RealTrending: RE/MAX President Nick Bailey on the industry’s digital transformation

Today’s RealTrending features an interview with Nick Bailey, president of RE/MAX LLC. Bailey talks about the growth strategies for RE/MAX, how they hope to capitalize on machine learning and today’s digital transformation and shares some industry market trends.

Here is a small preview of today’s interview with Bailey. The transcript below has been lightly edited for length and clarity:

Tracey Velt: Tell me your thoughts on agent efficiency. What is RE/MAX doing to increase per-agent productivity and lean into the digital transformation.

Nick Bailey: We have more agents than listings in this country. They’re just a different set of challenges, but the idea that when more agents come into the business that one, or two, or three deals get peeled off and go to Tom that got his real estate license, it happens.

At the same time, this is where agent efficiency is absolutely crucial. Only seven years ago, they were around 4.5 million leads generated in our business. There’s a 100 million a year generated now. I’m seeing agents try to use tech, but they’re spending a lot of time, money, and energy figuring out who from the 100 million leads generated, who are the 6 million that are actually going to buy or sell?

And that’s where I think this digital transformation in the next few years is going to open the doors to AI machine learning. It’s not that the tech doesn’t exist, it’s that the mindset of the industry has always said, or many have said, “Fort Knox around my data.” We’re going to find out that that’s not the key to the future, in our opinion. It’s really: How do you lean into the digital transformation and some of these tools to figure out who the people who really want to buy or sell, and that’s where we’re going.

REAL Trending features the brightest minds in real estate. Twice a month, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.