Start and Grow Your Real Estate Broking Business
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Start and Grow Your Real Estate Broking Business

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  • One stop shop for maximum listings at one place. Hub for agent to learn from other successful agents and use cutting edge real esta

Start and Grow Your Real Estate Broking Business Start and Grow Your Real Estate Broking Business Presentation Transcript

  • 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.
  •  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 RE/MAX Mumbai Gujarat Maharashtra
  •  Government has no regulation  No useful implementation of technology  No training / education in the industry  Highly localized  No Goodwill creation of brokers  Limited Networks RE/MAX Mumbai Gujarat Maharashtra
  • RE/MAX Mumbai Gujarat Maharashtra Less Inventory Less Leads Matching issues Budget to Advertise No training on real estate broking Staff retention Current Challenges in Real Estate Broking
  • RE/MAX Mumbai Gujarat Maharashtra Staff monitoring Staff motivation Recognition Restricted network No trust Unorganized Market
  • RE/MAX Mumbai Gujarat Maharashtra  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
  • RE/MAX Mumbai Gujarat Maharashtra  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.
  • RE/MAX Mumbai Gujarat Maharashtra  Broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed.
  • RE/MAX Mumbai Gujarat Maharashtra  Inventory  Agent time  Guidance  Saving of his time  Quick Closure
  • RE/MAX Mumbai Gujarat Maharashtra  More genuine buyers  Get best price for his property  Liquidate at the earliest  Agent’s time  Guidance of valuation  Relevant buyers consider his property
  • RE/MAX Mumbai Gujarat Maharashtra  Getting and retaining best employees  Training  Advertisement Budget  No Surety of Income  Limited budget for Running costs  Network
  • RE/MAX Mumbai Gujarat Maharashtra  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
  • RE/MAX Mumbai Gujarat Maharashtra  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
  • RE/MAX Mumbai Gujarat Maharashtra  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
  • RE/MAX Mumbai Gujarat Maharashtra 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.
  • RE/MAX Mumbai Gujarat Maharashtra  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
  • RE/MAX Mumbai Gujarat Maharashtra Inventory Personal Time Trust Technology Brand Network Referral
  • RE/MAX Mumbai Gujarat Maharashtra • 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
  • RE/MAX Mumbai Gujarat Maharashtra • 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.
  • RE/MAX Mumbai Gujarat Maharashtra  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
  • RE/MAX Mumbai Gujarat Maharashtra ◦ Builders regulation ◦ Brokers regulation:  Licensing  Exam  Continuous education ◦ Enforcement of brokerage contract
  • RE/MAX Mumbai Gujarat Maharashtra • Past prices of same property • Past deals in vicinity / same class • Confidence in broker that they have not kept a margin 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
  • RE/MAX Mumbai Gujarat Maharashtra What makes a profitable real estate broking business?
  • RE/MAX Mumbai Gujarat Maharashtra More number of property options for customers OR Less number of property options for customers
  • RE/MAX Mumbai Gujarat Maharashtra A well trained agent OR Untrained assistants / employees
  • RE/MAX Mumbai Gujarat Maharashtra Latest technology to market their properties OR Doesn’t use technology to market their properties
  • RE/MAX Mumbai Gujarat Maharashtra A large international network OR A stand alone operation
  • RE/MAX Mumbai Gujarat Maharashtra With lower running cost OR When running cost is high
  • RE/MAX Mumbai Gujarat Maharashtra Is in Business since long OR Just opened
  • RE/MAX Mumbai Gujarat Maharashtra Running based on a proven concept globally OR A office started without any proven concept
  • RE/MAX Mumbai Gujarat Maharashtra A system driven model OR A person driven model
  • Verious Real estate company enter in to indian Real estate broking Business
  • RE/MAX Mumbai Gujarat Maharashtra 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
  • RE/MAX Mumbai Gujarat Maharashtra - Real Estate Maximums
  • RE/MAX Mumbai Gujarat Maharashtra RE/MAX did house sales of more than $400 bn. If RE/MAX was a company, we would be bigger than WALMART
  • RE/MAX Mumbai Gujarat Maharashtra RE/MAX is #1 The most recognized logo in real estate 39
  • RE/MAX Mumbai Gujarat Maharashtra 40
  • RE/MAX Mumbai Gujarat Maharashtra Only real estate company to feature in the book “50 Companies That Changed the World” by Howard Rothman
  • RE/MAX Mumbai Gujarat Maharashtra World’s largest Real Estate brokerage franchising network…!
