Key Takeaways:
– Glenn Sanford, the founder and CEO of eXp World Holdings, expressed concern about low-income homebuyers not being able to afford representation if the rules change too much.
– Michael Ketchmark, the lead attorney for the plaintiffs in the Sitzer/Burnett case, filed another lawsuit on behalf of three new home sellers, known as the Gibson case.
– The new case targets the National Association of Realtors and brokerages Compass, eXp World Holdings, Redfin, Weichert Realtors, United Real Estate, Howard Hanna, and Douglas Elliman, with the plaintiffs seeking tens of billions of dollars in damages.
– Despite a slow real estate market, eXp World Holdings generated $1.2 billion in revenue and a profit of $1.3 million in the third quarter.
– Transaction sides increased 1% year over year, but sales volume declined 4% to $48.5 billion.
– eXp Realty outperformed the market, with transactions down 8.6% in the third quarter, which was 43% better than the industry.
– International Realty was the best performing segment, with revenue increasing by 47% year over year.
– Agent count grew 5% compared to Q3 2022 to more than 89,000 agents across 24 global markets.
HousingWire:
eXp World Holdings executives did not mention the Sitzer/Burnett verdict in their third quarter earnings presentation on Thursday, but analysts wanted to hear their thoughts on the potential implications.
In response, Glenn Sanford, the founder and chief executive of the company, which is parent to eXp Realty, expressed concern about low-income homebuyers who may not be able to afford representation “if the rules change too much.”
“I actually started out as a buyer’s agent myself… and I see buyer’s agency as being a very valuable tool for buyers,” Sanford said during the Q&A session. “I’m concerned, quite frankly, about what this might mean to buyers who may not be able to afford representation if things change up too much.”
On Tuesday, shortly after the jury verdict was released, Michael Ketchmark, the lead attorney for the plaintiffs, filed another lawsuit on behalf of three new home sellers, known as the Gibson case. The new plaintiffs claim to have “suffered from a real estate industry conspiracy that inflated agent commissions,” HousingWire previously reported.
This new case targets the National Association of Realtors and brokerages Compass, eXp World Holdings, Redfin, Weichert Realtors, United Real Estate, Howard Hanna and Douglas Elliman. The case targets the defendants across the United States and the plaintiffs would likely be seeking tens of billions of dollars in damages.
‘Outperformed’ the market
Despite a painfully slow real estate market, eXp World Holdings held strong financially in the third quarter, generating $1.2 billion in revenue (a 2% decrease year over year), and a profit of $1.3 million (down from $4.4 million in Q3 2022).
In the words of Sanford, eXp “outperformed the market.”
Transaction sides increased 1% to 139,480 year over year, but sales volume declined 4% to $48.5 billion.
Sanford spoke about the immense affordability challenges in the current market, with mortgage rates touching 8% and home prices increasing. “Overall, transactions were down over 15% year-over-year during the third quarter in the industry and nearly 20% year-to-date,” he said.
But at eXp Realty, transactions were down 8.6% year-over-year in the third quarter, which was 43% better than the industry, Sanford said.
International Realty was the best performing segment again in Q3
When broken down by segments, International Realty revenue increased about 47% year-over-year from $10.15 million to $14.90 million. Meanwhile, North American Realty revenue fell by 2% year-over-year to $1.20 billion.
Across its 24 global markets, agent count grew 5% compared to Q3 2022 to more than 89,000 agents.
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Property Chomp’s Take:
Hey there! Let’s talk about the
In recent news, eXp World Holdings, the parent company of eXp Realty, held their third quarter earnings presentation. Interestingly, they did not address the Sitzer/Burnett verdict, a significant lawsuit in the real estate industry, during the presentation. However, analysts were eager to know their thoughts on the potential implications of the verdict.
Glenn Sanford, the founder and CEO of eXp World Holdings, expressed concerns about low-income homebuyers who might not be able to afford representation if there are drastic changes in the rules. Sanford, who began his career as a buyer’s agent, emphasized the value of buyer’s agency and its importance for buyers. He worries about the impact on those who may not be able to afford representation if things change too much.
Shortly after the jury verdict, another lawsuit called the Gibson case was filed by Michael Ketchmark, the lead attorney for the plaintiffs. This new lawsuit targets the National Association of Realtors and several brokerages, including eXp World Holdings, alleging a conspiracy to inflate agent commissions. The plaintiffs in this case could potentially seek billions of dollars in damages.
Despite a slow real estate market, eXp World Holdings managed to perform well financially in the third quarter. They generated $1.2 billion in revenue, experiencing a slight 2% decrease compared to the previous year. However, they still managed to achieve a profit of $1.3 million. Sanford proudly stated that eXp World Holdings “outperformed the market.”
While transaction sides increased by 1% year over year, sales volume declined by 4% to $48.5 billion. Sanford highlighted the affordability challenges in the current market, with high mortgage rates and rising home prices. He mentioned that overall transactions in the industry were down over 15% year over year in the third quarter and nearly 20% year-to-date. However, eXp Realty experienced a smaller decline of 8.6% year over year, which was 43% better than the industry average.
In terms of segments, International Realty was the best performing segment in the third quarter. Their revenue increased by approximately 47% year over year, reaching $14.90 million. On the other hand, North American Realty revenue fell by 2% to $1.20 billion. Across their 24 global markets, eXp Realty saw a 5% growth in agent count compared to the previous year’s third quarter, with over 89,000 agents.
So, despite the ongoing legal challenges and the slow real estate market, eXp World Holdings and eXp Realty have managed to navigate the situation and perform relatively well. It will be interesting to see how they continue to adapt and evolve in the face of industry changes and potential legal implications.
