Buying a Real Estate Franchise Business in Thailand
What does REMAX Franchise really offer?
REMAX offers many important benefits to our agents and brokers in addition to a strong brand. With REMAX you receive:
· Respect from the public, which can translate into better and potentially more buyers and sellers, and better and potentially more commissions.
· The Business opportunity to receive national and international referrals.
· Cutting edge Real Estate technologies that can help you do more business.
· A comprehensive library of training materials for the Franchisee and their Agents.
· World class conventions where you will learn, establish new business contacts, and have fun!
· An innovative global training and advertising program.
· News Business and Real Estate Media.
· The freedom to operate your own business for yourself without the disadvantage of being by yourself.
· The opportunity to leave a legacy for your family.
· The opportunity to have an international business with a minimum investment.
· And last but not least, the use of the brand! REMAX is the best known real estate brand in the world.
What advertising does REMAX do?
Each Real Estate Broker contributes to the advertising fund every month. The purpose of this fund is to invest in advertising of the brand for the benefit of all the Real Estate Agents and Real Estate Brokers worldwide. Each month, millions of dollars are invested in to the REMAX advertising fund around the world and each new Franchisee benefits immediately from this effort. Additionally, each Agent is an independent entrepreneur and is encouraged to advertise and market their services and properties within their local market. The main advertising tool is the recognizable “Red over White over Blue” RE/MAX “For Sale” yard sign that is placed on listed properties. Each Franchisee should also run independent advertising programs; this advertising effort at the office level is paid by the Franchisee and their Agents.
Why doesn’t RE/MAX grant protected territories?
REMAX doesn’t grant protected territories because of the nature of the real estate business. Protected territories make sense in other industries such as food franchises in which most clients walk-in mainly because of the location of the franchise. The real estate business is different. Most clients come from the marketing efforts of the Brokers and agents, who spend much of their time out of the office. Thus, it is common for a Franchise to enjoy having properties and buyers in many different areas of the city, and not just one neighborhood. And two REMAX offices can be close in proximity and not be in conflict or in competition with one another, as their Affiliates may work with clients in all parts of the city.
Could I list properties in other cities and countries?
REMAX Agents and Brokers can list properties anywhere but we do not recommend it. Distance creates barriers to offering quality service that the public expects from us. Generally speaking, it doesn’t make sense to drive more than one hour to show a property, so Agents should not list properties that are too far away. Thanks to the global network there is still a way to benefit from properties that are distant, without having to list them yourself. By referring them to a REMAX office or Agent close to the property and receiving a referral fee!
How much will I earn from referrals?
The referral fee is negotiated between the Agents, but it is generally 25% of the commission. Here is an example. Suppose that REMAX Agent “A” sends a buyer to REMAX Agent “B” who is in another city or country. REMAX Agent “B” sells a house that was listed by a third REMAX Agent (Affiliate “C”) that may be a REMAX Agent or even a person from a competitor. As a result of the sale, let’s say REMAX Agent “B” receives a commission of 300,000THB. From this commission, REMAX Agent “B” will keep 225,000THB and pay 75,000THB (25%) to REMAX Real Estate Agent “A” for referring the buyer.
How are commissions shared when there are two Agent involved in a transaction?
Real Estate Commissions are most commonly divided 50/50 when there are two sides to a transaction. 50% for the REMAX Real Estate Agent that listed the property and 50% for the REMAX Real Estate Agent that brought the buyer. Occasionally there may be 60/40 and 70/30 arrangements depending on the market condition. In some markets it is more difficult to find buyers and the buyer-side Broker may be paid more commission; the opposite may also be true.
What initial training does RE/MAX offer?
There is a mandatory course for new Franchisees and one cannot open a RE/MAX office without completing this course. This course teaches attendees how they can obtain the greatest profitability possible in a Franchise. This is not a course that teaches how to sell real estate; instead it is a course about owning and operating a REMAX Real estate Franchise. This is a free Real estate Training and several people from one Franchise can and should take it as participants only have to pay transportation, hotel, and travel expenses. It is recommended that the Franchise owner (or owners) and the Manager (if applicable) attend. Agents should not attend as the content does not apply. This Real estate Training is taught at REMAX World Headquarters in Denver, Colorado and occasionally is also taught in other countries. This course covers topics such as:
– Leadership techniques
– How to recruit good Agents
– How much to pay the Agents
– Physical design and layout of an office
– How to distribute leads among the Agents
– How many Agents are necessary to achieve the break even point
– How to get exclusive listing
– How to make cost effective property Marketing
– How to make property management
– How to deal with owner Objection
– How to develop an “Area of expertise”
– How to be a professional agent
– The code of ethic of a real estate agent
– Professional training
– Global Real Estate Training
How many employees will I need to run the franchise?
In addition to you (the Real Estate Broker Owner) and your Property Agents, we suggest you fill the positions of receptionist and Office Manager. The receptionist will answer the phone, receive leads/clients, assign leads/clients to Agents and take care of other office tasks they are assigned. The Office Manager will take care of accounting, prepare reports for the Regional Office, website management, insure that each property has correct documentation, make sure that Agents don’t owe anything to the office, and any other tasks they are assigned.
What size should my office space be?
The minimum size acceptable (save for some rare exceptions) is 70Sqm. The cubicles for Agents should be small and can be shared (which is to say, not assigned to a specific person). Each Property Agent needs at most 10sqm, so an office of 100 sqm should comfortably accommodate at least 8 Agents. Thanks to smartphones and technology, Agents are spending more and more time outside of the office. We have offices that accommodate up to 20 agents in a 100 sqm space. Accommodating a good number of Agents in a small space is one of the best ways to increase office profitability.
How much will the total investment cost?
There are two scenarios:
A) New Franchise: In addition to a Franchise Fee for a 5 year Franchise contract, the future Franchisee should have money to pay for furniture, equipment, lease payments, hiring of employees, signs, flyers, working capital for the first few months, etc.
B) Existing Franchise (Conversion or Transfer): In addition to the Franchise Fee for a 5 year franchise contract, the future REMAX Franchisee should have additional funds to cover conversion costs.
*Actual dollars will depend on your market.
How much commission should I pay my Agents?
It’s convenient to offer various options. One option could be for Agents with a lot of experience, who would like to keep a high percentage of the commission and are willing to contribute a good amount to the office to help cover fixed costs. Another option could be for new Agents, who will accept keeping a smaller percentage of their commission and are only able to contribute smaller payments towards the fixed costs of the office. This subject is covered in great detail in the Broker Training course for new Franchises in Bangkok,Thailand. Also available for the new franchise is professional Training with International standard.
For the next step to join RE/MAX Family please click Real Estate Training
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How to Promote my Exclusive Properties listings?
Real Estate Broker need to make a “Marketing Action Plan” (MAP) for each property and property, The right marketing plan will be from the kind of property and the location of the property, The price of the property will be a key factor in your marketing decision. To learn more about marketing your real estate property sign on to our real estate training “Kick Start To Success”
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|Contact Our Business Development Team RE/MAX Thailand Head Office at
1000 Rama 9 Rd,
Sethanandha Building Room No.23,24, SuanLuang, Bangkok 10250, Thailand Office Phone: 09-2552-0101 | 091-004-2870
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