In this material We will examine in detail with you how you can open your own real estate agency. As a rule, former employees of real estate agencies begin to engage in their own business.
This is not surprising, because over the years they have accumulated a decent database, they begin to perfectly understand this market, understand its "cuisine". In addition, a person matures psychologically over time in order to work not for someone, but only for himself.
In principle, only people with experience achieve success in this matter. If you have enough money and decided to invest it in a real estate business, we do not advise you to rush. Weigh everything and think carefully. The fact is that if the question of how to register a real estate agency is solved by simply going to a lawyer and consulting an experienced accountant (able to advise which form of ownership is better to pay less taxes), then the problem with having a clientele is just don't allow it.
Therefore, it is best to start a business in which you understand something, understand or, in extreme cases, can organize a group of professionals who are able to effectively solve the problems facing the organization.
Is it that simple?
How to open a real estate agency? A purely legal company is easy to register. It does not require any huge financial or time costs. It is much more important to have a good office (it must necessarily look representative so that clients do not have doubts about the reliability of your organization). It should have furniture, computers and a telephone. But all this is just the tip of the iceberg. In fact, if you seriously enter the market, you need to dig this issue deeper.
We need to seriously think about how to open a real estate agency. To date, there is no decent threshold for entering this business. This has led to the fact that there are a great many such organizations on the market. However, they appear as quickly as they disappear. Such momentary flickering creates strong competition in this area. How to start a real estate business in such harsh conditions? What to do? Let's not get ahead of ourselves. First things first.
Natural selection
Of course, in such conditions, it is extremely difficult for a start-up company to fight for its market share and place in the sun. Each client is worth its weight in gold. People usually try to turn to large agencies for services, hoping for more professionalism than in premature one-day companies. For the first time, the prospect will not be very promising for you:
- lack of a big name, history;
- colossal competition of dozens, if not hundreds of ambitious firms.
The most delicious customers who need real estate services are people who buy housing for themselves, and not with the goal of reselling it profitably. However, it is they who most often go to the real "bison" of the market, as they are fully aware of their inexperience and are afraid to get into trouble, working with beginners.
The staff will also have to spend money. A cool lawyer is simply needed among the staff. And its contents can result in a good amount. Otherwise (that is, if you don’t have such a specialist in the company), you can not only earn money on this business, but also seriously get into it, while losing your few money.
Do not think that the purpose of our material is to discourage you from starting this business.
We are simply drawing you one of the most unfavorable scenarios for the situation to develop so that you are ready for it and can respond to everything in a timely manner. If you have been “cooking” in this area for a long time, you are well aware of the threats and difficulties we are talking about.
So, now, if, knowing about all this, you firmly and confidently decided to go all the way, you need to pay special attention to advertising your company. She will attract the first customers to you, and you will be able to get the first money, which, of course, is simply necessary for a young organization.
How to open a real estate business without PR?
At this stage, a good investment of funds is necessary. Do not think that you can do with "little blood." The fact is that if you choose only one channel to advertise your activities on a systematic basis (for example, only radio), it will still require a lot of money from you.
However, if this investment does not “shoot”, then you will lose not only your potential customers (whom you planned to attract), but also those few advertising means. Therefore, plan your campaign carefully.
Choose multiple advertising channels. For example, a bunch of TV + radio works very effectively. Pay attention to specialized newspapers or to short lowercase ads, a running line on channels. There is also a free, but very effective in modern realities, PR tool - these are social networks. Take your time, create groups, promote accounts. System advertising (although it will require a little more investment) will be very effective.
How to avoid disappointment?
However, no matter how well the media resource works, there is nowhere without professional services. Imagine that you have solved a lot of questions, in particular about how to open a real estate office, which is better to rent an office, how to advertise more effectively. But if people come to you and they are not satisfied with your level of service, be sure that there can be no talk about the development of the company. In this sense, special attention must be paid to the staff.
In addition to purely professional qualities, employees must be sociable, sociable, endurance, ability to work in stressful situations, adequately respond to complaints or suggestions from customers.
