How To Open A Real Estate Agency

REAL ESTATE IS A POPULAR TYPE OF INVESTMENT. 

Despite the crisis experienced by Russian society, the real estate market in cities with a population of over one million is quite active. This prompts many business people to open their own real estate agency for profit. Real estate is the economic and economic activity of an organization providing intermediary services in the sale and lease of real estate to the population and legal entities. 

At first glance, it seems that this business is quite simple. And is it really so, let’s try to figure it out. 

WHY ATTRACTS A REAL ESTATE BUSINESS? 

Firstly, to start a business, you need a minimum financial investment, you only need a phone to negotiate the sale of real estate, and after the licensing of the real estate business is canceled, you don’t even need special knowledge and education to do it, the Internet marketing company will help you. Secondly, at the initial stage, you can work alone, the minimum income from initial transactions can range from fifteen to thirty thousand rubles. The main income of real estate agencies consists of intermediary activities. 

A real estate agent brings together the buyer and seller of real estate and receives a reward for this. Step by step, the work of an agent looks like this: a call-conclusion of an agency agreement – viewing objects – a deal – reward. But, like any other type of economic activity, brokerage services in the real estate market have their own legal aspects of organizing a business.

Real estate agencies are opened mainly by former realtors who have worked for an uncle and decided to go out on free bread, while having developed their own base for doing business. Therefore, advice – if you did not work as a realtor and decided to open this business, then get a job for a few months in an existing large agency.

The services provided by a real estate agency are varied. The main activities of real estate agencies:

• purchase and sale of residential, commercial real estate; 
• rental of residential and commercial real estate; 
• purchase and sale of land plots; 
• sale of industrial buildings (factories, factories, etc.); 
• change in the status of real estate objects (transfer from residential to non-residential and vice versa); 
• obtaining a construction permit and commissioning facilities; 

registration of ownership of real estate; legalization of reconstruction and redevelopment.

Agencies can perform all these services, or they can choose a narrower area, for example, the rental market and commercial real estate. 

There are a number of important points to consider before starting a real estate agency.

Price level in the region. Housing prices in different constituent entities of the Russian Federation differ from each other. In addition, each city has its own pricing policy for primary and secondary housing. Primary housing means real estate from housing developers under construction or rough finishing, and secondary housing – residential real estate from owners. 

Percentage of primary housing under construction. Depending on how developed the construction of apartment buildings is in the city, the demand for this or that type of housing will depend. In the case of a small number of primary housing, the main subject of demand will be objects from the owners. The process of forming the real estate agent’s remuneration should be studied. 

Each region has its own specifics. In big cities, a real estate agency enters into an agreement for the provision of services with a client, both selling and selecting housing. The cost of registration of the package of documents is paid separately by one of the parties to the transaction by agreement. So, the remuneration of a real estate agency is from 1 to 7% of the cost of purchased or sold housing, which is paid by the client and the cost of paperwork from 10,000 rubles to 20,000 rubles.

STEP-BY-STEP INSTRUCTIONS FOR STARTING A REAL ESTATE AGENCY FROM SCRATCH AND STARTING A COMPANY 

To open a real estate agency, you must carry out a number of mandatory actions: 

Registration of a legal entity LLC. If you decide to create your own business alone, then an individual entrepreneur is suitable, and if you have a partner, then without LLC options. 

Preparation of a package of documents. The cost of organizational expenses, taking into account opening a bank account, will be 3,000 rubles for an individual entrepreneur, and 10,000 rubles for an LLC. 

Rent or purchase of premises. For the initial launch of the business, it is definitely a lease, and then you can take care of buying an office space with a separate entrance on the ground floor. 

Recruitment of employees. This item is at your discretion and depends entirely on the initial capabilities.

Organization of labor and business processes. If you decide to open a real estate agency for a franchise, then most of these points will help you solve freichanzi.

SELECTION OF OFFICE SPACE

For doing business, it is advisable to choose an office in the central part of the city (if the agency will be engaged in the rental and sale of real estate in the city) or in the area where the activity will be directly carried out. The best solution is an office on the floor with a separate on the red line. The second option is an office in a large business center. An office can consist of several separate rooms. The first area is the client waiting room and reception, the second is the area where the real estate agents are located. Separately, the office of the head should be organized, which can be combined with a place for processing documents, if the lawyer is coming. If a lawyer works in the state on a full-time basis, you need to provide for another office where he will work and draw up transactions.

STAFF RECRUITMENT

For the successful operation of a real estate agency, it is necessary to recruit the following team: hired or from among the founders. The staff will include – the head of the agency, a secretary or assistant manager, real estate agents (realtors), a lawyer. As an additional staff, as necessary, a working unit of a deputy manager, driver, site maintenance specialist and advertising companies is introduced.

OBLIGATIONS OF EMPLOYEES

The manager’s responsibilities include monitoring and organizing the work of the entire real estate agency. The duties of the secretary or assistant include receiving incoming calls and correspondence, forming applications for the purchase and rent of real estate, accounting for real estate, sometimes advertising issues and performing tasks for the economic part of the organization. At first, these tasks are performed by the manager and you can do without an assistant.

The tasks of a real estate agent are clear, real estate activities in the field of renting or selling real estate. For the effectiveness of the work of realtors, groups of agents are formed according to territoriality (determined for a certain area) and the specifics of real estate (residential, commercial, houses, land plots, new buildings). 

The competence of a lawyer is the execution of transactions related documentations. He is engaged in the conclusion of contracts for the provision of services, drafts contracts of purchase and sale, donation, exchange, employment, etc. Provides advice to realtors, collects a package of documents for the transaction in all institutions necessary for the type of activity. At the initial stage, it is also possible not to hire a lawyer and use the services of a law firm for outsourcing. Accounting in a company can be outsourced or employed as an accountant.

ADDITIONAL BUSINESS POINTS

The services of realtors are mainly required for property owners. Very rarely, agency contracts are concluded when searching for the right objects, both for purchase and for rent. Basically, the real estate owner acts as the payer of the realtor’s remuneration. Therefore, in order to provide a property owner with a service to find a buyer or tenant, the head of the real estate agency must conclude an agreement with this owner. We advise you not to work without concluding a contract, as in this business you may be “forgotten” to pay remuneration. 

No contract – no money. Now there is a crisis on the street, so sometimes the owner says that he has given the property for sale to several agencies, and will conclude an agreement with the company that will bring the buyer. It means you need to move faster, as the saying goes “who gets up early, God gives him.” But in the meantime, you should strive to conclude an exclusive contract for the sale of real estate. This means that the owner does not have the right to conduct independent advertising campaigns and cooperation with other agencies on his property and only your agency can sell or rent this property. Therefore, the more such agreements are in the agency, the more financially stable its position.

An important issue is the training of realtors and professional development. Lending institutions, banks and the Russian or regional guild of realtors often conduct seminars on the topic of increasing sales in real estate. It is advisable to attend such events. 

Go for it, and you will succeed, we believe in you.