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Jonathan Dalton
REALTOR
ePro, SFR
602-502-9693

Gilbert-Based RE/MAX 2000 Shutters Its Doors

Gilbert-Based RE/MAX 2000 Shutters Its Doors

Jonathan Dalton, Phoenix Real Estate AgentFrom the Arizona Republic this morning (with a hat tip to my wife, who had a note scribbled on a business card about the whole thing:)

RE/MAX 2000, based in Gilbert, is closing its 13 offices around the Valley. An attorney for owner Robert Kline told 12 News Sunday the company was not generating enough sales to meet its expenses because of the Valley’s depressed housing market. As for the timing of the closing, attorney Dax Watson said, “We felt it wouldn’t be fair to our clients to wait.”

According to the article the closing impacts approximately 20 salaried employees along with 350 real estate agents. The agents, independent contractors all, will have 30 days to find new brokerages. As for the salaried employees, well, Merry Christmas and so sorry about the timing.

MLS shows in the area of 1,700 residential sales for the company in 2007 (all data deemed reliable but not guranteed, yada, yada, yada); I didn’t dig into land, commercial, etc.

Earlier this fall another local behemoth, the owners of Century 21 Metro Alliance (all franchises are independently owned and operated, yada, yada, yada) filed for bankruptcy and also became embroiled in a minor flare-up over not paying out commission checks in a timely manner to help meet expenses.

For anyone with a home listed through RE/MAX 2000, the article said those listings will follow the agents to their new brokerage.

[tags]Phoenix real estate, real estate brokerage[/tags]

Comments

  • In 2007,4.85 transactions/agent and this is a Re/Max shop-100% system. So, how many agents were in such serious arrears on their desk fees and Re/Max dues that the ownership was driven out of business? And these agents who didn’t pay their bills get to keep their listings? Even Foxton’s was able to salvage some value from their listings.

    Oh, Merry Christmas to all. Jonathan, take the day off.

  • What’s a day off?

    I’m not sure it was a question of arrears of simply a lack of funds – $9,600 per agent if they’re at 100%, a little more if they’re on a split plan. And that’s the grand extent of it all.

    Old owners of our office used to say all the time you could make more selling real estate than owning a franchise. It’s a bit of an exaggeration but it’s not too far off.

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