make more money in real estate
Post on 20-Oct-2014
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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.TRANSCRIPT
Make More Money in Real Estate BrokingManan Choksi
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
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
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
Verious Real estate company enter in to indian Real estate broking Business
"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
Which Office is More Profitable?
Manan Choksi
Which office is more profitable?
More number of property options for customers
OR Less number of property
options for customers
Which office is more profitable?
More number of agents
ORLess number of agents
Which office is more profitable?
Top performing agents
ORAverage agents
Which office is more profitable?
More trained agents OR
Untrained assistants / employees
Which office is more profitable?
Motivated agents to run after business
OR
Employees who wait for business to run after
them
Which office is more profitable?
Latest technology to market their properties
OR Doesn’t use technology
to market their properties
Which office is more profitable?
A large international network
ORA stand alone
operation
Which office is more profitable?
A world renowned brand name
OR Tries to make its own
brand name
Which office is more profitable?
Agents earn according to their commission earned
OR employees earn fixed salary irrespective of commission earned
Which office survives longer?
The fixed salary cost is lowerOR
The fixed running cost is higher
Which office is more profitable?
Is in Business since long
OR Just opened
Which office is more profitable?
Running based on a proven concept globally
ORA office started without any
proven concept
Which office is more profitable?
A system driven modelOR
A person driven model
RE/MAX India
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THROUGH THE THROUGH THE
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43
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