If you are interested in real estate and enjoy selling properties you should get into it full time and big time. As a single dealer you would be working on commissions under supervision of brokers who would split their share with you. But as a broker yourself, you would be running your own firm with multi benefits and increased earnings. On the flip side, you would have to invest in an office, hire people and carry the recurring overheads. However as said before, if you enjoy dealing in property you should take steps to start your own real estate business.
Here are some tips that will help get your real estate business off the ground quickly and effectively.
Start-up Costs – Have enough money in the bank to cover start-up costs. These include renting an office space, hiring people and buying office equipment which may be also leased initially on monthly payments. You should make provision for covering operating expenses for about three to four months. Unlike retail stores or beauty salons, you will not be earning from Day 1 and will need some time to settle down.
Getting a licence – Know the stipulations for getting a broker’s licence in the State you will be working in as these differ from State to State. However, there are some common norms for obtaining a licence. You should be above 21 years old, should have completed a course for real estate brokers that is approved and certified by the State and should have experience of at least two years as a salesperson in this line of business.
Set up infrastructure – Get an office in a good location with ample space for car parking since you will have clientele and agents coming to meet you. Ensure that you follow zoning requirements and that your office is easily accessible from the main road. Have a website designed and developed by a good digital marketing agency. Most people today search the Internet for getting information on products and services before arriving at a purchase decision.
Insurance and agreements – Get errors and commissions insurance. This is absolutely essential for your business. You will be primarily working through agents and hence by default will be liable for their actions. This insurance will safeguard you in the event of a displeased client suing your brokerage.
Structure a comprehensive contractor agreement that includes commission splits with agents as well as your expectations from them. Incorporate the code of ethics that you would expect your agents to follow when dealing with clients.
Recruiting Agents – Give a lot of thought to this aspect as agents will be the backbone of your business. Train raw recruits carefully so that they do not make any legal errors. Experienced agents that you recruit should be made aware of the ethos and culture of your business and how you expect to get things done especially in client dealings.
Follow these few simple steps and you should be able to start your real estate business smoothly and effectively.