A Quick Overview of Starting and Running Your Own Real Estate Agency
Starting your own real estate firm is on the higher end in terms of investment, but you still have a lot of options to cut down on costs.
It really all depends on what kind of firm you’re looking into.
If you’re comfortable making a living rather than being a mogul, you can buy foreclosed houses and fix them up while living in them before selling them at their new and improved value.
If you want to start up your own real estate agency, your startup fees will be considerably lower, as well. It’s all up to you. Below, we’ll list a few of the more popular methods of getting involved in real estate.
A generally safe to get started is to buy foreclosed homes or homes with generally low value, and fix them up while living in them before reselling. The downside to this venture is that you may see years go by before you turn a profit.
This route requires some degree of carpentry skill as, even if you intend to hire a crew, it’s a good idea to know what needs to be done and how it’s being done.
Property development is a great way to get investors and banks on your side, and possibly, catch some tax breaks and such.
By fixing up old commercial buildings and such, and then renting the shops out, can help to improve the community. For this reason, many investors and city officials will be eager to help such a plan along.
The good news for beginners is that even though the investment capital for the real estate is kind of high, it’s relatively low-risk because people will always need a place to call home and places to do business.
In fact, if you’ve ever tried to find a place to stay in a new town, you know as well as anyone that there’s always a market for real estate.
- People Skills
- Track market trends
- Ability to find properties that match the buyers
- Ability to adjust and gauge finances during lean times
- Negotiation skills
- Sales and marketing skills
- Conduct Successful “Open house,” sessions
- Conduct Successful Property Showings
- Come up with ideas for the properties you’re showing
- Obtaining financing for clients is a plus
- Meticulous When it comes to Real Estate Contracts
- List of Common Business Skills
Employee & Job Consideration During The Start-Up Phase Or In The Future:
- Sales Representatives
- Common Staff Positions Needed To Run Some Businesses
Approximate Daily Hours Needed:
General Hours of Operation – Generally, realtor office hours are standard retail hours: 9:00 a.m. to 5:00 p.m.; however, it isn’t unusual for you to work the most after hours and on weekends.
Equipment, Supplies, & Services During Start-up OR In The Future:
- Camcorder for 3-D videos of homes for sale
- Decent vehicle
- List of Essential office Equipment
Monthly Expenses To Consider:
- List of Common Monthly Expenses
The first step to starting and becoming a new agent is, of course, to get your real estate license.
To do this, you can jump right into educating yourself and take your license test, though it may be wise to apply for work as a realtor’s assistant first. This way, you can gain experience while making contacts.
Approximate Minimum Startup Cost:
Bare essential – The average startup cost is $3,000 to 10,000.
Tips & Considerations:
- Working from home as an agent can get a little cumbersome, so you’re probably going to want to invest in some office space.
- A lot of the startup money involved in setting up in the form of an agency is going to be spent on advertising.
- Make sure your firm is listed in the phone book and get your name out there any way you can, through magazine and newspaper ads, and even billboards and television commercials if that’s within your budget.
Pros and Cons:
- You can set your own hours
- Very Lucrative
- Many real estate companies offer free training for licensing
- Income can fluctuate dramatically according to the economic climate
- It can be a 24/7 job
- Deals can be difficult to bring to fruition
Type of Customers:
Seek out people considering relocating, along with people who are looking to sell their homes to upgrade, downgrade, or move to a more affordable area closer to their place of employment.
Realtor.org provides up-to-date information on a variety of real estate statistics.
While historically low mortgage rates are enticing, high unemployment keeps potential buyers on the other side of the fence. The future of the housing market depends on job growth.
New home sales inventory conditions improved as home builders had earlier cut back on the building.
Equipment and Supplies: