exp South Africa Newsletter - Quater 3 2023

The last quarter of 2023 is fast approaching and what a journey we have all been on so far. Thinking back to mid-December 2020, when we first received our license, to now – announcing a strong, motivated real estate team; a team which includes over 1,000 real estate professionals. It has been a phenomenal journey.

The pride in our team was recently shown at the Rock the Comma celebration event, held in our very own eXp South Africa Auditorium, where we livestreamed through to 1,000 viewers. What a celebration it was! Being exposed to the vision of Glenn Sanford, the insights of Michael Valdes, the strategy of Patrick O’Neill, the formidable Jason Gesing (with five top facilitators), as well as celebrating the women in our industry was delightful. It was a joy to listen to Tarci Sefara, Lizna Nel, Sharon Moodley, Jelena Radulovic, Meghan Kelley and Ilaria Profumi, just to name a few of the top presenters who celebrated this major milestone. Add to that, the learnings from Jeff Whiteside, Steve Johnstone, Ricky Carruth, Thad Fisher and the man that makes it happen in Commercial - James Huang.

Sharing the stage with top facilitators who added flare to the event was special. A big thanks goes out to Gawie Rossouw, Stuart Hyslop, Lizna Nel, Steve Johnstone and Director of Finance, EMEA, eXp Realty, Mark Luker.

You need to picture a company led by the agents, built and geared for the agent. Having started in South Africa two years and seven months ago at a zero agent count, to achieving within that short timeframe a cashflow positive, debt-free and profitable company justifies a huge shout-out to the leadership of eXp Realty, both internationally and locally. Another massive shout-out is extended to our very own agent team that has created the momentum, growth and set the path to success through their individual brand and business strategies. Guided by eXcellent tools, technology, systems and collaborative and supportive people along the way, they have delivered some truly remarkable results!

As we recognise these milestones, what is all-important is to maintain high levels of support for our agents. We need to remain agent-centric and take good care of our people. It is through this strategy that good, productive people become even more productive, which will allow this successful journey to continue. Our approach to business is about family and community, and it will show in the future that through our endeavours and commitment to real estate, we managed to change people's lives and change the manner in which people do real estate.

Both our leadership and agent teams are fully committed to growth and production, and through this transformative approach, it is our genuine intention to leave a legacy for future generations to learn and gain from.

Here's to an eXceptional last quarter of 2023, and to the next 1,000 agents to join our team. The trajectory is not only forward, but most certainly upward!

EXP WORLD HOLDINGS - EXP REALTY NEWS

eXp World Holdings Shows Satisfying Growth in Q2 2023 Results

Despite challenging market conditions, eXp World Holdings continued to make strides in the second quarter of 2023. The company reported a positive year-on-year agent growth of 7%, as well as a positive net income of $9.4 million. Additionally, the company announced a cash dividend of $0.05 per share of common stock for Q3 2023, and International Realty revenue increased by a record 35%.

“We are raising the bar on what it means to be the most agent-centric brokerage on the planet by constantly iterating our agent value proposition that delivers the best support and tools,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings.

“Our agents’ feedback is critical in helping to determine and enhance programs. We have prioritised agent support through our reimagined eXpert Care Desk, which provides live support to agents 24/7. In May, we launched Luna, the GPT-4-powered generative AI support agent, in direct response to their NPS feedback. We are seeing remarkable adoption and engagement, with 42% of agents using the service and the average number of questions up 70% month over month.

“By consistently acting on our agent feedback, we are seeing strengthened agent Net Promoter Scores (aNPS), with second quarter aNPS up four percentage points year-on-year despite the challenging market.”

