to place itself in order that it emerges on the opposite aspect of the slowdown ready of power.
However eXp has lengthy been the poster brokerage for quick development. The slowing numbers and (probably) missed 2022 agent rely goal consequently supply yet one more stark instance of how this yr has not turned out fairly how anybody anticipated or hoped.
Throughout the fireplace chat, Sanford additionally supplied an replace on his firm’s abroad footprint — presumably a key a part of reaching considerably increased agent rely numbers. He mentioned there are at the moment between 10,000 and 11,000 brokers exterior the U.S. That quantity contains about 5,000 brokers in Canada, 1,500 in India and 300 within the U.Ok.
“Worldwide is rising quickly nevertheless it’s a small quantity,” Sanford mentioned of the figures.
Past slowing agent rely development, the sluggish market has additionally seeped into different components of eXp’s enterprise as effectively. The mortgage trade typically has been hammered by rising charges, and Sanford in the end mentioned throughout the chat that purposes for loans made by means of his firm are equally “down fairly considerably.”
“[On] the mortgage aspect,” Sanford mentioned, “we’re getting extra mortgages into the system nevertheless it’s nonetheless for probably the most half a rounding error.”
E-mail Jim Dalrymple II