Start and Grow Your Real Estate Broking Business

Start and Grow your Real Estate Broking Business

RE/MAX Mumbai Gujarat Maharashtra

History of Real Estate Broking Why you should start a business of real

estate broking? What is a real estate broking business? What are the new trends in this business? Future of real estate broking business What makes a profitable business? The RE/MAX Concept.

Agenda

People dealt with real estate themselves “Dalal Maaf” Hardship to the end user Real estate transactions were the realm of

the rich Number of transactions much less than

today One property 10 broker trying to sell

History of the Industry


Government has no regulation No useful implementation of technology No training / education in the industry Highly localized No Goodwill creation of brokers Limited Networks

History of the Industry



Less Inventory

Less Leads

Matching issues

Budget to Advertise

No training on real estate broking

Staff retention

Current Challenges in Real Estate Broking


Staff monitoring

Staff motivation

Recognition

Restricted network

No trust

Unorganized Market


60% of a persons Net worth is in Real estate

Number of brokers in Pune : Approx. 10,000 active.

Number of deals : 800 registrations a day

Estimate of primary deals being done by brokers: 50%- 60%

Investors from all India have invested in Pune and Western Maharashtra

Why you should start a business of real estate broking?


Pune is growing from being a traditional auto engineering hub to a multi-industrial hub.

With Infosys, IBM, Tech Mahindra all setting up huge campuses in Pune, real estate is going to be in demand.

IT crowd brings a lot of liquid capital in the market to invest

Migration of people to cities is set to grow: 70% of India still stays in villages. Tier-2 cities like Pune, Ahmedabad set to see more growth.


Broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed.

What is a real estate broking business?


Inventory Agent time Guidance Saving of his time Quick Closure

What does a buyer want?


More genuine buyers Get best price for his property Liquidate at the earliest Agent’s time Guidance of valuation Relevant buyers consider his property

What does a seller want?


Getting and retaining best employees Training Advertisement Budget No Surety of Income Limited budget for Running costs Network

Why a broker cannot satisfy?


Employer gets the lion’s share of income Boss gives little value addition to each deal once the employee becomes experienced Lack of independence Lack of Personal Identity Limited office growth

Why employees don’t stay?


Give more options to buyers Serves the customer better by giving

adequate time Have knowledge what the client

requires Use technology to increase the viewers

of the property

How to increase deals?


Get relevant training and provide good service.

Get properties which they would prefer: ◦ 100% white for NRI ◦ Give a good ROI for HNI

Provide a experience to client to gain trust Use technology extensively

Get access to HNI/NRI clients?


Example of A listing Property with an excellent view over looking

a river, sea and a hill. Very upmarket locality. 3 bed room, fully furnished, good wood

work. Parking for 2 cars.

Technology: How important?


Buyers require more information e.g.: floor plan, elevation photos, views, amenities etc.

Buyers prefer to see properties over internet and short list rather than visit each and every option

Buyers don’t have time Buyers can be outside city or even country. Buyers want to share information with

others

Technology: How important?


Inventory

Personal Time

Trust

Technology

Brand

Network

Referral

What drives a real estate broking business?

The future of Real Estate broking


What are the new trends in this business?

• Role of Media

• Resale properties

• Dependence on agents as plethora of options emerge

• Technology

• Foreign investments : both ways

• White money

• Real Estate broking will follow the foot steps of organized stock broking


• Earlier stock broking was dominated by Mumbai based firms

• Then regional stock exchanges came into existence

• NSE Came in to operation : • Technology • Risk Management • Franchising • Research

• Customer retention becomes the only important factor in determining your success.

Next 10 years?


MLS : 1883 in USA

In the late 1800s, real estate brokers regularly gathered at the offices of their local associations to share information about properties they were trying to sell. They agreed to compensate other brokers who helped sell those properties, and the first MLS was born, based on a fundamental principle that's unique to organized real estate: Help me sell my inventory and I'll help you sell yours

MLS


◦Builders regulation ◦Brokers regulation: Licensing Exam Continuous education

◦Enforcement of brokerage contract

Regulation & Licensing


• Past prices of same property• Past deals in vicinity / same class • Confidence in broker that they have not

kept a margin

Transparency

Blue Ocean / Red Ocean• Blue Ocean where all companies are

profitable and market is calm• Red Ocean is where all are bleeding and

companies are closing / new are entering


What makes a profitable real estate

broking business?


