RE/MAX

RE/MAX, short for Real Estate Maximums, is an American international real estate company that operates through a franchise system. As of 2015, RE/MAX had more than 100,000 agents[3] in 6,800 offices.[3] RE/MAX operates in about 100 countries.

RE/MAX, LLC
Public
Traded asNYSE: RMAX (Class A)
S&P 600 Component
ISINUS75524W1080 
IndustryReal estate
FoundedJanuary, 1973 (January, 1973); by Dave and Gail Liniger
HeadquartersDenver, Colorado, U.S.
Key people
  • Adam Contos, CEO
  • Karri Callahan, CFO
  • Serene Smith, COO
Revenue $177 million (2015)[1]
Number of employees
500 (2018)[2]
Websiteremax.com
RE/MAX Headquarters in the Denver Technological Center.
The RE/MAX hot air balloon at a balloon festival. RE/MAX introduced its hot air balloon logo in 1978 as part of its "Above the Crowd" advertising campaign.
RE/MAX office in Canada
Business building listed by RE/MAX
RE/MAX For Sale sign

History

Early history: 1970–1976

RE/MAX was founded in January 1973 by Dave Liniger and Gail Main (who later became Gail Liniger).[4][5][6] The company was established with a maximum commission concept, meaning agents would keep nearly all of their commissions and pay their broker a share of the office expenses, rather than paying their broker a share of the commission of each sale, which is common in residential real estate.[7] In 1975, Dennis Curtin purchased the first RE/MAX franchise outside of Colorado, in Kansas City, Missouri.[8] The company grew to 100 franchises in two years.[9][10] RE/MAX held its first convention in Las Vegas in 1976, which became an annual event.[10]

International expansion and introduction of hot air balloon: 1977–1998

RE/MAX Ltd. Canada was started by Michael E. Hagel, of Vancouver BC, opened its first office outside the United States in Calgary, Canada in 1977.[11] In 1978, the red, white and blue hot air balloon became the official logo.[12][13] By 1981, the company had 30 franchises in Canada. RE/MAX became the top real estate company in Canada in 1987.[14]

In 1994, the company expanded outside North America with the establishment of RE/MAX Europe. Regional operations expanded in Germany, Italy, Spain and South Africa.[15] RE/MAX expanded to Australia and New Zealand in 1996.[16]

In November 1994, the RE/MAX Satellite Network (RSN) was launched in the US. Programs included training and company news.[3]

In 1998, Liniger attempted the first manned balloon flight around the world in a stratospheric gas balloon.[17][18][19][20] The flight was canceled due to design and weather problems.[21]

Online expansion and IPO: 2006–current

In 2006, RE/MAX began to list all U.S. homes for sale on its website, including homes being sold by competitors.[22][23] By 2009, the company had franchises in 70 countries.[4]

In April 2010, the Obama Administration announced the "Home Affordable Foreclosure Alternatives" (HAFA) program.[24] The day the announcement was made, leaders from the U.S. Treasury Department and Bank of America participated in a live, national broadcast detailing the initiative at RE/MAX Headquarters in Denver.[25] By 2011, the company had more than 6,000 franchises.[26]

In 2013, UN Special Rapporteur Richard Falk released a report which alleged that real estate groups, such as RE/MAX, found to promote or sell properties in Israeli settlements may be held liable for complicity in the crime of promoting settlement activity in occupied territory.[27][28] As of November 2015, RE/MAX Israel was still selling properties in 18 different Israeli settlements in the occupied Palestinian territories.[29]

RE/MAX’s parent company, RE/MAX Holdings Inc, raised $220 million in its initial public offering (IPO) in 2013.[30] A secondary offering was completed of approximately $185 million in November 2015.[31] REMAX Holdings owns 58.3% and RIHI owns 41.7% of RE/MAX LLC. Total diluted share count (public and private) as of December 31, 2015, was 30.2 million shares.[32][33][34]

The company expanded into China in 2014 by opening an office in Beijing. The company had more than 15,000 agents in Europe.[35] As of 2016, RE/MAX operates in about 100 countries and has more than 115 hot air balloons in operation, the largest corporate hot air balloon fleet in the world.[36][37]

In 2018, former president of the company Geoff Lewis,[38] and Liniger[39] stepped down from their roles to retire. Responsibilities were handed to CEO Adam Contos. In 2018 it was announced that founder David Liniger had violated company ethics with a multi-million-dollar loan of his own personal money to Contos.[40]

Philanthropy

In 1992, RE/MAX became a sponsor of Children's Miracle Network.[41] The company hosts art auctions, organizes golf tournaments, and encourages agent fundraising activities. Collectively, all RE/MAX affiliates have raised $147 million for the Children's Miracle Network hospitals in over 20 years of sponsorship.[42]

In 2002, the company became a sponsor of the Susan G. Komen Breast Cancer Foundation Race For The Cure events in the United States.[43]

Local offices use hot air balloons for educational programs and non-profit organization fundraisers.[12]

Recognition

RE/MAX University has been featured in Training Magazine's Top 125 US Organizations recognizing employee development.[44]

