eXp World Holdings has been counted among the many companies which operate on a whole different level in real estate. Without the need for physical office space, the firm joins real estate brokerages that conduct businesses completely online. Seeking Alpha recommends the company to investors on the look-out for next-generation companies.
The trend in creating these startup companies is in making it into an 'asset-lite' business model. The way this works is that these services start to replace brick-and-mortar facilities. A perfect example is how companies like Uber and Lyft virtually have no assets (cars) that they own, but instead, create profit through registered drivers and vehicles who sign up through their app.
eXp World Holdings (EXPI) have followed this trend, which had been so successful for many others. The firm had created a massive online network of agents, all without a physical office and by maintaining them through an online network, adding another innovation to the online real estate market niche. The company was founded by Glenn Sanford.
This reliance on movements like e-commerce and brick-and-mortarless transactions were reported by Zawya. Gabriella dela Torre has shown how e-commerce has changed the face of real estate, which is a very stubbornly traditional market. From physical offices, little by little, transactions are moving towards the digital market.
E-commerce has been one of the driving forces behind the modernization of the real estate market. Now, physical space isn't required to conduct business in the real estate industry. Even logistics and industrial companies are gaining a whole different perspective to doing business thanks to the modern apps offering a different way of doing things.
Failing to adjust to the current trend could mean worse things to a business. Take the example of Blockbuster; it used to be the dominant market force in movie rental. When Netflix and other streaming services like it came into play, Blockbuster's decline started. Netflix owned no stores, nor did they have any physical rental store, but they reached more customers more than Blockbuster could ever hope to do.
eXp's agents work out of different places. It does not have a physical office; rather, it has an army of agents working out of the home, in a cafe, or wherever they may want to. The firm shows that one only needs a strong connection to the Internet and a laptop to work, allowing more flexibility and options for the virtual workers.
