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.

 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

 Government has no regulation
 No useful implementation of technology
 No training / education in the industry
 Highly localized
 No Goodwill creation of brokers
 Limited Networks

Less Inventory
Less Leads
Matching issues
Budget to Advertise
No training on real estate broking
Staff retention
Current Challenges in Real Estate Broking

Staff monitoring
Staff motivation
Recognition
Restricted network
No trust
Unorganized Market

 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

 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.

 Broker is a party that arranges
transactions between a buyer and a
seller, and gets a commission when
the deal is executed.

 Inventory
 Agent time
 Guidance
 Saving of his time
 Quick Closure

 More genuine buyers
 Get best price for his property
 Liquidate at the earliest
 Agent’s time
 Guidance of valuation
 Relevant buyers consider his property

 Getting and retaining best employees
 Training
 Advertisement Budget
 No Surety of Income
 Limited budget for Running costs
 Network

 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

 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

 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

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.

 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

Inventory
Personal Time
Trust
Technology
Brand
Network
Referral

• 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

• 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.

 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

◦ Builders regulation
◦ Brokers regulation:
 Licensing
 Exam
 Continuous education
◦ Enforcement of brokerage contract

• 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

What makes a profitable
real estate broking
business?

More number of property
options for customers
OR
Less number of property
options for customers

A well trained agent
OR
Untrained assistants /
employees

Latest technology to market
their properties
OR
Doesn’t use technology to
market their properties

A large international network
OR
A stand alone operation

With lower running cost
OR
When running cost is high

Is in Business since long
OR
Just opened

Running based on a proven concept
globally
OR
A office started without any proven
concept

A system driven model
OR
A person driven model

Verious Real estate company
enter in to indian Real estate
broking Business

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

- Real Estate Maximums

RE/MAX did house
sales of more than
$400 bn.
If RE/MAX was a
company, we would be
bigger than
WALMART

RE/MAX is #1
The most recognized logo in real estate
39

RE/MAX Mumbai Gujarat Maharashtra 40

Only real estate company
to feature in the book
“50 Companies That
Changed the World” by
Howard Rothman

World’s largest Real Estate brokerage franchising
network…!

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

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
RE/MAX
India
RE/MAX
Pune
Broker Office
Broker
Associate
Broker
Associate
Broker
Associate
Broker Office
Broker
Associate
Broker
Associate
Broker
Associate

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 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%)

How does a Broker Owner Earn???
1 AGENT
Earnings
11 AGENTS
Office Earnings

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

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
Residential
Commercial
Land
Re-
development
Facilities
Management
Properties
Management
Foreclosure
Services a RE/MAX office can
provide:

RE/MAX
Legal
Services
Home
Loans
Vaastu
Interiors
Relocation
Services
Escrow
Services
Consultation
and
Advisory
Value Added Services

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

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…

Sharing of office expenses
Apollo Hospital Model
Central Mall Model: Small
shopkeepers share revenue with
Central Mall and make a big
successful mall.

Entrepreneurship at all levels: WHY ??
 Every property is unique
 Relationship building is crucial
 Motivation at grass root level to give excellent
customer service

Low running costs
People in India are costs : Remember 80:20 rule

Ability to scale up business
1 person : 10 transactions
10 persons : 250 transactions

What is a sustainable business ?
 Process Driven
 Survives the cyclical nature of the industry
 Not person dependent
 Has a goodwill in market

Thinking beyond individual transactions
What is your revenue in your absence
Are you doing a job or profession or a business
?

In the business for yourself, not by yourself
RE/MAX International
RE/MAX India
RE/MAX Pune
Fellow Broker Offices

You own the business, but the network
generates the leads

Agents require less monitoring since
motivation levels are higher
More commission = more motivation

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

Value of real estate space across the 7000+
offices
In India: Across 40 cities and 130 franchised
offices

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.

Accountability of the services being offered
5 level model

Quality Assurance at all levels to maintain service
standards
Awards
Recognition

Broker Owner Training for helping you maximize
your office potential
Constant and continuous updates
RE/MAX University

Broker Associate Training to empower them to
do more transactions
Sales and Marketing
Legal Aspects
Technology
RE/MAX Model

Track your office growth in terms of various
performance parameters like agents, listings,
contacts, meetings
Reports

1 Million Unique Visitors per month
World’s largest visited real estate website

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

Ability to use Design Center – a powerful tool to
design your creative content
Brochures, fliers, promotion collaterals

Network...
88 Countries
7000+ Offices
100,000+ Agents
12,00,000+ Transactions

Network…
23 Regions
135+ Offices
500+ Agents

Opportunities like
Great India Property Show
in Canada

 The leader and the change-maker and who
fights the market
OR
 The spectator

 National level awards
 Regional level awards

 Broker Owner meet at Regional level
 Broker Owner meet at National level
 RE/MAX realty rendezvous (RRR) – Annual
convention in December

 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

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

You do the business but the network generates
the leads
Developer Council
Corporate Council
Get a fish
or learn fishing

2% of the transaction revenue collected goes
back into the advertising fund
National Advertising Fund
Regional Advertising Fund

Events act as a way of generating BA
Training acts as a way of generating BA
BA Recruitment and Training Council

 Credit cards
 McDonalds
 Internet- Ecommerce

 Joint recruitment activities
 Joint branding activities
 Joint selling activities
 Joint buyer representation
The possibilities are endless if we collaborate

More
Agents
More
Listings
More Sales
More
Referral's
More
Leads
More
Repeated
Customers
More
Brand
Awareness
More Profit
RE/MAX Philosophy…

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

“The time to invest in RE/MAX is now”
Thank you…

Start and Grow Your Real Estate Broking Business

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