KGCI: Real Estate on Air - Inside the Future of Real Estate: Consolidation, Culture & AI with Leo Pareja

Episode Date: November 11, 2025

🏗️ The real estate industry is shifting fast — from major brokerage mergers to emerging technologies reshaping how agents work. On this week’s KGCI Real Estate On Air Live, host Ian Wheatley sits down with Leo Pareja, CEO of eXp Realty, to break down what agents need to know about industry consolidation, culture, and the AI revolution already transforming the marketplace.From the Compass/Anywhere merger to global MLS differences and eXp’s debt-free growth model, Leo shares a clear-eyed look at where the business is headed — and how agents can adapt, stay relevant, and lead through change.What You’ll Learn 📌🔹 [01:13] The Truth Behind Industry Consolidation – What the Compass/Anywhere merger signals about brokerage models and why U.S. agents still have unique advantages. 🔹 [02:49] The Power of the MLS System – How the U.S. market’s transparency and data accessibility create a liquid real estate market that doesn’t exist anywhere else in the world. 🔹 [05:07] Growth Without Debt – How eXp Realty’s agent-centric, organically scaled model differs from the debt-fueled acquisitions shaping its competitors. 🔹 [07:30] Leading Through Change – Why leaders must accept market shifts quickly, adapt within 24 hours, and move forward with purpose. 🔹 [10:24] The Future of Tech and AI in Real Estate – Why Leo says we’re still in the “Napster and MySpace” era of AI — and what agents can do to stay curious and ahead of the curve.Episode Breakdown ⏳⏳ 00:00 - 00:28 | Live from eXp Con – Ian Wheatley welcomes eXp CEO Leo Pareja from Miami Beach Convention Center 🎙 00:28 - 08:05 | Industry Consolidation Deep Dive – The Compass/Anywhere merger, MLS advantages, and the evolution of U.S. real estate systems 💡 08:05 - 10:24 | Leadership Lessons – Building culture, finding your “tribe,” and leading through uncertainty 🤖 10:24 - 11:29 | AI, Tech & the Next Era of Growth – Why we’re still early in AI adoption and how agents can experiment, learn, and win🚀 Adapt Fast. Lead Bold. Stay Curious.Leo Pareja reminds us that while change is inevitable, opportunity belongs to those who move first. From embracing technology to building agent-first cultures, this episode is a must-listen for any real estate professional looking to future-proof their business in 2025 and beyond.📲 Listen On-Demand: Stream now on the KGCI mobile app or your favorite podcast platform. 📆 Don’t Miss Friday Focus: We’re breaking down the Future of Listings — AI video, virtual staging, and the tools every top agent is using. 💬 Question for Leo? Drop it on our Instagram or Facebook — your question might make the next show!

This is KGCII Real Estate on air live, your weekly deep dive into the strategies, trends, and tools shaping the real estate industry, from market updates to actionable strategies and strategies and exclusive interviews. with top agents, we are here to unlock your full potential and help you thrive. Thousands of agents trust KGCI every week. Now it's your turn. Let's go live. Here's Ian Wheatley. Hey, good morning. If you are still treating the real estate industry like it's all going to go back to normal,

let's be honest. You're not paying attention. And maybe you're thinking that all of this is just noise, nothing's really changing. I'm good where I'm at. My business is fine. All that fun. Yeah. Okay, but here's the reality.

Agent culture certainly shifting. AI is frinting. And the biggest brokerages in the game are consolidating faster than a portal refresh, whether that's RedfinZillow, Realtor.com. Choose your adventure there. But your business model, your tech stack, even your license could now be on a countdown that you know absolutely nothing about. That's why this week on Real Estate on Air Live,

we're breaking the whole consolidation conversation wide open. Straight from the floor at EXPCon, you'll be hearing from. ExP Realty CEO Leo Perea on the merger badness, So it actually matters in brokerage culture and why the U.S. real estate market is unlike anything else in the world. Plus, we'll hit the housing headlines. Inventories down, prices are up. The first time homebuyers hit a historic low. Good news. That government shutdown may be ending. Let's check those headlines now.

