Real estate has been around since the early 1900s, when it was called “real estate.” It consisted of brick and mortar offices that agents would walk into to meet with clients face-to-face.
These days, there is less demand from people who want to work with an agent due to technologies that have taken place over the last few decades.
In recent years, almost every company has converted their brick-and-mortar offices into virtual ones where agents can do everything online without ever having to leave their homes. eXp is one such brokerage that offers agents an opportunity to use technology in selling real estate.
If you own a real estate business and have tried luck with eXp with no success, then this article is for you. There are several reasons why eXp is not working for you. We will discuss them in detail below.
About eXp Realty
eXp Realty was founded by Glenn Sanford in 2009. The platform was created as an agent-centric platform, where agents worldwide could get equal opportunities and be rewarded equally.
Glenn Sanford was looking for ways to transform the brick-and-mortar offices into a cloud-based platform accessible to all, eliminate discriminations, and reward all hardworking agents equally.
eXp is becoming certified as a company that helps agents offer more services and protect their clients before and after doing business with them.
The founders constantly look for new ideas to make it easier for people to buy or sell properties and continuously update the software to match these changes.
Fees and Commissions
eXp Realty offers agents a variety of commission plans and charges only minimal fees. For those who want to work with clients on their own, the company provides an opportunity for them to have revenue share opportunities in addition to earning commissions upfront from each transaction.
The starting rate is 80% of all fees paid by buyers or sellers and commissions. The company also offers new agents a mentorship program to gain experience without taking on any clients of their own. This will allow them to work with experienced brokers who can show them the ropes before deciding if this suits them.
eXp Realty does not charge its agents fees on desk, franchise, or royalty. However, agents are required to pay a monthly fee, currently at $85. This amount covers the use of the company’s various digital platforms, access to training programs and materials, and support.
There are also transaction fees that agents need to pay depending on specific scenarios. For example, once an agent caps, they pay only $250 per transaction and keep the commissions all to themselves. This amount is further reduced to $75 per transaction for the remainder of the year once they pay $5,000 in transaction fees after capping.
The company also charges fees for errors and omissions at $40 per transaction. Upon paying $500, agents no longer need to pay for E&O for the rest of the anniversary year.
As an agent working with eXp Realty, you should expect to get an 80/20 commission split. The split is capped at $16,000 gross commissions that you’ll have to pay to the company.
To better understand how the commission split works, let’s assume that you make $80,000 gross commission in a year. Here, you will pay 20 percent to the company (i.e $80,000 x 20% = $16,000) and keep 80 percent.
After reaching your commission cap of $16,000, you’ll keep 100% commission from your sales less capped transaction fees, management fees as well as a broker review fee for the remaining part of the year.
Working Hours & Support
The company offers support to its agents through email during the day or night as long as there are no emergencies requiring them to be contacted by phone instead. They have also set aside a large team of experts specifically for training new and experienced brokers alike so that everyone can find success with eXp Realty.
Providing their agents 24-hour support and allowing them to work from home with the company’s cloud technology reflect eXp’s family-oriented approach to business.
The business is constantly changing and updating its software to provide an excellent experience for its clients. Agents interested in joining will need a computer, internet connection, phone line or VoIP service provider, and space at home to set up their virtual office.
eXp Realty provides exclusive opportunities via its partnerships with other companies that offer services to help agents grow their business. The brokerage offers discounts on commissions from partner firms like Zillow Premier Agent, which would offset some of the costs for those agents who want help getting leads online without spending money on advertising themselves time and again.
eXp is a real estate brokerage that focuses on the needs of the modern real estate agent. As such, they offer exclusive training programs to help new agents market themselves effectively online without spending money on advertising constantly or filling out paperwork all the time.
They also have training programs for experienced agents who have been in the business for years but want to break into today’s market or further their knowledge base on certain aspects of being an agent.
As a publicly traded company under the ticker symbol EXPI, eXp Realty offers its agents the opportunity to own shares of its stocks. So when you invest your money into eXp Realty, you’ll do more than just buy a property – you’re investing in yourself!
Revenue share is the percentage of the commission that is paid to you. When buyers hire an agent, they typically pay them between 50-75% for their services. Any amount above this gets split down the line according to who has helped with what in the transaction.
The best way to calculate how much money you can make on every deal is by looking at these factors:
The sales price is the total amount the home sells for.
The commission split is what percentage of that price you get to keep after expenses, such as office and agent fees. The higher your commission share, the more money you will make on every deal.
Using this equation, you can determine commission revenue splits: commission %= (sales price – office costs)/selling price. `
For example, if an agent sold a house with $200,000 in sales but their company charges them 20% office cost because they use virtual offices, their net profit would be 80%. If they had a 40% revenue share with brick-and-mortar offices, it’s 60%. And so on.
