Florida-based Real Brokerage, like many other big players in the industry, is seeking to grow through acquisition. Its deal to purchase REMAX, announced in the spring, was part of a larger trend of big brokerages consolidating in the face of a challenging market and an uncertain policy landscape.
But unlike many of its rivals, Real has continued to grow organically. Reporting financial results for Q2 of this year, the company touted a 26% growth in agent count, adding over 7,000 agents in 12 months even as the overall market lags.
“I think that the announcement of the REMAX deal definitely gave us some tailwinds in terms of agents reaching out, or teams reaching out, and contemplating joining Real,” CEO Tamir Poleg told investors in a call discussing the results.
The company, founded in 2014, has grown rapidly in the past few years, more than tripling its agent count and closed transaction sides from 2023. Brokerage leadership has emphasized AI investments, and described the company as a tech platform first and brokerage as a “starting point.”
Also touting a 30% growth in revenue and $86.6 million in cash, Real executives said they are still tightly focused on closing the REMAX deal this year, reporting $11.6 million in costs related to the acquisition.
Real shareholders will vote Aug. 14 on whether to approve the transaction.
“Success won’t be measured by how quickly we change things,” said Jenna Rozenblat, Real’s COO, who is also leading the REMAX integration effort. “It will be measured by how effectively we strengthen the combined platform while preserving the relationships and culture that have made both successful.”
Rozenblat added that Real is still confident on reaching $30 million in cost synergies within three years of closing.
When the deal was first announced, at least some eyebrows were raised among both investors and real estate professionals, with questions regarding how Real’s brokerage business could incorporate the legacy franchisor model pioneered by REMAX.
Poleg took a question on how REMAX franchise owners stand to benefit from the deal, specifically whether it could offer a “competitive advantage” for someone already running a franchise.
Poleg answered that Real “believes” it can replace a lot of the third-party tech that franchises rely on, but again committed to “preserving the strength” of the REMAX network and brand.
“Beyond technology, we also see opportunities to expand the ways franchise owners participate in the economics of their businesses over time through ancillary services such as mortgage and title, as well as Real’s revenue share model if they choose to, which has been a powerful driver of agent attraction,” he said.
The big picture
Poleg took some time to home in on the current real estate market and how Real has grown in spite of challenges. He noted that existing home transactions have hovered around 4 million a year, compared to a historical average of around 5.2 million.
“Despite that backdrop, we’ve grown organically primarily by taking market share, attracting productive agents,” he said. “A healthier housing market would certainly benefit the entire industry, including Real and our agents, but our strategy is not dependent on waiting for the market to improve.”
Company executives also detailed the beta launch of its new internal AI, dubbed “Leo 2.0.” About 200 selected top producers are using the Leo 2.0 AI, which Poleg says is able to resurface “dormant” leads, start conversations and set up appointments independently.
“We’ll continue to update, but the immediate or short-term feedback was better than we expected, to be honest,” he said.
Leo AI briefly took Poleg’s place on an earnings call last year as Real has promised this technology will be transformative for its agents.
