Make More Money in Real Estate

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How to make more money in real estate broking when the market is undergoing a fundamental shift from unprofessional broking to a high quality professional service.

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Make More Money in Real Estate

  1. 1. Make More Money in Real Estate Broking Manan Choksi
  2. 2. 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
  3. 3. 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
  4. 4. 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 follow the foot steps of organized stock broking
  5. 5. Fundamental questions first:
  6. 6. 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.
  7. 7. What does a buyer want?  Inventory  Agent time  Guidance  Saving of his time  Quick Closure
  8. 8. 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
  9. 9. Why a broker cannot satisfy?  Getting and retaining best employees  Training  Advertisement Budget  No Surety of Income  Limited budget for Running costs  Network
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. Technology: How important?  Do you use Mobile?  Why?
  16. 16. 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.
  17. 17. 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
  18. 18. 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
  19. 19. Informal sector: thrive or survive?  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
  20. 20. Verious Real estate company enter in to indian Real estate broking Business
  21. 21. "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
  22. 22. Which Office is More Profitable? Manan Choksi
  23. 23. Which office is more profitable? More number of property options for customers OR Less number of property options for customers
  24. 24. Which office is more profitable? More number of agents OR Less number of agents
  25. 25. Which office is more profitable? Top performing agents OR Average agents
  26. 26. Which office is more profitable? More trained agents OR Untrained assistants / employees
  27. 27. Which office is more profitable? Motivated agents to run after business OR Employees who wait for business to run after them
  28. 28. Which office is more profitable? Latest technology to market their properties OR Doesn’t use technology to market their properties
  29. 29. Which office is more profitable? A large international network OR A stand alone operation
  30. 30. Which office is more profitable? A world renowned brand name OR Tries to make its own brand name
  31. 31. Which office is more profitable? Agents earn according to their commission earned OR employees earn fixed salary irrespective of commission earned
  32. 32. Which office survives longer? The fixed salary cost is lower OR The fixed running cost is higher
  33. 33. Which office is more profitable? Is in Business since long OR Just opened
  34. 34. Which office is more profitable? Running based on a proven concept globally OR A office started without any proven concept
  35. 35. Which office is more profitable? A system driven model OR A person driven model
  36. 36. RE/MAX India MAKING MORE MONEY INMAKING MORE MONEY IN BROKINGBROKING THROUGH THETHROUGH THE RE/MAXRE/MAX ADVANTAGEADVANTAGE
  37. 37. RE/MAX India Established in Denver, Colorado (USA) in 1973 by – Dave Liniger The only real estateThe only real estate broking company stillbroking company still owned and operatedowned and operated by the originalby the original promoterpromoter
  38. 38. RE/MAX India - Real Estate Maximums
  39. 39. RE/MAX India RE/MAX did houseRE/MAX did house sales of more thansales of more than $500 bn.$500 bn. If RE/MAX was aIf RE/MAX was a company, we wouldcompany, we would be bigger thanbe bigger than WALMARTWALMART
  40. 40. RE/MAX India GLOBAL RECOGNITIONGLOBAL RECOGNITION
  41. 41. RE/MAX India BRAND NAME RECOGNITIONBRAND NAME RECOGNITION RE/MAX is #1 The most recognized logo in real estate 43
  42. 42. RE/MAX India THE ICON IN THE INDUSTRYTHE ICON IN THE INDUSTRY 44
  43. 43. RE/MAX India TRUST & ASSURANCETRUST & ASSURANCE
  44. 44. RE/MAX India A business model workingA business model working successfully in more thansuccessfully in more than 7000 offices and created7000 offices and created millions of entrepreneursmillions of entrepreneurs worldwideworldwide
  45. 45. RE/MAX India Only real estateOnly real estate company tocompany to feature in the bookfeature in the book “50 Companies“50 Companies That Changed theThat Changed the World” by HowardWorld” by Howard RothmanRothman
  46. 46. RE/MAX India World’s largest Real Estate brokerage franchising network…!
  47. 47. RE/MAX India ABILITY TO DO BUSINESSABILITY TO DO BUSINESS IN MORE THAN 88IN MORE THAN 88 COUNTRIESCOUNTRIES
  48. 48. RE/MAX India
  49. 49. RE/MAX India Network... 88 Countries 7000+ Offices 100,000+ Agents 20,00,000+ Transactions
  50. 50. RE/MAX India RE/MAXRE/MAX
  51. 51. RE/MAX India Network… 23 Regions 135+ Offices 500+ Agents 5 Transactions/day
  52. 52. RE/MAX India EDUCATION & TRAININGEDUCATION & TRAINING
  53. 53. RE/MAX India More than 25,000 hours of training in India done
  54. 54. RE/MAX India CONFERENCES & CONVENTIONSCONFERENCES & CONVENTIONS
  55. 55. RE/MAX India TECHNOLOGYTECHNOLOGY
  56. 56. RE/MAX India WWW.REMAX.COMWWW.REMAX.COM 1 Million Unique Visitors per month World’s largest visited real estate website
  57. 57. RE/MAX India REFFERALSREFFERALS  Agent to Agent Referrals  Negotiate your own referral rate  Send and receive referrals of buyers and sellers
  58. 58. RE/MAX India TOOLS TO GROW YOURTOOLS TO GROW YOUR BUSINESSBUSINESS
  59. 59. RE/MAX India ACHIEVEMENTSACHIEVEMENTS RE/MAX Bangalore Franchise does landmark transaction
  60. 60. RE/MAX India ACHIEVEMENTSACHIEVEMENTS  Lodha World One
  61. 61. RE/MAX India ACHIEVEMENTSACHIEVEMENTS  Godrej township
  62. 62. RE/MAX India To Know More and Be a Part of a Revolution Book Your Appointment

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