5 Tips on Starting Your Own Real Estate Agency
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
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.
Owning 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!
Why Use AMPI?
AMPI is the national association of real estate professionals that have, since 1956, gathered under laws and codes of ethics and conduct to create a reliable, trustworthy an efficient real estate environment in Mexico.
AMPI consists of separate autonomous sections all throughout the nation, as well as more than 4,000 associates and affiliates.
Each section is independent and has its own board of directors, only surpassed by a national board of directors comprised of twenty associates from all over the republic.
Developed over the years with the input and knowledge of its members, AMPI is much more than just a collection of offices.
AMPI has been a solid and recognized institution in Mexico for the past 27 years. It was originally established in 1956 and was consolidated in 1980.
AMPI is currently represented in all the principle cities and regions of Mexico stretching from Tijuana to Cancun.
The Riviera Nayarita, Vallarta and Compostela chapters of AMPI are dedicated to promote the best practices in real estate by providing its members with education to reinforce the standards of ethics that give our industry the credibility which our clients deserve.
AMPI is committed to giving our membership access to a multiple listing service that forms the platform from which our industry can expand locally and into other markets while giving our members precise and up to date information that is vital to continuous improvement and growth.