  • RE/MAX Mumbai Gujarat Maharashtra 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
  • RE/MAX Mumbai Gujarat Maharashtra 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 Mumbai Gujarat Maharashtra RE/MAX RE/MAX India RE/MAX Pune Broker Office Broker Associate Broker Associate Broker Associate Broker Office Broker Associate Broker Associate Broker Associate
  • RE/MAX Mumbai Gujarat Maharashtra One Stop shop serving all Real Estate requirements of an individual A hub for an agent to grow more and earn more through the system Point for access for the Customers for utilizing RE/MAX’s services
  • RE/MAX Mumbai Gujarat Maharashtra RE/MAX follows the MAXIMUM Commission Model for the Agents… Helps in Easy Recruitment/ Retention Commissi on (100%) RE/MAX (10%) Broker Owner (45 – 10%) Broker Associat e (45 – 80%)
  • RE/MAX Mumbai Gujarat Maharashtra How does a Broker Owner Earn??? 1 AGENT Earnings 11 AGENTS Office Earnings
  • RE/MAX Mumbai Gujarat Maharashtra 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
  • RE/MAX Mumbai Gujarat Maharashtra 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 Mumbai Gujarat Maharashtra RE/MAX Residential Commercial Land Re- development Facilities Management Properties Management Foreclosure Services a RE/MAX office can provide:
  • RE/MAX Mumbai Gujarat Maharashtra RE/MAX Legal Services Home Loans Vaastu Interiors Relocation Services Escrow Services Consultation and Advisory Value Added Services
  • RE/MAX Mumbai Gujarat Maharashtra Comparative Study… Own Business High Running Costs Long gestation period Manpower Cost Limited Market Presence Network Advertising/ Branding Limited Reach RE/MAX Nominal Affiliation Fee Fixed Monthly Desk Fees Training at all levels Best Brand in Industry Highest Market Presence Largest Network Higher Advertising Unlimited Reach
  • RE/MAX Mumbai Gujarat Maharashtra 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…
  • RE/MAX Mumbai Gujarat Maharashtra Sharing of office expenses Apollo Hospital Model Central Mall Model: Small shopkeepers share revenue with Central Mall and make a big successful mall.
  • RE/MAX Mumbai Gujarat Maharashtra Entrepreneurship at all levels: WHY ??  Every property is unique  Relationship building is crucial  Motivation at grass root level to give excellent customer service
  • RE/MAX Mumbai Gujarat Maharashtra Low running costs People in India are costs : Remember 80:20 rule
  • RE/MAX Mumbai Gujarat Maharashtra Ability to scale up business 1 person : 10 transactions 10 persons : 250 transactions
  • RE/MAX Mumbai Gujarat Maharashtra What is a sustainable business ?  Process Driven  Survives the cyclical nature of the industry  Not person dependent  Has a goodwill in market
  • RE/MAX Mumbai Gujarat Maharashtra Thinking beyond individual transactions What is your revenue in your absence Are you doing a job or profession or a business ?
