What is a Real Estate Mission Statement?

A real estate mission statement is a concise declaration of your real estate business’ purpose, goals, and the values it upholds. It serves as a guiding light for your team and helps clients understand what your real estate business stands for. A well-crafted mission statement for real estate reflects your commitment to providing exceptional service and trust building and your desire to succeed in real estate.

In addition, your mission statement should be an integral part of your business plan. It sets the tone for your brokerage’s strategic direction and informs your business decisions. Including it in your business plan ensures that every aspect of your brokerage aligns with your core mission, which will help you stay focused on your long-term goals and maintain consistency in your operations.

Why a Mission Statement is Important for Your Real Estate Business

The real estate mission statement is important and necessary because it aligns your business with clients who share your values. It will be the foundation of your business, and you will continuously refer to that statement as the guiding force behind your business strategy and decision-making processes. A strong mission statement communicates your commitment to excellence and service, building client trust and differentiating your brokerage in a competitive market.

How To Create a Mission Statement for Real Estate

At first, creating a mission statement for your brokerage may feel daunting if you’re not great with words or as creative as other real estate professionals. Simply take some time to reflect on the points below to help guide you through crafting a mission statement for real estate agents.

Creating a realtor mission statement involves a few key steps:

1. Identify your purpose: Reflect on why you started in real estate. What do you hope to achieve? What makes your business unique?
2. Define your goals: Outline your primary objectives. These could include customer satisfaction, market leadership, or community impact.
3. Incorporate your values: Consider the principles that prompted you to start your business. Integrity, innovation, and client focus are some examples of values. 
4. Keep it concise: A mission statement should be brief yet impactful. Aim for one to two sentences that convey your message.
5. Seek feedback: Share your draft with trusted colleagues or mentors to get feedback. They may have a different perspective that adds to a compelling mission. 

Realtor Mission Statement Examples

To inspire your real estate mission statement, we’ve compiled five real-life examples of real estate mission statements that guide the success of some top-performing brokerages. These examples highlight how a clear, concise mission can guide business strategy and communicate your commitment to your clients. Here are our top picks:

“Keller Williams ONEChicago is a real estate company with a clear mission to build careers worth having, businesses worth owning, lives worth living, experiences worth giving, and legacies worth leaving.”

“Our mission is to provide the consumer with the highest level of service of any Real Estate company thereby ensuring that properties are sold or leased in an exemplary manner. We endeavor to deliver professional service to clients and customers so that transactions are completed to the satisfaction of all concerned.”

“We aim to delight and surprise our clients, deliver exceptional service, and exceed their expectations at every step in the transaction. Our goal is to make the real estate process memorable and one that our clients want others to experience.”

“Our mission is to provide our clients with the highest quality of brokerage services available. To bring a value-added and highly qualified team of real estate professionals to the table for all of our clients from the smallest to the largest. To provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding real estate opportunities.”

“At Manderley Real Estate, our mission is to inspire you to reimagine your lifestyle through exceptional real estate experiences. We are committed to providing innovative solutions, personalized services, and a passion for locating properties that elevate your life.”

FAQs

How long should a mission statement be?

How often should I review my mission statement?

Where should I display my mission statement?

Bringing It All Together

Creating a realtor mission statement for your brokerage is an exciting and essential step in building a successful real estate business. It defines your purpose, guides your team, and communicates your values to clients. Ensure your mission statement is ambitious and realistic to represent your real estate business. It may take some time in the beginning to create, but once it is complete, you should let it be the beacon that guides your brokerage to success!

The post Craft an Inspiring Real Estate Mission Statement appeared first on The Close.

1. Real Estate Agent

• Average salary: $90,506 per year
• Required skills: Communication, negotiation, persuasion, and market knowledge

Whenever you ask, “What can you do with a real estate license?” the most common career path is to become a real estate agent. You can do this full-time or as a part-time real estate agent. In this role, you’ll represent buyers and sellers as they navigate the real estate transaction process. 

• Buyer’s Agent: Accompany buyers on showings and provide counsel and advice through the property search, selection, negotiation, and contract process. You’ll also connect homebuyers with the necessary area professionals (like mortgage brokers, inspectors, appraisers, and more) to help them reach the finish line.
• Seller’s Agent: Offer counsel to sellers regarding the estimated value of their homes. You’ll also provide a listing strategy, including price, marketing, open houses, etc., and you’ll help them negotiate in the offer process—ultimately getting them at the closing table.

The requirements to become a real estate agent vary per state. Some states only require 40 hours of prelicensing education, while some need more than a hundred hours. Still unsure whether you want to help clients close deals? Read our article on the pros and cons of being a real estate agent.

2. Real Estate Managing Broker

• Average salary: $104,418 per year
• Required skills: Leadership, management, mentoring, knowledge of real estate laws and regulations

Real estate managing brokers wear many hats, but generally, they’re responsible for managing real estate agents. In this role, managing brokers advise agents and provide them with mentorship and professional development. Depending on the structure of a brokerage, they’re also responsible for various elements of office management.

To become a real estate broker, you must complete additional education requirements set by your state in addition to your prelicensing education. You’ll also need some experience and pass the broker’s licensing exam. Do you have what it takes to be a real estate managing broker? Do you want a leadership role at a brokerage? Read our article on the difference between an agent and a broker.

3. Real Estate Instructor

• Average salary: $63,144 per year
• Required skills: Communication, passion for teaching, in-depth knowledge of real estate principles and practices

Besides being an agent or broker, one of the jobs with a real estate license is as an instructor. Real estate instructors teach aspiring and seasoned agents prelicensing and continuing education courses. They cover real estate laws, transaction processes, and ethics to help students obtain and maintain their licenses. If you’re passionate about teaching and want to impart knowledge to aspiring real estate professionals, this job is for you.

Instructors use various teaching methods, including classroom lectures and interactive online discussions. Additionally, instructors must stay updated on real estate laws and market trends and quickly adapt to new real estate developments.

4. Real Estate Analyst

• Average salary: $86,818 per year
• Required skills: Market research, analytical, and data analysis

One technical job with a real estate license is as an analyst. Real estate analysts examine trends and interpret data to provide insights and recommendations for property investments, developments, and other transactions. In addition to observing market trends, they analyze property values and evaluate potential risks. They use all their findings to help clients make informed decisions about leasing, buying, selling, or developing properties.

If you love finance and economics and want to work as a real estate analyst, you must gain relevant experience in real estate firms or financial institutions. Staying informed about market trends and the economic climate would be best. 

5. Real Estate Writer

• Average salary: $81,001 per year
• Required skills: Excellent research, writing, search engine optimization (SEO) and keywords, and creativity

What can you do with a realtor license, you ask? Writing might be the right path if you want to create informative real estate pieces. Real estate writers produce many types of content, such as articles, market reports, strategy guides, copy, and property listing descriptions. If you want to be a real estate writer, prepare to write for various audiences, including home buyers, sellers, and other industry professionals. Some real estate writers can work freelance for brokerages, media organizations, or online real estate publications (like The Close!).

To succeed in this role, you must understand real estate terms and market trends to provide accurate information. Writers must also be adept at SEO techniques to boost their content’s readership and reach a broader audience.

6. Property Manager

• Average salary: $59,796 per year
• Required skills: Communication, financial management, problem-solving, and knowledge of landlord-tenant laws

Property managers handle the daily operations of various properties for owners. You can work for landlords, investors, or building owners by screening tenants, preparing lease agreements, showing properties, and collecting rent. As a property manager, you’ll ensure properties are well-maintained, meet safety standards, and address tenant concerns.

Property managers are also in charge of the financial aspects of these properties. They create budgets, set rental fees, monitor expenses, and report finances to owners. To become a property manager, you must have relevant experience in property management assistance or tenant relations. Some states require certifications like Certified Property Manager, Certified Apartment Leasing Professional, and Master Property Manager will boost your credentials.

For property managers seeking an efficient tool to help manage properties’ finances seamlessly, try TenantCloud. It provides features like online rent collection, tenant screening, and maintenance tracking.

7. Real Estate Coach

• Average salary: $40,970 per year
• Required skills: Leadership, communication, coaching, mentoring, motivational, and industry knowledge

Some other jobs that require a real estate license are as coaches and trainers. Real estate coaches mentor industry professionals to enhance their skills and grow their businesses. Coaches empower agents, brokers, and other real estate professionals by boosting their confidence and promoting career growth. They pinpoint areas where their clients need to improve, conduct one-on-one sessions and workshops, and give continuous feedback. 

Want to coach your fellow industry members? Start by developing your communication skills, managing clients, and producing training materials. Then, work towards marketing yourself, coaching a few clients, and staying updated on training techniques.

Once you work as a real estate coach, you can also be one of the best motivational speakers at industry events. Sharing your insights and success stories can inspire others and establish you as a thought leader in the industry. You may also write a book and create courses to reach a bigger audience and expand your network.

8. Real Estate Attorney

• Average salary: $140,845 per year
• Required skills: Real estate law expertise, legal research, analytical, attention to detail, logical reasoning, and problem-solving

A real estate lawyer manages the legal aspects of property transactions, helping clients navigate the complexities of leasing, buying, and selling. They prepare papers like leasing agreements, eviction notices, title documents, and mortgage contracts and perform title searches to confirm property ownership. Real estate attorneys address all legal concerns while representing tenants, buyers, and sellers.

If you want to be a real estate attorney, you’ll need a bachelor’s degree in pre-law, complete law school and earn a Juris Doctor degree, then pass your state’s bar exam. Lawyers can skip prelicensing education in some states to earn a real estate license. 

9. Home Inspector

• Average salary: $60,383 per year
• Required skills: Knowledge of building codes and attention to detail

Home inspectors assess properties to ensure they meet safety standards before the home sells. They thoroughly inspect a home’s structural elements, electrical systems, plumbing, and roofing, as well as heating, ventilation, and air conditioning (HVAC) systems. Home inspectors are detail-oriented as they identify faulty wiring, water leaks, or structural damages.

To become a home inspector, search for your state’s specific requirements. Typically, these include completing certain training hours and passing a certification exam. Additionally, joining organizations like the International Association of Certified Home Inspectors can offer more networking opportunities and continuing education.

10. Real Estate Investor

• Average salary: $86,796 per year
• Required skills: Market research and risk assessment

Real estate investors buy and sell properties to generate income. The process typically involves buying properties to rent out or renovating homes to sell at a higher price (aka flipping houses). Some investors also purchase land for future development. It takes so much courage to be a real estate investor. While the risk is very high, the potential rewards can be as significant. Always be prepared for market fluctuations, unexpected expenses, and property vacancies.