Q2 Compared to Same Year-Ago Quarter:

1 2 3 4 5 6 7 8

Revenue decreased 13% to $1.2 billion

Gross profit decreased 10% to $96.5 million

Net income of $9.4 million. Earnings per diluted share of $0.06 compared to earnings per diluted share of $0.06 in the year-ago quarter

Adjusted EBITDA (a non-GAAP financial measure) of $24.7 million

As of 30 June 2023, cash and cash equivalents totalled $124.7 million, compared to $134.9 million as of 30 June 2022. The company repurchased approximately $48.8 million of common stock during the second quarter of 2023

The Company paid a cash dividend for the second quarter of 2023 of $0.045 per share of common stock on 31 May 2023. On 28 July 2023, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock for the third quarter of 2023, expected to be paid on 4 September 2023 to stockholders of record on 18 August 2023

eXp Realty ended the second quarter of 2023 with a global agent Net Promoter Score of 72, up from 68 a year ago. NPS is a measure of agent satisfaction and an important KPI for eXp, given the Company’s intense focus on improving the agent experience

Agents and brokers on the eXp Realty platform increased 7% to 88,248 as of 30 June 2023

“We delivered another profitable quarter despite lower transaction volume, as persistently high mortgage rates kept many buyers on the sidelines,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings.

“Even as we continued to fund our key growth priorities and invest in agent-centric innovation, our disciplined focus on expense control resulted in a higher operating margin compared to the prior-year quarter. Our efficient, cloud-based model, strong balance sheet, and attractive operating cash flow profile are enabling us to invest aggressively in our agents to drive long-term growth and shareholder value.

“While high mortgage rates are expected to persist in the short term, consumer price inflation has started to cool down in our core North American market, and forward interest rate curves suggest that rates may now be at or near peak levels. We are optimistic that lower mortgage rates will unleash significant pent-up demand as affordability improves and buyers can once again meet seller price objectives.”

eXp is Ushering in a New Era of Property Transactions!

eXp World Holdings is proud to announce yet another real estate innovation, this time, aimed at simplifying the process for agents, sellers, and buyers! We’ve launched [an eXciting new digital offer process], providing a secure platform to make property sales management buying, and selling a lot more convenient, transparent, and fair.

After viewing the property you’re interested in purchasing, you and your agent can discuss everything in more detail in a personal consultation. You’ll then receive an invitation by e-mail and SMS with a personal link to the digital offer process. This allows you to securely submit an offer on your smart device, which is also where the bidding takes place – online!

Think of it like a live auction… but without the weird auctioneer voice.

A seller can choose between open bidding and sealed bidding. The difference between these two is that the open bidding process allows you to view all the other purchase offers and prices that have been submitted, allowing you to change your offer if you wish to do so. On the other hand, the sealed bidding process doesn’t allow you to view the other purchase offers and you can’t change your offer once it’s been submitted.

Use of this platform is ABSOLUTELY FREE for eXp agents and clients.

This is yet another example of how we’re shaping the future of real estate!

eXp Realty Accelerates Agent Rewards by Reducing Revenue Share Criteria

2023 has already been quite eventful, and for the first time, we’ve refined the revenue share criteria for agents by reducing the current Frontline Qualifying Agent (FLQA) tier 7 threshold from 40 to 30 FLQA. Revenue share is one part of eXp Realty’s aligned compensation model, which also includes competitive commissions and stock equity programs designed to enable agents to build for their future.

Glenn Sanford | Founder & CEO, eXp Realty

“At a time when other companies are increasing their revenue share thresholds or imposing new fees, eXp Realty is the only brokerage lowering revenue share criteria for agents, fuelling exponential opportunities for them to build their legacies. Revenue share is an important income opportunity for agents, so this change is a testament to the singular agent-centric focus we were built on. We believe in our aligned compensation model, which was created to reward agents for both production and contributions to eXp Realty’s

eXp Agents & Teams Named on RealTrends “America’s Best” List for 2023

An impressive 340 eXp Realty ICON agents and teams were named on RealTrends’ “America’s Best Real Estate Professionals,” an annual list of the finest real estate agents and teams by state, ranked by sides and sales volume.

“I am so proud to see our community of agents continue to be recognised for the talented group of professionals they are,” said Glenn Sanford.

“These 340 ICON agents and teams are truly the best in the business, and I thank them for their continued partnership.”

