REAL Broker vs. eXp Realty (2024 In-Depth Comparison)

Jun 10

Cloud brokerages represent the future of the real estate industry. Every year, more agents leave traditional franchise brokerages and independent brokerages to join cloud brokerages. The chart below from MikeDP.com shows a clear trend of which real estate brokerages lost the most agents in 2023 and which ones gained the most.

Currently, there are about half a dozen cloud brokerages available in North America. Among them, only two cloud brokerages operate in all 50 states and are publicly traded on NASDAQ: eXp Realty and REAL Broker. These are also the two largest cloud brokerages.

When I decided to join a cloud-based brokerage, I conducted extensive research and spoke with agents from several companies. This article is the product of my in-depth investigation. Here, I will compare REAL Broker and eXp Realty side-by-side to help real estate agents make an informed decision about which cloud-based brokerage to join.

REAL Broker vs. eXp Realty Growth

At the time of writing, eXp Realty has approximately 89,000 agents, while REAL Broker has about 18,000 agents. REAL Broker only recently expanded into all 50 states in Q4 of 2023. Interestingly, this was also the first quarter ever that eXp Realty experienced negative growth, ending the quarter with 2,000 fewer agents than at the start.

eXp Realty Agent Count Growth:

2020: Grew by 63% to 41,313 agents
2021: Grew by 72% to 71,137 agents
2022: Grew by 21% to 86,203 agents
2023: Grew by 2% to 87,515 agents
Q4 2023: Declined by 1.8% to 87,515 agents
Q1 2024: Declined by 2% to 85,780 agents

REAL Broker Agent Count Growth:

2020: Grew by 38% to 1,475 agents
2021: Grew by 161% to 3,850 agents
2022: Grew by 113% to 8,200 agents
2023: Grew by 66% to 13,650 agents
Q4 2023: Grew by 12% to 13,650 agents
Q1 2024: Grew by 22% to 16,680 agents

These trends show that although both companies experienced peak growth in 2021, eXp Realty's growth has halted and even turned negative in Q4 of 2023. Several factors influence these trends, including higher interest rates and the exit of hundreds of thousands of agents from the industry in 2023.

**REAL Broker vs. eXp Realty Commission Cap**

As cloud-based brokerages, both companies save significant money annually compared to franchise-based companies and can pass those savings on to their agents.
**eXp Realty**: $16,000 annual cap
**REAL Broker**: $12,000 annual cap

**REAL Broker vs. eXp Realty Commission Splits**

Commission splits are crucial, especially for new or part-time agents who may not cap every year.
**eXp Realty**: 80/20 split
**REAL Broker**: 85/15 split
For agents who consistently cap, the split percentage affects when they reach their cap during the year. However, a more generous split is beneficial for those who do not cap, allowing them to keep more of their earnings.

📌 REAL Broker vs. eXp Realty Fees

Fees are another important consideration.

eXp Realty Fees:

$149 Start-Up Fee
$85 Monthly Cloud Brokerage Fee
$25 Transaction Review Fee
$60 Risk Management Fee per Transaction (Caps at $500)
$250 Transaction Fee after Capping

REAL Broker Fees:

$249 Sign-Up Fee
$700 Annual Fee
$285 Transaction Fee after Capping
$30 BEOP Fee per Transaction

📌 Cost Comparison Scenarios

Scenario 1: Selling 10 Homes a Year

eXp Realty: $18,481 in fees and cap
REAL Broker: $14,385 in fees and cap

Savings with REAL Broker: $4,096 annually

Scenario 2: Selling 28 Homes a Year (Including Stock Awards)

eXp Realty: -$7,606 annually (including $16,000 in free stock)
REAL Broker: +$3,945 annually (including $24,000 in free stock)

Savings with REAL Broker: $11,551 annually

REAL Broker vs. eXp Realty Stock Bonuses

Both companies offer multiple ways to earn free shares by hitting certain milestones.

Xp Realty Stock Bonuses:

$200 for the first transaction each year
$400 when capping
$400 when a sponsored agent completes their first transaction
Up to $16,000 for the Icon Agent Award
10% discount on stock purchases using 5% of commissions

REAL Broker Stock Bonuses:

150 shares for capping each year (worth $609 at current stock price)
75 shares when an attracted agent closes their first transaction (worth $304 at current stock price)
Up to $24,000 for the Elite Agent Award
Before capping: 5% of commissions towards stock with a 10% bonus
After capping: 10% of commissions towards stock with a 20% bonus

REAL Broker vs. eXp Realty Revenue Share Programs

Revenue share programs allow agents to earn passive income by attracting new agents to the company.

eXp Realty Rev Share 2.0:

Pays out up to 50% of monthly revenue
Tier-based percentage of the revenue share pool

REAL Broker Revenue Share:

Simple 5,4,3,2,1 model
5% of commissions for Tier 1 (up to $4,000 annually)
4% for Tier 2 (up to $3,200 annually)
3% for Tier 3 (up to $2,400 annually)
2% for Tier 4 (up to $1,600 annually)
1% for Tier 5 (up to $800 annually)

Unlocking Tiers at REAL Broker

Tiers at REAL Broker are unlocked by having a certain number of producing agents in Tier 1:

5 producing agents for Tier 2
15 for Tier 3
20 for Tier 4
25 for Tier 5

A producing agent is defined as any agent who has earned at least $3,000 in commissions in the previous 6 months.

REAL Broker vs. eXp Realty Software Included

Both companies provide powerful software tools to help agents succeed.

eXp Realty Software:

Skyslope for transaction management
Inside Real Estate & KV Core for CRM and websites
eXp World for virtual training and support

REAL Broker Software:

Lofty (formerly Chime) for CRM and websites
REAL Academy for online classes and live streams
reZEN for transaction management and data access
REAL signature for digital signatures
One REAL Mortgage app for consumer pre-approval and updates
REAL Wallet, REAL Debit card, and REAL Credit card launching in 2024

Real Broker and eXp Realty both offer state-of-the-art technology and tools to help agents streamline their business. Real Broker's platform is designed to help agents manage their transactions, communicate with clients, and stay organized. eXp Realty's platform, on the other hand, includes a range of tools and features, including a CRM, transaction management system, and marketing platform.

After comparing eXp Realty and REAL Broker, I personally decided to join REAL Broker. I found REAL's technology more impressive and streamlined. REAL is more generous with stock awards and has a simpler, more lucrative revenue share program for most agents. REAL Broker is also $4,000 cheaper on average for agents, which benefits not only me but also the agents I bring into the company.

If you think REAL Broker might be a good fit for you, let’s schedule a 1-on-1 Zoom call to discuss how REAL can transform your business and answer any questions you may have.

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