The moment has arrived — the moment to take charge. This summer, at Inman Connect Las Vegas, July 30-Aug 1, 2024, experience the complete reinvention of the most important event in real estate. Join your peers and the industry’s best as we shape the future — together. Learn more.
RE/MAX President and CEO Nick Bailey has been replaced as head of the franchisor, the company announced while unveiling that its revenue fell for a sixth-consecutive quarter on Thursday.
Bailey had served as president for nearly three years, two of which he was also CEO of one of the nation’s largest real estate franchisors. He held multiple positions at RE/MAX World Holdings earlier in his career.
RE/MAX announced Amy Lessinger will succeed Bailey as president and will report directly to RE/MAX Holdings CEO Erik Carlson.
The executive change came on the same day RE/MAX announced its revenue fell 5.2 percent in the fourth quarter of 2023, compared to the same time a year before. RE/MAX earned $76.6 million in the quarter and reported a net loss of $69 million for the year.
The company’s revenue was down all year as the industry slogged through slower home sales caused by low inventory, high interest rates and high home prices.
RE/MAX’s total revenue for the year fell 7.8 percent from 2022, to $325.7 million, the company said.
The franchisor’s revenue peaked in the second quarter of 2022 before beginning its ongoing slide.
Meanwhile, the company reported its operating expenses increased 18.5 percent in the quarter compared to a year earlier, to $86.3 million.
RE/MAX’s total agent count fell 6.1 percent in the United States last year and has continued falling at the start of this year, the company said. Worldwide, it now boasts 143,497 agents, the company said.
“We generated better-than-expected margins in the fourth quarter, driven by our ongoing focus on effective cost management amidst what continues to be a very difficult housing market,” Carlson said. “Despite macro conditions beyond our control, our expense discipline has allowed us to remain nimble, able to pursue and seize those growth opportunities that we identify as having the greatest potential.”
During a call with investors on Friday morning, Carlson said the franchisor’s two main focus areas for the immediate future were expanding its U.S. agent count and its mortgage arm.
“We are acutely aware of what we need to do to improve our performance,” he said. “We need to stabilize and grow U.S. agent count and grow our mortgage business.”
The company’s mortgage arm, Motto Mortgage, experienced muted growth in the fourth quarter offsetting declines in other segments, with the number of open Motto Mortgage locations increasing 6.5 percent to 246 offices.
Carlson was hired in November, less than two weeks after the company reported another down quarter. He replaced Steve Joyce, who served as interim CEO after Adam Contos resigned in March 2022.
“Looking ahead to 2024, we believe there are many reasons to be optimistic — encouraging interest rate trends, improving customer sentiment, and ongoing pent-up demand bode well for progressively better housing market performance moving forward,” Carlson said.
In addition to Lessinger’s promotion to RE/MAX president, the company announced two other executive promotions on Thursday.
Abby Lee was promoted to executive vice president of marketing, communications and events; and Susie Winders was promoted to executive vice president, general counsel.
It’s not clear what led Bailey out the door. The company’s announcement included very little information about his exit, other than to say he was leaving the company.
Dave Liniger, RE/MAX co-founder and chairman of the company’s board, congratulated the new executives on their promotions and didn’t mention Bailey.
Lessinger, Lee and Winders “are exceptional leaders who have each played a meaningful role in our Company’s success by tirelessly promoting our strong brands and supporting our highly productive networks,” Liniger said.