Notable insights into eXp Realty’s rankings this year include:

• Three eXp Realty agents ranked No. 1 by volume: Brandon Howard (Rogers, Arkansas), Heath Moulton (Ankeny, Iowa) and Tijana Jones (Williston, North Dakota)

• The Don Wenner Team (Allentown, Pennsylvania), ranked fifth in the country for teams by sides with 2,647 sides

• John Scalia (Cooper City, Florida) ranked sixth in the country for agents by sides with 862 sides

• 16 out of 60 eXp Realty agents were ranked in the top 5 by sides

• 44 out of 100 eXp Realty teams were ranked in the top 5 by sides

• 11 eXp Realty agents ranked in the top 5 by volume

• 10 eXp Realty teams ranked No. 1 by volume

• 38 eXp Realty teams ranked in the top 5 by volume

• eXp Realty teams account for 57 of the 453 (13%) teams in the Mega Category for Teams ranked by sides

A week earlier, 48 eXp Realty agents and teams were named on the 2023 RealTrends + Tom Ferry’s The Thousand list, an annual, national program that ranks the top 500 agents and top 500 teams by transaction sides and sales volume. Earlier this year, eXp Realty also issued four inaugural rankings to celebrate its top performers worldwide in 2022: Top 50 Individual Agents in the U.S., Canada and International; Top 50 Teams in the U.S. and Canada; Top 50 International Teams; and Top 20 Commercial Producers. These rankings recognise many of eXp Realty’s ICON agents who have achieved exceptional production while exemplifying the company’s core values.

eXp Realty Supercharges Agent Earning Potential with Accelerate

eXp Realty has announced the launch of Accelerate – an incentive program focused solely on helping eXp agents build for their future by maximising their revenue share earning potential during their first year with the company.

“In the lifespan of an agent, a critical component of long-term success is the ability to build for their retirement, so we launched Accelerate to help catalyse their potential earnings and create momentum in the first year and build for their future,” said Glenn Sanford, Founder and CEO of eXp Realty.

“We continue to be relentlessly focused on delivering a model that puts agents first. I couldn’t be more proud of what we have created, especially for those looking to build long-term wealth with our revenue share and equity programs for agents, as well as a favourable cap and split model.”

Accelerate, which is available in all 24 countries where eXp Realty operates, applies to agents who joined on or after 1 March 2023. The program automatically opens revenue share tiers 2 and 3 for 12 months beginning from 7 September 2023, creating the opportunity to have 10 frontline qualifying agents (FLQA) immediately. This can open up the eXponential components of eXp’s revenue share program in that first year. After the 12-month period, standard revenue share criteria will apply.

“Accelerate was designed to reduce barriers and incentivise agents to grow their organisations,” said Michael Valdes, Chief Growth Officer, eXp Realty. “It enables them to focus on selling and growing their businesses while earning the maximum potential revenue share for tiers two and three for the first year. Our aligned compensation model, where agents are rewarded for both production and contributions to eXp’s growth, brings more value than ever before.”

This launch comes on the heels of the company’s June announcement that, for the first time, it was refining revenue share criteria for agents, reducing the current FLQA tier 7 threshold from 40 to 30 FLQA. As part of its efforts to continually enhance its model, the company also launched Boost, a program designed to financially incentivise qualifying independent teams and brokerages to join eXp Realty.

Revenue share is just one part of eXp Realty’s aligned compensation model, which also includes competitive commissions and stock equity programs designed to enable its agents to build for their future.

EXP GLOBAL EVENTS

eXp’s Premier Event, EXPCON is Around the Corner

Save the date! We’re only a few weeks away from the eagerly awaited EXPCON, our premier event of the year. Hosted at Mandalay Bay in Las Vegas from 2-5 October 2023, this is your chance to learn and interact with top producers and team leaders, as well as connect with an amazing community of like-minded professionals.

Not sure why you should attend this life-changing event? Well, we’ve got 5 reasons why you mustn’t miss out!

If you thought our EXPCON 2023 agenda couldn’t be any more impressive, we’ve got news for you! We’ve added to the list of speakers and included a unique self-defence initiative to empower and boost agents’ confidence. Renowned martial artists and co-founders of Gracie University, Ryron and Rener Gracie, will facilitate three 90-minute introductory courses on 2 October 2023. Gracie University, a globally recognised institution with thousands of students worldwide, is celebrated for its comprehensive approach to Brazilian Jiu-Jitsu.

