The real estate industry is still reeling from the news that Real Brokerage has agreed to acquire REMAX Holdings. This acquisition is a major transaction that combines one of the industry’s oldest and best-known companies with one of the industry’s most forward-thinking and disruptive companies.
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Following the news Monday, Inman asked industry veterans for their unfiltered opinions. They talked about how this deal will reshape the industry’s competitive landscape, why parts of this deal are surprising to some, and how it will put additional pressure on independent brokerages.
“What type of agents are they looking to attract?”
Lauren Hens, vice president of marketing and strategic initiatives at First Team Real Estate, sees the deal as a calculated move in an increasingly competitive landscape.
Lauren Hens
“If Real did this with the idea of competing against Compass, it was a bold move,” Hens told Inman. “This is combining REMAX with a more technology-forward brokerage. It wouldn’t have made as much sense if REMAX had merged with someone like Keller Williams.”
Hens acknowledged that the deal caught the industry by surprise. “Everyone thought REMAX would be the next one to be acquired, but we never thought it would be Real.”
For Hens, the strategic logic is straightforward. REMAX needed a complete technology overhaul that it couldn’t accomplish on its own, and Real needed the brand equity and global footprint that REMAX provided. “This is a merger of modern and traditional brands,” she said. “For REMAX, modernizing in partnership with Real is an act that deserves more respect.”
Hens said REMAX agents aren’t tech-savvy because they weren’t encouraged to do so. “A tech-focused brokerage like Real tracks everything, so accountability is ingrained,” she says. “If we don’t have enough sales, we can’t hire assistants.”
She acknowledged that Real and REMAX have two very different cultures, but as to how they will fit together, “everything will be determined before the merger is completed.”
“We need to attract the highest productivity agents, not the agents with a 90 percent failure rate,” Hens said. “The big question will be what type of agents they want to attract. The most important thing is the type of agents they’re not suited for, and this will act as a filter.”
She pointed to the Compass-Anywhere deal as a lesson in pacing. “The deal between Compass and Anywhere came together very quickly. I think Real need to really analyze and say: ‘Compass has this type of agent. So who is our ideal agent?’
Hens said we’ll find out over the next 90 days. “I’m curious to see what the first press conference will be like,” she said.
Further restructuring of the industry landscape
Victor Lund, Managing Partner of WAV Group, CEO of RE Technology, and CEO of Fluente, views this acquisition as an important strategic realignment that will reshape the competitive lanes of the entire industry.
Victor Land
“This is an important strategic shift for Real,” Lund told Inman. “Until we have more details about how the integration will or won’t happen, we can only focus on our strategy.”
With this acquisition, Lund said, Real combines the agent-first infrastructure strategy it shares with REMAX with a leading consumer brand and website. “Genuine agents will benefit from one of the top, highly oriented consumer search sites on the planet,” he said. “Real is also rapidly expanding globally. REMAX agents now find themselves partnering with a parent company that shares the same agent-first values and a new, well-run technology infrastructure.”
Lund said the Real agency should “celebrate the marriage of global brand power and a consumer search site.” Meanwhile, REMAX agents “should be excited about Real’s sovereign technology services.”
Mr. Lund also positioned the transaction as part of a broader restructuring of how brokerage firms compete, identifying approximately six strategic lanes currently emerging in the industry.
At one end are full-service integrated companies like Berkshire Hathaway HomeServices and Howard Hanna, which combine strong consumer brands and local websites with in-person agent support and integrated mortgage and insurance services.
The steps removed are performance intermediaries such as Compass, Anywhere, and Keller Williams. These companies rely heavily on technology and office management, but fall short of fully integrated services.
The newly combined Real and REMAX will occupy a hybrid middle ground. This means agent-first and technology-enabled, but powered by REMAX’s consumer brand and web traffic, with the flexibility to mix physical and virtual presence.
Beyond that, there is eXp Realty as a pure platform. We don’t have an office, we’re completely virtual, most of our technology is outsourced, and we’re still an emerging consumer brand.
Rounding out this picture is a consumer-first model. Rocket Companies and Redfin are leading the way in consumer experience, with intermediary capabilities built in underneath. Zillow operates a referral-based platform without any agents and relies entirely on its proprietary technology stack across CRM, showings, and transaction management.
Lund told Inman that the acquisition was a missed opportunity for eXp.
“From a technology perspective, REMAX leverages our partnership with Inside Real Estate’s BoldTrail platform to work with eXp,” he said. Lund said the merger between eXp and REMAX shouldn’t have been too disruptive for the agency.
“Like eXp and Real, REMAX has always been an agent-first platform with a strong web presence,” said Lund. “Recently, REMAX pivoted its website strategy and began outsourcing key parts of its website to vendors. Now, REMAX can push technology management to Real.”
Pressure on independents
Hens said the deal sends a clear message to independent brokerages that digital transformation is no longer an option.
“From an independent brokerage perspective, this shows that we need to lead the digital transformation,” Hens said. “This will put more pressure on the indies.”
But Hens is quick to note the advantages that the secessionists hold.
“Indies can be more nimble. They don’t have to report to a board. Independent brokerages thrive because they can change direction on a dime.”
But the questions hanging over this deal are the same ones that apply to any large real estate merger, she said. “Such a merger is great, but what happens after that?”
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