  • RE/MAX Mumbai Gujarat Maharashtra In the business for yourself, not by yourself RE/MAX International RE/MAX India RE/MAX Pune Fellow Broker Offices
  • RE/MAX Mumbai Gujarat Maharashtra You own the business, but the network generates the leads
  • RE/MAX Mumbai Gujarat Maharashtra Agents require less monitoring since motivation levels are higher More commission = more motivation
  • RE/MAX Mumbai Gujarat Maharashtra 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
  • RE/MAX Mumbai Gujarat Maharashtra Value of real estate space across the 7000+ offices In India: Across 40 cities and 130 franchised offices
  • RE/MAX Mumbai Gujarat Maharashtra 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.
  • RE/MAX Mumbai Gujarat Maharashtra Accountability of the services being offered 5 level model
  • RE/MAX Mumbai Gujarat Maharashtra Quality Assurance at all levels to maintain service standards Awards Recognition
  • RE/MAX Mumbai Gujarat Maharashtra Broker Owner Training for helping you maximize your office potential Constant and continuous updates RE/MAX University
  • RE/MAX Mumbai Gujarat Maharashtra Broker Associate Training to empower them to do more transactions Sales and Marketing Legal Aspects Technology RE/MAX Model
  • RE/MAX Mumbai Gujarat Maharashtra
  • RE/MAX Mumbai Gujarat Maharashtra
  • RE/MAX Mumbai Gujarat Maharashtra Track your office growth in terms of various performance parameters like agents, listings, contacts, meetings Reports
  • RE/MAX Mumbai Gujarat Maharashtra 1 Million Unique Visitors per month World’s largest visited real estate website
  • RE/MAX Mumbai Gujarat Maharashtra
  • RE/MAX Mumbai Gujarat Maharashtra 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
  • RE/MAX Mumbai Gujarat Maharashtra Ability to use Design Center – a powerful tool to design your creative content Brochures, fliers, promotion collaterals
  • RE/MAX Mumbai Gujarat Maharashtra
  • RE/MAX Mumbai Gujarat Maharashtra Network... 88 Countries 7000+ Offices 100,000+ Agents 12,00,000+ Transactions
  • RE/MAX Mumbai Gujarat Maharashtra Network… 23 Regions 135+ Offices 500+ Agents
  • RE/MAX Mumbai Gujarat Maharashtra Opportunities like Great India Property Show in Canada
  • RE/MAX Mumbai Gujarat Maharashtra  The leader and the change-maker and who fights the market OR  The spectator
  • RE/MAX Mumbai Gujarat Maharashtra  National level awards  Regional level awards
  • RE/MAX Mumbai Gujarat Maharashtra  Broker Owner meet at Regional level  Broker Owner meet at National level  RE/MAX realty rendezvous (RRR) – Annual convention in December
  • RE/MAX Mumbai Gujarat Maharashtra  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
  • RE/MAX Mumbai Gujarat Maharashtra 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
  • RE/MAX Mumbai Gujarat Maharashtra You do the business but the network generates the leads Developer Council Corporate Council Get a fish or learn fishing
  • RE/MAX Mumbai Gujarat Maharashtra 2% of the transaction revenue collected goes back into the advertising fund National Advertising Fund Regional Advertising Fund
  • RE/MAX Mumbai Gujarat Maharashtra Events act as a way of generating BA Training acts as a way of generating BA BA Recruitment and Training Council
  • RE/MAX Mumbai Gujarat Maharashtra  Credit cards  McDonalds  Internet- Ecommerce
  • RE/MAX Mumbai Gujarat Maharashtra  Joint recruitment activities  Joint branding activities  Joint selling activities  Joint buyer representation The possibilities are endless if we collaborate
  • RE/MAX Mumbai Gujarat Maharashtra
  • RE/MAX Mumbai Gujarat Maharashtra More Agents More Listings More Sales More Referral's More Leads More Repeated Customers More Brand Awareness More Profit RE/MAX Philosophy…
  • RE/MAX Mumbai Gujarat Maharashtra 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
  • RE/MAX Mumbai Gujarat Maharashtra “The time to invest in RE/MAX is now” Thank you…