CEO, Chairman and Founder of eXp Realty, Glenn Sanford has 27 years of Judo and Brazilian

Jiu-Jitsu experience and shared his vision for the courses. “In our industry, empowerment is key. It’s not just about physical defence, it’s about walking into every situation with confidence and assurance,” he said. “This collaboration underscores our dedication to fostering that among our agents.”

Sanford concluded by saying, “EXPCON is not just a convention, it’s a platform for growth, strength and evolution,” allowing attendees to embark on a journey of self-discovery as well. This year, we’re upping the ante and inviting YOU to an event that extends beyond learning and networking; we’re promising a transformative experience.

1 Be on the cutting edge of innovation

2 Explore the possibilities

3 Make those connections

4 Never stop learning

5 It’s Vegas!

EXP SOUTH AFRICA NEWS

eXp Realty South Africa Reaches 1,000 Agents Milestone

Just three short years after being launched, eXp Realty South Africa has exceeded 1,000 agents, representing an increase of more than 74% from the 574 total agent count in July 2022.

“This is a proud moment for eXp Realty South Africa as we reach such a huge milestone,” said Michael Valdes, Chief Growth Officer, eXp Realty.

“Our attractive and continuously evolving agent-centric value proposition continues to resonate with agents from around the world and we are so thrilled to be home to over 1,000 real estate professionals in South Africa!”

According to Andrew Thompson, Director and Country Leader of eXp Realty South Africa, eXp Realty South Africa has had more transactions in the first six months of this year compared to last year.

“eXp South Africa has realised a cash-flow positive, debt-free and profitable operation in its first 15 months since receiving its license via the Property Practitioners Regulatory Authority back in December 2020,” said Thompson.

“Since its inception, eXp has remained committed to putting agents first to equip them with the knowledge and tools necessary to reach their full potential. I am so proud to be able to lead such an incredible group of agents through this expansion and beyond,” he added.

eXp Realty South Africa is proudly committed to serving the community, having recently donated R350,000 to Dr. Imtiaz Sooliman of Gift of the Givers to support local and international communities.

Welcome to eXp Realty South Africa, Siya!

Siya recently joined eXp Realty South Africa as a Marketing Co-ordinator after six years of working for The IRONMAN Group as their Media & Communications Specialist. He has a strong passion for the marketing industry, a passion which began in university where he graduated with an Honours Degree in Corporate Communications. Thereafter, he spent two years at a digital marketing agency where he worked with various clients, such as Continental Tire, Cerebos Salt, and award-winning property development and investment company, Billion Group.

He then made the jump to the sporting events industry, where he led the SuperSport broadcasts for IRONMAN South Africa. There, he worked as the company’s National Media & Communications Co-ordinator before being promoted to a regional role as a Public Relations Specialist for Europe, Middle East & Africa. This is a role that saw him working and collaborating with a variety of organisations, such as Standard Bank, Isuzu Motors South Africa, News24, Carte Blanche, HOKA, Red Bull, and Qatar Airways, as well as professional athletes, high-profile athletes, and celebrities.

At home, Siya lives in Gqeberha, a city that he biasedly calls “the best city in South Africa.” He is a major sports fanatic and can spend hours glued to the screen. His hobbies include playing tennis, running, and whiskey tasting. He occasionally enjoys spending time in nature, although he is absolutely terrified of snakes!

Going from Good to Great with Stuart Hyslop: Talking Training

Stuart initially joined eXp Realty South Africa in January 2023 as a real estate agent. A few months later, in July, he switched over to a full-time position as the new Agent Development Manager for the company. He is incredibly excited about this new adventure and is highly motivated to get the best out of all eXp Realty agents. He has a huge passion for people and the industry, and what a career journey he has had so far!

