Many real estate businesses split commissions with other agents. To ride out the market fluctuations easier, consider starting a brokerage company of your own. You will have supervisory responsibilities, and you will manage overhead while running your office. Overall, if you have money-management skills and enjoy mentoring, you should open a real estate business.
- You must save money for the start-up costs. This cash will cover office equipment, yard signs, insurance, website design, and an office sign. You should also set aside money for operating expenses for the first four months.
- The broker-licensing requirements in your state should be reviewed carefully. Next, apply for a real estate licence. To obtain a real estate licence in some states, applicants must be 21 years old, and they must complete state-approved courses. If you’re in Brisbane, Queensland, then this is a great certification to start with.
- After the courses are complete, select a location for your real estate office. You must consider visibility, zoning restrictions, and the parking options for your clients and agents.
- Your real estate business will need a professional website. After the website is built, employ a service that will post your information in a Multiple Listing Service. According to Forbes, 80 percent of shoppers start their search online.
- Purchase insurance for omissions and errors. You will be legally liable for each agent’s actions, but omissions and errors insurance covers you if a client sues your brokerage.
- Design an independent contractor agreement that includes information about your expectations for your agent’s actions and details about commission splits. You will be an independent contractor, so you cannot demand office time from your employees. However, you can enforce a code of ethics, and you can create policies about office space use and unsolicited incoming calls.
- Equip your office with the basic essentials. You will need furniture for the conference room and waiting area. You will also need a copier, one office computer, a reception chair and desk, and a phone system. If you buy desks for your agents, you can charge them a fee to cover the operating costs.
- You must employ agents that bring plenty of excitement and energy to your company. However, you must train them careful so that they will not make legal errors. Some agents might also require sales training.
- After training, your agents should bring in a few clients. Though, you should still advertise your company using real estate publications, newspaper ads, and on television and radio. You can also use direct mail, conduct an open-house, or use publicly to raise your profile. A common publicity method is sponsoring a charity event, such as a little league baseball game.
- You should establish a mentoring relationship with a broker who is very successful. In addition, maintain a database for your contacts so that you can contact them each week. Never use the same marketing methods throughout the year. Instead, find innovate ways to splash your company into your local market. For example, use social media to increase awareness of your new business.
