When people decide to sell or buy an apartment, rent an apartment for a short time, buy or sell the land, they most of the time turn either to friends or to a real estate agency. And even when we collect a number from an ad, we with an 80% chance end up contacting a real estate agent. In our fast-paced life, a person can not spend his valuable time on the selection of a particular property. This has made a real estate agency relevant and popular nowadays.
Every real estate agency, at its core, provides intermediary services and does not require large expenditures. But remember also that not all agencies become successful for one or the other reason. Here is our comprehensive guide that covers almost everything you need to open your own real estate agency business.
To get you started with a real estate agency, you need to do the following:
- Rent an office space. It should be located in a convenient area, be spacious, comfortable as you will be trading real estate, so your office must correspond to the status of your business.
- Equip your office room with furniture, internet and the connection of several telephone lines.
- Hire office staff and attract real estate agents. If you have an education in this area, it will be of big advantage. If not, then you can only hope for the professionalism of your real estate agents. The salary for your agents will be in the form of commission on every transaction.
- You will need to make a website for your agency as nowadays most sales take place online.
- It is also a necessary task that you place ads in the local newspaper.
- Put up your agency’s brochures on bulletin boards near entrances, offices, and stops.
- Hire or agree on piece-work with a notary and an appraiser (the notary must have a license, and the appraiser is a certificate).
Startup Cost Analysis
Opening a real estate agency doesn’t demand a huge amount of investment rather are small. Here is the summary of all costs involved:
- Paperwork and obtaining permits cost are somewhere around 200-300 dollars
- Rent for office also could be between 200-300 dollars.
- Furniture and repair costs – 300-500 dollars
- Salaries for office staff – 300 to 400 dollars. But real estate agents generally received income in the form of sales commission, more sales they make, more their income.
- Advertising costs 250- 500 dollars.
Keeping these individual costs in mind, we can safely say that the initial investment for setting up a real estate agency could be 2000 – 3500 dollars.
Profits can vary greatly in a real estate agency business as the real estate prices tend to fluctuate constantly with time and the agency receives a percentage of each transaction conducted.
The average income generated by a real estate agency is from 2000 – 3000 dollars monthly and the net profit could possibly be 1200 to 2000 in a month. Real estate agency is a fast paying business. A properly organized one can pay you in a month itself but on an average, it takes from two to five months.