An American estate agency is to launch into the UK.
eXp Realty is to be headed in the UK by Adam Day, founder of now defunct online estate agency Hatched, and who also worked for easyProperty and eMoov.
eXp Realty seems to be a mix between an online agency and a franchise business.
It offers agents a ‘virtual world’ with ‘virtual offices’ in its ‘cloud campus’ where its agents ‘meet’, train and collaborate.
It says it has established market share across north America with over 19,000 agents.
As well as the UK, it is also expanding into Canada and Australia.
It offers UK agents a lucrative commission split, with agents able to keep 70%, plus an agent’s own name above the door and “tech like you’ve never seen before”.
Day, who sold Hatched to Connells which subsequently closed it saying that online models were not viable, says that eXp will be different from other US firms that have expanded into the UK.
He says that he does not see eXp as a franchise, because it allows agents to set their own parameters and have their own branding.
He said: “We’re there to support our partner agents by giving them all the tools they need to be successful, but without having to strictly comply with a brand that sits above them as you do with Purplebricks, Yopa, Housesimple, EweMove or similar businesses.
“The agent will also receive a large slice of the fee – so again, unlike with other self-employed online models where you get a flat fee per listing, we’re going to be paying potentially thousands to an agent for every sale that they complete on.
“Cheap fees don’t work – we’ve seen that. It’s a personal service with a tech emphasis and empowering agents to work in a way that will bring them success and that true work/life balance.
“We’re still working on the modelling and what the costs will be, but there will be a small joining fee for the first few agents that join – around £200 – and then a low monthly fee.”
Day said: “I’ve been reflecting on the future of estate agency and over the last few months I’ve spoken to a lot of different businesses.
“I started speaking with eXp earlier in the year and I genuinely believe I’ve finally found what the future is, and I’m proud to be bringing it to the UK.
“One of the main failures of US agents that have come over here is that they’ve been perceived as imposing the US operating model on UK agency.
“However, I’ve been really impressed with eXp’s attitude in that they see themselves as a global estate agency business that happened to start in the US, not a US agency that’s trying to change the way we do things here.
“That said, there are some aspects which we’ll introduce that are truly revolutionary, the likes of which I’ve never seen.
“So if an agent in the UK wants to work with eXp, we provide everything needed to be successful.
“This includes a personalised website, instant valuation tool, a CRM, marketing tools and leads, along with the opportunity to work when you want and how often you want.
“There is also a jaw-dropping technology platform which revolutionises the training, support and collaboration aspect of working in this way.
“The agent then receives a huge slice of the commission they generate, equity in eXp – a publicly traded company – and their own name ‘above the door’, meaning they’re not working on behalf of another business or brand.
“I’m super-excited to have been given the opportunity to shape a new start-up in the UK again, and can’t wait to explain to agents about some of the revolutionary opportunities that we’re going to create in the UK.”
Below, this short video shows eXP’s virtual world:
Comments (20)
I have had a look at this .. and its not a pie-in-the-sky as you might think.
It’s easy to poke fun and say nothing new will work or Adam won’t do it .. but at least he is having a go.
Having a go at what?
New things sometimes work but this is not new, is a rehash of an old and failed idea.
What skill set does he need (or anybody) to actually do this? I doubt very much if he has any real skin in the game.
Take a look at Ewemove – Plenty of failed franchises.
Keller Williams, with probably what i think is one of the best estate agency minds, Ben Taylor and that’s falling flat on its backside.
Only reason EXP have 19,000 agents in America is so many people use it like selling Avon, get their license, sell 1 or 2 a year, take the 3% minus costs and have a couple of nice holidays.Lots mumtrepreneurs. Try recruiting them on 0.5% fee on a 100k house in wigan, see how long they have an appetite for it.
Who said it’s going to be a 0.5% fee?
The agent owns their own business, their own brand and charge the fee that they think is appropriate, which could be 1.5%
I was a bit like you back in January Smile Please, but I took the opportunity to ‘look under the bonnet’ (learned from not doing so at previous two companies ) and I think there is a huge opportunity for both eXp and agents in the UK to benefit from it
Amazing how blinkered people can be, without taking a proper look – if you want to know more Smile, then let me know. More than happy to answer questions you might have about it on a 1-1 basis.
The 0.5% fee comes from the inexperienced agents that are recruited that are up against experienced established agents and just differentiate on fee.
We see these ideas time and again.
Adam I honesty wish you the best, let’s put a pin in this and see where it is in 12 months.
The day of a paid agent with a wage and a commission his numbered. It will not disappear but you will find more self employed agents around.. It’s working for Fine and Country. Newman Property Experts. And of course Perry Power and having great success for the owner and agent. With Adams determination and commitment to bring exp to the uk working with dedicated and experienced agents working under there own name why should it not work…
Problem in agency his some agents are always looking to bring some one down only do the same old thing and if there’s a change to it they think that person/s will fail.. why don’t they take there heads out there ***** and try it then self instead of waiting just for rightmove leads.. Agency his changing low fee have shown they don’t work. Let’s move with the time and I personally wish Adam every success..
Hatched initially done well in our area until they sold out to Connells. Fair play Adam and good luck.
America is different, it is a multi-listing market. Doomed as he is offering nothing to the PUBLIC the other on-line agents have tried and failed.
All he’s done is found himself some employment to peddle.
Cuckoo Cuckoo
…..said the “Game Changer”
…….as it flew high around the Cloud Campus.
Can’t believe no-one has used the term ‘game-changer’ yet.
Lost me at “instant valuation tool”.
That sound you can hear is me sucking my breath in through my teeth.
With such a catchy name and a fantastic success record, what’s not to love?
Exp are enjoying phenomenal growth in the US, so this is Adam’s best move yet. Will appeal to agents already operating in the UK with brands like Coldwell Banker and ReMax and with Keller Williams increasing their agents monthly subscriptions by 70% the timing of launch couldn’t be better for picking up agents from there too. Good luck to you.
You’re a comedian, right?
Because these American brands are doing so well in the UK, NOT
Adam has always “found what the future is” until it fails….and then there is the next one. Cloud Campus, come on! Your marketing this to adults, not school leavers….or is that the real target market? Guess it doesnt matter who signs up.
Hatched, easyproperty, emoov …. now exp….. car crash after car crash.
You cannot say that selling Hatched was a failure, quite the opposite.
The business was ultimately a failure.
Bruce Brothers have made money out of PB but it’s still a failing business.
Well done to Adam mugging off Conells for a few quid.
The offering of Exp is a joke. Will network in the UK most that join will lose money like ewemove etc.
Anyone can start a business, takes an astute business person to make it profitable with longevity.
‘Timing is everything’ and he was very lucky to have an opportunity to get out while the company still had value.
Recruitment will be the problem here. 70% of £1000 is rubbish.. in america where for some reason they still think 6% is normal ( like owning a gun) it is easy to snare sales people.