The Real Brokerage Inc.’s planned acquisition of REMAX Holdings, Inc. marks one of the largest brokerage deals in recent years, as residential real estate firms look to scale and remain competitive in a consolidating industry.
The merger pairs a fast-growing, cloud-based brokerage with one of real estate’s most recognizable global franchise brands — a combination that brings together two very different operating models. Together, the newly formed Real REMAX Group would represent a 180,000-agent platform valued at roughly $880 million, the companies said this morning.
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In a joint interview with Inman, Real CEO Tamir Poleg and REMAX Holdings CEO Erik Carlson discussed the timing of the deal, how the two models will work together, and what the deal — and continued industry consolidation — means for agents and consumers.
How long has this deal been in the works, and how did it come together?
Tamir Poleg: Obviously, there are things we cannot disclose, and everything will be available in the SEC filings later, but I’ve known REMAX as a brand since I was a kid. It’s the most iconic real estate brand in the world.
A couple of years ago, I realized that Real has the growth, the technology and the momentum, while REMAX has a massive brand, global presence and great agents with a focus on productivity, which is something we value a lot. There is a really good synergy between the two companies.
Erik and I had a lot of discussions about the future of the combined company and the value proposition to franchisees and agents. At the end of the day, it will be a win if our agents and REMAX franchisees win. When we got to a point where we were convinced that they would utilize our technology and together we could take the company into a greater future, we decided to join forces.
How do these two models operate together in practice, and what should REMAX franchisees expect?
Poleg: We intend on operating two separate brands. REMAX remains REMAX and Real remains Real. The REMAX brand is pretty much eternal, and we want to preserve it and enhance it moving forward.
I was sitting in a restaurant last night and thinking about the fact that every adult in that restaurant knows the name REMAX. It’s insane, because there aren’t too many brands in the world that have that kind of power.
Nothing changes for REMAX agents. Nothing changes for REMAX franchisees. Nothing changes on the Real side.
What we do want to do is take our technology and offer it to whoever wants to choose to opt in and use it from the REMAX side. As soon as we close, we will try to roll it out there. There will be opportunities with Real Wallet, with our AI capabilities. I think our reZEN platform can transform the operations of REMAX franchisees in every office, instill efficiency and help with cost-cutting.
Erik Carlson: REMAX has been in the business for 50 years and has done a lot of innovation and disruption. It’s an iconic brand with tremendous consumer awareness.
What I really like about Real is they have great culture and great people. I wrote a note to our network this morning, and I truly believe our best days are ahead of us for the Real REMAX Group.
Transactions like this succeed or fail on integration, and integration is underpinned by people. For me, it’s always about people, process and technology.
REMAX is very successful in Canada. How much did its global footprint factor into your thinking on this deal?
Poleg: From a branding perspective, we believe there is a lot of opportunity in North America for the combined company, and we want to focus on that.
On the global side, having access to more than 120 countries around the world is something that, if we tried to achieve it on our own, would probably take 10 or 20 years. So it’s great to have that overnight, along with the local knowledge and expertise.
At some point, Real might also branch out internationally, but for now, we are focused on North America while continuing to support REMAX agents around the world.
How do you view the current consolidation wave in brokerage, and did the Compass-Anywhere deal factor into the timing of this one?
Poleg: From a philosophical standpoint, we’re not trying to react. I don’t think other deals have anything to do with this. It just made sense on a standalone basis.
But I do believe that with the changes happening in the industry, scale will be increasingly important. The fact that you have a lot of agents and a lot of listings positions you better to win in any kind of change that might happen in the market.
There are a lot of forces on the surface right now, and this combination positions us extremely well to cope with them. The fact that we have both scale and the ability to react quickly because of our tech-focused nature positions us to be a winner in different scenarios.
Carlson: The industry has started to consolidate, and consolidation is probably in the future for residential real estate.
But scale for scale’s sake won’t work. It has to be the right scale. These are complementary businesses with people who are focused on serving customers every day, and that’s a major reason why this transaction will be successful.
What does this mean for consumers as brokerages continue to consolidate and get bigger?
Poleg: The human component in real estate is so strong, and it’s not going anywhere.
For consumers, there are two big things. One is that we now have a larger network, and that works in their benefit. It means more collaboration across countries, more visibility, more exposure to listings and more knowledge flowing within the network.
The second is delivering a better experience using technology that complements what agents do. People want faster, smoother and more transparent experiences, and this is what we will be able to deliver.
Will the combined company push into private listings or internal inventory strategies?
Poleg: We will do everything that we believe is in the best interest of our agents and their clients. All of the decisions we’re making are in collaboration with the agent community.
If agents see the benefit of doing something in that direction, we will go ahead and do it.