A significant role is played by the charisma of man, his charm. Your employees should be good psychologists, because they will have to listen to a lot of stories and become witnesses of whole dramas.
Can I breathe a sigh of relief?
When the first (most difficult) stage of being in the market is passed, and you have already developed a certain database, the so-called Word of mouth. We think you understand what it is. The most important thing is that it costs you nothing. At the same time, such advertisements are trusted much more than loud calls from TV or radio to become your client.
Cadres decide a lot
We will tell you more about the question that we raised above. How to open a real estate office without professionals? It is simply not possible. Finding good employees for moderate wages is not easy. And if in Moscow or St. Petersburg this is solved relatively easily (due to competition), then in small and medium-sized cities the situation is more complicated.
The main problem here is low qualifications and endless staff turnover. Often there are agents who not only worked in the company for only a couple of months, but also were not too lazy to bring along databases that were formed by such serious investments. How to become a realtor with a capital letter, if you are bled by your own employees?
About profit
If the issues with good employees are resolved, and you start working to the fullest, then profit will inevitably begin to flow to you.How to predict it? What calculations to use when determining it? Everything is simple here. As a rule, commissions are considered the main source of profit for a real estate agency. They make up about 5-6% of the total cost of housing.
At the same time, one-room apartments are considered absolute leaders in the real estate market. Due to their lower cost (relative to housing with two or three rooms), they are quickly sold and bought. Dozens of transactions with such apartments can be made per month.
Specific calculations
As we have already said, it is better to open a real estate agency with experience in this field. In this case, you can get around many pitfalls. To enter the market (company registration, payment for advertising, staff maintenance) you will need approximately $ 8,000 to $ 10,000. With less money, it’s better not to start anything at all. Otherwise, just lose your savings.
How to create a real estate agency with a capital letter?
If you decide to devote your time to working as a realtor and promote your own agency, you will need to provide a number of services (in addition to knowledge about real estate). Your functions will include collection and proper documentation, knowledge of the legal subtleties of this business, control of settlements between the seller and the buyer.
It should be noted that companies in this area rarely boast of their longevity. Often, many do not live on the market for one year. They are closing. You can consider your company successful if your net profit is at least $ 10,000 per month.
Additional revenue items
In addition to commissions, you can earn on other operations. If the total value of transactions does not reach $ 10,000, then in this scenario, the organization has the right to claim a fixed fee, for example, $ 500. If you are comfortable in the market and have a free amount of funds, for example, in the amount of $ 100,000 or 200,000, then, in addition to providing intermediary services to the buyer and seller, you can buy profitable objects yourself and resell them at a higher cost.
For successful work, you must feel like a fish in the water in urban housing and commercial real estate markets. In order to avoid mistakes, when conducting transactions, it is necessary to study in detail the features of all those areas in which the company operates.
How to become a professional?
If you are thinking about becoming a realtor, you need to consider a lot. There are organizations of different directions, for example, those that try to specialize only in urban housing stock and do not own information about commercial real estate.
Therefore, at the very beginning, decide and decide in which segment of the market you want to work, and only then think about how to open a real estate office, for example, in a regional housing stock. A lot depends on specialization.
Do not scatter at once. It is better to be an ace in one than to own surfaces on several areas of the market. How to become a realtor in the niche of commercial real estate? Just like in any other. It just needs to be studied. Look through all the objects in detail, understand their advantages and disadvantages in order to present them to the client in the right light and sell them profitably.
Advised and earned
In addition to conducting specific transactions, you can also make good money on consultations. Their advantages are that for their implementation you do not need additional costs, and all previous work experience will work for you. You can control the process of safe settlement of the buyer with the seller, transfer housing funds to non-residential, provide various repair services.
All this will give your company additional weight and image. In addition, all consulted clients can subsequently purchase or sell real estate through your company.
However, it is not worthwhile to get carried away with consultations and focus on them. You will not earn much on this. Better focus on how to open a real estate office that can quickly and profitably (for itself and the client) sell housing. Then success will certainly await you.
