How Much Do You Know about Setting Up A Real Estate Business?

Misconceptions About the Real Estate Business

It’s amazing how many people dream of starting an estate agency. Why? It seems that a lot of people are under the impression that it’s really cushy setup. When I asked my friend Caroline why it was her ideal job, she said that she wanted ‘the most amount of money for the least amount of work.’ That’s just a misconception. However, I didn’t bother to argue with Caroline. She’ll have plenty of time to learn the truth if she tries to get into real estate entrepreneurship. Or even if she gets a real estate job.

Ever Viewed A Property?

If you ever viewed a house for yourself or another, you might have been impressed by the estate agent. They may have arrived in an expensive car, wearing designer chic. You may have spotted them taking a train home later. That’s because an estate agent is very often a marketing expert. They might show an air of relaxed, leisurely wealth when conducting a viewing on an expensive property. But they may be totally grounded in the middle class. All the better to draw you in and make you want to buy. I’m not saying that they’re frauds. Just that they’re dedicated.

Marketing & Communications Experts

An estate agent’s role is to sell or rent properties. They also maintain properties for landlords. They can handle properties worth millions of pounds in a day. When a house sale is going on, they’re often available to clients 24/7. But they won’t get paid if the sale falls through. When property owners hand over their properties for sale or rent, they want a quick deal, with the best possible terms. So, the estate agency and its staff must be good marketers and communications experts. This is to attract the property owners and then the buyers. To sell to discerning buyers, you need patience.

Some Wealth to Start Up

Before starting up, you should investigate if there’s a market for the service you wish to offer. Are there enough properties going on sale in the market? You should be sure that you can sell at least one reasonably sized property every so often. If there doesn’t seem to be a space in the property market, perhaps you could consider niching down and becoming an expert in a particular area – like selling and renting commercial properties. As the saying goes, the riches are ‘in the niches’.

Is It for You?

Do you have abundant patience? Do you find the challenge of marketing appealing? Do you enjoy communicating? If yes, then this business could be for you. Either as employee or entrepreneur. For entrepreneurship, you require a stash of money to tide you over if there’s a sales lull. You should also be ready to stay on high alert 24/7 when a sale’s going on. And you should be ready to cut your losses and move on when a sale doesn’t go through. Wishing you the very best of luck.