You may think you don’t need a real estate license to be an investor. While that may technically be true, you should still get a license to make real money doing it. When you’re an investor with a real estate license, you can represent yourself in the sale of your properties, saving you upward of 6% (the typical commission for residential real estate sales). In addition, you can also represent yourself in the purchase of real estate, allowing you to either pocket the commission or negotiate it off the top of the sales price.

Want to start learning about real estate investing? Read Kiavi’s insightful eBook on Flipping Houses 101:

11. Real Estate Appraiser

• Average salary: $61,060 per year
• Required skills: Market research, analytical, and knowledge of appraisal techniques

Real estate appraisers evaluate properties and assess their values before they are insured, mortgaged, or sold. They look into all variables that may impact a property’s value, such as past homeownership, renovations, and developments. If you’re considering working as an appraiser, you must know about local market trends and conditions to succeed. In addition to appraising properties, appraisers also update public records. They note any changes that may impact properties’ values.

To become an appraiser, you must complete real estate appraiser courses, work as a trainee, find a mentor to supervise you, and then pass your state’s appraiser licensing exam.

12. Real Estate Assistant

• Average salary: $45,545 per year
• Required skills: Administrative, communication, and organizational

Another answer to your “What can you do with a real estate license” question is to assist agents and brokers. Real estate assistants help manage the day-to-day operations of brokerages. They receive visitors at a brokerage, respond to emails, answer the phone, schedule appointments, and organize paperwork. If you want to work as an assistant for an agent or broker, your responsibilities will include coordinating property showings, handling client inquiries, and creating property listings. You’ll nail this role if you’re good at juggling multiple responsibilities.

13. Real Estate Content Creator

• Average salary: $47,000-$90,000 per year
• Required skills: Creativity, storytelling, social media, and video editing

Working as a content creator can be fun if you love creating various types of content and actively engaging with your audience. As a real estate content creator, you’ll produce high-quality social media content to attract new clients and retain existing ones. You’ll share your real estate insights, property listings, virtual house tours, and other relevant topics on your Instagram, Facebook, TikTok, and YouTube.

You can start by gathering social media post ideas for your platforms. Learn about the latest digital marketing strategies and analytics tools to know which types of content work best for your target audience. You can also partner with other real estate brands, software, or platforms and promote them on your page to earn extra income.

FAQs: What Can You Do With a Real Estate License

What skills are necessary to succeed in the real estate industry?

Is it possible to have side hustles in real estate?

What are the challenges of a career in real estate?

Which states do real estate agents make the most money in?

Bringing It All Together

You’re still probably asking, “What can I do with my real estate license?” Choosing the right real estate career takes many considerations. Assessing your skills, interests, and long-term goals is essential in finding a path that suits you best. I’m sure there are more jobs you can get with a real estate license besides the ones listed above. What did I miss? Please share them in the comments below!

The post 13 Jobs You Can Get With a Real Estate License appeared first on The Close.

What Is Real Estate Branding & What Makes a Great Brand?

Simply put, real estate branding is the consistent techniques and strategies professionals use to market their services, build authority in the real estate space, and attract clients. As a senior brand strategist at Sell It, Owner of Elevate Design Studios, and host of the podcast Not Nice. Clever, I’ve worked with hundreds of agents nationwide and beyond on building their personal brands. My mission is to help real estate agents learn how to leverage realtor branding to create a life and business they love.

Ever wondered what makes great branding? It’s the magic that compels you to grab Kellogg’s Frosted Flakes instead of the generic store brand. Why? Because Frosted Flakes are not just cereal, “they’re grrreat!” And who told you that? Tony the Tiger, your childhood companion.

You’ve watched him on TV, sharing breakfast moments with kids ready to tackle the day. He’s dominated billboards off local highways, and when you spot him on the cereal aisle, it’s like seeing an old friend. What’s the appeal of Tony? He’s not just any tiger; he’s 6’3″ of authority and approachability, a figure both kids and the young at heart can respect and admire. Even though those generic Sugary Flakes might taste just as good, there’s a trust factor with Tony that keeps us loyal.

So what does this teach us? If you want to build a loyal following, you have to create a magnetic brand.  

Elements of a Magnetic Real Estate Brand + Examples

It’s easy to think of a real estate brand as a logo or catchy tagline. While those elements may be part of your brand, they are definitely not in and of themselves your brand. There are five key elements that every real estate brand needs. Below, I’ve shared each aspect along with real estate branding examples. Use the guiding questions and the examples to begin to craft your personal brand.

You might be surprised at how much you already know about your real estate branding that you aren’t leveraging yet. While you may know these things about your brand, the bigger question is, are you sharing this with your audience in a meaningful way?

Let’s dive in. 

Element 1: Your Brand Story

How did you get here? What transformation happened that has led you to this place? Why should people trust you?

Think back to before you went into real estate and reflect on the journey it took for you to get here. Maybe you were in a whole other industry, or you were drawn to real estate right out of high school. Name the reasons you entered this industry and the skills you learned before becoming a real estate agent. All these things brought you to this point, so add them to your brand story. People love to hear stories—don’t be afraid to tell them yours!  

Example of a Great Brand Story

Ryan Serhant exemplifies the power of a compelling brand story. Whether you’ve followed his journey on Million Dollar Listing, dove into his insightful books like “Brand It Like Serhant,” or stumbled upon him while scrolling through Instagram, his story captivates. It’s the classic “from rags to riches” tale, resonating with many, yet remaining aspirational. Consistently sharing where he’s been AND where he’s going instills hope and motivation in his audience, ensuring his brand remains unforgettable, leaving the audience thinking: “If he can do it, I could do it too.”

Serhant and Inman (Source: @ryanserhant)

Serhant representing his brand (Source: Facebook)

Book branding with fun real estate headshot (Source: Amazon)

Element 2: Your Brand Values

What do you stand for? What do you believe? How do you serve your clients? 

Your core brand values are the business beliefs you hold near and dear to your heart and wish to instill in all your clients. Think about your brand values as the integrity and backbone of your business—things like transparency, teamwork, expertise, diversity, and quality service—the qualities you would want in a real estate agent. Write them down and prioritize the values that are most important to you. 

Example of Great Brand Values

Glennda Baker, Realtor extraordinaire in Atlanta, Georgia, has built an incredible personal brand rooted in her values. Her content feels effortless to the viewer because it’s rooted in radical authenticity. Her ability to tell stories that draw you in, lean into vulnerability (have you listened to Glitter and Gay?!?), and show off her real estate prowess while maintaining her flavor of southern charm is captivating. Her brand calls in the right people for her and repels the rest. And just in case there’s any confusion … she’s been doing this since “Jesus was a baby.” 

Glitter and Gay podcast (Source: @glenndabaker)

Helping clients move (Source: Facebook)

Relationship marketing podcast (Source: ReminderMedia)

Element 3: Your Brand Attitude

Is your realtor branding humorous or proper? Playful or Zen? What’s the overall vibe? 

If you’re unsure about your overall vibe, here are two things you can do. 

• Send a text to six people, including two friends, two colleagues, and two past clients. Ask them to describe you in three words. See if there are any themes that you can lean into. And if you don’t like the words they chose, decide to show up differently and choose the words that resonate with who you are becoming. 
• Write a list of things you’re not. Sometimes, it’s helpful to work backward. I’d likely write that I’m not stuffy or proper. Knowing what I’m not can help me hone in on what I am.

Example of a Great Brand Attitude 

Shawn King, the witty Realtor from Toronto, is known for his humorous and satirical approach to real estate content. With his innovative editing style and comedic skits, he effortlessly connects with his audience, making himself instantly approachable. Shawn’s content is not just hilarious but also remarkably relatable. He possesses a knack for transforming what could easily be seen as mundane real estate topics into captivating and engaging content. With each post, he keeps his audience on their toes, leaving them eagerly anticipating his next creative twist.

Spicy real estate tips (Source: @sha.king)

Shawn King and The Close collaboration (Source: YouTube)

Funny Instagram post (Source: Instagram)

Element 4: Your Unique Value Proposition

Why should people choose you over your competition? What makes you better? 

This element requires you to take a good, hard look at yourself and your competitors. Other realtors can assist clients with buying and selling a property, so you need to decide what makes you unique from the other real estate agents out there. Your unique value proposition (USP) ties into your values. For example, if you value expertise, your USP could impart real estate education to your clients throughout the transaction. 

Example of a Great Unique Value Proposition

Meet Marie Keaney, a SoCal Realtor with a unique twist. Formerly a teacher, Marie’s passion for education shines through in her work. That’s why she’s launched the innovative Teacher Give Back Program. When you choose to work with Marie, she donates to the teacher of her client’s choice. It’s a heartwarming initiative she showcases regularly on social media, sharing touching stories of the teachers impacted. Marie’s blend of real estate expertise and philanthropy is the defining factor that sets her real estate agent branding apart.

Teacher Give Back in action (Source: @homesbymarie)

Marie meeting up with a former student (Source: Facebook)

Client advice (Source: LinkedIn)

Element 5: Your Brand Look & Feel

What colors and fonts will you use? Is your logo modern and minimal or in your face? 

While it’s tempting to pick your favorite color and fonts, it’s necessary to think outside the box to choose a color and font that will stand out visually and against competitors. Once you’ve decided on your business name, test multiple color and font options on real estate brand marketing materials to see which are visually appealing (especially from a distance). Print out competitor materials and place them next to yours to have friends and family pick the most standout look and feel to ensure it’s yours—if not, change it up! 

Example of a Great Brand Look & Feel 

Paige Fingerhut Charnick, the broker-owner of Beach Equities in Long Beach, CA, recognized the importance of aligning her brokerage’s visual identity with its exceptional service. Established in 1972, the brokerage underwent a logo refresh in 2014, but Paige understood it was time for a fresh update. She realized that as her brand messaging evolved, so should its appearance. 

Drawing inspiration from the California coastline, Paige worked with Elevate Design Studios to curate a color palette that captures the region’s essence. With a keen eye on honoring the professional legacy of the brand, they carefully selected fonts that exude sophistication. Introducing a sun icon infused the brand with a renewed sense of vitality and energy. This transformation highlights the vital role of a visually compelling identity in ushering in a new era of an established real estate brand.

How to Build a Brand With the 3C Method

Knowing each of the elements of a real estate brand is helpful, but how do you go deeper? After working with hundreds of agents nationwide and beyond, I’ve found that you have two choices: You can build your personal brand with intention, or consumers will assign one for you. 

