Real Begins September With More than 21,000 Agents

Rhea-AI Summary

Real Brokerage Inc. (NASDAQ: REAX) announced continued growth in August, surpassing 21,000 agents on its technology-powered platform. The company attracted several high-performing teams and independent brokerages across North America. Notable additions include:

1. Story House Real Estate in Charlottesville, Va. (6 agents, $120M in 2023 sales)
2. Wendy Rodriguez Real Estate Team in Bay Shore, N.Y. (6 agents, $50M in 2023 sales)
3. Capital and Coast in Raleigh, N.C. (11 agents, $50M in 2023 sales)
4. More Estates in Napa Valley, Ca. (3 agents, $39M in 2023 sales)
5. Reach Home Group in Phoenix, Az. (10 agents, $39M in 2023 sales)

These teams join Real's platform, which aims to reshape real estate for agents, buyers, and sellers.

Positive

• Surpassed 21,000 agents on the platform
• Attracted multiple high-performing teams and independent brokerages
• Added teams with significant sales volumes, ranging from $24M to $120M in 2023
• Expanded presence in various U.S. markets including Virginia, New York, North Carolina, California, Arizona, Alabama, and South Carolina
• Implemented Private Label program to allow brokerages to maintain their established brands

Negative

• None.

Insights

Market Research Analyst

The addition of over 21,000 agents to Real Brokerage's platform is a significant milestone in the company's growth strategy. This expansion, particularly through the acquisition of high-performing teams, could potentially boost Real's market share and revenue. The diverse geographical spread of these new teams, covering areas from Virginia to California, indicates a strong national expansion.

However, it's important to note that while agent count is important, it doesn't directly translate to profitability. Investors should focus on revenue per agent and overall profit margins in future financial reports. The Private Label program, allowing brokerages to maintain their brand, could be a key differentiator in attracting established teams, potentially leading to faster growth and market penetration.

Financial Analyst

While the news of expanding agent count is positive, it's essential to consider the financial implications. The combined sales volume of the highlighted teams is approximately $450 million for 2023. Assuming an average commission rate of 2.5% and a typical split favoring agents, this could translate to roughly $5.6 million in potential annual revenue for Real Brokerage from these teams alone.

However, investors should be cautious. Rapid expansion often comes with increased costs, potentially impacting short-term profitability. The key metrics to watch in upcoming financial reports will be revenue growth rate, cost of agent acquisition and retention rates. These will indicate whether this growth strategy is translating into sustainable financial performance.

Tech Expert

Real Brokerage's emphasis on being a technology platform reshaping real estate is a important differentiator in the competitive brokerage market. The ability to attract high-performing teams suggests that their technology offering is compelling. However, the real test will be in scalability and user adoption.

Investors should look for metrics on platform engagement, transaction efficiency and cost savings attributed to the technology in future reports. The success of the tech platform in integrating these diverse teams efficiently will be critical. Additionally, keep an eye on R&D spending and any announcements of new features or integrations that could further solidify Real's competitive advantage in the tech-driven real estate market.

Top-performing teams continue to join Real’s technology-powered platform

TORONTO & NEW YORK--(BUSINESS WIRE)--

The Real Brokerage Inc. (NASDAQ: REAX), a technology platform reshaping real estate for agents, home buyers and sellers, today announced it continued to add top teams throughout North America in August. The company’s agent count now stands at more than 21,000.

“Real continues to attract high-performing teams and independent brokerages who are looking for a brokerage partner dedicated to serving them and their evolving needs,” said Sharran Srivatsaa, President of Real. “The agents joining in August bring a wide range of experience serving clients throughout the U.S. and Canada, and we are thrilled to welcome them to Real.”