I'm Ian Wheatley. This is Real Estate on Air Live. I recognize this is a big if. But if members of the house can make it back to D.C. in some sufficient numbers, there's a real possibility that the shutdown could be over by the end of the world. week. But in the meantime, agents heads up. The longest U.S. government shutdown could end. Sure, after some Senate Democrats broke ranks to get a spending bill through the Senate over the weekend. But keep this in mind, it ain't over till it's over. And we're dealing with delays till an FHA, VA, USDA loan processing, IRS, SSA income verification, but probably the

biggest issue deal with is we lack any current aid on the state of the economy out of the Bureau of labor statistics. So agents, make sure that through all this noise of a shutdown ending that your clients know that the shutdown is still happening and make sure that you know that answer to the question, why hasn't this closed yet? Well, before anybody starts asking it, all right? Meantime, first time home buyer shares hit historic lows. They're also older than ever. According to latest data from the National Association of Realtors, only 21% of buyers last year were first timers that is the lowest year ever recorded meantime the median age it 40 40 first time home buyers as rising cost student loan debt and rate pressure are taking its toll so agents if your

lead gen if your scripts are all built around the fresh out of college ready to buy buyer yeah that hasn't existed in a decade just your messaging think later bloomers dual income earners, career-shifting buyers, some areas deficient. Meantime, home prices, they're still in the rise for most U.S. Metro. So if your clients are waiting on that crash, it might be watching prices going the wrong way. According to the latest in our report, 77% of U.S. Metro saw a price increase in Q3. Meantime, the national median price is now right near $407,000 up 2.2, 2.2 and a quarter percent year over year, as 16 metros had double-digit growth, especially in the Midwest and the Northeast.

So agents, price resilience, yeah, that's legit. And with inventory still tight, waiting isn't getting anyone a deal, it's just kind of moving those goalposts. And inventories down, demands up, but agents are still stuck, according to housing wire. The national inventory shrank again last week while pending sales rose 15.5% year over year. That's not a bad number. Mortgage rates, they have been dipping slightly, but affordability. That's still pretty tight. We talked about that last week in the housing headlines, but agent confidence, that's shaky at best, despite data showing the buyer activity is up.

So agents, this is a moment to reframe buyer hesitation and take a look back at those properties that have been on the market for a few weeks or more, right? Closing out the year, inventory slipping, demands rising. You sure you want to wait until next year? That's checking your housing headlines here on Real Estate on Air Live. I'm UNAWeedley. KGCI Real Estate on Air. I'm Ian Wheatley, and we are live for the Miami Beach Convention Center here for EXPCon, joined by Leo Pereja, the CEO of EXP Realty. Leo, thanks for popping by to KGCI Real Estate on Air.

It's a pleasure to have you here. Thank you for having you. You know, you are, I think, one of the sharpest minds that is in the real estate industry at this point. And you're constantly on the leading edge. of what we need to be thinking about next. Now, what I see from my perspective, what I hear you talking about is you're talking a lot about industry consolidation again.

Specifically, we have the compass in anywhere joining forces that could kind of reshape some brokerage competition that's out there. And I hear you talking with this about, talking about this with the expe realty agents about this brokerage's culture, its agent-centric model as being a counterweight to that. I want to unpack that a little bit about what that merger means for the working agent.

What do you see as the real motive of the merger? Is it market share? Is it survival? Is it efficiency? What is it? That's a great question, which I don't think we're qualified to understand because we're not privy to their information. But I think all the things you said are probably, you know, different points that probably went into decision process. but this transaction has the ability to reshape how U.S. happens and U.S. real estate takes place.

What we enjoy in North America is unique to North America, U.S. and Canada. In the rest of the world, there are no central databases called MLSs. There are no places where agents can have 100% trust that the data is complete, pull comps. There's so much of what happens in this country that, is actually take it for granted. We operate in 27 countries, 25 of them outside of North America. And I have the pleasure of spending time with agents all over the world,

depending on the time of year. And just recently, in Europe this summer, I got to spend some time with an agent from Portugal and an agent from France who are both native of the U.S., who actually had real estate licenses. And they said, we take things for granted like pulling cops. Figuring out a price a house is almost the guess. And the homes take much longer to sell.

