You can open a real estate agency for 10 thousand dollars
It is not difficult to create a real estate agency; licensing of this activity is not required; initial investments are minimal. The main experience and communication. But not all newcomers can survive in the real estate market.
Own Real Estate Agency: Choosing a Place
As for the geographical location of the agency’s office, there is no unequivocal opinion of market participants. Some advise you to open an agency in the city center, others - in sleeping areas. The main requirement is the ground floor and a separate entrance. Good options are - rooms in office buildings, rooms in shopping centers, public houses, palaces of culture.
The rental price for office space ranges from $ 20 to $ 45 per sq. m. The size of the office depends on the staff of the company. For four to five people, 15-20 square meters is enough. m Experienced entrepreneurs advise providing in the office a room for negotiations with customers. This will avoid confusion with confidential information.
Own Real Estate Agency: Staff
It is useless to open a real estate agency without having experience in the market. In real estate, communications are very important. The manager definitely needs work experience (three to five years). Often, former employees, having gained certain knowledge and experience, open their own offices.
The average staff of a real estate agency is 10-15 people. But at the initial stage, it can be five people. As a rule, employees are recruited by an ad in the newspaper from newcomers. Experienced professionals go to another agency only with a certain benefit for themselves.
At first, it is not necessary to keep an accountant and a lawyer on staff. Their services can be outsourced. You can hire a secretary / dispatcher (salary from 6 thousand rubles) and a cleaner for 1.5 thousand rubles. Large companies also have advertising and staff managers, cashiers, etc.
It takes about a year to grow an agent. There are training courses at the regional association of realtors, but the courses provide only 15% of the knowledge necessary for the agent. All the subtleties: how to communicate with a client, how to convince, how not to give competitors a beginner learns on the spot. Training takes place according to the scheme - 3 weeks of theory, and then practice under the supervision of an experienced employee.
According to the statistics of realtors, no more than 20% of recruits trained in the organization become agents.
Basically, agents work according to the piecework payment system, receiving remuneration for the transaction - a certain percentage. The firmer the firm is on its feet, the lower the percentage it pays employees. Large organizations can afford to set commissions at 30-50%, small ones give the agent 50-70% of the proceeds of the transaction.
An employee is considered ideal if he can conclude about two transactions for the purchase and sale of apartments per month. But such shots are worth its weight in gold. Profitable realtors consider specialists earning for the agency an average of $ 1, 000 per month.
Own Real Estate Agency: Equipment
A beginner real estate company at least needs tables, chairs and a telephone, and a stationary one. Which will be indicated in the advertisement. If the company employs more than five people, two numbers will be required. For an agency of 10-15 people, it is ideal to have a separate line for receiving calls, which agents will not occupy during negotiations and phoning. For optimal business organization, if there is no centralized telephone exchange in a rented room, you should purchase your own small telephone exchange.
It is mandatory to have a computer (the number depends on the number of employees), printer, copier, fax. For synchronization, acceleration of work and accuracy of information, it is necessary to connect all available computers to the network and work with a single database.
Own Real Estate Agency: Advertising
The main advertising publications in which realtors place information about themselves and their lots are newspapers of free announcements and specialized publications: "Hand in Hand", "Real Estate". At the initial stage, an agency that has no more than ten objects needs $ 100 for advertising on line ads about available lots in specialized publications for an advertisement.
Experts advise start-up agencies to “process the territory” around them: to make a noticeable signboard, put up announcements, send out advertising leaflets to the mailboxes of nearby houses. According to experienced realtors, the greatest return is given by targeted mailing and announcements at the entrances and stopping complexes. The minimum advertising budget for a medium-sized company is from 5-10 thousand rubles. up to $ 1 thousand per month
Own Real Estate Agency: Payback
The payback period and profitability of a business depend on the level of costs, on plans and requests of owners. A small firm can pay off in a few months. Some market participants call the level of profitability in this business to 80%. But experts consider this figure somewhat overestimated, and lower it to 25%. But experienced realtors are convinced that if you have ten people with a gross income of less than $ 15 thousand, you should not do this business.
Own Real Estate Agency: Pros and Cons of a Realtor Business
Advantages of a real estate agency:
- Business does not require large investments
- Despite the saturation of the market for real estate agencies - it’s quite possible to find your niche, the main thing is to prioritize correctly
- There is no seasonality factor
Cons of a real estate agency:
- Lack of stability in transactions
- Great dependence on employees
- There is a chance that the realtor will receive money bypassing the company
- There is a risk of non-payment
Own Real Estate Agency: Entrance Ticket Price
Settlement for a real estate company with four agents. Each of them concludes one transaction of purchase and sale of an apartment per month with an average commission of $ 1.5 thousand.
Registration - $ 148
Broker's certificate - $ 276
Certification of agents - $ 425
Equipment - $ 1293
Joining the UPN - $ 2, 963
Total: $ 5, 105
Income - $ 6, 000
Rent - $ 440
Utility Payments - $ 126
Liability insurance - $ 15
Advertising - $ 150
Accountant -111 dollars
Representation expenses - 150 dollars.
Membership fees in UPN - 41 dollars.
Commission agents - $ 3, 000
Total costs: $ 4, 033
Profit before tax -1967 dollars.
Entry Threshold - $ 9097
Payback - 2, 6 months.
Based on an article by Natalya Baranchikova for the magazine Business District
* The article is more than 8 years old. May contain outdated data