When you want to know what’s happening in a particular real estate market, you are wise to seek out an expert.
It’s even better when that expert is part of a network of professionals who can provide perspective and context for any decisions.
RE/MAX, as I learned recently, is one of those networks. The company’s Chief Operating Officer, Adam Contos, paid us a visit at Fried On Business to talk about what the firm is seeing in the residential real estate arena.
Surprisingly, Contos said, RE/MAX is not really a real estate company. Rather, it’s a franchising company that operates in the real estate space. It has 110,000 agents in 7,000 offices in more than 100 countries.
“Our goal is to provide hope and help people realize the dream of home ownership,” he said.
Contos rose through the ranks at RE/MAX after a career in law enforcement. He started in 2004 in the region that covers Colorado, Wyoming, Utah, North Dakota and South Dakota. From there, he want to California and, finally, to Florida.
RE/MAX, he said, started in 1973 on the premise of recruiting full-time professionals who are serious about the real estate business. No dabblers need apply.
In exchange for their dedication, franchisees keep about 95% of their commissions, he said.
The real estate environment
Contos said the Internet has taken over the role that newspapers once played when shopping for residential real estate, but buying is still a complicated process that requires a professional.
Branding and marketing is one of the major tools that RE/MAX provides to its franchisees, he said: “We believe heavily in brand recognition, awareness and people going to a brand that they trust.”
Then comes infrastructure, Contos said, the power of a network comprising 110,000 professionals worldwide.
“If you have a customer who wants to know about a property in Brazil, or maybe somebody in Brazil, who wants to know about a property in Miami, you’ve got this resource where you can just pick up the phone or hop on the online network that we’ve created and find answers quickly and effectively,” he said.
The real estate market
Nationally, Contos said, RE/MAX is seeing slow and steady residential real estate growth. Most of the country has a low inventory.
Miami has about 7.4 months of inventory, he said, but the condo inventory here tends to skew the residential real estate numbers quite a bit.
“But, we actually saw a median sales price increase over last month in Miami of 1.6%, which is bucking the trend in the rest of the country at this time of year,” he added.
Contos said he, like many people, expect interest rates to keep inching up – along with prices – so now’s the time to buy if you’re inclined to do so.
“It’s still the American dream, and a lot of people want to take advantage of it. They haven’t been able to over the past seven or eight years, and now’s their chance again,” he said.
Contos said the greater Miami market has seen an 11% one-year increase in the median sales price – the seventh highest increase in the country.
“Even with that high inventory, we’re still seeing great median sales price increases,” he said.
But Contos acknowledged that big releases of units in major condo projects – like Dezer Development’s Porsche Design Tower – can skew the numbers, so it’s important to get in touch with a local RE/MAX professional to get the scoop on the market.
This was a great interview with a real pro. Click here to listen to the entire conversation with Adam Contos, Chief Operating Officer for RE/MAX.
Visit remax.com or global.remax.com for more information about the company.
