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

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Unprecedented has been the phrase of the 2020s, with a worldwide 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 eager about predicting the long run. As a substitute, the RE/MAX president and CEO is specializing in a relentless and common reality: individuals will all the time 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 simply see, is marriage, it’s having kids, transferring to look after a liked 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 embody reaching 200,000 brokers worldwide by 2028 — a objective that will catapult the Denver-based franchisor past Keller Williams, its nearest competitor, which boasted a worldwide 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 replicate on RE/MAX’s first 50 years within the business, look at its tech strides over the previous yr, and share the technique behind his 200,00o-agent objective.

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

Nevertheless, 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 having the ability to develop the worldwide agent rely by 38 p.c 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 can be questioning whether or not they have the instruments and assist companies they want.

Have they got an area dealer who’s invested of their success? Have they got a full suite of expertise 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 provides all of this and extra, so our price proposition goes to be much more engaging within the subsequent few years.

Bear in mind we’re within the early phases of our MAX/Tech powered by kvCORE rollout. We’re ADDING no-cost companies whereas rivals are reducing again or nickel and diming their brokers. When this tech is absolutely rolled out – which is able to occur very shortly – our brokers could have an entire new degree of their recruiting and retention.

One more reason: 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 rely.

Yet one more: We’re a worldwide model, and our world 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 world development story continues to be comparatively new. Our world areas and brokerages are positioned for much more explosive development within the years forward.

I really suppose the easiest days of RE/MAX are nonetheless to return.

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 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. The easiest way we are able to do that’s to companion with a confirmed business chief within the area and after we can, combine the tech suite with the very best of current RE/MAX applied sciences. Our objective is to create an unbeatable mixture of offering the most efficient world community with a premier expertise resolution to assist them do their jobs higher and extra effectively.

Within the more and more aggressive business, brokers who’re linked with consistently up to date instruments, cultivated leads and transaction-ready consumers and sellers could 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 price to brokerages and brokers and it’s a vital component to our brief and long-term technique.

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

Each you and RE/MAX founder Dave Liniger centered 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 just a few 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 individuals purchase and promote homes yearly and RE/MAX is your best option for customers who wish 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 wish to onboard the best agent. Productive, pushed brokers (or these aspiring to be one) who’re right here for the best motive, to promote properties, 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 true property market develops?

Each at RE/MAX and within the business as an entire, I’m actually enthusiastic about the place expertise is taking us. I’m not involved tech will exchange 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 sit up for us persevering with to adapt to it.

As for RE/MAX, I’ve discovered that RE/MAX outperforms the competitors in good instances 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 way of its fiftieth yr? What’s the No. 1 factor they’ll do to advance their private {and professional} lives?

Keep 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 business long-term when markets are altering as they’re right this moment. That is yours for the taking. Thanks for bringing us alongside for the journey.

E-mail Marian McPherson