EXp World Holdings has acquired NextHome for an undisclosed amount, according to an announcement Thursday.
The cloud-based company said NextHome marks its transition to a “multi-model platform that can support diverse business models and brands under one global umbrella.” EXp World Holdings also ditched the EXPI Nasdaq ticker and traded with AGNT. eXp Realty CEO Leo Pareja said this demonstrates the company’s dedication to serving “the most ambitious entrepreneurs in the industry.”
Leo Pareja
“The industry has reached a tipping point. A one-size-fits-all model no longer works for forward-thinking entrepreneurs,” Pareja said in a statement. “AGNT is a statement of who we build for. The addition of the NextHome franchise model gives our agents and franchise owners maximum choice with a unified world-class infrastructure and expanded global network, backed by a proven leadership team.”
“Teams and agents need to go further, and the industry needs companies led by people who don’t just talk about being agent-centric, they actually live it,” he added. “We’re building a platform that supports multiple models, because every agent and every consumer deserves choice.”
James Dwiggins and Tei Baishik co-founded NextHome in 2014 and have grown the company to more than 5,400 agents and 500 franchisees across the United States.
NextHome has an integrated technology platform that includes everything franchisors and their agents need, from customer relationship and transaction management to automated marketing and financial tracking. NextHome has a number of technology partners, including RealScout, SkySlope, and CubiCasa, each of which provide real-time homebuyer and market insights. Transaction management and immersive floorplanning. Also create a list of photography services.
However, what sets NextHome apart from most franchisors is its flexible structure.
Franchisees can choose between one-year and five-year contracts, and as of Thursday, they can also choose from two technology stack structures: full tech stack and light tech stack.
The Full Tech Stack provides access to NextHome’s full range of technology products and hands-on support from the company’s member services team. Lite Tech Stack offers “streamlined options” for intermediaries who want to access “NextHome branding, support and resources” while keeping overheads low.
With both options, the broker also retains ownership of the data, the company said.
NextHome’s model includes a “home before people” philosophy and has earned it a spot on multiple Franchise Business Review, Entrepreneur, Inc. 5000 “Best Franchisers” lists.
james dwiggins
“Our partnership with eXp World Holdings is a natural evolution of our ‘home before people’ mission,” NextHome co-founder and co-CEO James Dwiggins said in a prepared statement. “By connecting to the world’s most agent-centric real estate engine, franchise owners and agents will have access to unparalleled depth, inventory, global network, and market-driving industry talent and influence.”
“We looked at every real estate company in the country, and eXp aligned us the best, from culture to philosophy to a leadership team that truly champions agents and consumers,” he added. “This is the perfect partner to grow the NextHome brand and lead our franchise expansion around the world.”
EXp Realty and NextHome will continue to operate independently, with the companies’ respective teams retaining leadership roles.
“Today, AGNT will become a multi-model leader where the industry’s most dedicated entrepreneurs come together to grow, lead and stay,” the press release states. “Whether you’re an independent agent driven by eXp Realty’s cloud-powered scale featuring aggressive commission splits, revenue sharing and true equity ownership, or a franchise owner drawn to NextHome’s people-first culture, you’re no longer just choosing a brand, you’re choosing a global operating system designed for the modern entrepreneur.”
“Two models,” he added. “Maximum options.”
EXp World Holdings’ acquisition of NextHome is the latest in a series of headline-grabbing deals that herald an era of rapid consolidation, including Compass’ acquisition of Anywhere in January and Real Brokerage’s acquisition of REMAX at the end of April, with the deal expected to close at the end of the second quarter.
Pareja and other leaders at the industry’s biggest firms said the industry is hurtling towards this moment, with market factors such as slowing sales and industry developments such as private listing networks and competition for power in multiple listing services (MLS) leading to intermediary consolidation.
Mr. Pareja of Inman Connect New York called it a “United, Delta, American” moment in real estate. This is a prescient statement given the developments in the real estate and aviation industries throughout the first quarter of this year.
“What I always point to is history,” Pareja said. “Industries can be fragmented over decades, even centuries. But if you look closely, you’ll see that there are patterns in this country. And for those of you who have some gray areas. [hairs]Like me, we grew up with more airlines in this country. Remember that? And now we have United Airlines, Delta Air Lines, and American Airlines. ”
“We basically have three health insurance providers. So directionally, things like that tend to happen,” he added. “So I can’t make any predictions, but what I can say is that if you look at historical patterns, consolidation, you’re going to see more consolidation. So is that good or bad? That’s not decided yet.”
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