If you’re anything like me, you would like to be in control of your future, which means you need to control your real estate branding. But where do you start? I’ve created the 3C Method to Magnetic Personal Branding to build your real estate brand, and I’m breaking it down for you here. 

Before you build that website, hire a logo designer, host that next event, or write your brand story, sit down and think through the 3C Method outlined below. This is the not-so-sexy part of branding that is absolutely crucial to building a brand that actually connects.

Clients

Building your real estate brand begins with defining your target audience and intimately knowing their problems. When you’re clear about your niche audience, you can make informed decisions on how to curate your brand. 

Ask yourself these questions to clarify the clients you want to work with.

For instance, if you find that your passion and realtor branding resonates best with millennial first-time homebuyers, dig into that niche. Know about their fears of not being able to afford to purchase a home or save for a down payment and lean into that. 

Hone in on your experience working with these individuals and answer your client’s questions before they even ask them with content that demonstrates you understand their struggles. Share stories of past clients like them. All of these things are possible when you know who you’re talking to and understand what you bring to the table.

Content & Collateral

Sharing content that documents the work you’re already doing will amplify your brand. Consistent content and marketing ideas accelerate the trust-building process with your audience and build brand awareness. Use content to share your unique approach and perspective and to craft the narrative of who you are and how you can help. 

What type of Content will you create? 

• IG Reels/Stories
• YouTube videos
• Podcast episodes
• TikTok videos
• Facebook posts
• LinkedIn articles
• Email newsletters

Collateral Examples 

• Booklets/Brochures
• Buyer’s Guide/Seller’s Guide
• Listing checklist
• Presentations
• Flyers

Suppose your niche is working with individuals searching for 55-plus communities. In that case, you might lean more toward creating collateral like flyers and postcards than posting on platforms like TikTok and Instagram, as only 6.3% of TikTok users are 55-plus years of age. However, direct mail in this demographic shows that 50% of Boomers prefer direct mail. Once you know your first C (clients), tailoring your next C (content and collateral) becomes much easier. 

Collaborations & Features

Growing your audience is key to building your brand. The fastest way to grow is by collaborating with brands with similar audiences and values. Seek out opportunities to collaborate and be featured within the industry and beyond. 

How will you collaborate? Who will you collaborate with?

• Going live with others
• Podcast features
• Cross-marketing email campaigns
• Event collaborations
• Fundraiser collaborations
• Reel collaboration

Where will you be featured?

• Local news
• Online publications
• Print publications
• Blog posts

Real Estate Branding Tips

In today’s digital age, your online reputation is more crucial than ever. It’s not just about what people say about you in your community—it’s also about how you’re perceived online. Your digital footprint can make or break your real estate brand. That’s why managing and cultivating your online reputation is essential. 

Here are some additional tips you should use: 

• Gather your brand basics like your real estate bio, headshots, business cards, and slogan.
• Claim your profiles on relevant platforms like Google My Business, Zillow, and social media channels. 
• Ensure your contact information is accurate and up to date.
• Regularly engage with your audience by responding to reviews, comments, and messages. 
• Consistently share valuable content and showcase your expertise online to enhance credibility and shape your brand’s perception. 
• Include your real estate agent branding ideas in a well-thought-out real estate marketing plan and budget for these items.
• (If you feel comfortable) Post personal photos or videos to accentuate your brand and show yourself outside of real estate.

Branded collateral (Source: Candice Carcioppolo)

Branded business cards (Source: Candice Carcioppolo)

Branded stationery collection (Source: Candice Carcioppolo)

By digitizing your reputation, you build trust and create a solid online presence that attracts clients and sets you apart from the competition.

Bringing It All Together

Reflection and direction are the name of the game when it comes to intentionally building your real estate brand. Remember, it’s not just about creating a logo or crafting clever slogans. It’s truly about authentically communicating who you are, what you stand for, and how you serve your community. 

When you harness the power of the 3C Method to Magnetic Personal branding—clarifying your target audience, creating compelling content, and seeking strategic collaborations—you’re not just creating a brand, you’re crafting an experience that will set you apart in today’s market. So, go ahead, dive deep into your brand story, infuse it with your values, and let your unique perspective shine through.

The post Real Estate Branding: The Complete Guide for Agents appeared first on The Close.

94 Real Estate Business Names to Inspire You

Before choosing your own, consider these real estate name ideas for inspiration. You’ll find that many successful companies incorporate terms like “Realty,” “Properties,” “Real Estate Group,” and “Property Advisors.” What will you choose for yours?

Creating an excellent name for your real estate company is key to establishing a solid brand identity. Here are some of my steps and strategies to help you create a name that will resonate with your target market.

Step 1: Define Your Brand Values & Audience

In any business, it’s essential to understand your brand’s core values and target market. What sets your company apart? What message do you want to communicate to future clients? Identifying your brand values and target audience will guide you in selecting a company name that perfectly reflects your agency’s identity. Here’s an example from one of the company names above:

If you want to learn more, read our real estate branding guide.

Step 2: Research Your Competitors’ Company Names

Avoid choosing a company name that sounds like your competitors to prevent client confusion and establish a unique identity. It’s critical because you don’t want prospective clients visiting your competitor while thinking they’re contacting you.

Here are some tips you can follow to avoid duplicating a competitor:

• Research existing real estate companies in your state and internationally.
• Analyze other companies’ naming strategies and consider how to differentiate your brand.
• Ensure your company name is distinct and stands out from the competitors while aligning with your brand identity and values.
• If you’re an established brand and find similarities, focus on your brand colors, real estate slogan, and differentiators. 

Step 3: Keep It Short & Simple

Have you ever noticed how the world’s top companies have short names? Some are only recognized through their acronyms, e.g., BMW, BBC, IBM, DHL, and HSBC. This brand recognition strategy is why keeping your company name short and simple is crucial. Consider these tips for a short business name:

• Make your name short and easy to spell: In business, a brief company name is preferential for easy recall. Opt for company names that are simple and easy to remember to avoid confusing potential customers. A concise name also works well for branding and marketing materials such as signs, business cards, social media handles, and logos.
• Pay attention to how your company name sounds when spoken out loud: Your name may look great on paper, but how will it sound when a former client talks about your company over lunch with a friend? One of the best ways to do this is to write down your name and see if your co-workers and even strangers can pronounce it easily. Does it roll off the tongue, or do they stumble while trying to say it?
• Consider your company name’s acronym: A recognizable acronym can improve visibility in marketing materials and strengthen brand recall. When choosing a company name, consider potential acronyms and assess how they align with your brand identity. Even if you don’t plan to use an acronym for your real estate name, ensure yours doesn’t accidentally convey anything lewd or tasteless.

Step 4: Consider Your Geographic Farm Area

Real estate company names should target the people you want to sell real estate to. Are you working in retirement communities in Boca Raton or selling old warehouse spaces to movie directors in LA’s Arts District? As you can imagine, those two companies should have very different names if they want to reach the right audiences.

Also, as you grow as an agent or brokerage, you’ll naturally want to expand your business coverage. So before adding your farm area to your company name, ask yourself where you think you’ll be selling five or 10 years from now. Will you still be in that small town in Albuquerque, or will you expand to Santa Fe? Consider the long-term goals of your business and ensure that your company name is versatile enough to accommodate changes in locations, target audiences, and services.

If your real estate company needs help identifying high-potential neighborhoods, properties, and demographics, try SmartZip. SmartZip is a lead-farming tool that can pinpoint properties and areas where homeowners are more likely to buy or sell.

Step 5: Brainstorm & Come Up With as Many Names as You Can

Creativity is vital when brainstorming real estate company name ideas. The more real estate business names you come up with, the better! Whatever you do, don’t skip the brainstorming sessions necessary for the ideation process. Get all your ideas up on the whiteboard! Explore different themes, word combinations, and concepts. Once you have a list of potential company names, evaluate each and compare them against all the others on your list, narrowing down your options until you find the perfect fit.

Try artificial intelligence (AI) for other name options. Harnessing AI’s power to create business names can also streamline the naming process. AI tools (e.g., ChatGPT) can generate innovative and relevant name suggestions and look up your competitors’ names and customer preferences. However, keep in mind that humans are still better than robots when it comes to naming businesses.

The Close’s Real Estate Name Generator

Need help to brainstorm name ideas? Try our real estate name generator to get you started.

Things to Avoid When Choosing Your Company Name

Selecting a real estate company name can be stressful and daunting, but knowing what to avoid can streamline your decision-making process.

• Puns, Pop Culture References & Cliches

Choosing a company name that leans on puns, pop culture references, or cliches may seem clever initially, but it can quickly become outdated or fail to connect with your audience. While you and your colleagues might think your pun is hilarious, will everyone find it clever? The answer, of course, is no. Puns may not translate well across different cultures and age groups, limiting your brand’s appeal.

• Long Real Estate Names

Long and complex real estate names can be difficult to remember, pronounce, and type, affecting brand recall and accessibility. In addition, they may need to be more visually appealing in your marketing materials, such as signage, business cards, and print ads. Opt for a short and memorable name that’s easy to spell and pronounce.

• Trademarked Real Estate Firm Names

Selecting a real estate company name already trademarked by another firm can only lead to legal conflicts, a damaged reputation, and costly rebranding efforts. Use search engines, social media, and trademark databases, and consult legal experts to verify the availability and legality of your desired company name. It’s always better to be safe than sorry!

Exercise caution when using the term “Realtor.” Since the National Association of Realtors (NAR) owns the trademark on the word Realtor, they have rules about how to use it. If you’re not a dues-paying member of NAR, they won’t let you use it at all. If you are an active Realtor, there are still restrictions around using the word in your branding. Read NAR’s Membership Marks Manual and make sure you’re committed to long-term association membership before you tie your business presence to this protected—and regularly policed—brand name.

Next Steps After Picking Your Company Name

Once you’ve come up with a great name, the next step is crafting a brand around it, which involves creating a brand identity and establishing your presence across all marketing channels.

Come Up With Your Real Estate Logo & Slogan

Create an effective real estate slogan and a visually appealing logo. Of course, this doesn’t happen overnight! Your slogan and logo should be carefully considered and tested by a sample audience. Do they evoke professionalism and audience recall? Your motto should be concise and reflective of your brand identity, while your logo should incorporate elements like your brand’s color scheme, typography, and imagery. Work with graphic designers and copywriters to develop your brand’s slogan and logo.

Claim Your Social Media Accounts

Since competition for online real estate has become more intense over the past years, you need to act quickly and get your social media accounts up and running. Establishing a strong online media presence is no longer an option—it’s a necessity for staying relevant in the real estate industry. And while you’re at it, don’t forget your real estate agent bio! Your bio should highlight your experience, expertise, and personality.

