eXp Realty‘s cost structure is “exponentially more efficient” than its competitors, according to real estate tech wizard Mike delPrete.
Comparative Operating Expenses/Transaction in Q1 2022
Take a look at these comparative operating expenses per each transaction among five different real estate brokerage firms during Q1 2022:
- eXp Realty – $691/transaction
- Realogy – $7,958/transaction
- Redfin – $8,560/transaction
- Compass – $8,808/transaction
- Douglas Elliman – $9,738/transaction
Pretty startling, right?
During this period of economic uncertainty and consumers expected to take a step back from the housing market due to inflation and climbing interest rates, it seems that how brokerages deal with their respective overhead costs (support staff, technology, ongoing office expenses, etc.) matters more than ever.
Quiz:
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
Key:
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
Some firms, such as Redfin, Compass, REX, and others (see last week’s article “Layoffs Happening in Real Estate Worlds”) are cutting their overhead costs by laying off their workers. eXp Realty is not laying off its workers as of yet.
In fact, eXp Realty’s operating expenses/transactions are more than ten times more efficient that its peers!
eXp Leveraging Efficient Operating Expenditures at Scale
delPrete compared eXp’s and Compass’s operating expenses and transaction volume during Q1 2022:
Operating Expenses Q1 2022
- eXp – approximately $80M
- Compass – approximately $410M
Transactions Q1 2022
- eXp – approximately 110,000
- Compass – approximately 48,500
delPrete’s Bottom Line
“The real estate industry is entering a period of heightened uncertainty with rising interest rates and falling transaction volumes, leading to a shrinking commission pool.
With a limited ability to affect revenue, brokerages will be forced to cut cost – and in this environment, brokerages like eXp have a distinct advantage.”
Thanks to Mike delPrete and Inman.
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