Nick Bailey steps down as RE/MAX CEO while Amy Lessinger takes the helm.
After a brutal year in real estate – the worst in almost three decades – RE/MAX President and CEO Nick Bailey has left the building. The company announced Amy Lessinger as its successor as President in conjunction with declaring a drop in revenue for the sixth consecutive quarter on Thursday, February 22, 2024.
RE/MAX shared no further insights about the reason for Bailey’s departure after three years as head of one of the nation’s largest real estate franchisors. He was CEO for two of those, these appointments following various roles at RE/MAX World Holdings.
RE/MAX revenue for the fourth quarter of 2023 was $76.6 million, decreasing by 5.7 percent compared to the same period in 2022. The results amounted to a net loss of $10.9 million in Q4 and $69 million for the year. Operating expenses increased 18.5 percent to $86.3 million in Q4 compared to the previous year.
The company’s report of total revenue for 2023 at $325.7 million, 7.8 percent lower than in 2022, reflects the downward trend that prevailed in the second half of the year in the face of a slower market with reduced inventory compounded by high home prices and interest rates.
Optimistic outlook for 2024
Bailey’s reported focus on modernization and expansion, positioning RE/MAX as an attractive prospect for top agents wanting to align with a solid, operationally superior company, failed to attract or retain them. The company was 6.1 percent lighter in agents in 2023. Its agent count globally is currently 143,497.
“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,” said Erik Carlson, appointed CEO in November 2023, overseeing the RE/MAX brokerage business and Motto Mortgage. “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.”
“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,” he said.
Strong leadership team
Two more executive promotions announced this week include Abby Lee’s appointment to executive vice president of marketing, communications and events and Susie Winders to executive vice president, general counsel.
RE/MAX co-founder and board chairman Dave Liniger commented that they “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.”
They and Lessinger will report directly to Carlson, who said, “I look forward to working with Amy, Abby, Susie, and our broader leadership team to drive forward our focus on providing our brands’ broker/owners, agents, and loan originators with the resources and services they need to help them thrive, which should benefit all of our stakeholders.”
Lessinger has been with RE/MAX since 1996 as an agent, team leader, and broker/owner. She was recognized by REALTOR® magazine in its annual “30 Under 30” spotlight of rising stars in her third year. As broker/owner of a RE/MAX office in Reno, Nevada, Lessinger helped grow the firm to more than 130 agents.
As president, she will continue helping agents increase their sales, help team leaders reach goals, and help RE/MAX brokers/owners grow their offices. Now her efforts will be global, overseeing over 140,000 agents in more than 110 countries and territories.
“I love this brand, and I love the people in this network,” she says. “I’ve been around them for nearly my entire real estate career. I’ve learned from them. I’ve been inspired by them. And I’ve seen the impact they have on each other, on their clients, and on their communities. It’s a special thing to be part of – and it’s an absolute honor to be leading the way.
“RE/MAX is a business that builds businesses. We’re a network of professionals who care about the industry and the people we serve. There’s nothing quite like it in real estate.”
Image source: Nick Bailey: Inman; Amy Lessinger: RE/MAX
