LPT Realty vs eXp Realty: Which Brokerage is Right for You?
The real estate industry demands innovation and adaptation for survival and success. To attract and retain agents, real estate brokerages must continually grow and offer the latest in tech, support, and mentorship.
Two notable players have been making strides, especially in the technological space, namely LTP Realty and eXp Realty. Both brokerages have distinct approaches to ensuring the success of their agents.
Your brokerage partner has a direct effect on your yearly production as an agent. This article provides an in-depth comparison between LPT Realty and eXp Realty to help you make a choice between these futuristic options.
We look at their business models, commission structures, agent support, and technological advantage.
Business Model
The two brokerages feature distinct business models. Here’s an overview:
LPT Realty
LPT Realty operates on a business model aimed at encouraging agents to join and stay at the brokerage. It is a traditional franchise model, where agents get to maintain ownership of their brokerages while operating under the LPT Realty brand name.
LPT Realty’s business model focuses on local expertise, independence and control over business operations. Agents who join the brokerage benefit from an established brand name, support, and a vast network of industry professionals.
eXp Realty
eXp Realty is one of the fastest-growing brokerage firms in the US. It is a cloud-based, virtual brokerage operating on a subscription model. Agents at eXp Realty are independent contractors who leverage the firms’ advanced technology platforms for lead generation, transaction management, and collaboration.
The eXp Realty model promotes ownership and scalability with access to a global network of agents.
Compensation Structure
Commission structures are one of the top considerations when choosing a brokerage firm, as they directly impact an agent’s revenue. LPT Realty and eXp Realty have distinct commission splits.
LPT Realty
- Transaction Fee: Agents pay a flat fee per closed transaction, typically between $3,500 and $7,500. This fee covers brokerage services, technology, and administrative support.
- No Commission Split: Unlike traditional brokerages, LPT Realty doesn’t take a percentage of the commission. Agents retain a higher portion of their earnings.
- Revenue Sharing (Optional): Some LPT Realty franchises offer a revenue-sharing program in which agents can earn additional income based on their performance or that of their team.
eXp Realty
- Monthly Fee: eXp Realty charges a $85 monthly fee.
- Transaction Fee: Agents pay a transaction fee, typically $3,500 to $4,000 per closed deal.
- Cap-Based System: Agents pay monthly and transaction fees until they reach a $16,000 annual cap. After reaching the cap, they retain 100% of their commission on all subsequent transactions for the year.
- Stock Awards: eXp Realty offers stock awards based on performance and contributions, providing an opportunity for equity ownership.
Revenue Sharing: Similar to LPT Realty, eXp Realty offers a revenue-sharing program based on team performance
Technology and Tools
With technological advancements, brokerage firms must offer their agents the best tools and digital resources in the market. Here’s what LPT Realty offers compared with eXp Realty.
LPT Realty
LPT Realty offers a robust tech system for its members, including:
- CRM Systems. LPT Realty has a customer relationship manager (CRM) system in place for its agents. Agents benefit from a centralized system where they can manage leads. Track client communication and streamline marketing outreach.
- Lead generation tools – LPT Realty offers agents the tools for lead generation success. These tools include capture forms, email templates, and social media integration.
- Website and Capture pages. LPT Realty offers agents tools to manage their portfolio and listing websites, as well as dedicated property landing pages.
- LPT REalty also offers agents marketing materials. There are many templates and flyers for property listings and social media posts.
The Listing Power Tools at LPT Realty
A cornerstone of LPT Realty’s technology offerings is the “Listing Power Tools” package. This suite of tools includes:
- Dedicated Property Websites: Each listing gets its dedicated website optimized for SEO.
- Text-to-Lead Capture: Allows potential buyers to request information via text message.
- Social Media Integration: Seamlessly shares property listings across social media platforms.
- Lead Management: Captures and nurtures leads generated from property websites and text messages.