And then even the financing is more complicated because the banks may take longer to figure out what the home is worth. So simple things like a centralized third-party data set make real estate transaction happen faster. I've been on record saying that I think our system in the U.S. creates a liquid real estate market, which is a controversial term, I think, or to be debated term because real estate is not a liquid asset, right? which is a true statement. Sure. But I would challenge any real estate in the U.S. to tell me that there's not a price I can price a property, right, depending on the amount of inventory available in that market

where you can't generate 10 offers on a weekend. So meaning if you, if there's two months of inventory, like a lot of the United States experience for the last five years, if you price that property at the last sale, you typically get multiple offers. Right. Let's say you're in Southwest Florida today, and for context, this is October of 2025. Highest inventory in the whole country, 11% decline year over year.

There is still a price that you can price that property that's supported by data. You don't have to give it a 50% discount. It could be 10%. It could be 20%. But there is a number where you'll generate 10, 15, 20 offers. And I'm saying this as a place, I sold a lot of foreclosures. And then the worst year in real estate was probably 2010, when there was 18 months of inventory and I couldn't throw a rock and not hit a for sale sign. Some banks said, hey, price it 10, 20 percent below every other comp.

And when properties took almost a year and a half to sell, I could still get 10 offers on a weekend. I sold my parents' house in Belize. it took me four years to sell it. And I asked the listing agent, I said, what's the price where I'll get 10 offers this week? And they're like, there's no such thing. No such thing. There's no such thing. So the reason our market works is because we have this very transparent, cooperative data sets.

And so if, you know, there's a merger of size and scale, there is a possibility where it could kind of reshuffle how we do things in this country. With that said, we're a close second in size and scale. And I think there will be a migration of agents from either those companies or independent other franchises who may want to align with a company that has similar values. And so we believe in doing what's right for the consumer from a fiduciary responsibility. All the data says that more exposure is better than less exposure. In a free market that intuitively makes sense. If you had a widget to sell, is it easier to sell it?

doing a garage sale in your street right or putting it on amazon it would be easier to sell that on amazon or tick talk oh there we go and so it's all about eyeballs and exposure so we just believe more exposure is better than less exposure right and transparency is important because you know i have a real estate broker's license and when i pass that test i i understand that the paperwork said that i need to put the consumer's financial interest and best interest above my own and i think that you know there's other companies that may have differing philosophies now when a company scales like exp realty what what tends to get better as opposed to maybe other companies that have scaled through debts and scaled through we're going to absorb and do all stock buys what is the

benefits of of growing and scaling as expe realty has done it to be able to be that consumer centric brokerage to support the consumers in a way that is going to be their fiduciary responsibilities? Well, a couple of things. So we were founded and scaled without debt or outside equity. And so, you know, Glenn was a practitioner and he made a concerted effort that he wanted to build the most agent-centric company on the planet as the stakeholder. And the philosophy behind that is we are going to do what's right for the consumer, which in turn helps the agent, right? So we've grown organically, meaning that everyone jumped it. in and is a cultural fit from the get-go versus, you know, sometimes when the only growth model

has been acquisition, you end up piecemealing different cultures. And so, you know, they're very good examples of acquisitions and they're very bad examples of acquisitions in the history of commerce and everywhere. I can think of a few, yeah. And so, you know, I think it has to come from top-down leadership where they can articulate and explain the culture and then be willing to, you know, integrate everybody into that culture. And so, you know, a lot of it will see, we'll have to wait and see. I can't make predictions. And, you know, you've had me on here before where the settlement, DCP, and there's

things we just can't predict. And I prescribe to the philosophy, look, there is information and you have the right to be upset if you disagree with the information, but I will only allow that for about 24 hours. Okay, fair enough. And then you need to decide, okay, cool, this is new information. I may disagree with it, but these are now the rules of engagement going forward. Do I still want to be a market participant? Yes or no?

