eXp Realty Stock 101: What You Need to Know as an eXp Agent
As an eXp realty broker, you have numerous benefits at your disposal, one of which is the ability to own a piece of the company you’re so diligently working for. But, unfortunately, if you’re not taking advantage of the eXp stock, you are missing out.
eXp Realty stock, known by its ticker symbol EXPI, is a publicly listed company that anyone or their investment brokerage can buy on the NASDAQ stock exchange.
But as an eXp agent, there are three unique ways you can acquire eXp realty stock while continuing to sell real estate as you already are.
So, how can you earn stock within eXp?
#1 Agent Equity Program
The “Agent Equity Program” lets eXp Realty retain 5% of the commission from a realtor’s transaction and buy EXPI stock at a discounted rate (saving 10%).
That stock’s price is ultimately decided by the closing market value of the final trading day of EXPI stock for that month.
There is an Opt-in/Opt-out form that realtors can fill out whenever they want to join or no longer want to engage in this program.
#2 Sustainable Equity Plan
eXp Realty offers a Sustainable Equity Plan through which agents can earn stock shares for tasks within the company.
Realtors can obtain shares of stock when they:
- Reach their annual cap (net $400 of stock)
- Sell their first home of the year with eXp Realty (net $200 of stock)
- Sponsor another agent who closes their first home with eXp Realty (net $400 of stock, though one-time-only and both realtors but remain with eXp during the vesting period)
#3 eXp ICON Agent Status
Finally, eXp realtors can earn stocks through the ICON Agent Awards. Those eXp agents who significantly contribute to the company are awarded this honor for their success by earning ICON status and benefit with the opportunity to earn EXPI stocks.
To accomplish this, realtors must meet specific requirements, but after earning the title of ICON, they can get their $16,000 cap back in eXp Realty stock each year.
Click here for the Pros and The Cons Of eXp Realty
ICON Production Requirements
There are two possible methods to achieving these production requirements:
#1
The first way to earn ICON status is to close an annual gross commission income of $500,000 with at least ten transactions. But they also have to pay a one-time “ICON Qualification Fee” of $5,000 (minus capped transaction fees).
As an example, let’s take a realtor with an average sale price of $1,000,000. 2.5% of the total price means a commission of $25,000 each. So, this agent could qualify for ICON status if they sold 20 homes annually and made $500,000 in gross commission incomes.
Because the cap is $80,000, this person would cap out after 4 transactions and only have to pay $250 for each of the following sales (16 remaining sales before qualifying).
So in order to qualify for the $16,000 eXp stock award, this agent would have to pay $4,000 ($250 for each of the remaining 16 transactions after capping) plus the one-time ICON Qualification Fee of $3,000.
That means $7,000 total to be eligible for $16,000 EXPI stock.
This method is pretty effective for all agents, even those who work in high-priced real estate and may only complete a few sales annually.
#2
The second method is by capping. First, the realtor must cap (with the commission split, $16,000 gets paid into eXp), then they’ll go to 100% commissions (subtracting a $250 transaction fee).
Realtors do have to pay an extra $5,000 in capped transaction costs to meet the ICON production requirements, which usually means an additional 20 transactions beyond capping.
As a real-world example, let’s imagine it takes an experienced realtor 10 deals to cap every year (10 closings at $8,000 average commission for each is $80,000), and the cap for eXp Realty realtors is $80,000 in gross commissions. The agent has to pay $16,000 paid into eXp Realty (20% of $80,000)
Ultimately, the exact number of sales required to earn ICON status depends on the agent’s average commission and sales price, but the realtor must cap to achieve ICON and benefit from the stocks earned.
ICON Award Payout
The payout for the ICON Award takes place in three different phases:
Phase 1:
Immediately after achieving ICON status, a realtor will earn $8,000 in EXPI stock. eXp Realty buys that stock on the 15th day of whichever month the eXp Realty is acknowledged as an ICON.
There’s a three-year vesting period for this initial $8,000 stock.
Phase 2:
The second installment of EXPI stick, in the amount of $4,000, is issued when an ICON realtor fulfills their cultural commitment to eXp Realty. The eXp Realty staff assesses the ICON recipient’s cultural commitment one year after getting ICON status.
ICON Cultural Requirements
There are multiple ways to satisfy the ICON Cultural Requirement, and at least one of them must be completed:
-Serving as an ICON Committee Member and assessing ten ICON applicants within 12 months
-Acting as a mentor and participating in the program for one year
Fulfilling the role as an ICONversations moderator/panelist and attending the function ten times within the year
Being an ICON instructor and instructing six classes annually
After the 12 month period AND a realtor’s cultural commitment is confirmed, that extra $4,000 of EXPI stock is issued to the ICON realtor at the end of the month, with the market share cost being the same as the price on the 15th of the month.
This second phase $4,000 EXPI stock will have a two-year vesting time.
Phase 3:
The ICON recipient also has to attend two company events, but only after earning ICON status. Any other later events will not go towards fulfilling this obligation. They can then receive the final $4,000 in ICON stock awards.
eXp Realty hosts two public meetings every year, the Shareholder Summit and EXPCON. ICON realtors are granted $2,000 for every one of these meetings they are present.
The final $4,000 (granted in two parts, $2,000 each) stock is vested immediately.
Selling eXp Realty Shares
If you decide to sell your shares or transfer them to a different brokerage account after the vesting period, you’ll have to do so through Shareworks.
Any shares are subject to a $0.03/share commission fee in addition to a $20 wire fee. Be aware that stock acquired before November 2017 requires a $50 as they are labeled as “restricted stock.”
Build Wealth as an eXp Agent with EXPI Stock
As an eXp agent, be sure to take advantage of the incredible programs the company has in place to own a piece of the business. Although you will have to pay nominal fees, the investment is worth it to become a shareholder in the company. Celebrate the company’s financial success with your own.
Conclusion
eXp Realty stock is only one of the many reasons you are seeing so many agents join eXp. eXp Realty is more than just a real estate company it is a movement. At the time of this post eXp Realty has just opened up Brazil and plans to open 4 more countries this year at least. If you want to join eXp Realty or have any questions about my ad agency I run, or questions about eXp Realty feel free to reach out to me on any of my social media channels or just click here and choose a time to talk. Talk with John
