How to Start a Real Estate Brokerage: A 6-Step Guide Scaling Service Businesses

One of the largest differences between starting your own independent brokerage and purchasing a franchise is the upfront cost. If you open your own independent brokerage, you can bootstrap it by starting in a smaller office or co-working space and using software off the shelf. You can see more on this topic in my previous article, 7 Things I Wish I Knew Before Starting My Real Estate Brokerage. I found myself spending two to four hours each day on this task.

Voice-over-internet-protocol (VoIP) is another way to attract agents and help them work smarter instead of harder. VoIP companies like Grasshopper offer multiple lines for cell phones as well as scalable, advanced phone systems for brick-and-mortar offices. If you really want to succeed, you’re going to have to dig a little deeper than money as a source of motivation. Maybe you really crave independence or want to prove something to yourself. Maybe your commission checks aren’t creating the lifestyle you want for your family.

Broker Spotlight: Todd Cutter, 2Costa Rica Real Estate

Contact new home builders, other realtors, and even lenders, and use social media to create your agent profile to generate news about your new career. When your application is approved, the state will mail your real estate license certificate to you, and your name will be searchable under the licensees’ section of its website. Keep in mind that you’re not allowed to work as a real starting a broker business estate agent before your license is issued by the state’s real estate authority. The median pay for a real estate agent is about $48,340 per year, according to 2021 data from the U.S. Real estate brokers with additional education, testing, and experience average $62,010. From working with different clients and visiting many homes, you won’t be doing the same thing every day.

  • You’ll also need to secure a long-term lease and pay for furniture, computers, Wi-Fi, and other utilities.
  • The most successful real estate brokers in a major market area can easily make over $1 million per year.
  • For many agents just starting their careers, it’s easy to get caught up in this initial rush of success and start relying on their laurels instead of pushing forward.
  • Using your last name in your brand makes it more likely that your branding is available.
  • Finally, it can help you stay ahead of the competition by understanding the latest technology and tools available to real estate brokers.
  • Finally, employees can help to increase the profitability of the business by increasing the number of transactions that can be completed in a given period of time.

Each has its own pros and cons, so it’s essential to do your research and see which loan fits best with your business vision. Check your state’s requirements, but some also need realtors to have signed off a certain number of transactions before they become eligible to apply for the licence. When you start your business, chances are you can handle the workload on your own. As you start to see success, however, you’ll want to scale — and this means bringing in help. But the scale and scope of this platform mean that any faux pas — no matter how small — can negatively impact your reputation and your business.

Steps to Become a Real Estate Agent

Investopedia describes how the real estate commissions are paid. The most successful real estate brokers in a major market area can easily make over $1 million per year. The one thing to remember is that it is just as easy to sell a home that sells for $1 million, if it is fairly priced, as it is to sell a home for $100,000.

Supervising brokers advertise the brokerage and oversee the operations of agents. This includes helping with paperwork, giving advice, and stepping in where necessary to help with transactions. We have put together this simple guide to starting your real estate brokerage. These steps will ensure that your new business is well planned out, registered properly and legally compliant. Most agents in 2023 expect much more from a brokerage than just a good split and low fees.

How to Start a Real Estate Business

You can also set up professional email addresses (e.g., ), which can be used on business cards and in other preliminary marketing materials. Apart from brokers and agents, support staff also play a critical role in a successful brokerage firm. This change creates a new way for agents who desire the opportunity to build a small brokerage without the expense of a new franchise and the risk of building an independent brokerage.

You get to be your own boss and enjoy the satisfaction of helping buyers and sellers navigate through one of life’s major milestones. Go to your state real estate commission’s website to find information on licensing requirements and a list of accredited pre-licensing institutions. Not to mention the rather enticing fact that real estate can be a lucrative field.

Nurture leads.

Another way to showcase your achievements and skills is to create a portfolio of your work. This can include examples of your listings, marketing materials, contracts, closing statements, and awards. You can also include data and metrics that demonstrate your performance, such as sales volume, conversion rate, average days on market, and client satisfaction. You can present your portfolio to your employer or broker during your promotion negotiation, or share it online through your website, social media, or email. The first year opening a real estate brokerage is primarily focused on learning the ropes and establishing your brand.