T
he real estate brokerage world has been quiet on acquisitions since the pandemic, but a recent deal in Wisconsin by Twin Cities-based Re/Max Results could signal a new wave of consolidation. Small firms are looking for ways out after last year's National Association of Realtors settlement changed the commission structure. The settlement has created uncertainty and challenges in the industry.

    Re/Max Results has made its first acquisition in several years, buying Re/Max Affiliates with three offices and nearly 30 agents in the Eau Claire area. This move expands Results' presence in Wisconsin, where it already has several offices. CEO Brenda Tushaus said the deal is a sign that the company is back in "full-swing acquisition mode" after having to slow down due to budget constraints.

    The growth of Re/Max Results comes at a time when the real estate industry is experiencing changes. Home sales have plateaued, and new national brokerages like Compass and eXp Realty are competing for high-producing agents. These companies offer contracts that allow agents to pay a smaller portion of their commission than traditional models.

    Analysts expect a new round of consolidation as home sales slow and brokerage owners look for an exit strategy. Steve Murray, founder of Real Trends and partner at RTC Consulting, said local companies like Re/Max Results are more likely to buy other brokerages. He expects "a lot more" acquisitions in the next six months.

    Re/Max Affiliates' former owners, Kristy Tauger, Bob Ritsch, Krag Blomberg, and Marty Tauger, will remain as sales executives or managing broker after the sale. They cited age as a motivation for selling, saying they wanted to "coast to the finish line" and let someone else take the reins.

    The acquisition provides Re/Max Affiliates' agents with access to advanced marketing tools, training, technology, and a larger referral network. Tushaus said the deal is part of Results' "chunky growth," which has expanded the company's presence in Minnesota and Wisconsin through acquiring other brokerages.