RE/MAX CEO: expect shorter short sales

Margaret M. Kelly

Detroit native Margaret M. Kelly steadily climbed the corporate ranks at RE/MAX after taking a job with the company as a financial analyst in 1987. She stepped into her current role as sole chief executive officer for the global real estate franchise giant in 2005 after serving for a year as co-CEO.

Kelly has served as member services representative for RE/MAX of Colorado, regional director for Colorado, vice president and regional director of RE/MAX Mountain States, vice president and zone director for company-operated regions, and senior vice president for external operations, among other executive posts she held along the way.

She was promoted as president of RE/MAX International in April 2002. A cancer survivor, Kelly has been active in raising awareness and funding for the fight against breast cancer.

Hear Kelly speak during the Inman News Real Estate Connect conference in San Francisco, which runs from Aug. 5-7, 2009.

She answered a set of questions posed by Inman News:

What do you see happening in the real estate market in 2009?

Foreclosures and distressed properties will remain at record-high levels. With the First-Time Home Buyer Tax Credit program we will continue to see the lower end of the market sell more quickly. In the fall, the Treasury Department will announce policies for streamlining the short-sale process, which may significantly reduce the foreclosure rate.

Transactions will be about the same as in 2008, possibly a little higher, but prices will end the year just below 2008 levels.

What advice do you have to help real estate agents and brokers get through this market?

This market requires a complete reevaluation of our business strategies. We need to get back to the basics of building strong personal relationships with our clients while making use of innovative technologies that yield the best results.

We need to operate more efficiently; reduce costs wherever possible; and most importantly, take advantage of educational opportunities that address this specific market.

What made you join your current company?

RE/MAX began as an "agent-centric" company. It was founded by agents to serve agents. The unique RE/MAX concept allowed agents to be more profitable and also be free to run their own business in their own manner. It was a very successful concept at the time and since then it has evolved to include so much more.

I joined RE/MAX because it had a reputation as an innovator, and women had been instrumental in its growth and success. There is no "glass ceiling" in real estate. Women can advance, grow and earn the same as their male peers.

What's been your biggest challenge in running the business?

Our biggest challenge has been understanding and dealing with the most difficult real estate market most of us have ever seen. At RE/MAX, we have devoted considerable resources toward researching this market and developing specific management and training programs designed to assist our affiliates reach their personal goals. ...CONTINUED

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