AgentEDU Blog - Build a successful and meaningful career in real estate

Increased earning potential, financial freedom and control over their vision of business are the main reasons real estate agents start their own brokerage. However, there are a lot of challenges associated with starting and running your own brokerage. It means more work for you, at least at first, and more risk. So, you have to be certain your reasons for hanging your own sign are the right ones.

How Do You Know If You’re Ready?

But if you plan properly and employ the right business model, owning a brokerage may be right for you. In this blog you’ll learn how to determine if you’re ready to open your own brokerage. If you’re part of the TL;DR crowd then start your free seven-day trial of AgentEDU today and watch the full course, ‘Are you ready to open your own brokerage?’

Before reviewing the steps of the planning and transition process, think about what you can confidently take on and where you may need some help. These are important things to consider before you decide to go out on your own.

Ask Yourself These Questions

Ask yourself these questions:

Do you understand the financial and personal risks, and are you willing to accept them?
Do you feel confident that you can manage and run all aspects of your own business?
Have you put your financial plan together? Do you have enough capital to support your efforts?
Do you have the right people lined up to join your business? If not, do you have a recruiting plan?

If you answered “yes” to all of these questions, then you could be a good candidate to open your own brokerage. But there is a lot that you need to know before you do.

#1. Have an Exit Strategy

Make sure you account for potential practical, political and emotional issues when leaving your current business. You’ll still need a strong professional network once you open your brokerage, so make sure you don’t burn any bridges during the transition.

Along with an exit plan, you’ll need to write up your plan for the new business.

What will the process be? Who do you need to speak with, and when? How will your current brokerage react? How will you handle any sales that are currently in process? Does your brokerage have your database, and do they have the right to use it after you leave? What if other agents want to leave with you? Where will your new office be? Would your new office be in direct competition with your current office? What are your obligations to the brokerage, the managing broker and other agents in the office?

#2. What Will Your Business Model Look Like?

Begin by deciding on a business model. What specialties will you offer? How many agents will work with your brokerage? How will the brokerage support them? Outline the roles you will play, as well as any additional responsibilities you’ll have to take on. Figure out which roles you need to hire for. Use technology to help fill in the services you lose by separating from your old brokerage. Draw up a transition plan for your team that details how workflow will continue through the changeover.

#3. Become an Expert on Your Financials

Nothing can happen until all the financial pieces are in place, so you’ll need to be an expert on your budget. Opening your own brokerage will require a financial investment. Can you fund the start-up costs on your own or will you need to borrow capital? What about investors?

Many businesses fail because they are under-capitalized. Make certain that you have enough capital to manage startup costs. Plan to cover operating expenses with savings for at least six months, including rent and utilities. You’ll need to budget for office equipment and marketing expenses. Make sure to include insurance costs for your business, fees for any online services you use, membership fees and other miscellaneous items.

To learn more about the financials needed to launch your own brokerage as well as your next steps, start your seven-day free trial of AgentEDU today and watch the full course titled, ‘Are you ready to open your own brokerage?’

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AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.

Selling a truly unique luxury property is different from your typical sale. It requires a more focused approach and a more sophisticated touch. Clients whose homes are worth many millions expect that special measures will be taken to market their property.

Sometimes agents will need to take extraordinary measures. When there is competition in the luxury market, there is an increase in high-end open houses — elegant and expensive events that spare no expense in showing a listing’s best qualities. This is not a typical open house.In this blog you’ll learn some of the ways that you can host a unique event to showcase a special property.

Traditional Advertising

In many cases, traditional media is still very effective for the real estate business. Agents may be getting great results from direct mail postcards and advertising in print and online. Using postcards to let neighbors know what you have just listed or just sold works because it offers market information, plus exposure for listings and for yourself. Make sure the photos look great, the message and the call to action is clear and that the brand is properly reflected.

Online Advertising

Advertising in print is effective in certain markets, though not in others. Online advertising allows potential clients to click through the ad to your website or email. And don’t forget to look into marketing opportunities on syndication sites like Zillow. These can help with lead generation as well. Ultimately, advertising works best when you know who your target market is and how to best reach them.

Social Media

With social media’s important role in marketing, most real estate agents maintain at least one social media account for their business. Facebook, Twitter, Pinterest, Instagram and Snapchat are among the most popular, but additional networks may emerge, and you’ll need to be ready. The idea is to keep your company relevant and useful. If you can find a specific angle that can bolster your brand, all the better.

Editorial Calendar

Create an editorial calendar that runs at least three months out so that you can map out a strategy and use any analytics that are available to optimize and refine your message. Social media holds a varying level of importance, depending on your target market, but no agent can afford to neglect it entirely.

Surveys, Testimonials and Reviews

A completed transaction is not the end of the relationship. There is still marketing work to do! Start with surveys, testimonials and reviews. It’s a good idea to send a survey to clients after a transaction is finished to let them share the pros and cons of their experience with you. This information can help you make improvements to systems and services.

Third-Party Services

It’s also a low-pressure tactic to ask for a testimonial and an online review. There are third-party survey services that are simple and inexpensive to put into practice. This should be part of your operating procedure at the close of every sale. And getting testimonials and reviews on sites like Yelp can really help you expose your brand to new clients and stand out from the competition.

Participate in the Neighborhood

Lastly, one of the best ways to market your business is by simply being top-of-mind when it comes to real estate in your neighborhood. The simplest and most effective way to do this is by actually spending time participating in local events. Have a presence at festivals and town meetings. Consider volunteering at the local school.

#1. Show Up at Neighborhood Events

Suggest that your brokerage sponsor neighborhood events, or simply make sure to get a table at them. You may want to keep track of event opportunities and attend yourself. Seek out opportunities to put yourself in front of the right target market.

#2. Offer Advice or Expertise

No one likes someone who only talks business, but there’s nothing wrong with being helpful and relevant. If you keep your ears open and participate with people, you will find organic ways to help market a company that truly is a part of the neighborhood.

#3. Manage Your Local Brand and Reputation

All in all, it’s important to remember that selling homes is just one part of your business. It’s just as imperative to ensure that your business has a future flow of potential customers and that your brand and reputation is being managed in the best way for you and your business.