Make More Money in RealEstate BrokingManan Choksi
Present Market statistics: Number of brokers in Ahmedabad: Approx. 10,000 active. Number of deals : 10,000-12,000 registrations a month Estimate of primary deals being done by brokers: 50%- 60% (increasing as number deals reduce) 20% of the new projects of India are in Gujarat Investors from all India have invested in Gujarat
Next 10 years? Outdoor Media will continue to loose its effectiveness Resale properties will have a great share of transaction in the market Buyers will have a higher Dependence on agents as plethora of options emerge Technology will play a pivotal role in broking Organized broking is the future
Next 10 years? Foreign investors investing in India and Indians investing outside the country will increase Proportion of White money in real estate transactions will increase Real Estate broking will followthe foot steps of organizedstock broking
What is broking? Broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed.
What does a buyer want? Inventory Agent time Guidance Saving of his time Quick Closure
What does a seller 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
Why a broker cannot satisfy? Getting and retaining best employees Training Advertisement Budget No Surety of Income Limited budget for Running costs Network
Why employees don’t stay? 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
How to increase deals? Give more options to buyers Employ more agents to serve the customer better Use technology to increase the viewers of the property
Get access to HNI/NRI clients? Get high quality agents who are experienced qualified and who give better service Get properties which they would prefer: 100% white for NRI Give a good ROI for HNI Train employees regularly to improve your quality of service Use technology extensively
Attract and retain employees? Number of transactions is the key to improving income and motivation of employee Create a brand value of your office Fire low performing employees: key to retain top performing people Continuously recruit
Network? Join a network to share inventory and leads Networks help wide geographical presence Can access various segments of buyers and sellers A network gains more trust than an individual broker
Technology: How important? Do you use Mobile? Why?
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. Cost of petrol increases so 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? Brokers need to: make quality leaflets to give as handouts to customers Promptly respond over email If they work in network: Technology is critical for sharing information Smartphone challenge: using apps to search properties
Informal sector: thrive orsurvive? Small Stock brokers: on brink of extinction Starts with reluctance to change Later results in reduction in market share In 5 years substantial shift will be seen from the unorganized broking sector to organized broking Then it is too late to change
Verious Real estate companyenter in to indian Real estatebroking Business
"It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change." — Charles Darwin