2. Agenda:
• Stock broking current scenario
• Why real estate broking?
• What is a real estate broking business?
• What are the new trends in this business?
• How will real estate broking look in next 10
years?
• What makes a profitable business?
• The RE/MAX Concept.
3. What is the number 1 threat to a
Stock brokers’ business?
4. Stock broking current scenario
• Average Daily volume falling
▫ From a peak of 14,000 crore to ?
• No Differentiation between brokers
• Value addition to customer
• Internet broking eating in to market share
6. Why real estate broking?
• Net worth share in asset class in %:
▫ ______ stocks (at current Prices)
▫ __________is in Real estate
▫ Gold , Bank deposits, Mutual Funds, Insurance,
etc.
• Name 5 National stock broking companies
• Name 5 Financial institution
• Name 5 Real estate broking companies
8. Comparison as an Asset Class
Equity Real Estate
• Highly volatile
• Liquid
• Coupled with foreign markets
• Market prices determined by
handful of FIs
• Stable
• Not easily liquid able
• Relatively decoupled.
• Market prices determined by
local economies and domestic
conditions
9. Stock Broking Real Estate Broking
• No local knowledge necessary
• Exchange is your network
• Low commission per
transaction
• Local knowledge very much
important
• You require the network to be
built
• High commission per deal
10. Revenue per transaction
Stock Brokers Real Estate
• Average transaction size of Rs.
20,000
• Say a 0.50% commission
• Total revenue: Rs.100
• So you need 2,000
transactions to get 2 lakhs.
• On a deal of 1 crore:
• A commission of 2%
• Total Revenue: 2 lakh
11. Return on Time invested
Stock Broking Real Estate Broking
• Upto the minute updates on
the stocks you trade
• Highly disciplined job of 9 to 4
• Back office work there after
• Less updates to track
• Work on your own schedule
• Less number of transactions so
less back office work
12. • 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)
• Investors from all India have invested in Gujarat
13. • With Tata Nano, Ford, Peugeot setting up plants in Gujarat, real
estate is going to be in demand
• Migration of people to cities is set to grow: 70% of India still stays
in villages.
• Gujarat’s GDP is growing faster than the rest of India since 3 or
more years.
• 3 of the top 100 growing cities in world are in Gujarat
• Number 1 city : Ahmedabad
• Best state: Gujarat in Real estate transparency survey 2011
14. What does a buyer want?
• Inventory
• Agent time
• Guidance
• Saving of his time
• Quick Closure
15. 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
16. Why a broker cannot satisfy?
• Getting and retaining best employees
• Training
• Advertisement Budget
• No Surety of Income
• Limited budget for Running costs
• Network
17. 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
18. Get access to HNI/NRI clients?
• 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
19. 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
20. 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.
21. 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
22. 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
23. Real Estate broking will follow the foot
steps of organized stock broking
• Earlier it was dominated by Mumbai based firms
• Then regional stock exchanges
• NSE Came in to operation :
▫ Technology
▫ Risk Management
▫ Franchising
▫ Research
• Customer retention becomes the only important
factor in determining your success.
35. Established in Denver, Colorado (USA) in 1973 by –
Dave Liniger
The only internation
real estate broking
company still owned
and operated by the
original promoter
54. Offices in Ahmedabad
1 Mr. Vivek Parikh Satellite RE/MAX Metro
2 Mr.Nishant Makhija and Mr. Vinod Makhija Vastrapur RE/MAX Real Estate Services
3 Mr. Anand Choksi Satellite RE/MAX Advantage
4 Mr. Ankit Patel, Memnagar RE/MAX Castlemore Realty
5 Tushar Gandhi and Mr. Hemant Gandhi S.G. Highway RE/MAX Vintron Gold
6 Nikul Patel Sardar Patel RE/MAX Achievers
7 Mr. Manish Shah and Mr. Upendra Shah Maninagar RE/MAX Real Estate Experts
8 Mr. Nirav Vakharia/Mr. Harit Parikh Stadium RE/MAX REALTY SOLUTIONS