build real estate broking business with networks

BUILD REAL ESTATE BROKING BUSINESS WITH

NETWORKS!

RE/MAX Mumbai Gujarat Maharashtra

Agenda:• Introduction to Networks• Networks in Real Estate Broking• How to increase deals?• Difference between Associations and Networks • Technology• What are the new trends in this business?• How will real estate broking look in next 10 years?• The RE/MAX Network


Need of Networks• What is the use of the following :

• One telephone• One consumer of electricity• One Fax machine • One Computer without Internet • One Email Address • One user on Facebook • One Airport • One Railway station

• Impossible for certain things to sustain without networks


Need of Networks• Limited networks:

• EPABX : Intercom • Lan : Local area network• Cable TV vendor’s own channel • Metro train

• Full potential of the network components is not realized unless there is a connection to world wide network.


What is a business network?• Business networking is a socioeconomic activity by which

groups of like-minded businesspeople recognize, create, or act upon business opportunities

• Examples of successful business network:


Strengths of a network:• Spread of the network:

• A wide spread network is stronger : SBI• Takes competition years to build a network as strong

• Pepsi v/s Coke• Unparalleled distribution / service

• Maruti Suzuki and Tata Motors• Economies of scale

• Buying power increases• Reuse of Intellectual Property

• Common expenses : • Branding • Training


Behavior of Networks• Takes time to develop• Grows in geometric progression:

• Formula: x=y(y-1)/2

• With addition of each node in the network the number of connections increase exponentially

• An interlocking network increases the stability of network


Examples of service business networks:

• Banks• Stock broking • Travel Agencies• Food and Beverage • Big Four Audit Firms • Pre Schools • Cinema Halls • Hospitals • Real Estate broking


Kinds of Network:• Company owned Company operated (COCO)

• SBI

• Franchise owned Franchise operated (FOFO)• Restaurants, Stock brokers

• Exclusive Dealer network• Automobile companies

• Retailer Network • HUL

LIVE DEMONSTRATION


Networks in Real Estate broking:

Each property is UNIQUE


Networks in Real Estate broking:• Real estate broking is all about addressing unique

customers requirements and presenting them with maximum options.

• Examples of customer requirements:• I want a North facing flat with a nice view, not far from my office

and my children’s school, in my budget, new construction. • Want a plot in particular scheme and total of the plot number

should be 7. • A bungalow required in a particular area with a certain plot size in a

decided budget


Networks in Real Estate broking:• It is practically impossible to address to diverse customer

requirements in an efficient manner • A customer’s requirement changes from time to time:

• Initially he starts as a tenant • Then owns a property• Moves to a bigger property• Invests in rental property• Invests in a plotting scheme• May do commercial transactions also

• For a broker who wants to build and nurture a life long relationship it is difficult or rather impossible to satisfy


Networks in Real Estate broking:• Requirement of the hour is specialization and not

generalization

• However if you specialize you need to get customers in your segment on a regular basis

• You cannot build customer relationships as in real estate needs of the customers keep on changing


How to increase deals?• Give more options to buyers• Employ more agents to serve the customer better• Be part of a network which helps you match buyer and

seller requirements


Networking Goals in Events• Passing out business cards• Delivering 15 sec elevator pitch (speech)• Moving on to the next and next and continuously meeting

more people• Goal is to ensure people remember you for the specific

stuff that you do in your business• “Positive networking is a networking situation in which you

expect nothing in return”

Difference between associations and networks

Associations

• Localized• Aim is to protect the

interests of member• Usually there no customer

oriented differentiation• Mostly not for profit

Networks

• Widespread• Aim is to do business

together• There is a strong value

addition to customer• Mostly entrepreneurship

driven

TECHNOLOGY: HOW IMPORTANT?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?• 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


Technology: How important?• As you market your listing across the network technology

makes it easier to distribute the information across • Technology is intellectual property cost of which shared in

the network• Social Media: A big source to enrich contacts • Offline communications : Key to manage contact in

different time zone.


• Send a letter of the business that you do

• Inform them about the training that you do

• Inform them about the listing that you gather

• Inform them about transactions that you do

• Ensure they start trusting you as a real estate consultant


Networking Opportunities• Local groups like Estate Agents Association of Pune (EAAP)• NAR – India is organization of organization and provides

national level networking opportunities with members of other associations

• Referral based organization like BNI • Social work like Lions, Rotary, Education work etc • Remove your mindset to ‘Sell,Sell,Sell’ yourself. Remember

‘Giver’s gain’ philosophy• Networking Push/nudge needed for all. Everyone is alone in a

new place. All you need to say is a ‘Hello/Hi’• Be ready for Question and Answers on expected situations


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


How will real estate broking look in next 10 years?

• 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• Exclusive Mandates


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

Giving your business the RE/MAX leverage


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 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 did house sales of more than

$400 bn.

If RE/MAX was a company, we would

be bigger than WALMART

GLOBAL RECOGNITION


Brand Name RecognitionRE/MAX is #1

The most recognized logo in real estate

32


The ICON in the INDUSTRY

33

http://www2.coca-cola.com/index.html


Business Model:

A business model working successfully in more than 7000 offices and created millions of entrepreneurs

worldwide


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…!

Ability to do business in more than 88 countries

OPERATING IN 105 REGIONS IN 88 COUNTRIES


Network...

88 Countries 7000+

Offices 100,000+ Agents 12,00,000+

Transactions


Power of the network• 1st office : zero transaction in 6 months. 8th office reported

1st transaction in 3 weeks of signing which was within the RE/MAX network.

• Builders work in slabs for brokerage• Cooperative office concept:

• Offices work together on exclusive tie-up• Joint recruitment efforts • Joint training efforts • Branding activities


Network…

23 Regions 100+

Offices 500+ Agents

8 Transactions/day

Education & Training


More than 25,000 hours of training in India done


Conferences & Conventions

Technology


www.remax.com

1 Million Unique Visitors per month

World’s largest visited real estate website


Tools To Grow Your Business


Achievements

RE/MAX Bangalore Franchise does landmark transaction


Achievements• Lodha World One


Achievements• Godrej township


Thank You