After nearly 20 years in electronic distribution, selling power electronics, UPS systems, generators, security systems, and alarm systems, he decided to venture into the real estate industry. However, it was not the smooth sailing transition that he had initially expected it to be. 2018 was his first year as a real estate agent, and he only managed to sell six properties that year. He had expected to sell a lot more and this got him into a whirlwind of doubt and despair. After much reflection, he decided to take a new approach and go for a more analytical strategy. This change in strategy worked wonders and saw him selling 21 properties and making just under a million-rand gross commission in one year! Impressed by this turnaround, other agents started contacting him, enquiring about how he managed to turn things around in such a short period of time, especially with him being new to the industry.

He then seized the opportunity presented to him and started to coach real estate agents. That then slowly started to evolve into productivity coaching with a major global real estate company. Realising that people needed training, he started to do a lot of research, training courses, and writing his own programs in real estate. He became certified a year later in 2020.

Outside of the United States, Stuart is currently the only certified trainer in eXp Realty who is actively working with clients. In addition, he is a certified life coach and an NLP practitioner, which has allowed him to bring all the various elements together. His journey as a coach has led him to clients across 14 different countries. from South Korea, Europe, UK, North America, South America, and some of the Middle Eastern countries.

Diving into his personal life, he grew up in Durban and moved to Johannesburg in 2008, which he now calls home. His biggest joy in life is being a father to his three kids and spending quality time with them. As a nature lover, he spends his free time in the bush, away from the busyness of city living. He loves being out in nature and capturing wildlife with his camera. He used to be a golfing enthusiast and is keen to brush off all those cobwebs and to get out on the course once again… hopefully not losing too many balls this time around!

eXp Realty South Africa’s Roadshow Events are Gaining Momentum!

eXp is on the move again! Our popular roadshow events have only been gaining momentum and we’re not stopping anytime soon. We’ve had a full schedule already this year, with stops across the country that have allowed us to interact and connect with other real estate enthusiasts.

This quarter’s roadshow events saw us stopping in KwaZulu-Natal on 25 July 2023, the Free State and the Northern Cape on 22 – 24 August 2023, as well as Irene and the East Rand on 30 August and 31 August.

During these pivotal sessions, Andrew Thompson, eXp Realty South Africa Director, alongside other distinguished guest speakers, offers insight into the most eXciting real estate opportunity South Africa has to offer, whilst unpacking the innovative eXp model. In addition, details are shared regarding the various weekly and monthly training initiatives offered for new and existing property practitioners, the enhanced eXp Teams offering, as well as more information on how to become a successful CAP agent.

Our next roadshow event will see us make our way to the KwaZulu-Natal North Coast, this time in Ballito on 5 October 2023.

eXp Realty South Africa Property Practitioner Success Awards: July

eXp’s Property Practitioner Success Awards are a key part of our operations and agent-centric approach to real estate. We love to acknowledge and celebrate eXceptional agents who have achieved CAP status or any of our other prestigious success awards every month. The Property Practitioner Success Awards are our way of shining a light on the outstanding achievements of agents who always go above and beyond the call of duty to ensure that our clients’ needs are met.

Congratulations to our top-performing property practitioners for July 2023! Your evident passion for real estate is truly inspiring!

eXp Receives Rave Reviews from Agents & Clients

Our success as eXp can be largely attributed to our agent-centric approach to real estate. We believe that a happy agent brings another happy agent; a belief that has seen us grow in leaps and bounds over the years. Motivated agents are also committed to service excellence and are willing to go above and beyond the call of duty, which results in happy and satisfied clients. Don’t just take our word for it, here’s what some of our agents and clients had to say about their experience with eXp Realty South Africa:

CUSTOMER TESTIMONIALS

“A huge thank you to Thea for amazing, professional, excellent, and friendly services and assistance. The property was sold and registered in record time. Thea communicated and kept us updated at all times. All in all, I don’t think anyone would ever be able to find a better estate agent than Thea. She is a standout, and all her efforts are highly appreciated.”

– Dawie van der Merwe

AGENT TESTIMONIALS

“We would recommend Christelle to anyone and everyone that wants to sell or buy property.”

– Anzel Kotze

“Should I ever sell another property, or look to purchase a property, my first stop will definitely be Christelle. I wish her all the success for her future.”

