Real estate company Exp World Holdings has recently hired executive Claudio Hermolin to lead multinational operations in Brazil and strive to grow in a highly competitive market. Hermolin is an experienced name in the industry. During the restructuring and digital transformation of the company’s business, he spent four years as the head of Brazil’s largest national real estate company, Brokers. In addition to being a member of organizations such as Ademi, Sinduscon and Secovi, he is also a director of Even and PDG.
All of this experience will be used to give traction to the exp that arrived in Brazil in early 2021, but it has not started yet. During this period, the company was led by Ernani Asis, another experienced executive in the field, who worked at Prudential Real Estate, Century 21, Remax and Zap Emovis. Under his leadership, Exp registered a total of 1,000 assets in 200 partner brokers and bases – far fewer than the group’s operations in other countries and the potential of the Brazilian market.
The exp has gained worldwide visibility as its offices are in Metavers. That is: it does not use a physical address. Staff meetings, courses, training and events take place in digital and online offices, where each person communicates through avatars. Interview with BroadcastWas even approved in Metavers (A video with this experience is available on Broadcast TV).
According to the company, 100% digital format is precisely the biggest asset for its growth. Since it does not rely on a physical office, it can scale quickly by attracting brokers and real estate from anywhere. “If you look at the historical growth of Exp in other countries, you can see that in terms of brokers and real estate transactions, it is more than double digits per year,” Hermolin highlighted. “Since you have no material needs, your growth potential is infinite.”
The company has 80,000 brokers in 21 countries
At the end of the first quarter, Express reached 80,000 brokers, an increase of 55% over the same period last year. Real estate sales moved US $ 41.4 billion, up 9%. Revenue was $ 4.2 billion with a profit of $ 81 million.
Founded in 2009, the company operates in 21 countries, including the United States, Canada, Mexico, Colombia, Chile, South Africa, India, Hong Kong, and European countries. Here in Brazil, it operates in 10 states. Global Capitality allows Realtor to sell an apartment in Florida to its Brazilian client or a house on the shores of Bahia to European interested parties.
Another bet is to pay the highest commission to the brokers. The brokerage fee, like any other transaction, ranges from about 5% to 6% of the value of the property. In Express, the broker gets 70% to 90% of this amount, which is about 50% in traditional companies, Hermolin highlighted. The real estate agency agrees to keep a small portion of the sale because it has reduced the fixed costs.
Payment is also likely to be made in the form of company shares. With this, the broker becomes a real partner of the platform. In exchange for clients, real estate, training and connectivity, Exp brokers charge a monthly fee of R $ 250. “Our focus is on attracting different-minded brokers. We value professionals who seek autonomy, independence and entrepreneurship. In Express, it’s like having your own real estate agency, “said the executive.
The company’s shares are under pressure on Nasdaq
But it is not easy to stand out in the real estate market, as the sector is huge and scattered across the country. Classified sites offering brokerage, securities, financing and insurance services, for example, OLX (who bought Zap) and Unicorn Quintonder and Loft. Not to mention the numerous real estate agencies in the neighborhood.
“Brazil has a continental scale and space for more than one work model,” said the new commander of local operations. “And Exp is the third model. Although QuintoAndar and Loft have the tools to speed up sales, they are still the companies with the physical space. Our model is 100% in the cloud and focuses more on brokers who are interested in going their own way, ”he added.
Externally, Exp has come under heavy scrutiny from investors. Its shares on Nasdaq have fallen 60% in one year (up to $ 15, which gives it a market cap of 2 2.2 billion). The financial crisis in the US and growing mistrust of tech companies has hit the company hard. Meanwhile, other Nasdaq-listed real estate companies have also been hit. Shares of Zilo Group are down 81% over the same period, while Compass and Realology are down 64% and 40%, respectively.
This text was aired on 06/13/22 at 10:55 AM
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