make money in real estate

Make More Money in Real Estate Broking

RE/MAX Mumbai Gujarat Maharashtra

Present Market statistics:

Number of brokers in Mumbai: Approx. 40,000 active.

Number of deals : 50,000-60,000 registrations a month

Estimate of primary deals being done by brokers: 50%- 60% (increasing as number deals reduce)

40% of the new projects of India are in Mumbai

Investors from all India have invested in Mumbai


Next 10 years?

Media will continue to loose its productivity

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


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

Fundamental Questions First:


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.


What does a buyer want?

Inventory

Agent time

Guidance

Saving of his time

Quick Closure


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


Why a broker cannot satisfy?

Getting and retaining best employees

Training

Advertisement Budget

No Surety of Income

Limited budget for Running costs

Network


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


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


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


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


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


Technology: How important?

Do you use Mobile?

Why?


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?

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


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


"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


Thank You