RE/MAX: India’s Largest Opportunity in Real Estate
Opportunity India Desk
Nov 25, 2020 -
5 min read
RE/MAX is the number one company in real estate brokerage in the world. RE/MAX was established in Denver, Colorado (USA) in 1973 by Dave Liniger. It is listed on the New York Stock Exchange. The company is present in 118 countries with over 8400 franchise offices and more than 1,31,000 associates. A RE/MAX franchise closes a deal every 30 seconds.
RE/MAX India is present in over 60 cities with more than 220 franchise offices and 1500+ associates. It is associated with Franchise India, selling almost 150-200 franchises every month.
The problem in the industry is shifting it from unorganised to organised. Everything we consume today has shifted from unorganised to organised. This shift has taken place as the consumer is asking for a better brand, better experience, and quality assurance. The product which is among the first five priorities in your life is real estate.
Real Estate brokerage is divided into two parts. The first one is the Institutional Brokerage. In this, the companies go to large corporate houses and work with big IT infrastructure or retail infrastructure and manage it. The second one is Hyperlocal Brokerage, which is the neighborhood broker available with you. If you travel 3 km from your home, you would get at least 50 different brokers around both sides of your travel. This kind of brokerage is called hyperlocal brokerage. These are unorganised, fragmented brokerage available. These brokers are great people but they lack the trust, infrastructure, marketing capability, the ability to aggregate the right kind of offering for you.
One million people in India are working on hyperlocal brokerage. Another 1 million people are attached to these 1 million people, which means every second person is involved in real estate. Real Estate is a favorite opportunity for people to work on. But this is all fragmented and organised. Therefore, RE/MAX is shifting this.
With its five decades of work in 118 countries, RE/MAX brings credibility and assurance. It also brings in a great amount of offering, which means the company is working with 300 developers today. RE/MAX is shifting this unorganised industry into organised.
RE/MAX was started in 1973 and it has survived for almost five decades. The reason for the company to survive this long is their business model. There is a RE/MAX LLC, which has the brand, the know-how, and the Founder Dave Liniger. The second tier is the country right which is RE/MAX India. Then, we have franchises. A franchisee owns an office, takes a neighborhood and they further have agents with them. These agents are people who would not be employed by the franchisees but they are the people who work with a franchisee on commission. RE/MAX gives the highest commission to people.
Good Talent - RE/MAX attracts good talent and offers them a lot of tools like infrastructure, technology, apps, marketing tools, training, and mentoring. When all these pieces come together, they give the best performance. It’s actually a combination of the best talent and a great number of tools. So, this is what gets higher performance as compared to any agent available in the market.
Professionalism - RE/MAX agents present them well, represent them honestly, and give you the right kind of information, tools, and advice.
- Brand Name: The most productive Global Real Estate Brand
- Business Model: Asset Light Model
- Technology: MAX/CENTER and CRM Application
- Training: Online, virtual, and classroom training
- Network: Widespread and accessible network
- Inventory: National and international alliances
- Lead and Listing Support: Genuine leads and listing space
1. Depending on the city it starts with:
- 7.5 lakhs for Tier 3
- 9 lakhs for Tier 2
- 12.5 lakhs for Tier 1
2. Pandemic Offer with Payment Options:
- 3 lakhs upfront
- 2 lakhs post-training, branding and before office launch
- Rest amount in 12 equal installments after we start a business
The last five years have seen a huge change in real estate. Real estate is going through three big changes. The first one is the consolidation. We have seen every large corporate investing in Real Estate in the last five years. The second one is people are becoming very selective of the brand. The third one is RERA; real estate is now regulated so more compliances are coming in.
There is a huge amount of consolidation, there is a lot of work going on brand preferences, and there is also regulation going on that is helping the industry to become more organized. Hence, RE/MAX feels that the fragmented environment of real estate is going to be regularised and RE/MAX will get an opportunity to grow.
