Breaking News & Top Stories

Real Estate

RE/MAX CEO Nick Bailey: Agents Who Ignore Tech Will Be Replaced

In these occasions, double down — in your abilities, in your data, on you. Be a part of us Aug. 8-10 at Inman Join Las Vegas to lean into the shift and be taught from the perfect. Get your ticket now for the perfect value.

Unprecedented has been the phrase of the 2020s, with a world pandemic, political strife, cultural upheaval, financial volatility, and a once-in-a-lifetime run in housing exercise — and a historic downturn — making it harder than ever precisely learn the tea leaves.

Nick Bailey

Fortunately, Nick Bailey isn’t precisely fascinated with predicting the longer term. As a substitute, the RE/MAX president and CEO is specializing in a continuing and common fact: individuals will all the time need and want a spot to name dwelling.

“Guess what’s going to occur in 2023? Individuals are going to purchase and promote homes,” he mentioned throughout his R4 keynote speech on Tuesday. “What drives our enterprise, not all of the headlines on the information that you simply see, is marriage, it’s having youngsters, transferring to take care of a cherished one, a job, divorce, all of these life occasions that drive our enterprise.”

He added, “These life occasions aren’t gonna cease simply due to [Federal Reserve] and the financial system. None of that stops.”

With that in thoughts, Bailey has a daring imaginative and prescient for RE/MAX’s brief and long-term prospects, which embrace reaching 200,000 brokers worldwide by 2028 — a aim that might catapult the Denver-based franchisor past Keller Williams, its nearest competitor, which boasted a world agent depend of greater than 194,000 brokers throughout its final earnings report.

With the R4 convention within the rearview mirror, Bailey sat down with Inman to mirror on RE/MAX’s first 50 years within the trade, look at its tech strides over the previous yr, and share the technique behind his 200,00o-agent aim.

Inman: In your keynote speech, you mentioned you consider RE/MAX might attain 200,000 brokers worldwide within the subsequent three to 5 years.

Nonetheless, there appear to be two main challenges. One is a direct results of a risky market and curiosity from would-be brokers sliding due to that. The second problem comes from there already being extra brokers than stock to promote.

With that mentioned, what’s the recruitment and retention technique for with the ability to develop the worldwide agent depend by 38 p.c over the subsequent three to 5 years? How does that technique differ between the new-agent base and the existing-agent base?

Bailey: The steep change we noticed within the housing market on the tail finish of 2022 was extremely uncommon and I’m already optimistic in regards to the rebalance the U.S. housing market is experiencing. The previous three years have been very atypical, so the rebalancing market goes to be totally different – and plenty of brokers can be questioning whether or not they have the instruments and assist providers they want.

Have they got a neighborhood dealer who’s invested of their success? Have they got a full suite of know-how that isn’t costing them hundreds of {dollars} a yr? Have they got advertising instruments which can be serving to them hook up with potential purchasers? We’re very assured that RE/MAX affords all of this and extra, so our worth proposition goes to be much more enticing within the subsequent few years.

Take into account we’re within the early levels of our MAX/Tech powered by kvCORE rollout. We’re ADDING no-cost providers whereas rivals are chopping again or nickel and diming their brokers. When this tech is absolutely rolled out – which is able to occur very shortly – our brokers may have an entire new degree of their recruiting and retention.

Another excuse: final July we launched two main development initiatives – one for groups and one for mergers, conversions and acquisitions. These aren’t in a single day propositions. In time, we consider they’ll each considerably add to our community agent depend.

Yet one more: We’re a worldwide model, and our international areas have continued to develop all through the previous few years. Positive, we’ve been a frontrunner within the U.S. and Canada for many years, however our international development story continues to be comparatively new. Our international areas and brokerages are positioned for much more explosive development within the years forward.

I actually assume the easiest days of RE/MAX are nonetheless to come back.

It appears RE/MAX has actually hit a stride in its tech after struggles with booj. What has RE/MAX management discovered about tech and driving adoption over the previous few years? How does know-how play into your short-term and long-term technique?

The evolution of RE/MAX know-how is all about serving to RE/MAX brokers and groups keep forward. One of the simplest ways we will do that’s to accomplice with a confirmed trade chief within the house and after we can, combine the tech suite with the perfect of current RE/MAX applied sciences. Our aim is to create an unbeatable mixture of offering the best international community with a premier know-how answer to assist them do their jobs higher and extra effectively.

Within the more and more aggressive trade, brokers who’re related with continually up to date instruments, cultivated leads and transaction-ready consumers and sellers may have a transparent edge. Rollout for RE/MAX associates started on the finish of 2022 in Canada and has been accelerated to areas within the U.S. in 2023 – all at no extra value to brokerages and brokers and it’s a vital factor to our brief and long-term technique.

We’re offering instruments brokers want now and we consider it’s going to propel them ahead as they give the impression of being to leverage this providing to develop their workplaces.

Each you and RE/MAX founder Dave Liniger targeted on adaptability in your normal session keynotes. The place has RE/MAX excelled in adaptability? The place is there room for enchancment?

Simply the truth that we celebrated our first 50 years a number of brief months in the past is a testomony to our unwavering adaptability. Our mannequin has confirmed to achieve success in nearly any market whatever the financial surroundings – as a result of individuals purchase and promote homes yearly and RE/MAX is your best option for shoppers who need to purchase or promote a house. It’s that straightforward.

We’re constructed on greater than our financial mannequin. We additionally present the instruments, training, assets and advertising to our community which is a real benefit in any financial surroundings. RE/MAX doesn’t need simply anybody, we need to onboard the proper agent. Productive, pushed brokers (or these aspiring to be one) who’re right here for the proper cause, to promote houses, to not recruit.

What are you most enthusiastic about in 2023? The place do you hope RE/MAX can be on the finish of the yr, no matter how the actual property market develops?

Each at RE/MAX and within the trade as an entire, I’m actually enthusiastic about the place know-how is taking us. I’m not involved tech will exchange the agent, I solely warning brokers who don’t embrace know-how that they are going to be changed. MAX/TechSM powered by kvCORE is a extremely pivotal milestone for us and out of doors of RE/MAX alone, the developments in [artificial intelligence] and instruments like ChatGPT are fascinating. It’s enjoyable to see the world evolve and I look ahead to us persevering with to adapt to it.

As for RE/MAX, I’ve discovered that RE/MAX outperforms the competitors in good occasions and dangerous so regardless of how this yr finally ends up, I can’t assist however say I’m trying ahead to that.

What’s the ultimate message you might have for RE/MAX brokers because the franchise goes by its fiftieth yr? What’s the No. 1 factor they will do to advance their private {and professional} lives?

Bear in mind how you bought right here and the exhausting work you do for your self and on behalf of others daily.

There’s not sufficient downline, revenue share, break up or no matter to allow unproductive brokers to remain in our trade long-term when markets are altering as they’re at the moment. That is yours for the taking. Thanks for bringing us alongside for the trip.

Electronic mail Marian McPherson