Start and Grow Your Real Estate Broking Business
-
Upload
manaan-choksi -
Category
Real Estate
-
view
2.846 -
download
2
Transcript of 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
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
History of the Industry
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
Why you should start a business of real estate broking?
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.
What is a real estate broking business?
RE/MAX Mumbai Gujarat Maharashtra
Inventory Agent time Guidance Saving of his time Quick Closure
What does a buyer want?
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
What does a seller want?
RE/MAX Mumbai Gujarat Maharashtra
Getting and retaining best employees Training Advertisement Budget No Surety of Income Limited budget for Running costs Network
Why a broker cannot satisfy?
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
Why employees don’t stay?
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
How to increase deals?
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
Get access to HNI/NRI clients?
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.
Technology: How important?
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
Technology: How important?
RE/MAX Mumbai Gujarat Maharashtra
Inventory
Personal Time
Trust
Technology
Brand
Network
Referral
What drives a real estate broking business?
The future of Real Estate broking
RE/MAX Mumbai Gujarat Maharashtra
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
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.
Next 10 years?
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
MLS
RE/MAX Mumbai Gujarat Maharashtra
◦Builders regulation ◦Brokers regulation: Licensing Exam Continuous education
◦Enforcement of brokerage contract
Regulation & Licensing
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
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
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
Which business is more profitable?
RE/MAX Mumbai Gujarat Maharashtra
A well trained agent OR
Untrained assistants / employees
Which business is more profitable?
RE/MAX Mumbai Gujarat Maharashtra
Latest technology to market their properties
OR Doesn’t use technology to
market their properties
Which business is more profitable?
RE/MAX Mumbai Gujarat Maharashtra
A large international network
ORA stand alone operation
Which business is more profitable?
RE/MAX Mumbai Gujarat Maharashtra
With lower running costOR
When running cost is high
Which business survives longer?
RE/MAX Mumbai Gujarat Maharashtra
Is in Business since long OR
Just opened
Which business is more profitable?
RE/MAX Mumbai Gujarat Maharashtra
Running based on a proven concept globally
ORA office started without any proven
concept
Which business is more profitable?
RE/MAX Mumbai Gujarat Maharashtra
A system driven modelOR
A person driven model
Which business is more profitable?
Verious Real estate company enter in to indian Real estate broking Business
Giving your business the RE/MAX leverage
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 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 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 #1The most recognized logo in real estate
39
Brand Name Recognition
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 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
RE/MAX Mumbai Gujarat Maharashtra
Broker Office
RE/MAX Mumbai Gujarat Maharashtra
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%)
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 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.
The Business Model
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
The Business Model
RE/MAX Mumbai Gujarat Maharashtra
Low running costsPeople in India are costs : Remember 80:20 rule
The Business Model
RE/MAX Mumbai Gujarat Maharashtra
Ability to scale up business
1 person : 10 transactions10 persons : 250 transactions
The Business Model
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
The Business Model
RE/MAX Mumbai Gujarat Maharashtra
Thinking beyond individual transactions
What is your revenue in your absenceAre you doing a job or profession or a
business ?
The Business Model
RE/MAX Mumbai Gujarat Maharashtra
In the business for yourself, not by yourself
RE/MAX InternationalRE/MAX IndiaRE/MAX PuneFellow Broker Offices
The Business Model
RE/MAX Mumbai Gujarat Maharashtra
You own the business, but the network generates the leads
The Business Model
RE/MAX Mumbai Gujarat Maharashtra
Agents require less monitoring since motivation levels are higher
More commission = more motivation
The Business Model
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
The Business Model
RE/MAX Mumbai Gujarat Maharashtra
Value of real estate space across the 7000+ offices
In India: Across 40 cities and 130 franchised offices
The Brand
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.
The Brand
RE/MAX Mumbai Gujarat Maharashtra
Accountability of the services being offered
5 level model
The Brand
RE/MAX Mumbai Gujarat Maharashtra
Quality Assurance at all levels to maintain service standards
AwardsRecognition
The Brand
RE/MAX Mumbai Gujarat Maharashtra
Broker Owner Training for helping you maximize your office potential
Constant and continuous updatesRE/MAX University
Training
RE/MAX Mumbai Gujarat Maharashtra
Broker Associate Training to empower them to do more transactions
Sales and MarketingLegal AspectsTechnologyRE/MAX Model
Training
RE/MAX Mumbai Gujarat Maharashtra
More than 25,000 hours of training in India done
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
Technology
RE/MAX Mumbai Gujarat Maharashtra
www.remax.com
1 Million Unique Visitors per month
World’s largest visited real estate website
RE/MAX Mumbai Gujarat Maharashtra
Tools To Grow Your Business
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
Technology
RE/MAX Mumbai Gujarat Maharashtra
Ability to use Design Center – a powerful tool to design your creative content
Brochures, fliers, promotion collaterals
Technology
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
Network
RE/MAX Mumbai Gujarat Maharashtra
The leader and the change-maker and who fights the market
OR
The spectator
Who gains more?
RE/MAX Mumbai Gujarat Maharashtra
National level awards Regional level awards
Recognition
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
Conferences
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
Investment
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
Return on Investment
RE/MAX Mumbai Gujarat Maharashtra
You do the business but the network generates the leads
Developer CouncilCorporate Council
Get a fish or learn fishing
Leads
RE/MAX Mumbai Gujarat Maharashtra
2% of the transaction revenue collected goes back into the advertising fund
National Advertising Fund Regional Advertising Fund
Advertisement
RE/MAX Mumbai Gujarat Maharashtra
Events act as a way of generating BATraining acts as a way of generating BA
BA Recruitment and Training Council
Recruitment Support
RE/MAX Mumbai Gujarat Maharashtra
Credit cards McDonalds Internet- Ecommerce
Is it different here?
RE/MAX Mumbai Gujarat Maharashtra
Joint recruitment activities Joint branding activities Joint selling activities Joint buyer representation
The possibilities are endless if we collaborate
Co-operative Offices
RE/MAX Mumbai Gujarat Maharashtra
RE/MAX : It’s all you need !!!
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
How to join RE/MAX ?
RE/MAX Mumbai Gujarat Maharashtra
“The time to invest in RE/MAX is now”
Thank you…