Are you ready to take the leap and start your real estate brokerage? If you’re thinking of leaving brokerage life, this guide is for you! This guide breaks down the seven most important steps you’ll have to take when starting your brokerage. Of course, there are many steps, and I can’t cover them all in one article, so think of this as an overview to get you started.
- Find Your Motivation
- Meet the Legal Requirements
- Prepare a Business Plan
- Figure Out your Brand and Company Culture
- Choose a Location
Find Your Motivation
So, what is your motivation for starting a real estate brokerage? I have to say that if you’re doing it for money, you won’t last. There has to be a deeper reason than that because in many cases, you won’t make a lot of money for a while, and you can make just as much as you would as a broker or an agent if you know how to hustle. My motivation was my desire to do things the way I wanted to do them.
I wanted the agency to be under my name, rules, and expectations. Maybe you want to prove something to yourself. Eventually, we all get tired of the daily grind, and we wonder what’s next. As a real estate agent, this is a real possibility, and there are few places to go besides becoming a broker and opening up your agency.
Meet the Legal Requirements
If you’ve determined that starting a real estate brokerage is the right choice for you, it’s time to start thinking about the boring legal stuff. Do you have a broker’s license, do you plan to get one, or do you plan to hire a broker? If you’re an agent, you know that you need to operate under a broker, so you can’t open a real estate office without having a broker of record.
Some states allow you to hire a broker of record, but I don’t recommend doing that because it takes a lot of the control out of your hands because you can’t be legally responsible for any of the transactions in your own business.
Prepare a Business Plan
Now it’s time for the fun stuff. I’m not a big believer in the traditional business plan because most of the time, that’s only used for securing funding anyway. Put together a plan that will act as your roadmap to success and jot down your objectives for the next week, month, year, etc.
Figure Out your Brand and Company Culture
You may have success using the same business plan and strategies as other real estate teams, but your brand and company culture will be unique. Your name and image are what people will use to identify you in the real estate world.
A sign in a yard should give potential buyers that second look of recognition, letting them know who is listing that particular property. Think about what type of logo and slogan best portrays who you are. You want to make sure you invest time into creating a solid brand for your business so it can become recognizable over the long term.
Choose a Location
If you think having a physical presence is important for your business and your team, you’ll want to pay attention to the location of your office. You’ll also want to consider how important visibility is. If you live in a small town, having the agency office in the city square might benefit you.
I think you’re ready to spread the word. You’ve chosen your location, set aside the funds to start up, and signed all the paperwork to open your doors. Now it’s time to let everyone know that you’re ready for business. Get out there and meet some of your neighbors and contact local companies and local real estate agents. Have a party, pass out flyers and let people know that you’re now a new broker in town.