Is major disruption on the cards for the local real estate sector? Cloud-based eXp Realty, one of the fastest growing real estate networks from the US, is expanding to South Africa.
eXp World Holdings (Nasdaq: EXPI), the holding company for eXp Realty, announced the expansion of its brokerage model into South Africa under the eXp South Africa banner in a statement earlier this week.
eXp Realty began its disruption back in 2009, by shifting the traditional brokerage business model with physical offices. It is a virtual, cloud-based brokerage where agents operate from their own homes and connect with one another by logging on to a virtual campus called eXp World.
South Africa represents the fourth international expansion for the US-based company. In addition to its U.S. presence, eXp Realty also operates in Canada, the United Kingdom and Australia, with more than 35,000 agents in its global network.
Unique financial model
Another interesting feature is the financial model. The commission split with agents is 75/25. Estate agents are also provided with revenue share and additional equity programs that include opportunities for stock awards. Furthermore, agents are rewarded for recruiting other estate agents.
“The response to our innovative model has been phenomenal, and we’re excited to bring this opportunity to the vibrant residential real estate community in South Africa,” said Michael Valdes, President of eXp Global. “In addition to increased revenue opportunities for agents, our focus on virtual technology and ability to deliver valuable marketing resources gives agents an advantage and positions them well for the future of real estate.”
“There are deep traditions within South Africa real estate, and we want to build on those. Our approach is to celebrate these diverse cultures and blend them with our innovative real estate opportunities to help develop agents throughout the country,” said eXp South Africa designated managing broker Andrew Thompson. “eXp Realty’s global model and the expansion into South Africa further strengthens our international presence, and its unique revenue model is a game-changer for agents in our worldwide network. The kind of advanced technology and virtual experience that eXp South Africa offers will add massive value to both the agent and consumer experience.”
The company’s presence in South Africa will encompass a national footprint, including all major towns, cities and provinces. South Africa represents one of five countries eXp Realty and the global business has identified for expansion by the end of 2020, including France, India, Mexico and Portugal.
