Real estate goes through periods of what is called “buyer’s markets” and “seller’s markets.” That is, there are times when the market is conducive to people buying houses (because there are a lot of them available) and those selling their houses (because the market is small and there’s a lot of competition.) No matter which phase the market is in, real estate brokers are needed. These brokerages train and hire real estate agents, take care of loans, and do everything necessary in order to help people buy and sell houses. Starting up a new real estate brokerage requires a bit of planning, but once all of the pieces are in place, business should soar. Here’s how to get started.
The first thing that you need to do is learn about the real estate industry. There are licensing requirements to fulfill and many other things. Let’s start with the two main types of real estate. These are residential and commercial. You can even include “industrial” as a category, although it mostly fits in with the commercial. Those two tend to get lumped together. Most brokerages focus on either one type of real estate or the other, although there are some that manage to do both. In those cases, there are two halves to the same company, each with a single focus. Which type you choose to concentrate on depends on your location. Are you in an area with a small commercial section and plenty of houses? Or is your area more urban with a mix of both? You need to choose which type of real estate to focus on at first. After your company has been open for a while and had some success, you can always expand.
Also, working in real estate requires some licensing. Brokers and brokerages need to be licensed to work in the industry. Real estate agents also need to go through a course explaining the rules and regulations, and then they need to pass a test. On top of this, there are a certain number of hours required in the field in order to meet some of these requirements. For this reason alone, unless you’re already a licensed broker, you’ll need to hire one before your company gets off of the ground.
What Comes Next
Now that you’ve made some of the tough decisions, it’s time to complete the next few steps. These involve naming your business, designing the logo, and finding an office location. Many real estate companies are named after their owners, although some use a clever real estate-based name, such as one that plays off of an industry term. Also, you could come with something unique and catchy. You could also use the name of your city or town, or even a popular and busy street in your town. No matter what the name is, it needs to be clear and easy to remember. Since the name is going to be used on all of your marketing materials and advertisements, it will tough to change once your company is officially open for business. For this reason alone, you need to settle on a name that you like.
Once you have a name for your real estate brokerage, it’s time to pick a logo. Many logos for these types of businesses have a house or a building in them, even if it’s in silhouette form. As far as fonts are concerned, use one that’s somewhat classic in style. Although Times New Roman and Arial are popular ideas, you can pick one that kind of resembles them, but has a little bit of individual flair. You also shouldn’t go too crazy with the colors. Stick with things like black, white, gray, brick red, or even blue or green. These colors will help keep your logo grounded. For inspiration, look at some real estate websites online and examine their logos.
After the name and the logo, the next step requires you to find an office. Many brokerages operate out of a house that has been turned into an office building. However, you can use a small storefront in a shopping center or strip mall. The building just needs to be large enough and easily accessible.
Advertising and Marketing
Marketing your real estate company is fairly easy. There isn’t anything groundbreaking about it since many of the tactics used by other brokerages work quite well. These methods include placing signs outside of houses that are for sale, buying advertising in newspapers and on billboards, and even creating a website showcasing your listings. Some real estate companies are utilizing social media to draw in new clients. However, what really works best is something called the multiple listing service or MLS. This is a place where all for-sale properties in an area are listed, regardless of the listing brokerage. This database is available for all agents in an area. What will this do for your business? Well, if you have a house listed on the MLS and an agent from another company wants to come and look at it, then your listing agent will show it to them. When the house sells, both agents get paid – and your brokerage gets a commission. The criteria for listing a house on the MLS depend on the area, so you’ll need to be careful when making an entry. However, if everything works out, that “for sale” sign will disappear quickly. Advertising real estate is one of the simpler things to set up, as nothing has really changed in this part of the industry.
Starting a successful real estate business requires you to go through a series of steps. The process isn’t complicated, but everything does need to be done correctly in order for your business to be successful. You’ll need to have the right licenses in place, as well as a good company name and logo. Finally, you’ll need a number of advertising and marketing ideas, many of which have been used by real estate brokerages for years. In the end, everything will go well.