And if the answer is yes, then you get to participate. And if you don't, you don't get to participate. And it's that simple. And if you don't want to be a market participant in the real estate industry, there's other industries that are out there. There are. Now, as we are wrapping up with the Oprah CEO of EXP Realty, we are here at the Miami Beach Convention Center Broadcasting Live from EXBCon.

what lessons should a leader take from just the juxtaposition of the growth of ex-B realty and how it's done it versus what we are anticipating out of this looming merger and what is the best way to build a agent culture that has lasting impact? Yeah. So one thing I'm super clear about, and again, I think there's some phenomenal companies in that conglomerate is that no model is perfect. Not a single real estate company has 100% market share. And so I think there's space for a lot of different models. And I think people collections or companies are collection of people. At the end of the day, you know, you can copy tech stacks, splits, bundles of offering. So at the end of the day, I think

people are joining tribes of people that they, you know, have a lot of common with and want to be in relationship with. And so I think agents as independent contractors should just find their tribe. And that's, you know, boils down pretty simply for me. And when we're thinking about the risk and consolidation, what is the, what is the upshot? Is there an upside to this as, you know, agents are maybe moved, maybe further away from the center? Is there a benefit to the consolidation that could be looming as you see it? Yeah, that's a fair question. I think time will tell. Okay. And I think in fairness, again, if you look at the history of America, there are typically an earlier part of a cycle of an industry

where there's a lot of participants, like the railroads to go oil companies. And then within a decade or two, they consolidate into three to five players. We've seen in the airline industry. We've seen it in the hospitality industry. We've seen it in a bunch of industry, like Marriott Starwood now owns everything. And so I would not be surprised if this triggers mass consolidation. And over, you know,

a five-year period, there's three to five emerging very large entities. But I think there's going to be an opportunity for, you know, like, I believe we're the entrepreneurial platform. Yes. Right. It's for the more independently minded, um, less brand centric, but like agent first. And I think there's going to be an appeal for the, you know, brand first. Here's the, you know, class A space in the center of town and have a different economic model than us. And, uh, you, you are a little bit of a profit there, Leo. Um, is there anything else that agents need to be keeping an eye on over the next three, six, 12 months?

Well, in the three to six, 12 month, Mark, it's pay attention to how quickly technology is moving. You know, play with AI, try AI. Don't get scared of it because, A, I think we're early on in the cycle, meaning I think we're playing with Napster in my space of AI. All right. I don't think Instagram and YouTube have showed up quite yet. Okay. And so that should be good news because you're not late, right? I think I've talked to people who already feel they miss the book.

on AI. There's no MBAs in AI yet or master degrees because no one knows anything about generative AI yet. Right. It's still forming and becoming. So the analogy I give people, it's like, what if I could tell you that YouTube is going to become YouTube in 2008? Wouldn't you, you know, been the next Mr. Beast? So stay in curiosity. That's awesome. Leo, Mr. Perea. Thanks for popping by to KGCI, real estate on air and enjoy the rest of your EXBCCon here in Miami. Thank you so much, you. We sure had more than a handful of incredible Miami moments while we were at EXPCon last month. Again, special thanks to XP Realty for inviting us down. But these were my top five takeaways from that conversation.

You just heard again from EXP Realty CEO, Leo Perea, right here on Real Estate on Air Live. Number one, U.S. real estate is uniquely liquid. And that's because of the MLS, right? Leo emphasized that the U.S. and Canada's real estate system is unique. in the world for its transparency and speed. I realize as an agent, I often find myself complaining at how long it takes. I'm over here in New York. It does take a little while, okay?

But MLS access makes pricing more predictable and transaction timelines faster. And in global markets where they don't have the centralization of the data, agents are often flying blind, and sales can drag on not for weeks or months, but for years. That's wild. Number two, industry consolidation is coming, but values do still matter, right? Leo did stop short of speculation, but he acknowledged that pending mergers, compass, anywhere, could trigger additional consolidation, just like we've seen in railroads, airlines, hotels, radio, but in a post-consolidation world, agents are going to gravitate towards cultures that match their values. Brand first, agent first. Pick your tribe and build your business.