More number of property options for customers

OR Less number of property

options for customers

Which business is more profitable?


A well trained agent OR

Untrained assistants / employees



Latest technology to market their properties

OR Doesn’t use technology to

market their properties



A large international network

ORA stand alone operation



With lower running costOR

When running cost is high

Which business survives longer?


Is in Business since long OR

Just opened



Running based on a proven concept globally

ORA office started without any proven

concept



A system driven modelOR

A person driven model


Verious Real estate company enter in to indian Real estate broking Business

Giving your business the RE/MAX leverage


Established in Denver, Colorado (USA) in 1973 by –

Dave

Liniger

The only international real estate broking

company still owned and operated by the

original promoter


- Real Estate Maximums

RE/MAX is the most successful network in the history

of the real estate industry

RE/MAX is the most successful network in the history

of the real estate industry


RE/MAX did house sales of more than

$400 bn.

If RE/MAX was a company, we would

be bigger than WALMART


RE/MAX is #1The most recognized logo in real estate

39

Brand Name Recognition


40

The ICON in the INDUSTRY

http://www2.coca-cola.com/index.html


Only real estate company to feature

in the book “50 Companies That

Changed the World” by Howard Rothman


World’s largest Real Estate brokerage franchising network…!


Traditional Scenario in Real Estate Industry

BOSS

AGENT

Max. Commission by Boss

Agents appointed on Salary + Comm.

More time of monitoring agent

Low motivation to agents

Training & Retention of

agents

No recognition & growth

Pyramid


BOSS

AGENT

More Inventory - More Sales - More

Profit

Agents work as an entrepreneur

No monitoring of Agent required

Trained Agents with high retention rate

Higher satisfaction & motivation

In RE/MAX...

Pyramid


RE/MAX Hierarchy

RE/MAX

RE/MAX India

RE/MAX Pune

Broker Office

Broker Associ

ate

Broker Associ

ate

Broker Associ

ate

Broker Office

Broker Associ

ate

Broker Associ

ate

Broker Associ

ate


Broker Office


Earnings RE/MAX follows the MAXIMUM Commission Model for the Agents…

Helps in Easy Recruitment/ RetentionCommissi

on(100%)

RE/MAX(10%)

Broker Owner(45 – 10%)

Broker Associat

e(45 – 80%)


How does a Broker Owner Earn???

1 AGENT

Earnings

11 AGENTS

Office Earnings


Role Of Broker Owner:

Recruitment• Profiling and Recruitment of Agents

on Regular basis

Management• Guiding, Motivating and Mentoring

Agents to perform better

Real Estate Services• Ensuring Customer Satisfaction by

providing the best services

Promotion• Promotion of RE/MAX, his Office, its

Agents by promoting the Listed Properties


Role Of Broker Associate

Inspection• Inspect the properties and noting its

every detail before listing it

Networking• Increasing network of Agents and

clients thus increasing Referral Customers

Listing Properties• Listing Maximum Properties on the

RE/MAX Network thus helping is faster transactions

Sell the Property• Providing customers with the RE/MAX

Experience thus enhancing their Satisfaction


RE/MAX

Residential

Commercial

Land

Re-development

Facilities Management

Properties Management

Foreclosure

Services a RE/MAX office can provide:


RE/MAX

Legal Services

Home Loans

Vaastu

Interiors

Relocation Services

Escrow Services

Consultation and

Advisory

Value Added Services


Comparative Study…

Own Business

High Running Costs

Long gestation period

Manpower Cost

Limited Market Presence

Network

Advertising/ Branding

Limited Reach


Each Broker Owner has the Independence to –

Decide who becomes an agent

Decide the number of Broker Agents

Charge brokerage as desired

Decide remuneration model for Broker Associate

Provide any or all of the Permitted Property related services (VAS)

Engage into tie-ups at franchisee level.

Enter into Exclusivity contracts.

