If you have experience in sales and think you can be also be good in selling properties, you might want to open your own real estate company. As a real estate agent, you can earn through commissions but if you will be earning a cut on the commissions earned by your pool of real estate agents, this can be more lucrative. But being on the helm of a business and supervising a team can be challenging and it helps to be have management skills and a game plan. It’s best to have a guide on how to start your own real estate business. You can use these pointers to make the process easier for you:
Have enough financial resources. To be able to afford business start-up costs, it’s important to save enough money to embark on your new endeavor. These expenses include office set-up, licenses, overhead expenses, advertising and insurance, to name a few. Don’t let the cost dishearten you by not being prepared financially. You might want to look for partners who want to invest in your company. There are also creditors that will give you business loans. The key here is to come up with a figure of how much capital you need and study your options. Remember to include projected income and cash flows for the first three years.
Apply for a real estate broker’s license. There are certain requirements need in order to be allowed to sell properties and these vary in different states. These include having experience as a real estate agent for a number of years. You can also take short courses about real estate and get certified. Inquire about the licensing requirements in the state you want to open your company in.
Choose an ideal location for your business and appealing office design. In any business, location is one of the most important elements to have a successful venture. It helps to set up an office in an area that is accessible to your potential clients. Choose an office with accessible transportation for your real estate agents and clients. Also, ensure that there is ample parking space and the office itself has an appealing design. There should be sofas and chairs for visitors and clients. The reception area should have the company logo and there should brochures within reach. Ample lighting and efficient air-conditioning system are also important so clients will be comfortable while waiting.
Create online presence. Employ the services of a website developer to create your website so you can reach an expanded market base. See to it that the images of the properties you sell are clear and complete with details to encourage visitors to your website to browse. Also, sign up with web listings other than your own website to showcase the properties. Make use of social media to advertise your real estate company and ensure that there are several ways for your potential clients to reach you. Most importantly, have a responsive design for your website so people who use their mobile phones can also visit your website.
Protect your company from legal liabilities. Don’t overlook getting insurance coverage for errors and omissions. As the owner of a real estate agency, you are liable for the mistakes of your real estate agents. Insurance can cover for you when discontented clients file lawsuits against your company.
Hire real estate agents. The success of your business relies on how good your real estate agents are with what they do. While experienced agents already have their own clients and following, you can also rely on new real estate agents to be energetic, persevering and go-getters. See to it that your agents are trained in sales and have people skills but are not intimidating to potential clients.
Draft an independent contractor agreement and consult with a lawyer. Protect the interest of your company by outlining your expectations on your real estate agents and the policies covering your business relationship. If you are an independent contractor and your agents work on commissions, it’s imperative to set boundaries when it comes to the use of office space and transactions not related to your company.
Build your brand and image. Marketing is important to let potential clients, both buyers and sellers, know that your real estate business exists. Hire a marketing agency to help you in this area, including creating a mailing list, printing brochures and business cards. Also, join trade shows and exhibits so attendees can see the house models and make inquiries about buying and selling property. As for developing your own clientele other that clients your agents will bring you, you can advertise your company in real estate publications, local newspapers as well as in television and radio stations. You might also want to consider sponsoring charitable and sports events so you can have billboards and banners on the venues.
With these tips and your perseverance, you can start your own real estate business and make a name in the industry.