Number three, EXP's no debt, no equity growth is a culture advantage to them, though, as unlike brokerages that have scaled through acquisition and new debt, expe grew organically, which their CEO argues, leads to a strong cultural alignment and agent experience because every agent opted in because they believed in that model, not because they were folded in via some stock play or some acquisition or merger. Okay. Number four, the real risk to an agent, though, it's not the model. It's that misaligned culture, right?

And this is a lovely way to look at it, right? Because often, what brokerage is better? That debate, it's a little bit trope, but no real estate company has a 100% market share because no model fits every agent. And customers or clients for that matter as well. What matters most is that agents find alignment not just in tech and in splits, but in people because a company is a collection of people. And at number five, this got to the heart of tech and anxiety over artificial intelligence.

We are still in the MySpace era of AI, but you ought not to be sleeping on it, right? It's not that AI is scary. It's just, it's early. It's clunky. UI is not ideal. Okay, Leo compared today's tools to Napster and Myspace. Remember that? I had to go in, MySpace.

You had to like use code? Oh, you remember that? I remember that. Okay. You remember Napster? I don't remember Napster. Right? But Leo pointed this out.

We are not at the Instagram level, the Facebook level disruption yet for AI, which means agents still have time to get ahead. The key is to stay curious and not be cynical. Test the tools, learn the prompts. And as Leo pointed out, there is no MBA for AI yet. We're all still just trying to figure it out. And let's be honest, looking ahead to Friday, coming up this Friday for a weekly Friday focus here on KGCI, Real Estate on Air.

You don't have to dance on Reels. You don't have to overshare on Instagram or be, the mayor of your local coffee shop to grow a brand this week on the friday focus this is built for agents who would rather crush it quietly we are breaking down some introvert friendly branding right how to build real presence trust and consistency without the burnout or that bullhorn right you'll learn brand pillars that speak louder than selfies you'll learn how to make content that feels easy and not cringy plus the tools the scripts and the structure to show up without showing off because branding isn't about being loud it's about being clear so catch the friday focus inside

the always free real estate on air mobile app for iphone and android or at real estate on air.fm select episodes will be published on the all new kgcii or real estate on air youtube channel as well as on apple podcast Spotify iHeart or wherever you like to listen so whether you're the loudest voice in the room or the quiet one with the sharpest strategy And just know that your brand can still show up strong. But speaking of showing up, sometimes we show up late. It's awkward or accidentally send a selfie instead of a CMA. It's time for real estate confessions because in this business,

the only thing more unpredictable than the market is us. Before we get flying, got to get one thing straight. Real estate confessions features stories from the wild world of real estate. Names and details may have been changed to protect the innocent. and occasionally the not so innocent. All confessions are shared in good humor and do not reflect the opinions of KGCI Real Estate on air, its hosts, or affiliates.

No agent's licenses were harmed in the making of this segment. Enjoy responsibly. All right, now that we've gotten those loose ends zipped up, it's time for real estate confessions because in real estate, truth is stranger than fiction. I was with a buyer in an old basement wine cellar. It was converted to Halloween storage. I screamed so loud, the neighbor next door came outside.

I once left a voicemail so awkward. I had to hang up and call back pretending I was someone else. They called me out, but still worked with me. I was mid-sentence in a listing presentation when the seller said X, Y, Z. No judge. judgment, just facts. We've all been there, whether it's the wrong lockbox, the wrong text thread, the wrong house entirely. Confessions remind us that this job is real, and so are we. That's a wrap on this week's Real Estate on Air live. If today's episode made you think,

made you laugh, or finally admit that you might need to update that CRM, do us a solid, share it with your team, save it for your Sunday planning, and stream it anywhere, anytime, and that always free Real Estate on Air, iPhone, and Android, or at Real Estate onair.fm. I'm in Wheatley. Stay smart. stay sharp and stay just self-aware enough to laugh at yourself and make that submission for a Friday focus anyway we'll see you Friday be good