EXp World Holdings acquires NextHome to create a ‘multiplatform model’

EXp World Holdings has acquired NextHome for an undisclosed amount, according to an announcement on Thursday.

The cloud-based company said NextHome marks its transition to a “multi-model platform that can support diverse business models and brands under one global umbrella.” EXp World Holdings has also ditched its EXPI Nasdaq ticker in favor of AGNT – something eXp Realty CEO Leo Pareja says represents the company’s commitment to serving “the industry’s most ambitious entrepreneurs.”

“The industry has reached a tipping point; a one-size-fits-all model no longer works for the visionary entrepreneur,” Pareja said in a statement. “AGNT is a statement of who we build for. Adding the NextHome franchise model will provide our agents and franchise owners with maximum choice, backed by a proven leadership team and now with a unified world-class infrastructure and extensive global network.”

“Teams and agents need more capabilities, and the industry needs companies led by people who don’t just talk about agent centricity, but actually live it,” he added. “We’re building a platform that supports multiple models, because every agent and every consumer deserves choice.”

James Dwiggins and Tei Baishik co-founded NextHome in 2014, growing the company to more than 5,400 agents and 500 franchisees in the US.

NextHome has an integrated technology platform that covers everything franchisors and their agents need, from customer relationship and transaction management to automated marketing and financial tracking. NextHome has a group of tech partners, including RealScout, SkySlope and CubiCasa, that provide real-time homebuyer and market insights, respectively; transaction management and immersive floor plans; and listing photography services.

However, what sets NextHome apart from most franchisors is its flexible structure.

Franchisees can choose between a one-year agreement and a five-year agreement, and starting Thursday they can also choose between two tech stack structures: Full Tech Stack and Lite Tech Stack.

The Full Tech Stack provides access to NextHome’s full range of tech offerings, in addition to hands-on assistance from the company’s Member Services team. The Lite Tech Stack offers “a streamlined option” for agents who want access to “the NextHome brand, support and resources” while maintaining lower overhead.

In both options, brokers also retain ownership of their data, the company said.

NextHome’s model, which incorporates the “People over Homes” ethos, has placed it on multiple “Best Franchisors” lists from Franchise Business Review, Entrepreneur and Inc. 5000 brought.

James Dwiggins

“Joining forces with eXp World Holdings is a natural evolution of our ‘Humans Over Houses’ mission,” NextHome co-founder and co-CEO James Dwiggins said in a prepared statement. “By connecting to the most broker-centric real estate engine in the world, our franchise owners and agents now have access to unparalleled depth, inventory, global network and the kind of industry talent and influence that moves the markets.”

“We looked at every real estate company in the US, and eXp is the best fit for us – from company culture to philosophy to a leadership team that truly advocates for agents and consumers,” he added. “This is the right partner to grow the NextHome brand and lead franchise expansion around the world.”

EXp Realty and NextHome will continue to operate independently, with the company’s respective teams maintaining their leadership roles.

“Today, AGNT becomes a multi-model leader where the industry’s most dedicated entrepreneurs come to grow, lead and stay,” the press release said. “Whether you’re an independent broker driven by eXp Realty’s cloud-based scale, with aggressive commission splits, revenue sharing and true equity ownership, or a franchise owner attracted to NextHome’s human-first culture, you’re no longer just choosing a brand; you’re choosing a global operating system designed for the modern entrepreneur.”

“Two models,” it added. “Maximum optional.”

EXp World Holdings’ acquisition of NextHome is the latest in a series of high-profile deals heralding an era of rapid consolidation, including Compass’s purchase of Anywhere in January and Real Brokerage acquiring REMAX in late April, with the deal expected to close at the end of the second quarter.

Top industry leaders, including Pareja, said the industry is heading into a juncture, with market factors such as slowing sales and industry developments such as the battle for private listing networks and the power of multiple listing services (MLS) causing brokers to merge.

Pareja of Inman Connect New York called it real estate’s “United, Delta, American” moment – ​​prescient given developments in the real estate and airline sectors during the first quarter of the year.

“One thing I always point out is the history,” Pareja said. “Industries can remain fragmented for decades, even hundreds of years. But if you look closely, we see a pattern in this country. And you all have a little bit of gray [hairs]just like me… we grew up with a lot more airlines in this country. Do you remember that? And now we have United, Delta and American.”

“We actually have three health insurers. So guiding is what often happens,” he added. “And so I can’t make any predictions, but what I can say is that as we look at historical patterns, consolidation, we’re going to get even more consolidation. And is that good or bad? That’s yet to be determined.”

Email Marian McPherson