The new tax code limits the deduction of state and local property taxes, as well as income or sales taxes, to a total of $10,000. When the tax reform legislation was put into law at the beginning of
To Answer The Question Why NEXTHOME Read This
JAMES DWIGGINS, NEXTHOME
I’ve been friends with James for quite some time. And he’s clearly one of the tallest — and definitely the leader in the height-to-weight ratio — men in real estate. But that’s not what makes him one of the Seven Most Interesting People in Real Estate.
No, what makes him interesting is the incredible growth of his new franchise, NextHome.
As of this writing, NextHome has the following:
263 franchisee offices, up 63.4% YOY
2,000 agents, 94.9% YOY
9,500 transaction sides, up 140.9% YOY
$2.3 billion in Sales Volume, up 115.0% YOY
And the year isn’t quite over.
From 2015, when NextHome officially launched, its growth in offices, agents, transactions, and volume respectively are 275.7%, 507.9%, 1,410.3%, and 812.7%. Put simply, NextHome is growing like crazy.
To be fair, it’s easier to have triple digit percentage growth rates if your base is low. And the 9,500 in transaction sides and $2.3 billion in volume pale in comparison to say KW, with 800K transactions and $240 billion in volume.
But the fact is that NextHome is growing like crazy and often at the expense of its bigger competitors.
NextHome’s value proposition is simple yet strong: fresh, modern branding, combined with technology-powered services, all at extremely low cost. With the entire management team under 45 years old, NextHome is young (at least for real estate), and that affects the aesthetics and culture of the brand.
Now, like any other franchise, they offer training, a technology platform, marketing services, and a branding package. But the costs are extremely low, especially when compared to the industry stalwarts like Realogy brands who often charge 6% royalties plus 2% in National Advertising Fund.
But what I find so interesting about NextHome, even compared to other fast-growing brands like eXp, is its outright focus on bringing agent teams in as startup brokerages.
KW introduced the modern agent team into real estate. But oftentimes, the team leader realizes that she isn’t getting all that much from her brokerage since she pays for all her own technology, marketing, admin staff, buyer agents, and even her own office space. Such teams often spin off into a small boutique brokerage, but most national franchise brands are not even interested in such small companies. NextHome is, and in fact targets agent teams for franchising.
It’s been a winning formula for NextHome, and eventually, existing franchises will have to take notice. Because the value of a brokerage is often tied to its highest producing agents, and almost all such top producers today have or are forming teams. Lose one or two such teams, and a brokerage could be looking at enormous losses in market share and revenues.
NextHome’s growth may have been as strong just targeting small brokerages. But its explosive growth is a coda to the biggest story in real estate in the past decade or so: the agent team is eating the industry. While traditional franchises not named Keller Williams are struggling with the issue of agent teams, NextHome is taking things to another level by offering to liberate the agent teams from their brokers in the first place.
I think that’s super interesting.
James is the Chief Executive Officer of NextHome, Inc. He brings to the table a sharp, innovative and forward-focused vision. He has been in the franchise business for 8 years now, originally joining Realty World Northern California & Nevada as Director of Technology and Strategy in 2006. In October 2011, his stellar performance in that capacity led to his promotion of Vice President. In May 2014, he and his business partner finalized the funding of their newest venture, NextHome, Inc., and purchased the Master License Agreement to Realty World Northern California & Northern Nevada, which has over 180+ office locations and 900+ agents.
Prior to joining Realty World in 2006, James co-founded VREO, Inc., the developer of groundbreaking enterprise-level Internet applications for agents and brokers. VREO pioneered biometric signature software for paperless transactions and garnered numerous industry awards including the coveted Inman Innovator Award for its breakthrough technologies. Previously, James co-founded USA Virtual Tours, helping to grow the company nationally until its acquisition in 2001.
James regularly speaks to audiences at the California Association of Realtors Annual Conventions, the Asian Real Estate Association of America, the Inman Agent Reboot and Real Estate Connect conferences, and numerous Women’s Council of Realtors and local Realtor’s association meetings and events. In 2010, he started and chaired the Young Professionals Network for the California Association of Realtors and served on the 2010 National Association of Realtors Events and Conventions Committee. He has also been a member of Trulia’s industry advisory board since 2011.
James studied business and criminal law at Cuesta College, San Luis Obispo, CA.
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As a full time professional real estate agent & former airline pilot, I pride myself on offering superior personal service before, during and after your transaction. Knowledge, commitment, honesty, ex....
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