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If you’re a real estate agent or someone who generally enjoys dealing in real estate, then you may just like owning your very own real estate agency. Having to split your commission with other agents may not always be ideal, but owning your own brokerage means keeping your slice of the pie, making it easier to withstand economic instabilities.

Real estate is a highly profitable industry, provided you’re aware of its intricacies; so that you won’t have your fingers burnt. 

As a broker you will also have to take on managerial duties, which you didn't have to as an agent. Further, you will also have to bear the overhead costs of running an office. However, if you enjoy mentoring and have good money management skills, being in this field can be extremely rewarding, both psychologically and fiscally.

Here’s how to go about starting a real estate agency.

1. Use Your Experience

Irrespective of the educational or employment background you hail from, your learning and experience will always help you out, especially when you start out on something new. It is advised that you draw on your previous career and scholastic experiences. That way it will become easy for you to plan and execute your business dreams.

Even if you have been in a different career so far, say human resources, the knowledge gained in this field can surely be extended to your agency; for example, when formulating the HR policies and frameworks for your company. Apart from that you can also extrapolate your knowledge related to organizational structures, logistics, identifying markets, and so on to your agency.

Additionally, learn about the broker’s license requirements, make a detailed business plan, choose an apt location for your office, equip it adequately, list down your existing clients and real estate property details, set up a professional-looking company website, and you should be well on your way to establishing your very own startup.

2. Establish Roles and Responsibilities

It is recommended to have all the agreed upon terms, conditions, and establishment of the roles and the responsibilities with your partners and stakeholders in black and white, in the form of a written understanding before developing a strategic plan.

It is important that everyone on board understands that systems and duties need to be defined and that sometimes decision-making involves that certain partner(s) take a back seat for the sake of the wellbeing of the agency. There should be no room for ego when it comes to acting/making decisions in the interest of the business.

3. Reassess Your Relationship with Your Clients

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You need to acknowledge the fact that your relationship with your clients as an agency-owner is going to be different from the way it was when you were an agent. As an owner, you will be more of an overseer of your business as a whole.

You will need to work out a way in which your clients are able to recognize this change and realize that their plans will continue to move forward, even though you may not be present in the picture as prominently as you used to be.

4. Value Your Employees

As a real estate agency owner, you will have to employ staff which will help you run your organization smoothly. While hiring employees may be easy, it might be difficult to retain them, especially if they’re skilled.

You need to understand that employees today look for more than just their monthly salaries and benefits. They want to be counted, and appreciate a work environment which encourages openness and freedom (at least to a certain extent). You will need to let them know that they’re valuable assets to your company, if you want to keep them.

5. Develop Your People

Train your employees into sharp businessmen who will grow with you, and replicate your successes through information-sharing. Doing so is crucial as these agents will increase your market share by acquiring more clients.

Let it be about honesty, open discussions and analysis of what’s working and what’s not within a defined program. If required, break your programs down to understand the reasons behind the failure and success of your agents.

Conclusion

Owing your own real estate agency is all about being aware of industry trends and being patient about the rewards which will come in time, if you run it well. While you may receive several opportunities, take your time and pick your clients instead to going after each one of them. Working on developing frameworks and keeping your head low as you face the initial hiccups will be challenging. But once you get past them, you should be ready to move full speed ahead!