– Janine Ellis

“I love eXp SA. It’s the best thing that has happened to me AND my career as a Property Practitioner. The people, the system, the muscle, the synergy. Nothing better ever!” – Sharon

Moodley

“I’m proud and love being part of the fastest-growing real estate company; a company which gives back to the agents as well as to the community.” – Kim

Oelschig

“eXp provides me with a wealth-building opportunity like no other agency can provide in the world.” – Jade

Barkhysen

“I absolutely love the freedom eXp offers me.” – Alet Marais

Thea Calitz Property Practitioner eXp Realty South Africa

Christelle Jansen Van Rensburg Property Practitioner eXp Realty South Africa

Interest

Rate Remains Unchanged – A Welcome Reprieve for SA Property Market

In late July, the South African property market received some welcome news pertaining to interest rates. While the South African Reserve Bank (SARB) was initially expected to announce an interest rate increase, yet again, that wasn’t the case. The Monetary Policy Committee (MPC) voted against an interest rate hike, keeping the repo rate unchanged at 8.25% and allowing for the prime lending rate to remain at 11.25%.

Whether or not the ongoing interest rate hikes have come to an end, for now, has yet to be confirmed. However, this is undoubtedly a welcome reprieve for the property market amid challenging times. Property owners, first-time buyers, as well as those looking to dip their feet into the market can breathe a sigh of relief.

The Rise of Off-The-Grid Living

Properties that are fitted with solar or any form of backup power are in demand. Given the current energy landscape in South Africa, the use of alternative power solutions makes them highly sought after, which is proving to be quite beneficial for sellers. Most property owners who choose to invest in alternative power solutions don’t necessarily do so with the intention of selling their homes anytime soon, considering how costly the upgrades are, and so, the supply of solar-powered properties isn’t meeting the current demand. This ultimately pushes the value of off-the-grid properties even higher.

Industry experts estimate that off-the-grid properties can be sold for 10-20% more!

Loadshedding has been a never-ending concern for years, with increased stages of rolling power

prominent feature of South Africans’ everyday lives. It comes as no surprise that in 2023, the demand for properties that make use of renewable energy has soared.

South Africans currently face anything between 2 – 8 hours of loadshedding a day, excluding any unexpected power cuts. This not only interrupts business operations and cuts into profit margins, but it also dampens the overall morale of the country. The economic impact of these rolling power cuts can no longer be ignored, and the masses are now seeing merit in off-the-grid properties. Those who can are willing to make the investment and pay more for off-the-grid property. In a nutshell, homeowners and businessowners are prioritising safety, security, service delivery, and consistent power supply.

What Gen Z is Looking for When Purchasing Property

It’s 2023 and a new generation of property buyers has entered the market – Gen Z. Born between 1997 and 2012, these first-time property buyers’ expectations are different from their older counterparts. Although each buyer has unique property desires, the newest entrants to the South African property market typically look for the following:

Smart technology: Considering that Gen Z was raised in the digital era, it’s understandable that technology is an essential part of their lives. Homes with smart features, i.e., homes that allow appliances, thermostats, lights, and other devices to be remotely controlled using a smartphone or tablet through an internet connection, are top of mind.

Backup power supply: With South Africa being plagued by rolling power cuts, an issue that will likely be around for years, Gen Z buyers are looking to reduce the impact of loadshedding on their lives. Although relatively pricier, homes with backup power are preferred.

Safety: While this may be largely area-dependent, safety remains a key concern for Gen Z buyers. This has led to a growing interest in lifestyle estates and gated communities, as they have safety measures in place. When it comes to standalone homes, armed and gated houses with safety features offer Gen Z buyers the peace of mind they desire.

Modern design: This is not to say that homes with a more classic look and feel are a hard sell, however, Gen Z is interested in modern designs for various reasons. Apart from personal preference, it also has to do with aesthetics and what the latest décor and design trends are.

Potential for personalisation: Gen Z is typically more expressive and creative, which should ideally come through in their homes as well.

New developments: In addition to a modern look and feel, Gen Z buyers prefer new developments from a functional point of view. New builds aren’t expected to have unending maintenance issues, and convenience and ease are of utmost importance for this new generation of buyers.