Pareja pointed out several key areas where the companies were already in lockstep before the merger was even a possibility. Both firms utilize fully remote leadership teams, a move that has become more common in the post-pandemic era but was pioneered early by eXp. Furthermore, the companies share a similar technology stack, utilizing industry-leading tools like SkySlope for transaction management and BoldTrail for lead generation and CRM capabilities.
Beyond technology, the two companies also shared a physical infrastructure strategy, frequently utilizing Regus office spaces to provide flexible work environments for their teams without the overhead of traditional long-term commercial leases. Perhaps most importantly, Pareja noted a shared philosophy on the most pressing issues facing the modern real estate professional, including the controversial topic of private listings and the industry-wide push for greater transparency in commissions and consumer relations.
“There was so much alignment across the board, which was a very pleasant surprise,” Pareja remarked, noting that this cultural and operational compatibility has minimized the friction typically found when merging two large organizations.
Creating a Choice-Based Ecosystem
The decision for a cloud-based brokerage like eXp to acquire a franchise model like NextHome initially raised eyebrows among industry analysts. However, Pareja argues that the two models are not only compatible but also essential for capturing a larger slice of the total addressable market.
Pareja provided a data-driven perspective on why this dual-model approach is necessary for AGNT’s long-term ambitions. Currently, eXp accounts for roughly 4.5% to 5% of all real estate licensees in the United States. While that is a significant figure for a single brokerage, Pareja noted that even the most successful real estate brands in history, such as Keller Williams and REMAX, peaked at around 10% to 15% of the total agent population.
“We could be two or three times the size of eXp, and that would be it—90% of the agents will never be in our model,” Pareja said. “But by having a secondary option that we truly view as non-competitive to our format, that opens up greater potential for growth.”
To prove that the two brands do not compete for the same pool of talent, AGNT conducted an internal analysis during the due diligence period. They found that out of 5,000 agents who had left either firm in the year prior to the merger, only 28 had moved from NextHome to eXp. This confirmed Pareja’s belief that there is a "demarcation line" between agents who thrive in a virtual environment and those who require a traditional, office-based franchise structure.
This is particularly true for large teams and multi-office operations. Pareja admitted that eXp previously struggled to recruit high-level operators who were committed to the large-office format.
“The Keller Williams offices that just converted to NextHome, I actually had conversations with them 18 months ago, but it just didn’t make sense for them to come to eXp,” Pareja said. “We just did not have a solution for someone with six offices and a large management team.”
