Launch Of World’s Fastest Growing Real Estate Firm Set To Increase Competition In NZ

Kiwi homeowners are set to benefit from the arrival of the world’s fastest-growing global residential real estate agency this month.

Nasdaq listed eXp Realty (EXPI) is a cloud-based brokerage which is based entirely online, however provides a full range of property marketing services to vendors.

The company has signed over 80,000 agents since launching in 2009 and aims to increase this to 100,000 representatives around the world by the end of the year - including a number in the New Zealand market.

Each of the agents on-board, train and meet inside an immersive 3D virtual reality campus using avatars, making the company the only tech-powered, virtual brokerage to operate entirely within a metaverse environment (known as eXP World) and, significantly reducing its carbon footprint.

The brokerage, which had first quarter revenues of US$1bn and grew by 73% compared to the same period last year, will launch an agent recruitment drive in New Zealand this month.

Auckland based Maria Stephens, eXp Realty’s local broker of record, says they are currently looking to grow their network of local representatives from the existing pool of around 15,000 agents nationwide.

She says while initial focus will be on residential property, the company aims to move into the commercial and rental markets.

“While an entirely virtual offering, the model used by the global eXp network provides a full suite of services to vendors - including marketing and photography.

“What it will bring to New Zealand is a new layer of competition, with agents who have the autonomy to choose to negotiate their commission structure with vendors.

“Ultimately this provides more choice for sellers and buyers and may help to reduce the transaction cost associated with selling this class of asset,” she says.

Stephens says the company’s globally centralised, virtual infrastructure reduces operating costs and increases the remuneration agents receive - with some earning almost twice as much per sale.

She says the company expects to attract dozens of agents to the new model which offers a unique commission structure, including a revenue share programme.

“Most agents selling through a traditional bricks & mortar based agency model will pay a portion of their commission as a franchise fee.

“The company’s commission model is highly competitive and gives agents a significantly greater return per sale with agents also receiving additional remuneration in eXp’s Nasdaq listed shares - allowing them to take an ownership stake in the listed company.

“Having been designed by agents for agents, we expect the innovative revenue share model, which is paid by the company, to be just as well received here as in other markets,” she says.

Michael Valdes, President of eXp Global, says the company was attracted to the New Zealand market following a period of expansion in Australia and other parts of the Asia Pacific region.

“New Zealand is characterised by a property market in strong demand, and a culture that is tech-focused and highly adaptive to advances in the market.

“We are excited to empower agents in New Zealand with our unique model and tools,” he says.

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