Above: NextHome Co-CEO James Dwiggins and eXp Realty CEO Leo Pareja
Virtual-focused brokerage eXp announced it is buying NextHome, in a move that pairs yet another high-growth tech-focused company with a more traditional franchisor as the industry rapidly accelerates through an unprecedented period of consolidation.
In an announcement today, eXp and NextHome executives characterized the deal as putting both companies on “a united platform,” even as NextHome will continue to operate independently, saying the combined company aims to offer “maximum optionality” to agents.
“The industry has reached a tipping point, a one-size-fits-all model no longer works for the visionary entrepreneur,” said Leo Pareja, CEO of eXp Realty, in a statement. “We’re building a platform that supports multiple models, because every agent, and every consumer served, deserves choice.”
Though the companies did not share details about the financials of the transaction or how NextHome will integrate with eXp, an eXp spokesperson told RISMedia that “in the near term,” agents at NextHome “will benefit from” eXp systems and technology, even as NextHome leadership will continue to lead the company with “autonomy.”
“NextHome was a nimble and highly strategic acquisition for eXp. While the purchase price is not being disclosed, we used existing cash on hand to transform eXp into a multi-platform model, reflecting our focus on deploying capital with discipline,” the spokesperson added.
The deal comes only days after Real Brokerage bought REMAX for $880 million, and as other major M&As have shaken the industry over the last year or two, seemingly driven at least in part by policy shifts in the wake of the commission lawsuits as well as consistently low home sales.
“We looked at every real estate company across the U.S.,” said NextHome founder and Co-CEO James Dwiggins in a statement, “and eXp aligns with us the most—from company culture to philosophy to a leadership team that truly advocates for agents and consumers. This is the right partner to grow the NextHome brand and lead franchise expansion across the world.”
eXp’s brokerage—all company-owned—ended last year with a little over 83,000 agents. NextHome claimed around 5,500 agents at over 500 franchises in the United States.
The eXp spokesperson said Dwiggins would assume the role of president, NextHome and NextHome Co-CEO Keith Robinson’s title will be president of strategy, NextHome. eXp World Holdings, the holding company overseeing company subsidiaries including NextHome, is also changing its stock ticker to “AGNT,” which the spokesperson called “a declaration of our core identity” of centering agents in the combined company.
Synergy
Dwiggins has become one of the more outspoken brokerage leaders on industry topics, with a popular podcast and a significant social media following. He has been sharply critical of Compass and other companies that have pushed forward on “private” listings and more opaque pre-marketing strategies.
He has explicitly lauded Pareja—who has also lambasted private-listing practices in the industry—for his approach to those issues.
“While Leo and I are competitors, it’s no secret that we share the same vision on hot button issues like private listings and making sure homebuyers and sellers are being protected. I have to give him massive props in leading the charge,” Dwiggins wrote on LinkedIn early this year.
eXp announced a “non-exclusive” pre-market partnership with multiple portals back in March, claiming that a “Coming Soon” approach is something sellers want but vowing the company was still committed to following MLS rules and “giving sellers the widest possible audience.”
On the other hand, Compass has used partnerships and acquisitions to push for change to MLS restrictions on private listings, and expand its own exclusive inventory. Compass CEO Robert Reffkin told investors earlier this week that he hopes to create a “national MLS” in order to facilitate “seller choice” in pre-marketing, as the company has incentivized agents to utilize its strategies.
But eXp characterized the NextHome acquisition as about a different kind of choice—a choice for agents, saying that NextHome’s franchise model “offers every entrepreneurial real estate professional a seat at the table, on their own terms.”
How exactly the integration happens will be closely watched. In the other major acquisitions, executives have emphasized pitching their tech platform to franchisees, while also promising that brokers and agents will continue operating normally.
Just this morning, Real CEO Tamir Poleg told investors that the day the REMAX deal closes should be “a boring day in the best possible way” for brokers and agents, and COO Jenna Rosenblatt promised “no forced migration” for REMAX franchises.
“Adding the NextHome franchise model gives our agents and franchise owners maximum optionality,” Pareja said.