In addition, LPT Realty offers virtual offices for agents who want to work remotely, a mobile app for on-go access to tools and information, and data analytics tools to track agent performance and client behavior.
eXp Realty
eXp Realty is well-known for its emphasis on a technology-based approach to real estate. As such, it is no surprise that it offers some of the best technological support and tools for its agents. The main ones include:
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eXp World
eXp World is a virtual space where agents can collaborate from across the globe. It features virtual meeting rooms, a fully equipped digital working space, and a transaction management system.
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kvCORE
eXp’s CRM system, the kvCORE, is a lead generation powerhouse that also offers marketing automation and transaction management. KvCORE was created to streamline customer interactions and smooth out these vital relationships.
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SkySlope
SkySlope is a tool offered by eXp Realty to manage paperwork, compliance, and transaction processes. SkySlope enables agents to manage files electronically without a physical office. It also connects agents directly with legal departments to ensure compliance.
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IDX Websites
eXp Realty’s integrated IDX (Internet Data Exchange) websites allow agents to create and manage their real estate websites with MLS listing integrations. This feature helps agents attract and convert leads through their personalized websites.
eXp Realty offers agents a comprehensive technological platform to streamline and enhance processes so they can concentrate on what matters most—actually selling houses.
Training and Support
Real estate is an ever-evolving industry, and agents need continuous education to keep abreast of the latest technology and legislative changes. New agents also need mentorship and support to build a solid foundation for their careers.
LPT Realty addresses training and support by focusing on onboarding programs, ongoing education, and specialised training.
New agents joining LPT Realty are offered an introductory program to the brokerage’s systems, procedures, and operating best practices. They also learn about company policies, local market insights, and basic real estate practices.
LPT Realty ensures that active agents get continuing education workshops and seminars, as well as local in-person sessions, to network with colleagues.
Specialised training for experienced agents includes advanced sales strategies, negotiation tactics, and business development.
eXp Realty
Training programs at eXp Realty include:
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eXp University
The renowned eXp University is a virtual training program for eXp agents, offering courses and webinars on business development, real estate practices, and technology use.
Training is either live or on-demand and covers vital topics such as lead generation, negotiation skills, and marketing strategies.
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Leadership and Development Programs
eXp Realty offers experienced agents an opportunity to hone their leadership skills through mentorship, coaching, and tragic planning sessions.
The leadership program aims to help industry professionals better manage their teams, recruit new agents, and grow their businesses.
Cost Considerations
The cost considerations between the two brokerages can inform your choice. Here’s a breakdown:
LPT Realty
- Commission Splits are higher, ranging at 70-90% with no cap.
- Transaction fees range between $295 to $495 per closing.
- Monthly fees cost between $0 to $150 per month.
- Agent annual fees vary but are lower than those of traditional brokerages.
eXp Realty
- eXp Realty commission splits are 80/20 with a $16,000 cap.
- Transaction fees cost $250 per closing and drop to $75 after the cap of $16,000 is reached.
- Technology tools cost $85 a month.
- Members pay $149 annual fees for the Agent Equity Program.
In a nutshell, the cost consideration between LPT Realty and eXp Realty shows agents will have a high commission split with low monthly fees at LPT Realty but no cap on earnings. Transaction fees may be higher than those of eXp Realty, and additional marketing and training costs may add to this burden.
On the other hand, eXp Realty offers a capped commission structure with an 80/20 split, lower transaction fees after hitting the $16,000 cap and a consistent monthly payment.
eXp Realty offers agents clear annual and monthly cost breakdowns, making planning easier.
Choosing Between LPT Realty and eXp Realty
Choosing a brokerage is an impactful defining point for an agent’s career. Your brokerage partner influences your success, brand recognition, and take-home revenue.
Choosing between LPT Realty and eXp Realty is a personal choice you must make after careful consideration of commission structure, fee transparency, and the value of additional services and support provided by each brokerage.
