Real estate is an exciting industry offering opportunities to work with people in an ever-changing housing market. This means no two days are the same. But getting involved in such a dynamic business means you need to make sure that your real estate franchisor can provide you with the support and expertise needed to be successful.
A lot of real estate professionals may not realize the work that their brokerage does to help them succeed. A brokerage operates more like a small business with employees, legal and tax consequences, and a lot more managerial responsibilities than working as an independent agent. It’s a profitable business, but it is one that requires a lot of work. As the owner of a real estate brokerage, you’re responsible for ensuring the success of your agents as well as your brokerage.
The right real estate business will provide you with all the training, legal guidance, business advice, and more that you need to get started. Global franchisors like Realty ONE Group can help with everything from picking a site for your office, to hiring your team of agents.
Here are the five tasks you need to tackle in order to get started in your new real estate business!
Get the necessary licenses and pass the relevant broker examinations
Becoming a real estate broker requires different education and licensures than being an independent agent. Before you can have other agents working for you, you’ll need to get your broker license – so make it a priority.
Licensure requirements vary by state, so take advantage of your real estate brokerage franchisor’s resources to guide you through the licensing system for your particular market.
Build a business plan for your real estate brokerage
Your first responsibility as a business brokerage franchise owner is to ensure that you have a solid business plan that gives you an understanding of how many agents you can support, where to open your office, what your business expenses will be, and at what pace you can scale up your business.
The benefit of real estate brokerage franchise opportunities is that the franchisor has the experience and background to help guide you through the process of creating a business plan.
Find your office location
At some point, you’ll have to figure out what you want your office space to look like. Do you want a central location in a city or in another area with frequent foot traffic? Or do you want a full virtual model where agents collaborate and work with clients from remote locations?
There are benefits and drawbacks to all types of office space for a real estate brokerage franchise. A remote or virtual brokerage means you can save on commercial real estate costs, but it can be more difficult to coordinate meetings and collaborate with your agents. A physical office space located in the heart of the market you hope to work with can allow you to develop more ties to the community and help you better get to know the area. A franchisor like Realty ONE Group can help you weigh the different opportunities so that you can make the best decision for your own business.
Hire your team
Real estate professionals rely on a brokerage to provide administrative support, so it’s your job to make sure you hire the right talent to ensure your brokerage will succeed. You’ll need an office manager, a sales associate, and an IT support team to get started and you may even consider a transaction coordinator and other positions specific to real estate. Some duties – like accounting and legal support – can be outsourced to an outside contractor rather than hiring someone in-house. One of the biggest benefits of this real estate brokerage franchise opportunity is that you can have an in-depth conversation about the best way to build your team, and what opportunities you may have in the future to scale up your employees.
After you have the administrative support you need, it’s time to bring in the right agents to join your brokerage. Some brokers like to recruit new agents who are willing and hungry to learn the business, while others want to bring in more experienced REALTORS(R) who have some name recognition in the market. Take some time to reflect on the kind of brokerage you want to build and what sort of company culture you would like to establish.
Develop a marketing plan
Building your marketing plan is one of the more enjoyable parts of the early stages of establishing your real estate brokerage business. You have the option of figuring out what, if any, niche markets you’ll service and any niches of real estate you and your agents will offer. Perhaps your agents will want to specialize in helping retirees find a new home in 55+ communities near the office or they’ll work with young families to find their first home in new, more modern communities. The goal is to make sure that you know what will make your brokerage special so that you can persuade agents and clients to work with your business brokerage franchise rather than others.
Again, this is where a real estate business brokerage franchisor can make it easier for you to get started. A real estate franchisor with an established brand, like Realty ONE group, makes it easier to get the word out about your business because there’ve already worked to establish some brand recognition. A franchisor often also has established marketing solutions and messaging guidelines so that you aren’t having to start completely from scratch.
Ready to learn more about real estate franchising and opportunities for owning your own real estate brokerage? Reach out to us today!