Before settling on a real estate company name, search for your desired social media handles and domain names. If another entrepreneur has already staked a claim, you could set yourself up for an uphill battle.

Buy Your Domain & Build Your Website

Securing a domain name that matches your real estate name is essential for establishing a professional online presence. Ensure you buy a domain that’s easy to spell and relevant to your business and location. Once you’ve acquired your domain, invest in a website that showcases your expertise, services, agents, and property listings. Incorporate your logo, slogan, and other branding elements into your website. To streamline your process, check out our guide on the best real estate website builders.

If you want an affordable website that you can set up quickly and scale as your business grows, try AgentFire. AgentFire has stunning designs and lets you build a custom tech stack, so you never pay for features you don’t need. Sure, many other web designers exist, but most realtors who choose AgentFire never look back.

Register Your Business

Before giving out your business cards to prospective clients, register your business to establish legitimacy. Depending on your location and firm structure, you may register as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Look up your area’s registration requirements and processes and consult with legal professionals to ensure compliance with local laws and regulations. Registering your company allows you to acquire necessary permits, get tax benefits and deductions, and open company bank accounts.

Trademark Your Company Name

Trademarking your real estate company name provides legal protection against unauthorized use. Begin by searching to confirm your chosen name’s availability through the United States Patent and Trademark Office’s Trademark Electronic Search System. Once you’ve confirmed your company name’s availability, file a trademark application and secure exclusive rights to your name.

Start Promoting Your Company

Finally, with your business name and assets in place, it’s time to promote your agency and close deals with clients. Develop a comprehensive marketing plan to generate leads and reach your target audience. Use social media platforms, search engine optimization (SEO), email marketing, print advertising, and other traditional marketing strategies to drive traffic to your website and increase brand visibility.

Need some ideas for marketing your agency? Check out our article on 23 Clever Real Estate Marketing Ideas.

FAQs: Real Estate Company Names

What is the best name for a real estate company?

What are good LLC names?

How do I choose a realtor name?

Bringing It All Together

Naming a real estate company is challenging and sometimes stressful. But everything will feel rewarding once you find that perfect name representing your brand identity. I hope my guide has helped you craft a bulletproof company name. Trust the process of bringing your real estate company name to life. Still have burning questions or want to bounce some ideas off our team? Let us know in the comments!

The post 94 Creative Real Estate Company Names + How to Create Your Own appeared first on The Close.

Do Agents Really Need a Real Estate Business Plan?

Absolutely. Your real estate agent business plan is your roadmap to success. Without it, you risk losing direction and focus in your real estate career.

A well-crafted business plan helps you:

• Understand your current position in the market
• Set clear and achievable goals
• Create a roadmap for success
• Track your progress and performance
• Make informed decisions and adjustments

Think of your real estate business planning as your GPS, guiding you from your current situation to your desired destination. It serves as your North Star, keeping you focused and on track, even in challenging times. Invest the time to create a solid business plan, and you’ll be well-positioned to succeed in your market and achieve your goals. Your future self will appreciate the effort you put in now.

Write a Real Estate Business Plan in 7 Easy Steps

Before we dive into this section, get our real estate business plan template (click here to go back up to grab it) and work through it as I explain each section. I’ll give you some direction on each element to help you craft your own business plan.

1. Identify Who You Are as a Real Estate Agent

Let’s start with your “why.” Understanding your purpose for choosing real estate is crucial because it is the foundation for your business plan and guides your decision-making process. Defining your mission, vision, and values will help you stay focused and motivated as you navigate your real estate career.

Mission: Your mission statement defines your purpose for choosing real estate. It clearly states what you’re trying to do, the problem you want to solve, and the difference you want to make.

Ex: Wanda Sellfast’s mission is to empower first-time homebuyers in Sunnyvale, California, to achieve their dream of homeownership and build long-term wealth through real estate.

Vision: Your vision statement focuses on the ultimate outcome you want to achieve for your clients and community.

Ex: Wanda Sellfast’s vision is a Sunnyvale, where everyone has the opportunity to own a home and build a stable, secure future, creating a more inclusive and prosperous community for all.

Values: Your core values are the guiding principles that shape your behavior, decisions, and interactions with clients and colleagues.

Clearly defining your mission, vision, and values lays the foundation for a strong and purposeful real estate business that will help you positively impact your clients’ lives and your community.

2. Analyze Your Real Estate Market

As a real estate pro, you must deeply understand your local market. This knowledge includes knowing key metrics such as average days on market, average price points, common home styles and sizes, and demographic trends. When someone asks about the market, you should be able to confidently roll those numbers off your tongue without hesitation.

To quickly become the local expert, choosing specific farm areas to focus on is crucial. Concentrate your marketing efforts and build your local knowledge in a handful of communities and neighborhoods.

Some places to do research include:

• Your local MLS: Check your hot sheet daily
• Zillow: Check out the Premier Agents who show up in your neighborhood
• Social media: Who is targeting their posts to your area?
• Direct mail: Check your mailbox for flyers and postcards
• Drive by: Drive through your farm areas to see who has signs in yards

Once you’ve identified your target areas, start conducting comparative market analyses (CMAs) to familiarize yourself with the properties and trends in those neighborhoods. That way, you’ll provide accurate insights to your clients and make informed decisions in your business.

Remember to research your competition. Understand what other agents working in the same area are doing, who they’re targeting, and identify any gaps in their services. This understanding will help you differentiate yourself from your competition and better serve your clients’ needs. In our real estate business planning template, I ask you to examine and record:

• Trends: Track key metrics, such as days on market and average sold prices, to stay informed about your specific market.
• Market opportunities: Identify situations where there are more buyers and sellers (or vice versa) in the marketplace so you can better advise your clients and find opportunities for them and your business.
• Market saturation: Recognize areas where there may be an oversupply of certain property types or price points, allowing you to adjust your strategy accordingly.
• Local competition: Analyze your competitors’ strengths, weaknesses, and gaps in their services to identify opportunities for differentiation and possibilities to create a more meaningful impact.

Remember, real estate is hyper-local. While national and state news can provide some context, your primary focus should be on specific needs and trends within your target areas and the clients you want to serve. By thoroughly analyzing your local real estate market, you’ll be well-equipped to make informed decisions, provide valuable insights to your clients, and ultimately build a successful and thriving business.

3. Identify Your Ideal Client

When creating your real estate business plan, it’s crucial to identify your ideal client. You can’t be everything to everyone, no matter how much you think you should. And trust me, you certainly don’t want to work with every single person who needs real estate advice. By focusing on your ideal client, you’ll create a targeted marketing message that effectively attracts the right people to your business—those you want to work with. 

Think of your target market as a broad group of people who might be interested in your services, while your ideal client is a specific person you are best suited to work with within that group. To create a detailed profile of your ideal client, ask yourself questions like:

• What age range do they fall into?
• What’s their family situation?
• What’s their income level and profession?
• What are their hobbies and interests?
• What motivates them to buy or sell a home?
• What are their biggest fears or concerns about the real estate process?

Answering these questions will help you create a clear picture of your ideal client, making it easier to tailor your marketing messages and services to meet their needs. Consider using this ideal client worksheet, which guides you through the process of creating a detailed client avatar. This will ensure you don’t miss any important aspects of their profile, and you can refer back to it as you develop your marketing plan.

By incorporating your ideal client into your overall business plan, you’ll be better equipped to make informed decisions about your marketing efforts, service offerings, and growth strategies. This clarity will help you build stronger relationships with your clients, stand out from the competition, and ultimately achieve your real estate business goals.

4. Conduct a SWOT Analysis

If you want to crush it in this business, you’ve got to think like an entrepreneur. One of the best tools in your arsenal is a SWOT analysis. It sounds ominous, but don’t worry, it’s actually pretty simple. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s all about taking a good, hard look at yourself and your business.

By conducting a SWOT analysis as part of your real estate business plan, you’ll have a clear picture of your current situation and your future goals. And don’t just do it once and forget about it—review and update it regularly to stay on top of your game.

5. Establish Your SMART Goals

If you want to make it big in real estate, setting goals is an absolute must. But not just any goals—I’m talking about SMART goals. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. It’s like a recipe for success, ensuring your goals are clear, realistic, and have a deadline.

Your SMART goals are an integral part of your overall business plan for real estate. They should be stepping stones to help you achieve your long-term vision and mission. So, analyze your SWOT analysis, ideal client, and market, and craft goals that will help you dominate your niche.

Example Smart Goal: Close 10 transactions in the next quarter.

Specific

Make sure to provide as many details as possible behind your goals. Don’t just say, “I want to sell more houses.” That’s too vague. In the example above, the goal is specific: “close 10 transactions.”

Measure

If you can’t measure your progress, how will you know if you’re crushing it or falling behind? Ensure your goals have numbers attached to track your success or see where you need to focus more energy. “Close 10 transactions” has a specific number, so you have a way to measure your progress.

Achievable

I know you’ve got big dreams for your real estate business, but Rome wasn’t built in a day. Set goals that stretch you beyond your comfort zone but are still achievable. This way, you’ll gain confidence, build momentum, and push yourself to new heights. Closing 10 transactions in a quarter is a lofty goal, but it’s still achievable. Your goals should stretch you but still be within your reach.

Relevant

Relevant goals are the ones that actually move the needle for your business. Sure, becoming the next TikTok sensation might be a lot of fun, but unless TikTok generates most of your clients, it won’t help you close more deals. Your goals should be laser-focused on the activities and milestones that will help you grow your real estate career. In the example above, the goal is specifically related to real estate. 

Time-bound

Deadlines are your friend. Without a timeline, your goals are just wishes. Give yourself a precise end date and work backward to create a plan of action. In the example, the deadline for achieving the goal is the end of the current quarter. If you don’t achieve the goal, you can evaluate where the shortfall was and reset for the next quarter.

“Setting goals is the first step in turning the invisible into the visible.”

Tony Robbins

Remember, just like your SWOT analysis, your goals aren’t set in stone. Review and adjust them regularly to stay on track and adapt to business and market changes.

6. Create Your Financial Plan

Financial planning might not be your idea of a good time, but this is where your real estate business plan really comes together. Thanks to all the research and strategizing you’ve done, most of the heavy lifting is already done. Now, it’s just a matter of plugging in the numbers and ensuring everything adds up.