Independence…


Sharing of office expenses

Apollo Hospital Model

Central Mall Model: Small shopkeepers share revenue with Central Mall and make a big successful mall.

The Business Model


Entrepreneurship at all levels: WHY ?? Every property is unique Relationship building is crucial Motivation at grass root level to give

excellent customer service

The Business Model


Low running costsPeople in India are costs : Remember 80:20 rule

The Business Model


Ability to scale up business

1 person : 10 transactions10 persons : 250 transactions

The Business Model


What is a sustainable business ? Process Driven Survives the cyclical nature of the industry Not person dependent Has a goodwill in market

The Business Model


Thinking beyond individual transactions

What is your revenue in your absenceAre you doing a job or profession or a

business ?

The Business Model


In the business for yourself, not by yourself

RE/MAX InternationalRE/MAX IndiaRE/MAX PuneFellow Broker Offices

The Business Model


You own the business, but the network generates the leads

The Business Model


Agents require less monitoring since motivation levels are higher

More commission = more motivation

The Business Model


Office gets sharing from every transaction of agent but agent retains maximum share of the commission

Office goals have a possibility of being achieved

Transaction doing ability increases

The Business Model


Value of real estate space across the 7000+ offices

In India: Across 40 cities and 130 franchised offices

The Brand


Amount being spent on promotion by the regional office, broker office and broker agents to promote their respective business

> Than the rest of competitors combined.

The Brand


Accountability of the services being offered

5 level model

The Brand


Quality Assurance at all levels to maintain service standards

AwardsRecognition

The Brand


Broker Owner Training for helping you maximize your office potential

Constant and continuous updatesRE/MAX University

Training


Broker Associate Training to empower them to do more transactions

Sales and MarketingLegal AspectsTechnologyRE/MAX Model

Training


More than 25,000 hours of training in India done



Track your office growth in terms of various performance parameters like agents, listings, contacts, meetings

Reports

Technology


www.remax.com

1 Million Unique Visitors per month

World’s largest visited real estate website


Tools To Grow Your Business


Search optimized listings for each agent to work on

The more you input – more results you get Google gets an update on a daily basis on all

listings

Technology


Ability to use Design Center – a powerful tool to design your creative content

Brochures, fliers, promotion collaterals

Technology



Network...

88 Countries 7000+

Offices 100,000+ Agents 12,00,000+

Transactions


Network…

23 Regions 135+

Offices 500+ Agents


Opportunities like Great India Property Show in Canada

Network


The leader and the change-maker and who fights the market

OR

The spectator

Who gains more?


National level awards Regional level awards

Recognition


Broker Owner meet at Regional level Broker Owner meet at National level RE/MAX realty rendezvous (RRR) – Annual

convention in December

Conferences


License to use the brand License to use the network License to use the Listing Software License to use Mainstreet (training) Participate in Annual conventions Participate in trainings and use RE/MAX University Develop abilities to recruit and retain best agents

It’s an investment on a business you are building for your retirement

Investment


It is a Ferrari – You either drive it at 200 kmph or you drive it at 10 kmph

A Ferrari can also meet an accident if it is a bad driver. It does not mean the Ferrari is bad

Return on Investment


You do the business but the network generates the leads

Developer CouncilCorporate Council

Get a fish or learn fishing

Leads


2% of the transaction revenue collected goes back into the advertising fund

National Advertising Fund Regional Advertising Fund

Advertisement


Events act as a way of generating BATraining acts as a way of generating BA

BA Recruitment and Training Council

Recruitment Support


Credit cards McDonalds Internet- Ecommerce

Is it different here?


Joint recruitment activities Joint branding activities Joint selling activities Joint buyer representation

The possibilities are endless if we collaborate

Co-operative Offices


RE/MAX : It’s all you need !!!


More Agents

More Listings

More Sales

More Referral's More Leads

More Repeated Customers

More Brand Awareness

More Profit

RE/MAX Philosophy…


If you plan to join RE/MAX as Broker Office or Broker Associate:

Please take an appointment with Saloni Mehta on registration desk or call on 9167213348

How to join RE/MAX ?


“The time to invest in RE/MAX is now”

Thank you…