Owning a brokerage might be fun for all those individuals who enjoy selling real estate. When you own your own brokerage, you have a better chance of dealing with the market fluctuations because there will be several brokers who will split their commission with you. This is an appealing benefit of having your own real estate company. However, as an owner, individuals also have to deal with supervisory duties that they didn’t have when they were only a real estate agent and they would also have to deal with the overhead of running an office.
There are several steps that have to be taken by individuals who are interested in setting up their own real estate business:
Step 1:
You need to have enough money that can cover up your startup costs, which will include buying or renting office space, office equipment, office sign, office logo, yard signs, insurance and website design. In addition, people also need to set aside enough funds that will be sufficient enough to cover their operating expenses for about three to four months. These expenses will include advertising, online fees, rent, utilities and other miscellaneous items.
Step 2
Individuals need to the requirements for broker-licensing in their state in order to get their own real estate broker’s license. State-approved courses have to be taken in most states and individuals are required to be 21 years old and should also have experience as a real estate salesperson for about two years.
Step 3
You also need to find a suitable location for your office. Various factors have to be considered when making this decision such as visibility, zoning restrictions, parking for agents and client and also square footage.
Step 4
No matter what your business, a professional-looking website is essential in this technologically advanced world. About 80% search online for a real estate company when they are shopping for a home so it is necessary to have online presence.
Step 5
Insurance for errors and omissions has to be obtained. When you become a broker, you are basically responsible for the actions of your agent, which means that you have vicarious liability. Therefore, this insurance will provide you cover in the case where you might be sued by an unhappy client.
Step 6
You need to equip your office by adding the proper equipment and furniture that’s needed to give it a professional look.
Step 7
This is the most important step as it involves developing clientele. You can hire agents, especially the ones that are established and they will bring in their own clients. New agents can also be hired, but they will have to be provided with proper training for ensuring that they don’t make any legal mistakes, which can harm the reputation of the company and cost them clients. However, you also need to outline an advertising campaign, which includes real estate publications, newspapers, radio and television.
An office open house can also be conducted for raising the profile of the company and providing it with the proper exposure and publicity. This also includes sponsoring charitable events where the name of the company will be in focus. Apart from that, one can also hire a search engine optimization firm, which can boost the visibility of the real estate company’s website in search engines. After you get the real estate company, make sure to hire a mortgage company.