In this real estate business plan template section, you’ll want to account for all your operating expenses. That means everything from your marketing budget to your lead generation costs. Don’t forget about the little things (like printer ink, file folders, thank you cards, etc.)—they might seem small, but they can add up quickly. Some typical expenses to consider include:

• Marketing and advertising (business cards, website, social media ads)
• Lead generation (online leads, referral fees, networking events)
• Office supplies and equipment (computer, printer, software subscriptions)
• Transportation (gas, car maintenance, parking)
• Professional development (training, courses, conferences)
• Dues and memberships (MLS fees, association dues)
• Insurance (errors and omissions, general liability)
• Taxes and licenses (business licenses, self-employment taxes)

Once you’ve figured out your expenses, it’s time to reverse-engineer the numbers and determine how many deals you need to close each month to cover your costs. If you’re just starting out and don’t have a track record to go off of, no worries! This planning period allows you to set a budget and create a roadmap for success.

Pro tip: Keep your personal and business finances separate. Never dip into your personal cash for business expenses. Not only will it make tax time a nightmare, but it’s way too easy to blow your budget without even realizing it.

If you’re evaluating your starting assets and realizing they don’t quite match your startup costs, don’t panic. This new insight is just a sign that you must return to the drawing board and tweak your strategy until the numbers line up. It might take some trial and error, but getting your financial plan right from the start is worth it.

7. Track Your Progress & Adjust as Needed

You’ve worked hard and created a killer real estate business plan, and you’re ready to take on the world. But remember, your business plan isn’t a one-and-done deal. It’s a living, breathing document that needs to evolve as your business grows and changes. That’s why it’s so important to track your progress and make adjustments along the way. 

Here are a few key things to keep in mind:

• Set regular check-ins: Schedule dedicated time to review your progress and see how you’re doing against your goals, whether weekly, monthly, or quarterly.
• Keep an eye on your KPIs: Your key performance indicators (KPIs) are the metrics that matter most to your business. Things like lead generation, conversion rates, and average sales price can give you a clear picture of your performance.
• Celebrate your wins: When you hit a milestone or crush a goal, take a moment to celebrate. Acknowledging your successes will keep you motivated and energized.
• Don’t be afraid to pivot: If something isn’t working, change course. Your real estate business plan should be flexible enough to accommodate new opportunities and shifting market conditions.
• Stay accountable: Find an accountability partner, join a mastermind group, or work with a coach to help you stay on track and overcome obstacles.

“It’s the small wins on the long journey that we need in order to keep our confidence, joy, and motivation alive.”

Brendon Burchard

Remember, your real estate business plan is your roadmap to success. But even the best-laid plans need to be adjusted from time to time. By tracking your progress, staying flexible, and keeping your eye on the prize, you’ll be well on your way to building the real estate business of your dreams.

FAQs

How do I start a real estate business plan?

Is starting a real estate business profitable?

How do I jump-start my real estate business?

How do I organize my real estate business?

Bringing It All Together

Now, you have a step-by-step guide to creating a real estate business plan that will take your career to the next level. Taking the extra time to map your path to success is an essential step in helping you achieve your goals. Spend the extra time—it’s worth it. Now, it’s time to do the work and make it happen. You’ve got this!

Have you created your real estate business plan? Did I miss any crucial steps? Let me know in the comments!

The post 7 Steps to Writing a Real Estate Business Plan (+ Template) appeared first on The Close.

But that doesn’t mean it’s easy! In my 28 years in the real estate industry, I’ve been an agent, broker-owner, franchise partner, recruiter, speaker, coach, and author. I’ve launched two brokerages, invested in two more, and coached dozens of broker-owners. I’ve put in the 80-hour work weeks, the sleepless nights, bought the Porsche, and yes, made mistakes along the way. Lots of them.

That’s why I wanted to write this guide. What does it really take to start a brokerage when markets are shaky, interest rates are rising, and the economy is on a wild ride? I want you to learn from the mistakes I made and build a sustainable brokerage from the ground up. But in order to do that, you need to start by asking yourself some important questions.

1. Determine Why You Want to Start Your Own Real Estate Brokerage

Starting a brokerage is a risk, and success requires a massive commitment of time, money, and energy. Understanding why you want this will help you envision exactly what you want to accomplish. A clear set of objectives will give you the fuel you’ll need for those 80-hour work weeks and the motivation to put yourself $50,000 (or more) in debt.

Money Is Not Enough to Fuel Your Daily Grind

If you really want to succeed, you’re going to have to dig a little deeper than money as a source of motivation. Maybe you really crave independence or want to prove something to yourself. Maybe your commission checks aren’t creating the lifestyle you want for your family. Whatever your reason, you better know what it is before you get started.

In order to be successful at a difficult task, your goals need to be concrete. Once you have your target, you’ll be surprised at how much energy you have to actually get there.

It All Starts With Your Mission, Vision & Values (MVV)

Take some time and come up with a heartfelt statement that includes your mission (why you’re doing it), vision (what it will look like when you achieve it), and values (the ideals, standards, and rules you will follow). 

While this may seem like a low priority, it’s a crucial first step for building a successful business. Every decision you make, every agent you recruit, and how people see your brokerage should be based on your MVV.

2. Determine Whether You Are Qualified to Start a Brokerage

Are you (and any potential partners) actually qualified to run a real estate business? Here’s a quick gut check to make sure you’re ready to hit the ground running.

Do You Have a Broker’s License or Can You Hire a Broker of Record?

Legally, at least one person on your team must have a real estate broker’s license to be the broker of record—the person legally responsible for all the transactions agents in your brokerage complete. Note that the terminology differs by state. This same position in Illinois, for example, is a managing broker, and in Colorado it’s an employing broker. 

In some states, like New York, you can hire a broker of record to take on that responsibility for you. While this might seem like an ideal solution in theory, in practice it can be a nightmare. I call these brokers “four-star generals.” Since they think they have earned their stripes, they sit behind a desk and bark orders. Having a personality like that at the head of your brokerage makes it difficult to grow a sustainable business.

If you still need to earn your real estate broker’s license, consider The CE Shop. They make taking the requisite classes and passing the exam simple, convenient, and affordable.

Do You Have Enough Savings to Live for at Least a Year With No Income?

Even if you have the perfect plan and the money in the bank for the initial investment, you can never guarantee success in your first year. The market might shift, the economy might tank, or you could be sued by an irate client. You need to mitigate the risk of going bankrupt by having enough savings to cover your personal and business expenses for at least twelve months. 

Can You Get Financing?

If you’re new to business ownership, you might be surprised to learn that even billionaires use loans to finance new ventures. There’s a simple formula to understand why: using other people’s money (OPM) is better than using your money (YM). OPM > YM. 

Look into potential sources of funding you and your team can acquire quickly and cheaply. Your financing needs will vary greatly, so when you’re thinking through how to start a real estate brokerage, you could be looking at anywhere from $10,000 to $250,000 in capital to get started.

Virtual Brokerage Costs

To start a virtual real estate brokerage, $10,000 might be enough to bootstrap your business. You’ll need a cash investment to:

• Incorporate your business
• Get errors and omissions insurance
• Acquire phones and voice-over-internet-protocol (VoIP) software
• Purchase lead generation tools, transaction management software, and a good customer relationship management (CRM) tool (or even better, an all-in-one platform that can scale with your growth)
• Budget for recruiting agents

Brick & Mortar Brokerage Costs

If you want to start a real estate business with a physical location, estimates are harder to pin down. If you’re in a big city, you will be looking at renting office space for $2,500 to $10,000 per month for a small office in a good location. That number could double for a high-traffic storefront in New York City or San Francisco. You’ll also need to secure a long-term lease and pay for furniture, computers, Wi-Fi, and other utilities. Instead of that $10,000 bootstrap budget, your budget could balloon to $10,000 per month.

Do You Have Partners? Do You Trust Them?

Whenever money is involved, even the best of friendships can become strained. Before you start planning your real estate brokerage with other people, ask yourself if you really want to go into business with them. Are they professional? Do they have enough money in the bank to avoid making rash decisions because they need quick cash? 

There is no shortcut to vetting your partners, so make sure you get to know them well before you even think about planning your brokerage. Once you’re set on a partnership, be sure to carefully draw up a business operating agreement. 

It is unlikely that two or more people will be in consensus 100% of the time, which will lead to strife and indecision. Both can kill your business and possibly your friendships too. In a successful business operating agreement, there is usually one person who is ultimately in charge of making the final decisions. Decide who that person is upfront and address how others will handle it when decisions don’t go their way.

3. Establish What Your Dream Brokerage Looks Like

Now it’s time to start sketching out your company on paper. This is also the perfect opportunity to run through the potential problems that may arise.

What Kind of Brokerage Would Make You Happy?

Imagine your ideal situation five years from now: Are you running a large brokerage? A small boutique company that focuses on luxury properties? Or would you rather work with investors, focus on property management, or fix and flip? What kinds of people do you want to work with? What office culture would make you excited to come to work every morning?

Don’t worry too much about money here; try to focus on what you want, and flesh it out on paper in as much detail as you can. This is your chance to dream! 

Does It Make More Sense to Buy a Franchise?

Before you sink your life savings into a new brokerage, you might want to consider investing in a franchise. Think through the advantages and disadvantages before you decide:

4. Ascertain if There Is Room for Your Dream Brokerage in Your City

By now you should have a better understanding of your motivations, the resources you need to succeed, and what kind of brokerage will make you happy. The next step in starting a real estate business is figuring out if your dream brokerage fits into your local market.

In order to find out whether or not your vision makes sense for your area, look at the current competition. Evaluate what successful brokerages are doing right—and more importantly, what they’re doing wrong that you could do better.

Here’s what you should examine:

Listings

Marketing

Branding

Brokerage Models & Culture

Technology

Training & Mentoring

5. Start Building Your Brand

Once you’ve narrowed your idea down to a brokerage that works in your local area, you need to start building your real estate brand. While this can (and will!) evolve over time, having a well-thought-out brand will bolster your business plan, and might just help you get a loan. 

As you’re considering your brand, make sure you can actually use it online by claiming a domain name and social media handles. If you’re using relatively common words, finding available domain names and social media accounts might be an expensive challenge, so choose wisely. Using your last name in your brand increases the chance that your brand name will be available.

Here are the core components of any strong brand, roughly in order of importance:

1. Your brokerage’s name: The keystone of every great brand, what you name your business is one of the most important decisions you’ll make. If you’re stuck, check out our name generator:

2. Your brokerage’s logo: As a visual representation of everything your brand stands for, your brokerage’s logo is the second-most important element of your brand. You owe it to yourself to create a professional logo.