Your Revenue Share
eXp Realty also offers its agents the opportunity to generate additional streams of income in addition to selling properties.
Although eXp Realty agents are not required to recruit new agents, when they sponsor one, and this person makes a sale with eXp, the sponsor also benefits from that transaction. This means that a portion of the company’s 20% will go to the sponsoring agent.
Sale Cost (commissions + expenses) + Profit or Loss from the Sale
This will provide you with a better idea of your potential earnings when it’s time to negotiate commissions. In some cases, revenue share splits can be negotiated, but more often than not, there are strict percentages set beforehand, depending entirely upon where the office is located.
eXp Realty offers stock awards to any agent who has completed the required number of transactions, which can make a huge difference when negotiating commissions. The higher your stock awards, the more leverage you have with other brokers in negotiations, so that could mean big earnings for you.
Virtual Office vs. Brick & Mortar Offices
There are typically two main types of real estate agency offices: brick and mortar offices and virtual offices. Most people assume that these are mutually exclusive, but they’re not.
You can use both if you want or just one type depending on what is best for your business needs. Virtual office spaces allow agents to work from home, eliminating overhead costs such as rent payments while still giving them access to all their clients’ listings 24 hours a day.
Using a virtual office allows agents to maintain their schedule, set their hours early in the morning or late at night so they don’t have to worry about commuting if they live far away from the main headquarters.
This saves them money on gas driving all over town. These are just a few of the many benefits that come with using eXp Realty’s Virtual Office packages.
There may be times when you’re forced to use brick-and-mortar offices. But it can get expensive since there will be monthly overhead costs such as rent payments which mean less money left over for advertising and paperwork.
When looking at traditional real estate agencies, always check whether or not they offer virtual office space and if they have a physical office.
Social Media at eXp Realty
One way to get ahead in any industry is by using social media as a tool to connect with your audience while still working behind the scenes. Social media means less time spent on extra work and more time doing what you do best: selling homes.
Join eXp social pages to stay connected about upcoming events, news about the industry, and even some home-buying tips.
Sponsors & Mentors
eXp Realty is an agent-owned real estate brokerage that offers different sponsorship and mentorship programs to agents who are just starting their careers and those who have been in the business for a while that would like to focus on different aspects.
This not only helps agents with networking but gives them access to someone they can reach out to at any time for help or advice–it’s all about investing in yourself.
10 Reasons eXp May Not Work for You
A lot of reviews have shown that eXp Realty is the best real estate company to work for. However, some people may not be happy with the company because of a few reasons.
Here are the reasons you may find this program not as good as you may have thought:
1. You like a brick-and-mortar office
eXp Realty is a cloud-based company, which makes you work in a virtual office. It may not be helpful, therefore, for agents who prefer the traditional offices.
A virtual office is pretty much like a brick-and-mortar office. You have your desk and computer, but you are working from home or anywhere convenient to where you live. eXp uses technology to make business more manageable, but some people don’t like technology that much.
eXp Realty also uses social media tools like Facebook Messenger to communicate with clients easier for agents who don’t want to use the phone all day long.
Advantages of a virtual office include:
- Working from home
- No commute time or gas costs
- Communication is made easier with social media tools like Facebook Messenger and email.
If you are looking for a company that will give you the benefits of working in an office but still allow you to work from anywhere, then eXp Realty may be perfect for you. As one agent put it, “I had an opportunity to join eXp World as the new real estate market was just beginning its recovery after the 2008 recession.”
The downsides of a virtual office include:
- The lack of a physical office.
- Communication may be more difficult for agents who do not like to use technology that much.
- Agents are expected to work independently, which is different from other brokerages where there might be collaboration and training available with other real estate professionals in the same company. Some people prefer working as part of a team.
So, if you are not the kind of real estate agent who fancies cloud-based business, eXp Realty will not work for you. Even if they sponsor your business to generate more income, you may not be happy.
2. You prefer a low pace of work
eXp Realty sets high expectations for its agents and brokers. They want their employees to work hard and produce results quickly to increase sales. If someone is looking for something more laid back, then eXp may not be what’s best for them.
Agents are not required to make a minimum number of transactions closed per month or recruit new agents, but this does not mean you just sit down and wait for sales to happen. If you are not one of those people who are a go-getter and want to make sales, eXp is a definite no.
3. You’re not a fan of technology
eXp works through technology to make business easier. So if you’re not technologically inclined, you may have a hard time getting used to it.
Another area where eXp has shown prowess technologically is in their mobile app. It is easy to use and makes it possible for agents to do a lot more than just show listings, including using social media, answering messages from clients on Facebook Messenger or email, working with prospects online via chat sessions, and much more.
It may not be perfect for someone who prefers face-to-face interactions. This is because the only way they can communicate is through technology like phones, emails, or Skype to talk about deals that are currently happening.
eXp is integrated with several CRM tools that allow agents to track leads they generate online, making it possible to close deals quicker.
