How to Put Up a Real Estate Firm

If you want to put up a real estate firm in the future, then do well with your career as a real estate agent first. Once you progress to a broker position, it is high time that you understand fully the ins and outs of the business. Your training, work ethics and professional networks will determine how successful your real estate firm will become.  

If you are 100% decided that you want to put up your own firm, here are some steps that you need to follow: 

  1. Weigh the market in your community. Check if there is a demand for your service and if the demand can justify the existence of your business. Is the demand will be within your area of expertise? Is there a chance that the demand will grow over the next several years? Is the market already saturated? Who are your competitors and how can you penetrate their market?
  2. Write a business plan. This will serve as your map that will help you chart the right direction for your business. Here, you will include the strategies that you will present to your investors. Your business plan will also contain the management strategies for day to day operation of your business, the expenses and the right execution of plans in details. 
  3. Determine how much will be your start-up capital. You know that you need money to cover the expenses for leasing an office, buying office equipment, obtaining a license, and other expenses.
  4. Get all necessary licenses. The types of licenses may vary depending on where you live. You can consult your state regulating agency what licenses are needed for your kind of business. You might also need a permit to operate license from the city where your business is located. Make sure that you and your staff have valid real estate agent licenses.
  5. Choose your office location. It is extremely important to find a good location for your business. Choose an office location that is visible to many pedestrians, easily accessible and has an ample parking space.
  6. Buy office equipment. Your daily operation will always need computers, telephones, fast internet connection, office furniture, a fax machine and the usual office supply.
  7. Create a website. Even before you lunch your business, you can start creating your website. It should include your listings of the properties, with quality photos (and videos, if you can afford it), and the contact details of your company or your agents. Make sure that you put your business online as 90% of home buyers start their search on the web.