The following are some of the teams joining Real during the month of August:

• Story House Real Estate, led by Sasha Tripp. Consistently ranked as one of the best brokerages in Charlottesville, Va., the boutique firm brings six agents to Real. Since its founding in 2018, Story House has distinguished itself by giving back to the community through volunteer hours, local sponsorships and a donation on behalf of each closed client to a charity of their choice. The brokerage completed home sales totaling $120 million in 2023 and joins as part of Real’s Private Label program, designed for brokerages looking to maintain the brand they’ve built.
• Wendy Rodriguez Real Estate Team, led by Wendy Rodriguez. The six-agent team is based in Bay Shore, N.Y. and serves Long Island’s South Shore. Founded in 2020, the team closed home sales totaling $50 million in 2023.
• Capital and Coast, led by Pam Saxman. The team’s 11 agents serve the Raleigh area to the North Carolina Coast. Since 2022, Capital and Coast has closed home sales valued at more than $90 million, including $50 million in 2023.
• More Estates, led by Zack Sperow and Jacque Gaitan. The three-agent team serves California's Napa Valley, Solano and Sonoma counties. Sperow was named a Rising Star during his first year as an agent. Since 2017 the independent brokerage has closed home sales totaling over $192 million, including $39 million in 2023. More Estates joins as part of Real’s Private Label program, designed for brokerages looking to maintain the brand they’ve built.
• Reach Home Group, led by Matthew Kochis. Founded in 2022, the 10-agent team serves the Greater Phoenix metro. It closed sales of $39 million in 2023.
• HBH Realty, led by Jordan Hosey. The six-agent team serves the Birmingham, Ala., metropolitan area and has distinguished itself by offering a comprehensive approach designed to help their clients achieve their financial goals. Named Rookie of the Year by the Birmingham Association of Realtors in 2017, Hosey and her team closed home sales valued at $31 million in 2023.
• Talia & Associates, led by Talia Gila. The newly formed team brings four agents to Real who will serve the Greenville, S.C. metro. As a solo agent, Gila sold 83 homes valued at $29 million in 2023.
• Expand Real Estate Group, led by Omar Alfaro. Founded in 2016, the team’s 15 agents serve California’s Inland Empire, including Rancho Cucamonga, Ontario, Victorville, Apple Valley, Hesperia, San Bernardino, Big Bear Lake, Arrowhead Lake and Sugarloaf. It closed home sales totaling $25 million in 2023.
• The Logan Home Group, led by John Logan. Logan leverages his military background to help Veterans and military service members and their families with their real estate needs throughout Maryland, Northern Virginia and D.C. The four-agent team closed 55 home sales valued at more than $24 million in 2023.

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence throughout the U.S. and Canada, Real supports more than 21,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding Real’s agent count.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns, Real’s ability to attract new agents and retain current agents and those risk factors discussed under the heading “Risk Factors'' in the Company’s Annual Information Form dated March 14, 2024, a copy of which is available under the Company’s SEDAR+ profile at www.sedarplus.ca. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910972019/en/

Investor inquiries, please contact:

Ravi Jani

Vice President, Investor Relations and Financial Planning & Analysis

investors@therealbrokerage.com

908.280.2515

For media inquiries, please contact:

Elisabeth Warrick

Senior Director, Marketing, Communications & Brand

elisabeth@therealbrokerage.com

201.564.4221

Source: The Real Brokerage Inc.

FAQ

How many agents does Real Brokerage Inc. (NASDAQ: REAX) have as of September 2023?

Real Brokerage Inc. (NASDAQ: REAX) has more than 21,000 agents on its platform as of September 2023.

What was the highest 2023 sales volume among the teams joining Real Brokerage Inc. (NASDAQ: REAX) in August?

The highest 2023 sales volume among the teams joining Real Brokerage Inc. (NASDAQ: REAX) in August was $120 million, achieved by Story House Real Estate in Charlottesville, Virginia.

Which team joined Real Brokerage Inc. (NASDAQ: REAX) to serve the Raleigh area to the North Carolina Coast?

Capital and Coast, led by Pam Saxman, joined Real Brokerage Inc. (NASDAQ: REAX) to serve the Raleigh area to the North Carolina Coast. The team has 11 agents and closed home sales valued at $50 million in 2023.

What is the Private Label program offered by Real Brokerage Inc. (NASDAQ: REAX)?

The Private Label program offered by Real Brokerage Inc. (NASDAQ: REAX) is designed for brokerages looking to maintain the brand they've built while joining Real's platform. Story House Real Estate and More Estates joined Real through this program.