3. Your brokerage’s slogan: A memorable slogan, also known as a tagline, can also help get more leads and close more deals. Coming up with slogans is hard—maybe even harder than the name of your brokerage! But we have a slogan generator in our guide below that can create the perfect one.

6. Draft a Business Plan for Your Brokerage

Once you’ve crafted a brand, the next step is to create a business plan for your real estate brokerage. This is one of the most important documents you’ll ever write for your business, so take it seriously. Here’s a quick rundown of what to include, or jump right into our guide to building a business plan, which includes a helpful worksheet. 

An Executive Summary

The executive summary of a business plan is where you briefly outline your path to success.

• Why does your local area need a new brokerage?
• How do you plan to fund your brokerage?
• How will you recruit agents?
• What will you pay them?

A Financial Plan

Next, you’re going to need to break out the calculator and make sure your numbers really do add up. Here are a few elements to think about including in your financial plan so that anyone can see a clear path to profitability for your business:

Your Splits & Fees Model

What do you plan to pay your agents? A high split might get more experienced bodies through the door, but you’ll have to close a large number of deals per month in order to break even.

If you offer agents a 50% commission split, you will find it easier to bring in plenty of trainable agents who only have to close a few deals to get you to solvency. But you might have a harder time attracting talented, successful agents.

Most brokerages tend to go with something right in the middle: high splits and low or no desk fees for proven agents, and standard splits or even commission shares for newer agents with less experience.

Services You Will Offer Agents

Most agents today expect much more from a brokerage than just a good split and low fees. That means you need to offer compelling services to attract top agents. Marketing, printing, sign installation, inside sales agents, and transaction management services will help you attract agents. Make sure you’re calling this out in your business plan.

An Office Plan: Brick & Mortar vs Virtual vs Coworking

Do you plan to rent out local office space or build a virtual brokerage? If you want to go virtual, cross off rent as an expense and possibly offer better splits to get more talented agents. On the other hand, renting a nice local office goes a long way toward establishing trust with potential clients. Coworking is also a great option that splits the difference—as long as those types of spaces are available in your local area. Make sure whatever you decide is clearly outlined in your business plan.

A Lead Generation Roadmap

One key to keeping your agents happy is offering them loads of leads. If you have limited cash on hand, spending it on lead generation might be your best bet for the first year or two, especially if you plan on recruiting newer real estate professionals. You’ll want to include any lead generation costs and expenses in your business plan. Get started with our guides below, which review the hottest lead generation companies and outline their pricing, packages, and offer our pros and cons.

• Top predictive analytics companies
• Favorite pay-at-closing leads
• Best places to buy real estate leads

SmartZip keeps coming back as one of the best lead sources for new brokerages. SmartZip uses artificial intelligence (AI) to instantly sift through hundreds of data points on the internet and your MLS with one goal: to find homeowners who are getting ready to sell before they contact their first agent. However, they only offer this to one entity per ZIP code. Check to see if your ZIP code is available below.

Your Talent Recruitment Plan

Recruiting new agents and getting them to stay with you can be a full-time job. How much money, time, and effort do you plan on investing in bringing in and retaining new agents? How and where do you plan to attract them?

You can’t expect the novelty of being the new kid on the block to be enough to get agents’ attention. Even established brokerages like Compass often have to offer big signing bonuses, generous marketing budgets, or splits that mean they will see little profit from these agents in order to entice them to jump ship.

Many new broker-owners are afraid to start a brokerage because they don’t think they can entice top talent away from the big players. While this is an issue you need to plan for, don’t worry too much about it right now—and certainly don’t let it stop your dream of starting your own brokerage. You can still build a highly profitable brokerage with a mix of new and mid-level agents.

Also know that a brokerage without support staff is basically dead in the water. At a minimum, you will likely need to hire a receptionist and a transaction coordinator. A marketing professional is a smart third hire if you have the resources.

A Technology Suite

What kind of tech tools can you offer new agents without breaking the bank? In most cases, the more high-end the software you offer agents, the more agents you’ll attract. As an added bonus, many agents will be far more effective using advanced customer relationship managers (CRMs) that can automate outreach and follow-up.

Voice-over-internet-protocol (VoIP) is another way to attract agents and help them work smarter instead of harder. VoIP companies like Grasshopper offer multiple lines for cell phones as well as scalable, advanced phone systems for brick-and-mortar offices. 

Need more ideas for your business plan? Check out our favorite brokerage software, real estate apps, transaction management tools, website builders, and CRMs.

When it comes to IDX website and CRM platforms, CINC can be a game changer for your new brokerage. Unlike most IDX websites, CINC’s lead generation technology helps you generate hyperlocal leads from specific neighborhoods, school districts, or even gated communities. Once your new site captures a lead, CINC uses AI lead nurturing trained by top producing agents to get them out of your CRM and into your agent’s cars.

Marketing & Advertising Tools

Running and optimizing Facebook, Instagram, Google, and YouTube ads has a steep learning curve. Get it right and you’ll fill your CRM with qualified leads at an affordable price. Get it wrong and you’ll pay top dollar for cold leads your agents will complain about. Be sure to include the marketing and advertising tools you want to offer in your business plan.

Dippidi eliminates that learning curve and lets you market your brokerage and generate, qualify, and nurture leads on autopilot. Not only will they run and optimize your social media ads for you, they use advanced conversational AI to qualify and nurture them until they’re ready to go see houses with your agents. Welcome to the future of real estate!

The Management Structure

This is one of the most neglected elements of running a successful real estate brokerage. Most new broker-owners end up micromanaging their new agents, or worse, taking a laissez-faire approach, which can end in litigation. 

As you might imagine, supervision can be more of a problem for virtual offices, especially those where managing brokers also work their own deals. Attorney and real estate broker James S. Tupitza recalls a recent $1 million policy limit settlement against a broker for negligent supervision of a salesperson and expects more. He characterizes the importance of quality control for small, virtual brokerages in this way: “There is an exponential increase in the risk brokers assume as the sales teams move away from the traditional office. Supervision must keep up with all the changes in the way salespersons operate.”

How will you ensure compliance without being an overbearing tyrant? For most people, the answer is building an organizational chart that spells out each partner’s responsibility and sticking to it. Technology, especially in transaction management, can also make compliance much more seamless. Put all of this into your business plan so that potential lenders know you have a strategy to mitigate the risks.

A Processes & Procedures Plan

If you think you can just wing it and come up with processes and procedures for your brokerage on the fly, you’re in for a rude awakening. Smart business owners spell out all the rules their agents and employees must follow from the very beginning. After all, good agents do not thrive in chaos. Structure is crucial, even for something as trivial as buying coffee for the office.

A Prospective Budget

In the budgeting section of your business plan, you’re going to take all of your hopes and dreams for your brokerage and (hopefully) make the numbers work.

Of course, your budget won’t be an exact representation of your monthly expenses, but it’s a good starting point to estimate how many agents you’ll need and how many deals they’ll need to close to break even, or better yet, make a profit.

Let’s look at this highly simplified budget as an example:

Keep in mind this is an overly simplified budget and does not factor in slow seasons, agent turnover, or training.

Try to look at your revenue projections as soberly and honestly as possible. Being confident in your abilities is great, but the realities of the market have ended many would-be brokerages before they even really got off the ground.

7. Secure Financing & Office Space

Now that you’ve come up with a bulletproof business plan, it’s time to secure your financing and start looking for office space.

Using the budget you came up with earlier, figure out how much money you’ll need to keep the business afloat for at least two to six months with no revenue. Keep in mind that this is in addition to your personal financial cushion. 

Where to Get Financing for Your Real Estate Business

Financing can be trickier in this industry than it is in others. Real estate brokerages don’t have large assets to lend against—only desks and a few computers. That means banks don’t have the same security they do when they make loans to other entrepreneurs. Instead, they will probably make you secure the loan with your personal assets, as the Small Business Administration (SBA) does. This makes taking a loan out very risky.

You can obtain an SBA loan using money from your 401(k), get a traditional bank loan, use your own cash, or some combination of all three. Just be aware that you will likely need to secure your loans with personal assets.

Cover Your Legal Bases 

If you have partners, you also need to make sure you have all agreed upon revenue shares and are all jointly and severally liable for any and all expenses or potential losses. A limited liability company (LLC) is probably your best bet in terms of structuring the business, but make sure to consult with a lawyer to see what might work best for your unique circumstances.

How to Find & Lease Office Space for Your New Brokerage

In most major cities, good office space is still expensive, even post-pandemic. Here are a few tips to help you find a space that works.

• Start small. Consider coworking or subleasing in offices that already have some technology infrastructure such as internet access.
• Pay attention to aesthetics and make sure your space is well-furnished and professional.
• Choose a location that is convenient for potential agents and customers.

8. Start Recruiting New Agents

Yes, you’ve done a lot of work to get to this point, but don’t pat yourself on the back just yet. Now you need to start what is often one of the most time-consuming and frustrating parts of running a brokerage. Recruiting—and more importantly, retaining—talented agents who will actually close deals.

As a rule, buyer’s agents are a lot easier to recruit than listing agents, but keep in mind that you’re probably going to have to feed leads to your new agents or have an aggressive sales training program to help them get their own leads quickly. 

Try to get a decent mix of buyer’s agents and listing agents. Recruiting listing agents won’t be easy, but investing the time, effort, and money into recruiting them will be worth it. Every new listing agent you can recruit helps build your brand.

Consider these tips as you get started:

• Start poaching talent away from dull, tired competitors right away. You’re the cool new kid on the block, and agents’ curiosity will never be higher than right now.
• If you spend $10,000 to acquire an agent, you need to make that money back quickly. A one-year return on your investment is a good rule of thumb.
• Bringing a top producer to your brokerage means other agents will take notice, making recruiting that much easier.
• Screening for a good cultural fit is crucial to hiring agents who will stay for the long haul. Agents will want to join you—be sure they value what you offer and be sure they always feel that you value them.

Bringing It All Together

Ultimately, the decision of whether to start a brokerage has to be yours, but if you have the right motivation, financing, planning, and vision, this could be your year.

Have great advice for starting a real estate brokerage? Have questions specific to your market or situation. Let us know in the comment section!

The post How to Start a Real Estate Brokerage in 2024 (Without Going Broke) appeared first on The Close.

In my 28-year real estate career, I have built two independent brokerages and was an investor in two franchises with Keller Williams Realty. Not to say that I have all the answers here, but I can shed some light on some of the questions you may have when deciding between starting an independent brokerage and buying a real estate franchise.

Here’s a quick rundown of the pros and cons of each from my experience, and some questions you need to answer for yourself before making a decision.