And the best part is the company offers free training on their website for newbies to get used to eXp’s system and concepts quickly. If you are not keen on anything technological, then eXp will not work for you.
4. You are not concerned about your financial future
Yes. You heard that right. eXp does not work for agents who are not committed to their financial future. This company is a commission-based business, meaning that they don’t have an hourly wage. Instead of getting paid for the hours you work, agents will get a percentage of the commissions that they make.
The more this percentage increases, the bigger your paycheck will be at the end of each month, but it all depends on how much you make. If you are not into making commissions, then eXp will not work for you.
5. You don’t want to work hard
Some agents only like making money when they see a ready sale. If that is the case, then eXp will stress you because they empower agents to grow their business and take on the world.
It may sound like a lot of hard work but think about how much time it would save looking for clients or prospects online via chat sessions.
eXp Realty doesn’t offer commissions at all levels, which means the agent has to do more than just show listings. If this sounds appealing, then joining them could help your financial future, so don’t let these reasons why eXp is not working discourage you from trying them out.
6. You run out of business
Even with the 80% commission split and the low cap, you must still work hard to achieve your goals at eXp. This brokerage works best for people who are running solid businesses. So, if you run out of business in the real estate industry, then the low commission means that you won’t make as much.
For eXp agents, it’s all about finding prospects and turning them into customers using its proprietary tools and strategies. So if you are not into this type of thing, then maybe eXp is just not for you.
The industry is competitive, and it’s hard to keep up with the demands of running a business. Statistics have shown that around 80% of new real estate agents fail or quit in their first 12 months. If you have been in business for more than 36 months, maybe eXp will help you scale higher.
So don’t let these reasons why eXp doesn’t work discourage you from trying out. eXp helps agents at their wit’s end, which may be perfect if this matches your needs. But it takes a willing heart to stay on board.
7. You get overwhelmed and disappointed easily
As you may already know, starting a new business is not easy. There is so much to do with so little time and money. If you are just starting and quickly get overwhelmed by these things, joining eXp is probably not the best idea.
Also, do not let one bad review from your first customer ruin your business. You can only go far if you take that positively and start working harder. Forget the 9-5 routine, as you will most likely become a 5-9. This can be pretty overwhelming for many people, but it’s worth the time if you want to succeed.
8. You are recruited to another firm
If you start with eXp in January and get recruited into another firm by June, nothing much eXp will do for you. They will only pay you back if their commission rates match the one you joined with.
The other brokerage firm may also have a high cap and, likely, won’t be willing to change your account. That is, unless, of course, changing brokers is not an issue for them.
eXp Realty requires a real estate agent who is dedicated, one that has the willingness to work hard and be patient. So, if you want it to work, do not look sideways.
9. You are oversold on eXp
One good thing about eXp agents is that they can be quite convincing. They will make you feel like you don’t have to do anything to earn with eXp.
Hence, if you feel like these agents oversold the eXp World to you, it may not work to your full advantage. eXp has some great tools that make it better than other real estate companies. But that does not mean it’s for all agents and brokers. Take time to research and figure out what is best for you.
10. Fees Issues
For most brokers going with eXp means paying $85 per month in fees plus any other charges that may come up (i.e., transaction fees, errors, and omissions). If you’re someone who avoids paying fees and only wants the company to cover everything, then working at eXp is not for you.
Frequently Asked Questions
eXp Realty is a real estate brokerage that focuses on technology and innovation, harnessing the power of networks to help their agents reach their goals. They work together with any agent or broker who wants to succeed in today’s market while building their own business.
eXp offers an inexpensive way for agents and brokers to start online by using one of their virtual offices and other services such as training programs, access to leads through expo events, and social media marketing.
But before anything else, you should consider first what kind of business model will work best for you or your business – traditional vs. digital (virtual only).
Being an agent at eXp Realty means that you want the power of our network behind you. Mainly, you have the passion for learning our digital tools, embodying our strategies and best practices, and successfully applying what you learn to grow your business.
The company only requires a monthly fee of $85 and your state license to remain with them. There is no required number of sales you need to close per month or new agents to be recruited. So if that’s something you’re looking for, then eXp is your best option.
As a business with over a decade of experience working exclusively with buyers and sellers of residential properties, eXp Realty understands what clients look for to make any transaction happen. It’s focused on building long-term relationships rather than just short-term transactions.
Many people who join eXp are happy, but there may be those who do not find it beneficial for them, and this is okay too. It’s important to consider what will work best for you today and tomorrow when considering a change of this magnitude.
If you need help deciding which system would suit your needs or want more information about our services, reach out to us today. We can give you the necessary advice to make an informed decision and get started right away with whatever choice suits your business model most effectively.