Breaking News & Top Stories

Real Estate

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

In these instances, double down — in your expertise, in your information, on you. Be a part of us Aug. 8-10 at Inman Join Las Vegas to lean into the shift and study from the very best. Get your ticket now for the very best 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 tougher than ever precisely learn the tea leaves.

Nick Bailey

Fortunately, Nick Bailey isn’t precisely thinking about predicting the longer term. As a substitute, the RE/MAX president and CEO is specializing in a continuing and common reality: folks will at all times need and wish a spot to name dwelling.

“Guess what’s going to occur in 2023? Persons 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 just see, is marriage, it’s having youngsters, transferring to look after 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 economic 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 embody reaching 200,000 brokers worldwide by 2028 — a purpose that may catapult the Denver-based franchisor past Keller Williams, its nearest competitor, which boasted a world agent rely 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, study its tech strides over the previous 12 months, and share the technique behind his 200,00o-agent purpose.

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 unstable 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 rely by 38 % over the following 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 concerning 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 might be questioning whether or not they have the instruments and help providers they want.

Have they got a neighborhood dealer who’s invested of their success? Have they got a full suite of expertise that isn’t costing them 1000’s of {dollars} a 12 months? Have they got advertising instruments which can be serving to them hook up with potential shoppers? We’re very assured that RE/MAX presents all of this and extra, so our worth proposition goes to be much more engaging within the subsequent few years.

Have in mind we’re within the early phases 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 can occur very shortly – our brokers may have an entire new stage of their recruiting and retention.

One more reason: final July we launched two main progress 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 rely.

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

I actually assume the perfect 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 realized about tech and driving adoption over the previous few years? How does expertise play into your short-term and long-term technique?

The evolution of RE/MAX expertise is all about serving to RE/MAX brokers and groups keep forward. One of the best ways we are able to do that’s to companion with a confirmed trade chief within the house and after we can, combine the tech suite with the very best of present RE/MAX applied sciences. Our purpose is to create an unbeatable mixture of offering the most efficient international community with a premier expertise answer to assist them do their jobs higher and extra effectively.

Within the more and more aggressive trade, brokers who’re related with always 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 further value to brokerages and brokers and it’s an important component to our brief and long-term technique.

We’re offering instruments brokers want now and we consider it would propel them ahead as they appear to leverage this providing to develop their places of work.

Each you and RE/MAX founder Dave Liniger targeted on adaptability in your common 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 couple of brief months in the past is a testomony to our unwavering adaptability. Our mannequin has confirmed to achieve success in just about any market whatever the financial surroundings – as a result of folks purchase and promote homes yearly and RE/MAX is the only option for customers who need to purchase or promote a house. It’s that easy.

We’re constructed on greater than our financial mannequin. We additionally present the instruments, schooling, 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 appropriate agent. Productive, pushed brokers (or these aspiring to be one) who’re right here for the appropriate purpose, to promote houses, to not recruit.

What are you most enthusiastic about in 2023? The place do you hope RE/MAX might be on the finish of the 12 months, 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 expertise is taking us. I’m not involved tech will change the agent, I solely warning brokers who don’t embrace expertise that they are going to be changed. MAX/TechSM powered by kvCORE is a very pivotal milestone for us and outdoors 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 stay up for us persevering with to adapt to it.

As for RE/MAX, I’ve realized that RE/MAX outperforms the competitors in good instances and dangerous so regardless of how this 12 months finally ends up, I can’t assist however say I’m wanting ahead to that.

What’s the ultimate message you’ve for RE/MAX brokers because the franchise goes by its fiftieth 12 months? What’s the No. 1 factor they’ll do to advance their private {and professional} lives?

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

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

E-mail Marian McPherson