1. WHY STOCK BROKERS
EARN LESS THAN REAL
ESTATE BROKERS?
Manan Choksi
Regional Director
RE/MAX Mumbai Gujarat Maharashtra

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 % of Net worth is in Real Estate?
Net-worth Distribution
Real Estate
Stocks
Mutual Fund
Insurance
Gold

4. WHAT IS THE NUMBER 1
THREAT TO A STOCK
BROKERS’ BUSINESS?

5. 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

7. SOME COMPARISONS

8. Comparison as an Asset Class
Equity
• Highly volatile
• Liquid
• Coupled with foreign
markets
• Market prices determined
by handful of FIs
• Inflation dents returns
• Not need based
Real Estate
• Stable
• Not easily liquid able
• Relatively decoupled.
• Market prices determined by
local economies and
domestic conditions
• Returns are hedged
• Every one needs Real Estate

9. Stock Broking
• No local knowledge
necessary
• Exchange is your network
• Low commission per
transaction
• Works 9 to 6
Real Estate Broking
• Local knowledge very
much important
• You require the network to
be built
• High commission per deal
• Works at his own time

10. Revenue per transaction
Stock Brokers
• 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.
Real Estate
• On a deal of 1 crore:
• A commission of 2%
• Total Revenue: 2 lakh
• On a rental transaction of
25,000
• Commission of 1 rent.
• Total Revenue 25,000

11. Return on Time invested
Stock Broking
• Upto the minute updates
on the stocks you trade
• Highly disciplined job of 9
to 4
• Back office work there
after
Real Estate Broking
• Less updates to track
• Work on your own
schedule
• Less number of
transactions so less back
office work

12. Why real estate broking?
• Name 5 National stock broking companies
• Name 5 Financial institution
• Name 5 Real estate broking companies

13. • 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

14. • With Tata Nano, Ford, Peugot 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

15. What is a real estate broking
business?
• Broker is a party that arranges transactions
between a buyer and a seller, and gets a
commission when the deal is executed.

16. Each property
is UNIQUE

17. What does a buyer want?
• Inventory
• Agent time
• Guidance
• Saving of his time
• Quick Closure

18. 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

19. Live Demonstration
• Each participant has one card showing number / alphabet
• They have to match:
• 1-A
• 2-B

20. Why a broker cannot satisfy?
• Getting and retaining best employees
• Training
• Advertisement Budget
• No Surety of Income
• Limited budget for Running costs
• Network

21. 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

22. 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

23. 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

24. 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.

25. 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

26. 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

27. How will real estate broking look in next
10 years?
• Earlier share broking was dominated by Mumbai based
firms
• Then regional stock exchanges existance
• NSE Came in to operation :
• Technology
• Risk Management
• Franchising
• Research
• Customer retention becomes the only important factor in
determining your success.

28. WHAT MAKES A PROFITABLE
BUSINESS?

29. Which business is more profitable?
More number of property options
for customers
OR
Less number of property options for
customers

30. Which business is more profitable?
A well trained agent
OR
Untrained assistants / employees

31. Which business is more profitable?
Latest technology to market their
properties
OR
Doesn’t use technology to market
their properties

32. Which business is more profitable?
A large international network
OR
A stand alone operation

33. Which business survives longer?
With lower recurring cost
OR
When recurring cost is high

34. Which business is more profitable?
Is in Business since long
OR
Just opened

35. Which business is more profitable?
Running based on a proven concept globally
OR
A office started without any proven concept

36. Which business is more profitable?
A system driven model
OR
A person driven model

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

38. RE/MAX India
GIVING YOUR BUSINESS THE
RE/MAX LEVERAGE

39. REFLECTIONS OF GREATNESS
RE/MAX India
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

40. REFLECTIONS OF GREATNESS
RE/MAX India
- Real Estate Maximums

41. REFLECTIONS OF GREATNESS
RE/MAX India
RE/MAX did house
sales of more than
$500 bn.
If RE/MAX was a
company, we would be
bigger than
WALMART

