REAL vs eXp Realty
Written by John McLain
Cloud brokerages are undeniably the future of the real estate industry!
Year after year, more agents are transitioning from traditional franchise and independent brokerages to join cloud-based brokerages.
Currently, about half a dozen cloud brokerages operate in North America. Among them, only two are present in all 50 states and are publicly traded on the NASDAQ: eXp Realty and REAL Broker, the two largest cloud-based brokerages.
When deciding which cloud brokerage to join, I conducted extensive research and spoke with numerous agents from various companies. This article reflects my thorough investigation.
In this article, we will compare REAL vs eXp Realty across several categories to help real estate agents make an informed decision:
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- Historical Growth
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- Commission Cap
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- Commission Splits
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- Fees
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- Stock Bonuses
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- Revenue Share
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- Software Included
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- Company Branding
REAL vs eXp Realty Growth One crucial factor to consider is the potential growth of these two companies.
As of now, eXp Realty has around 89,000 agents, while REAL Broker has approximately 18,000 agents. REAL Broker expanded to all 50 states in Q4 2023, which coincided with the first-ever quarter of negative growth for eXp Realty, ending with 2,000 fewer agents than at the start of the quarter.
Here’s a look at the agent growth percentages for both companies:
eXp Realty
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- 2020: Grew by 63% to 41,313 agents
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- 2021: Grew by 72% to 71,137 agents
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- 2022: Grew by 21% to 86,203 agents
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- 2023: Grew by 2% to 87,515 agents
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- Q4 2023: Decreased by 1.8% to 87,515 agents
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- Q1 2024: Decreased by 2% to 85,780 agents
REAL Broker
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- 2020: Grew by 38% to 1,475 agents
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- 2021: Grew by 161% to 3,850 agents
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- 2022: Grew by 113% to 8,200 agents
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- 2023: Grew by 66% to 13,650 agents
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- Q4 2023: Increased by 12% to 13,650 agents
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- Q1 2024: Increased by 22% to 16,680 agents
These trends indicate that while both companies experienced significant growth, eXp Realty’s growth has stalled and even reversed recently, whereas REAL Broker continues to grow robustly.
REAL vs eXp Realty Commission Cap Both brokerages, being cloud-based, save substantial amounts on overhead compared to franchise-based companies, allowing them to offer lower commission caps.
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- eXp Realty has a $16,000 annual cap.
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- REAL Broker has a $12,000 annual cap.
REAL vs eXp Realty Commission Splits are crucial, especially for newer or part-time agents who might not cap annually. A more favorable split can reduce financial pressure early in the year.
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- eXp Realty offers an 80/20 split.
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- REAL Broker offers an 85/15 split.
REAL vs eXp Realty Fees Fees are another important aspect, as they can significantly impact an agent’s bottom line.
eXp Realty charges:
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- $149 Start-Up Fee
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- $85 Monthly Cloud Brokerage Fee
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- $25 Transaction Review Fee
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- $60 Risk Management Fee per Transaction (Caps at $500)
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- $250 Transaction Fee After You Cap
REAL Broker charges:
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- $249 Sign-Up Fee
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- $700 Annual Fee
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- $285 Transaction Fee After You Cap
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- $30 BEOP Fee per Transaction
Cost Comparison For instance, selling 10 homes annually would cost an agent $18,481 at eXp Realty versus $14,385 at REAL Broker, saving $4,096 with REAL Broker. These savings generally hold true across various scenarios, with REAL Broker offering higher stock awards for top-producing agents.
REAL vs eXp Realty Stock Bonuses Both brokerages offer multiple ways to earn free stock.
eXp Realty provides five stock incentives:
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- $200 on your first transaction each year.
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- $400 when you cap.
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- $400 when an agent you sponsor completes their first transaction.
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- Up to $16,000 in stock by achieving the Icon Agent Award.
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- 10% discount on stock purchases when you allocate 5% of your commission.
REAL Broker offers:
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- 150 shares of stock when you cap (worth $609 at current stock price).
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- 75 shares of stock when an agent you attract closes their first transaction (worth $304).
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- Up to $24,000 in stock through the Elite Agent Award.
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- 10% additional shares on stock purchases before capping, and 20% after capping.
REAL vs eXp Realty Revenue Share Programs
Revenue share programs reward agents for helping grow the company by sharing a portion of the company’s revenue with them.
eXp Realty’s new Rev Share 2.0 pays a percentage of a pooled revenue share each month, making exact earnings projections challenging. The payout structure is tiered, with percentages allocated to each tier.
REAL Broker’s revenue share is simpler, with fixed percentages for each tier, providing more predictability and often higher payouts for smaller and medium-sized networks.
REAL Broker also offers a genuine willable revenue share, allowing non-agent family members to inherit it, unlike eXp’s requirement for the inheritor to become a licensed agent.
REAL vs eXp Realty Company Branding
Company branding is vital as it affects all marketing materials. Both companies have distinct branding that should complement your personal brand.
REAL vs eXp Realty Software Included The software and tools provided are essential for maintaining a competitive edge.
eXp Realty offers:
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- Skyslope for transaction management.
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- Inside Real Estate & KV Core for CRM and websites.
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- eXp World, a virtual campus for training and support.
REAL Broker provides:
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- Lofty (formerly Chime) for CRM and website needs.
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- REAL Academy for online classes and live streams.
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- reZEN for transaction management and agent tools.
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- One REAL Mortgage app for consumer pre-approvals.
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- Upcoming REAL Wallet with debit and credit card.
Final Thoughts of REAL vs eXp Realty.
After extensive comparison, I chose REAL Broker. Their superior technology, more generous stock incentives, and simplified revenue share model make them a better fit for me and many agents. REAL Broker’s culture and core values also resonate with me.
If you think REAL Broker might be a good fit for you, let’s schedule a 1-on-1 call to discuss how REAL can enhance your business and answer any questions.
Or get in touch with me directly! John McLain 908-503-5485 [email protected]
Want to learn more about REAL vs exp realty? Schedule a 1-on-1 video call below 👇
What is the difference between real and eXp?
REAL Broker and eXp Realty are both cloud-based real estate brokerages, but they differ in several key areas. REAL Broker offers a simplified revenue share model with higher percentages for the initial tiers and a lower annual cap of $12,000 compared to eXp Realty’s $16,000 cap. REAL Broker also provides more generous stock bonuses and a genuine willable revenue share, allowing family members to inherit earnings. In contrast, eXp Realty’s revenue share is based on a pooled system, making earnings less predictable. Additionally, eXp Realty uses a virtual world for training and support, whereas REAL Broker focuses on streamlined technology and proprietary tools for transaction management and agent services.
Why are people leaving eXp Realty?
Agents are leaving eXp Realty due to several factors, including its recent slowdown in growth and the introduction of the new Rev Share 2.0 model, which makes it harder to predict revenue share earnings. Additionally, the higher annual cap and multiple fees can be burdensome, especially for smaller teams or individual agents. The shift in company culture and the rise of competitive cloud-based brokerages offering more attractive financial incentives and support systems have also contributed to the exodus of agents from eXp Realty.
REAL Broker vs eXp Realty is a common debate. Before you decide, let’s chat about REAL vs eXp Realty and the main differences. I have experience in both companies.
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Real vs exp realty