Do You Have a Clear Vision & Business Plan for Your Brokerage?

If you already have a clear vision for your brokerage and you feel you have a strong business background, then opening an independent brokerage may be the right decision for you. This is because franchisors (the parent franchise company) have already figured out the vision and the business plan for their brokerages, and they are typically inflexible to changes. Imagine a McDonald’s franchisee adding tacos to their menu—that would never fly!

If you are driven by your own vision, one that doesn’t align with the franchisor’s vision, then you’re typically not a good candidate for a franchise. On the other hand, if you have the drive to build a brokerage but don’t have a vision or a solid plan, then a franchise may be the perfect solution for you.

Before you make your final decision, there are other things you must consider, like how you are going to attract agents and how much it will cost you to get your brokerage up and running.

The Benefits of Purchasing a Real Estate Franchise

When it comes to hitting the ground running, franchises have many advantages. Franchises typically have brand awareness, processes, procedures, and software already in place so you don’t have to make these decisions. The idea behind purchasing a franchise is having a proven model and systems that will allow you to grow your brokerage faster, and with less risk, than you could on your own. Yes, the upfront costs can be steep, but the benefits and reduced risk can be appealing.

Franchises Can Be Easier to Sell

One of the commonly overlooked benefits of a franchise is that there are often other in-company agents and franchisees waiting in line to buy a franchise when a territory opens. Therefore, you may be able to sell your franchise brokerage quicker and for more money than you could an independent brokerage.

The Benefits of Opening an Independent Brokerage

The unique benefits of opening an independent real estate brokerage are unparalleled. One of these is that you can be as creative as you choose.

One of the main issues with franchises is that there are barriers to entry: Many franchises have qualifications and requirements that you must meet before you can be considered a candidate. This can range from your past real estate achievements to your overall net worth. People also complain about all the rules you must follow. These seemingly arbitrary prohibitions are there to sustain a cohesive brand and prevent internal conflicts among franchise owners. These rules include things like charging agents the same splits, maintaining a minimum number of agents and employees, and ensuring all of your office space is located inside your territory.

These rules make sense if you are operating a franchise. However, as an independent brokerage, you can charge your agents whatever you wish to negotiate, grow your brokerage as fast as you see fit, and seize opportunities by opening offices wherever you choose (or not at all, if that is your plan).

With independent brokerages, you can create a unique brand because you are not restricted by the franchise’s marketing materials and trademark. This can include your messaging, tag lines, colors, and logos—allowing you to further differentiate yourself from the competition. You already know, if you’ve read my other articles, that I love differentiation!

So if you have the desire to be creative with your brand, logos, and messaging, and you don’t want to be subject to additional rules, then creating and building your very own independent brokerage might be the right path for you!

Do You Have Systems to Recruit & Retain Agents?

If your goal is to have enough agents so that your brokerage provides enough income that you no longer need to sell real estate yourself, then you may be shocked to learn how much of your time will be spent just recruiting agents. I found myself spending two to four hours each day on this task.

But your efforts don’t stop there. Once you have recruited them to your brokerage, you need to retain them by meeting their needs throughout their real estate career. This includes providing new agent training, marketing assistance, the latest software, and brand awareness. All this while offering competitive splits and fee structures.

Individually, these are each manageable, but over time, it can become a monumental and expensive task for an independent brokerage to provide all of these services. Since your real estate sales skills won’t help you here, you will still need to create systems for recruiting from scratch if you decide to start your own brokerage.

Real estate franchises provide the processes, procedures, and software systems to fulfill most of these requirements. This allows you to focus on the task of recruiting instead of the never-ending development of new offerings to attract agents. Most franchises also create additional training and events to build a company culture. This is all thoughtfully designed to develop agent loyalty, thus assisting you with the retention of your agents.

It may sound great to have these systems and processes provided for you, but first you need to look at the overall expense associated with opening a real estate franchise.

How Much Money Do You Have to Invest Into a Real Estate Franchise?

One of the largest differences between starting your own independent brokerage and purchasing a franchise is the upfront cost. If you open your own independent brokerage, you can bootstrap it by starting in a smaller office or co-working space and using software off the shelf. You can see more on this topic in my previous article, 7 Things I Wish I Knew Before Starting My Real Estate Brokerage.

Purchasing a franchise is buying a proven business model. Franchisors have standards for everything from office space and furniture to equipment and software. Therefore, you will spend more money earlier on to bring the office up to the franchise brand standards. That being said, there are lesser-known real estate franchise business models, like NextHome, that have minimal office requirements that can save you money on the startup costs.

Initial Franchise Fee

Franchises have an upfront fee ranging from $10,000 to $50,000. This is in addition to training and office buildout. For example, the median total cost of opening a RE/MAX or Keller Williams franchise today is just over $140,000, and the total cost can be as high as $350,000.

Royalties

In addition to the upfront cost, franchises also charge an ongoing royalty. This typically ranges from 3% to 6% of your company’s gross commissions, or it’s a monthly fee of $25 to $400 per agent. Some franchises may charge both ways. However, managing brokers typically tend to pass royalty fees on to the agent.

Commitment

Franchise agreements are traditionally for terms of five to 20 years, with renewal fees at each interval. The renewal fees are typically 50% of the initial franchise fee. You will want to factor this into your long-term financial plan.

The final element you must consider when investigating the franchise route is the availability of the franchise opportunities in your area.

Are There Real Estate Franchise Opportunities in Your Area?

A franchise territory is a geographic boundary around a franchise that prevents another franchisee within the same company from opening an office nearby. This prevents competition (in terms of recruiting, not sales) from within the company. Many of the most common national franchise brands have long ago sold off their franchise territories in most major cities. This can make purchasing a franchise tricky in some areas, especially if you want a great location.

Although franchisors like RE/MAX are tapering off the practice of large franchise territories, they still take into consideration the impact a new franchise would make on their existing franchises.

What Do You Do if the Franchise Territories Are Sold Out?

Sold-out franchise territories traditionally leave you with one of three options if you truly want to own a franchise:

1. Partner or become an investor in an existing franchise.
2. Join a lesser-known franchise brand that has availability in your area.
3. Select an up-and-coming area that hasn’t been expanded into as of yet.

Some franchises offer other arrangements for investors when all their prime territories are unavailable. For example, Keller Williams is now permitting existing franchisees to partner with agents who wish to run their own brokerage within the existing territories. This allows agents who want to have ownership of a franchise, but don’t have the capital or territory open to do so, to have the support and systems like a Keller Williams franchise.

This change creates a new way for agents who desire the opportunity to build a small brokerage without the expense of a new franchise and the risk of building an independent brokerage.

Our Top Real Estate Franchises

Real estate franchises are as different as the agents who work for them. Start by doing your research to find the right fit for your values, budget, territory, and long-term plans. There are plenty of real estate franchises to choose from, and your own financial situation and location will further narrow down your choices. Here are our top five picks based on reputation, pricing, resources offered, training, recruitment tools, and technology:

Please note that these numbers are general estimates. With the exception of Keller Williams and NextHome, most brokerages don’t publish their franchise fees and investment expectations. This does, however, give you an approximate idea of the kind of money we’re talking about and a good jumping off point for your research. 

At the end of the day, it all comes back to those core values that keep you motivated in business and in life. If the mission of the brokerage doesn’t line up with yours, it’s not a good fit, no matter the financials.

Bottom Line

There are a lot of things you must consider when making the decision to go out on your own. The decisions you make now may forever affect the success of your brokerage. So do your research and write out a list of pros and cons to opening an independent brokerage versus making the commitment to purchasing a real estate franchise of your own. In the end, the time you spend upfront may save you tens of thousands down the road.

Bringing It All Together 

Did we miss anything, or do you have any experience with building an independent brokerage or franchising that you would like to share? Let us know in the comment section!

The post Should I Buy a Franchise or Start My Own Brokerage? appeared first on The Close.

With our straightforward guide, we’ll lead you through every step of getting your Ohio broker license. Before you know it, you’ll be expanding your real estate business to new heights. Let’s dive in!

How to Get an Ohio Real Estate Broker License

• Complete your education requirements
• Pass a background check
• Apply for an Ohio real estate broker license
• Take the broker license exam

How Much Does It Cost to Get a Real Estate Broker License in Ohio?

Quick Facts

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Ohio Real Estate Governing Board:

Ohio Division of Real Estate & Professional Licensing

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Experience Requirements:

20 Real Estate Transactions

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Education Requirements:

120-hour Prelicensing Courses and 4 College Courses

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Cost of Ohio Real Estate Broker License Courses:

$3,449 (through Hondros College)

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Total Estimated Cost:

$3,714

It costs about $3,700 to get your Ohio real estate broker license. The cost will depend on the education you’ve already completed as part of your minimum two-year college degree. Here’s a breakdown of the costs involved in getting your Ohio real estate broker license.

Ohio Real Estate Broker License Costs

Getting Your Ohio Real Estate Broker License in 4 Steps

There are a few basic requirements you’ll need to fulfill before you sit for the Ohio real estate broker exam. First, you’ll need to ensure you meet the basic requirements below:

• You must be at least 18 years old
• You must be of good character
• You must be licensed as an Ohio real estate salesperson for at least two of the past five years

Next, you’ll need to make sure you meet the experience requirements of 20 real estate transactions. You’ll include a log of your transactions on your broker license application.

Now, let’s walk through each step of getting your Ohio real estate broker license to take the first step toward running your own real estate business.

1. Complete the Ohio Real Estate Broker Education Requirements

Cost: Varies ($3,449 with Hondros College)
Time commitment: 1 month

In order to become a real estate broker in Ohio, you will have to show proof of completing your 120-hour prelicensing coursework. This coursework must include the following four mandatory courses:

• Ohio Real Estate Law (40 hours)
• Ohio Real Estate Principles & Practices (40 hours)
• Real Estate Appraisal (20 hours)
• Real Estate Finance (20 hours)

Next, you’ll need a minimum of two years of post-secondary education or equivalent hours at an accredited college or university.

Plus, you’ll need to show proof of completing four required courses from a college or university. You may have already completed the required courses as part of your post-secondary degree, in which case they will count toward your broker education requirements. The four college-level courses must be in:

• Financial Management
• Human Resources or Personnel Management
• Applied Business Economics
• Business Law

If you’ve satisfied the college degree and prelicensing coursework, but need to complete your four mandatory courses, we recommend checking out Hondros College. They offer all your required courses individually, or as a package. Their feature-packed Broker Career Start Package includes exam prep for your broker license exam and even your broker post-licensing course for your first renewal.