42. RE/MAX India
GLOBAL RECOGNITION

43. REFLECTIONS OF GREATNESS
RE/MAX India
BRAND NAME RECOGNITION
RE/MAX is #1
The most recognized logo in real estate
43

44. REFLECTIONS OF GREATNESS
RE/MAX India
THE ICON IN THE INDUSTRY
44

45. REFLECTIONS OF GREATNESS
RE/MAX India
Business Model:
A business model working
successfully in more than
7000 offices and created
millions of entrepreneurs
worldwide

46. REFLECTIONS OF GREATNESS
RE/MAX India
Only real estate
company to
feature in the book
“50 Companies
That Changed the
World” by Howard
Rothman

47. REFLECTIONS OF GREATNESS
RE/MAX India
World’s largest Real Estate brokerage franchising network…!

48. RE/MAX India
ABILITY TO DO BUSINESS IN MORE
THAN 88 COUNTRIES

49. OPERATING IN 105 REGIONS IN 88 COUNTRIES

50. REFLECTIONS OF GREATNESS
RE/MAX India
Network...
88 Countries
7000+ Offices
100,000+ Agents
12,00,000+ Transactions

51. REFLECTIONS OF GREATNESS
RE/MAX India
Network…
23 Regions
100+ Offices
450+ Agents
8 Transactions/day

52. RE/MAX India
EDUCATION & TRAINING

53. REFLECTIONS OF GREATNESS
RE/MAX India
More than 25,000 hours of training in India done

54. REFLECTIONS OF GREATNESS
RE/MAX India
CONFERENCES & CONVENTIONS

55. RE/MAX India
TECHNOLOGY

56. REFLECTIONS OF GREATNESS
RE/MAX India
WWW.REMAX.COM
1 Million Unique Visitors per month
World’s largest visited real estate website

57. REFLECTIONS OF GREATNESS
RE/MAX India
TOOLS TO GROW YOUR BUSINESS

58. REFLECTIONS OF GREATNESS
RE/MAX India
OFFICES IN AHMEDABAD
1 Mr. Vivek Parikh Satellite RE/MAX Metro
2 Mr.Nishant Makhija Vastrapur RE/MAX Real Estate Services
3 Mr. Sumeet Sethi Nehrunagar RE/MAX First Choice
4 Mr. Anand Choksi Satellite RE/MAX Advantage
5 Mr. Ankit Patel Memnagar RE/MAX Castlemore Realty
6 Mr.Tushar Gandhi S.G. Highway RE/MAX Vintron Gold
7 Mr. Chetan Parikh Ellisbridge RE/MAX Milkatz
8 Mr. Nikul Patel Sardar Patel RE/MAX Achievers
9 Mr. Manish Shah Maninagar RE/MAX Real Estate Experts
10
Mr. Nirav Vakharia/Mr. Harit
Parikh
Stadium RE/MAX REALTY SOLUTIONS
11 Mr. Manan And Chintan Patel Bodakdev RE/MAX Mann Realty
12 Mr. Bhavesh Shah Thaltej RE/MAX Property Center

59. REFLECTIONS OF GREATNESS
RE/MAX India
BROKER OWNERS OF AHMEDABAD

60. REFLECTIONS OF GREATNESS
RE/MAX India
BROKER ASSOCIATES OF AHMEDABAD

61. REFLECTIONS OF GREATNESS
RE/MAX India
ACHIEVEMENTS
RE/MAX Bangalore Franchise does landmark
transaction

62. REFLECTIONS OF GREATNESS
RE/MAX India
ACHIEVEMENTS
 Lodha World One

63. REFLECTIONS OF GREATNESS
RE/MAX India
ACHIEVEMENTS
 Godrej township

64. REFLECTIONS OF GREATNESS
RE/MAX India
AWARDS:
 Among all regions of India North Gujarat won the
award for:
 Best Broker Agent
 Best Broker Office
 Best Regional Office
 Award was of return air ticket of Las Vegas to the
Annual RE/MAX Convention March 2012

65. REFLECTIONS OF GREATNESS
RE/MAX India
HOW TO JOIN RE/MAX ?
 There are two options to be a part of the
revolution in real estate broking:
 If you have an office or if you plan to buy one: join as
a Broker Office (BO) : Talk to Mr. Devansh Kothari for
appointment : 9879167987
 If you want to work as a Broker Associate with a BO
then please talk to Ms. Salma Khatoon for
appointment: 9909066999