2. Agenda
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Steps to be taken before starting business
Skills and knowledge required by real estate brokers
How to Start a Real Estate Agent Business in India?
Current scenario in the real estate sector
The potential in the real estate sector
Restrictions in setting up a real estate business
Progress after setting up
Trainings by Vidya Bhagwat
3. Steps to be taken before starting business
1. Build and compile a database of properties available in the
city/town.
2. Build relations and network with developers around for
future reference.
3. Get in contact with flat owners looking for tenants.
4. Look for buyers in the market.
Trainings by Vidya Bhagwat
4. Scenario 1
• A customer is looking for a flat for rent. A real estate
broker/consultant uses his database or his network to get in touch
with various flat owners according to the needs of the customer.
The consultant charges 1-2 months of rent as commission when the
transaction is successfully completed.
Activities carried out by consultant:– Home search
– Negotiation between the flat owner and the customer
– Area information
– Fix meetings
– Provide documents
Trainings by Vidya Bhagwat
– Police verification
– Legal processing
5. Scenario 2
• A customer is looking for a house or a flat to buy. The consultant uses his
database of developers who provide him with information about the
various projects or any new projects coming up around the desired
location. The consultant then compiles the information received and
provides those to the customer that suit his needs. In this process, the
broker charges 1-5% of the product value from the customer as well as the
developer after the transaction is successfully completed.
• The consultant usually signs a Memorandum of Understanding with the
developers to help them get customers.
Activities carried out by consultant:• Home search
• Negotiation
• Area information
• Provide documents
Trainings by Vidya Bhagwat
• Fix meetings
• Legal processing
• Help in getting home loan
6. Scenario 3
• A flat owner is looking to sell his flat or put it on rent. The
consultant here would help the owner to look for potential
buyers meeting the criteria set by him. He could also advertise
the house for resale. In such a case, the consultant charges 12% of the product value as commission.
Trainings by Vidya Bhagwat
7. Skills and knowledge required by real estate
brokers
1. Communication skills
2. Negotiation skills
3. Real estate knowledge
4. Home loan calculation
5. Market knowledge
6. Customer Relationship Management
7. Networking skills
8. Problem solving techniques
9. Local area knowledge
10. Legal knowledge Trainings by Vidya Bhagwat
8. How to Start a Real Estate Agent Business in
India?
• With the real estate business booming in most parts of the
country, being a real estate agent and establishing a real estate
business is a good plan for those looking for self employment
opportunities. The commercial sector, in particular, has been
experiencing a high over the last few years. However, if you are just
venturing into the industry, its best to begin by handling residential
properties.
• The residential sector too is doing just as well with cities beginning
to expand their limits and large scale projects cropping up around
the outskirts. This growth in the real estate sector has been widely
Trainings by Vidya power,
attributed to an increasing purchasingBhagwat customer friendly
banks and home financing solutions, a wide network of realtors and
favorable reforms implemented by the government.
9. Current scenario in the real estate sector
• While the real estate and property development sector in
India has been fairly fragmented up until recently, large scale
developers like Sobha, DLF, Hiranandani and Raheja have
been instrumental in bringing about a change in the industry.
• To meet the ever growing demands in the industry, they have
resorted to sourced financing and IPOs (initial public offering)
in Tier 1 cities like Mumbai, Hyderabad, Bengaluru and
Chennai. This has brought some order and organisation to the
real estate sector in Trainings by Vidya Bhagwat Tier 2 and Tier 3
these cities, although
cities and small towns are still struggling to find a more
systematic approach.
10. Current scenario in the real estate sector
• Although the market is still on struggling grounds in several
parts, the upward trend in its growth is remarkable. This
growth is also largely due to the demands of multinational
occupiers and the flood of international property
consultancies.
• When it comes to the residential sector, the need for quality
residential complexes and the opportunity to invest in real
estate owing to higher purchasing power of the middle
income group have both contributed towards its growth.
Trainings by Vidya Bhagwat
11. The potential in the real estate sector
• Step 1: Educational qualifications and licensing
• Step 2: Register your real estate business
• Step 3: Establish yourself in the industry
Trainings by Vidya Bhagwat
12. Restrictions in setting up a real estate business
• Since this is a fairly unorganised sector, you are not likely to
come across too many restrictions. Although setting up the
business and registering it could be a tedious procedure, you
are not likely to face too many restrictions once you are set
up. A notable exception may be that NRIs cannot start a real
estate business in India.
Trainings by Vidya Bhagwat
13. Progress after setting up
• While setting up your business may have taken a lot out of
you, make sure you stick to your business plan once you are all set
up and good to go. Structuring a feasible business plan for the first
year after your commencement is quite important. It’s quite easy to
get carried away with the ample prospects in the real estate
business. But keep in mind that while you are just starting up, there
are many experienced players in the field as well.
• Your business plan should include setting a realistic sales
target, ways to target your clients and making your listings available
Trainings by that takes into
in multiple forums, and a budgetVidya Bhagwat account expenses
for marketing, technological investments and your company’s
infrastructure.
14. Progress after setting up
• A lot of your success rides on choosing the right mentor and
agency to train under before you establish yourself. By the
end of your term there, you are likely to have built a clientele
to take with you to your new set up.
• As always the advice we give in these articles should be
checked and we always advise that you seek professional
advice before setting out in a new business.
Trainings by Vidya Bhagwat
15. Assignments
1. Describe the process by which you would set up your own
broking business.
2. Analyse the skills required by consultants. What other skills
do you think you need to possess in order to succeed in this
field?
3. How would you handle a customer who is dissatisfied with
his flat owner?
4. Study the work of any big real estate broking agency.
5. Make a report on How could you start your own Real Estate
Business
Trainings by Vidya Bhagwat