References
  1. "Re/Max reports agent growth, solid revenue in 2015". Inman. Retrieved 4 May 2016.
  2. "2018 Annual Report" (PDF). Re/MAX. Retrieved 4 May 2016.
  3. Carol Patton (1 June 2005). "RE/MAX: Training With A Competitive Advantage". Via Satellite. Retrieved 28 October 2015.
  4. John Rebchook (20 October 2009). "RE/MAX ranks high on franchise list". Denver Real Estate Watch. Retrieved 30 October 2015.
  5. Dinah Eng (19 August 2009). "Surviving recession #5: The Re/Max startup story". CNN. Retrieved 30 October 2015.
  6. https://www.remax.com/newsroom/company-info/remax-history/
  7. Mike Taylor (October 2001). "Remax World Wide". ColoradoBiz.
  8. "KCH&S Real Estate Experts 2015". Issuu. Retrieved 2020-06-30.
  9. Larry Parman (30 June 2013). Above the Fray: Leading Yourself, Your Business and Others During Turbulent Times. Morgan James Publishing.
  10. Phil Harkins; Keith Hollihan (13 December 2004). Everybody Wins: The Story and Lessons Behind RE/MAX. John Wiley & Sons.
  11. Holmes, Gillian K.; Davidson, Evelyn (2001-03-01). Who's Who in Canadian Business 2001. University of Toronto Press. ISBN 978-0-920966-60-0.
  12. "Old Home Day Icon to Rise Again this Year". Londonderry News. 15 August 2013. Retrieved 30 October 2015.
  13. "RE/MAX Celebrates the 35th Anniversary of Its Iconic Hot Air Balloon". PR Newswire.
  14. "Re/Max Western Canada". Calgary Herald. A Century of Success. 28 August 2005.
  15. Garry Marr (11 October 2012). "One Canadian real estate pro's journey to cash in on Europe". Financial Post. Retrieved 30 October 2015.
  16. "Sudden death of RE/MAX Australia founder Don Marion shocks real estate industry". Courier Mail.
  17. Tom Hamilton. "Around the World by Balloon". Balloon Life. Retrieved 30 October 2015.
  18. "Latest balloon quest to shoot for stratosphere". CNN. 27 December 1998. Retrieved 30 October 2015.
  19. Michael Cannell (16 November 1998). "Around the World in a Balloon". Science World.
  20. Blanche Evans (16 August 1998). "What You Didn't Know About Liniger's Space Balloon Mission". Realty Times. Retrieved 30 October 2015.
  21. Eng, Cassandra (1997). Elert, Glenn (ed.). "Altitude of the highest manned balloon flight". The Physics Factbook. Retrieved 2018-07-06.
  22. Kristi Arellano (19 August 2005). "Re/Max International to post all U.S. homes for sale on its Web site". The Denver Post.
  23. Blanche Evans (16 August 2005). "RE/MAX to open national IDX website". Realty Times. Retrieved 30 October 2015.
  24. Anacker, Katrin B.; Nguyen, Mai Thi; Varady, David P. (2019-07-02). The Routledge Handbook of Housing Policy and Planning. Routledge. ISBN 978-1-317-28269-3.
  25. Carrie Bay. "Government, Agents, Lenders, Vendors: One United Force When It Comes to HAFA". DSNews. Retrieved 30 October 2015.
  26. "About RE/MAX LLC". Entrepreneur Magazine. Retrieved 30 October 2015.
  27. Report of the Special Rapporteur on the situation of human rights in the Palestinian territories occupied since 1967 (A/68/376, 10 September 2013, Item 69 (c))
  28. "US, European finances tied to Israeli settlements". UPI. October 30, 2013. Retrieved August 18, 2015.
  29. Murtaza Hussain: Why is RE/MAX selling properties in illegal Israeli settlements? The Intercept, 11 February 2016
  30. Duprey, Rich (2013-10-02). "RE/MAX Begins Trading on NYSE After IPO". The Motley Fool. Retrieved 2020-06-30.
  31. "RE/MAX Co-Founder Files to Sell Shares – 24/7 Wall St". Retrieved 2020-06-30.
  32. "10-K: RE/MAX HOLDINGS, INC". 26 February 2016. Retrieved 4 May 2016.
  33. Elizabeth Dexheimer; Leslie Picker (2 October 2013). "Re/Max Gains After $220 Million IPO Priced Above Target". Bloomberg. Retrieved 30 October 2015.
  34. Michael J. De La Merced (19 August 2013). "Re/Max Files for I.P.O. As Housing Market Continues Upswing". The New York Times. Retrieved 30 October 2015.
  35. "RE/MAX Global Presence Hits Major Milestone". CNN Money.
  36. "RE/MAX China Open for Business". PR Newswire.
  37. "RE/MAX Hosts Successful Global Franchise Sales Summit in Thailand". RIS Media.
  38. "President Geoff Lewis To Retire". RealTrends.
  39. "Dave Liniger officially steps down at Re/Max, Adam Contos takes over as sole CEO". Inman.
  40. "Re/Max founder David Liniger violated ethics code with $2.38M loan to executive, company finds". The Denver Post. 22 February 2018. Retrieved 22 February 2018.
  41. "Children's Miracle Network". RE/MAX Achievers. Retrieved 2020-06-30.
  42. "Creating Real Miracles by Raising Funds for Local Hospitals". Children's Miracle Network Hospitals. Retrieved 4 May 2016.
  43. "RE/MAX Sponsors Komen's "Race for the Cure"". Realty Times. 4 March 2002. Retrieved 28 October 2015.
  44. "Training Magazine Ranks 2015 Top 125 Organizations". Training Magazine. 10 February 2015. Retrieved 30 October 2015.
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