Outlines the 6 key steps if you want to start a real estate brokerage, and explains the differences between agents, brokers, and realtors in the real estate industry.
Are you planning to start a career in real estate? Well, being enticed to it is expected … given the lucrative real estate industry. But, starting a real estate brokerage is not that simple. It involves informed decisions that can help you throughout your journey. So, before we delve into the steps of how to start a real estate brokerage and building a successful brokerage, let us define first exactly what a real estate brokerage is.
What is a real estate brokerage?
In a nutshell, a brokerage is a firm that can employ real estate agents. In terms of experience, a broker is more experienced than an agent. In other words, brokers generally have more training, which is why they are more capable of handling the technical parts of a transaction.
What are the differences between agents, brokers, and realtors
Now, let us get a bit technical with the terms agents, brokers, and realtors. Are they the same? The straightforward answer is no. Each one is a different kind of work.
As mentioned above, an agent should work for a broker. On the other hand, a broker can work independently, build a brokerage firm, and then hire agents. Moreover, the term realtor can be used by those who are members of the National Association of Realtors (NAR). NAR is a diverse association, with most of its members composed of different professionals. Furthermore, members can either be agents or brokers.
What about the qualifications?
Real estate agents need to pass the requirements (depending on the state, if in the USA or the country) and obtain a real estate license. For example, in individual states, an agent can be under one brokerage only. On the other hand, brokers also need to pass the brokerage exam.
Now, becoming a realtor means being a member of NAR (or other associations in your respective countries). As an agent or broker, you are already qualified to become a realtor, as long as you can follow the association’s rules and regulations.
How to start a real estate brokerage: 6 steps
Now, let us take a look at the nine steps that can help you build your brokerage empire.
- Evaluate Yourself
Do you have what it takes to become a broker? It is the only simple question you need to ask yourself. If you are always ready for opportunities and challenges, then it is safe to say you can have a shot at this one.
2. Fulfill State Requirements
Remember that you are about to do business. The key to a smooth start is following your state’s requirements. This varies from one country to another, but regardless, you must always make sure that you do not violate anything. Given this, you should start with the very basic: secure your license.
3. Secure a Business Plan
In real estate, a successful roadmap is necessary. This roadmap is what others call a business plan. It is like a game plan that can put your brokerage at the best odds of success. Make sure it is well-researched and backed by statistics that matter. Include your target market and branding strategies too.
4. Choose a Location
You see, buyers prefer a business with a valid office address. Although you can also opt for a virtual setting, you should still consider running the office so those who want to see a broker in person can always do so. Doing this offers the best support for customers.
5. Plan Your Staffing Needs Well
Do not hire too much at the start. You need to evaluate first the need to have more people in the field. If you want, you can opt to hire seasonal agents. Always hire licensed real estate agents or brokers, so your credibility and authority are not jeopardized.
6. Brainstorm Your Marketing and Lead Generation Plan
As a business, you should have a marketing plan in mind. This will help you build your brand all the way and let the people know what products and services are you offering. At the same time, focus on your lead generation strategy to get fresh leads that give conversions.
That’s it! Are you ready to start your brokerage firm anytime soon? We are rooting for you and hoping that this guide can help you launch your firm successfully.