2. Pass a Background Check

Cost: $50-$80
Time commitment: 2 weeks

In order to sit for the Ohio real estate broker exam, you’ll first need to complete a fingerprinting background check. Webcheck^® administers fingerprinting background checks for prospective real estate brokers in Ohio, and you can find a location near you by visiting their website.

You’ll need a state and national FBI background check, so make sure to choose a site that will submit both your state and FBI records. It will cost between $50 and $80 dollars to complete your background check—just be sure to bring your government-issued photo ID with you.

Supply these “reason codes” to Webcheck^® (BCI&I Reason Code: 4735 05 and/or 121 08 FBI Reason Code: 121 08) and ask them to direct your biometrics results to the Ohio Division of Real Estate and Professional Licensing.

3. Apply for an Ohio Real Estate Broker License

Cost: $135
Time commitment: 1-10 days

You’ll apply for your Ohio real estate broker license exam and your license all at once. Once your application is approved, it will be forwarded to PSI Testing, which administers the broker license exam. You’ll receive an email from PSI Testing with instructions on how to schedule your broker license exam.

The application should take under an hour to complete. It may take longer if it takes time for you to receive official transcripts from your post-secondary institution. You can fill out the application online or by hand, and you’ll mail it to the Ohio Division of Real Estate and Licensing.

Make sure you’ve included the following:

• Copies of official transcripts or course completion certificates
• The completed application and the $135 fee
• A statement describing any real estate experience other than sales and leasing

3. Take the Ohio Real Estate Broker License Exam

Quick Facts: Ohio Real Estate Broker Exam

Quick Facts

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Cost:

$48

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Time to Complete:

3 Hours

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Format:

120 Multiple-choice Questions

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Passing Grade:

75%

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What to Bring:

Two pieces of ID

Once you receive an email notifying you that you’re eligible to sit for the Ohio broker license exam, it’s time to schedule your exam. Visit the PSI Testing website to schedule your exam online.

When you arrive at the testing center, be sure to bring two forms of valid ID and try to arrive 30 minutes prior to the start of your exam. The license exam is administered in one of the eight locations statewide:

• Akron
• Cambridge
• Cincinnati
• Cleveland
• Columbus North
• Columbus South
• Toledo
• Troy

When it comes time to study for your broker license exam, you may need to brush up on a few topics. If that’s the case, consider checking out a broker exam prep package from Hondros College. They’re one of the only Ohio real estate schools that offer broker exam prep, offer a pass guarantee, and boast a 96% first-time pass rate on the broker license exam.

You’ll be issued your broker license by the Ohio Division of Real Estate & Licensing after you’ve been notified of your results on the license exam. Congratulations! You’ve obtained your broker license and it’s time take your career to the next level.

Ohio Real Estate Broker License FAQs

Got more questions? We have answers! Read on for the most frequently asked questions and add your own question in the comment section below. We’d love to hear from you!

How long does it take to get a real estate broker license in Ohio?

Should I become a real estate broker in Ohio?

Do you have to become a real estate agent before becoming a broker in Ohio?

More Career Resources

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The post How to Get Your Ohio Real Estate Broker License appeared first on The Close.

Later in my career, I worked as a team leader at Keller Williams Realty and as an investor in two Keller Williams franchises. This experience taught me the recruiting skills and processes needed to keep agents productive. Even though I was very successful, the itch to build my own real estate brokerage brand never went away.

So in 2014, I set out on my own to start an independent real estate brokerage from scratch. The long five-year journey of creating a new brand, managing employees, recruiting agents, and building out offices had opened my eyes to the things I wish I had known before starting a real estate brokerage.

In this article, I will share my wisdom of the seven things I wish I knew before starting a real estate brokerage.

1. Your Brokerage Needs a Clear Objective

Before you blow through your savings or you max out your credit cards to open your new real estate brokerage, get clear on why you are choosing to go on this adventure and clearly define what you wish to accomplish.

An unclear objective will make your important decisions more difficult and can leave you without an exit strategy.

Ask yourself questions like, “Do I want to build a brokerage that serves a specific community or that serves multiple areas?” and “What type of agents do I want to work with and why?”

Your answers will provide context for all the other decisions you must make for your brokerage. For instance, if you are starting a real estate brokerage to serve a specific community, then your brand and logo should be specific and reflect the community it serves. However, if your goal is to grow beyond your local community, city, or state, your branding and logo will need to be unique so you can obtain a national trademark prior to expanding.

I have coached brokerages that had the ability to expand into other markets, but because of decisions like this that were made in the early stages of their development, the growth of the brokerage was severely diminished.

Make your decisions with the end result in mind and find a competitive advantage that allows you to differentiate from your competitors.

2. Your Brokerage Needs a Competitive Advantage

A successful startup builds on the success of the past but also brings a competitive advantage. Your real estate brokerage startup should be no different. A competitive advantage is a clear differentiation that separates you from the competition in the customer’s view. This allows your brokerage to stand out and makes your brokerage more memorable.

There are three main types of competitive advantage:

3 Types of Competitive Advantage for Your Brokerage

1. Price

Some brokerages create a competitive advantage either by offering lower commissions to the sellers (Redfin) or by reducing splits and fees to the agent (HomeSmart). These business models operate on slim margins and high volume.

Before you jump on board with a low-fee business model, consider the months or even years you will lose money before you are breaking even. Personally, I would rather provide another competitive advantage and maintain profit margins.

2. Unique Product or Service

Coldwell Banker created a competitive advantage with their RealVitalize program. RealVitalize allows sellers who are low on cash to be able to update their dated home with things like new granite counters and appliances, and pay for it at closing.

Like the RealVitalize program, your competitive advantage doesn’t need to be something nobody else offers. It just needs to be communicated in a way that customers assume that you are the only brokerage in their area offering the unique product or service

3. Specific Niche

The most common way brokerages differentiate themselves from their competition with a competitive niche advantage is by focusing on a specific geography, demographic, or industry.

In the past, real estate brokerages used geography as their specific niche, but today, there are entire brokerages that just focus on first-time buyers, luxury homes, condos, or even military buyers and sellers.

Your brokerage can also have a specific niche of the type of agent it specializes with. This can be agent types like new agents, seasoned agents, luxury agents, and teams.

Having a competitive advantage allows the customers and agents to differentiate your real estate brokerage from all the others. Focusing your marketing and messaging will reduce your overall cost of acquiring customers and agents alike.

Next, we discuss in detail how to attract the right type of agents for your brokerage.

3. A Recruiting Plan Is Essential to Attracting the Right Agents

Your objective and competitive advantage are the first two things you must get clear on before starting your real estate brokerage. The next step is creating a plan to recruit the right type of agents to fulfill your dream.

Begin by using your objective (what you want to achieve) and your competitive advantage (what differentiates you from the competition) to determine the type of agent who will thrive at your brokerage. For example, if you are building a luxury brokerage, then a lot of brand-new agents are very unlikely to produce the results to help your brokerage achieve your objective.

The secret to recruiting is being very clear on what your objective and competitive advantage is and how this can benefit the agents you wish to attract. Once you’ve done that, you need to focus all your recruiting efforts on that specific agent type.

This is done by narrowing the vast pool of agents in your market down by their production and the location they wish to specialize in. Once this is done, you will use well-written scripts to attract the right agents or repel agents who don’t fit your brokerage. You can learn more about recruiting scripts in our article The Ultimate Guide to Recruiting Real Estate Agents (plus scripts and objection handlers).

Next, your presentation must inspire the agents to want to be a part of your dream. Since your brokerage is new, you must sell them on the vision. You will do this by having a clear and concise message about what you are going to achieve and how you are different from the other brokerages.

Lastly, you will need to have outstanding processes and procedures to serve your new recruits and fulfill all the promises you made. Curious about what this entails? No worries … keep reading.

4. You Need to Develop the Necessary Processes & Procedures to Operate a Real Estate Brokerage

As I shared earlier, the fact that you may have the skills to be a successful solo real estate agent by itself doesn’t mean you will be successful at leading and operating a real estate brokerage. The skills and processes are completely different.

To be successful as a salesperson, you must develop your own skills, follow your own processes, and hold yourself accountable. Conversely, to successfully run a real estate brokerage, you must be able to lead agents and employees to consistently follow the processes and procedures that you set out for them. In other words, the skills that made you a great agent might not translate to make you a great broker/owner. More on this later.

This requires you to take the time to think out what processes and procedures are necessary for you to run your brokerage. To help you out, I compiled a complete list of the processes and procedures to run a successful brokerage.

Processes & Procedures to Run a Real Estate Brokerage

Agent Support
	Weekly Communications Plan
	Agent Training Plan
	Team Meeting Plan
	Agent Marketing Support Plan
Broker Supervision
	Contract Compliance Process
	Contract Review Plan
	Industry Changes and Updates Communications Plan
	Broker Question Process
Office Management
	Agent Split/Fee Management
	Commission Disbursement Process
	Agent Billing Process
	Escrow Accounts Management
	Financial Review and Management
	Employee Hiring and HR Management
	Annual Tax Filing Plan
Agent Recruiting
	Agent Recruiting Plan
	Agent Onboarding Plan
	Agent Off-Boarding Plan
Office Management
	Cleaning and Maintenance
	Security
	IT Support

Before you turn in your pink slip at your brokerage, take some additional time to observe how they are managing these processes and procedures. You may not even be aware of some of these because they operate behind the scenes.

Managing Employees

In addition to creating your processes and procedures, you will also need to develop the ability to lead and manage employees to follow the processes to operate your brokerage.

Many agents think that they would be good at managing employees because they are easily likeable. However, being easy to get along with is not a good indicator of being a successful manager and, in many cases, can backfire.

Learning how to hire, train, and manage employees is a monumental feat on its own. Yet, if you wish to build and grow a successful brokerage, you will need to develop this skill. Unfortunately, I have not found a universal simple path to develop this ability.

The best advice I can share (without writing a book here) is to be very clear on the expectations and execution of the tasks that are required of the position from the beginning. This will make it easier to hold them accountable in the future. Yet, to accomplish this, you must have your processes and procedures written out in advance.

Each of these important decisions build on the next. This is why I am suggesting you take the time now—before your brokerage is open—to get clear on your objective, find a competitive advantage, determine the type of agents you want to serve, and build your processes and procedures. All this before deciding on what software and office location is right for your brokerage.

5. Software Can Make or Break Your Brokerage

The secret to building a brokerage that will retain agents for years to come is consistency. This is because consistency builds trust, and trust leads to agent retention and agent referrals. The key to consistency is investing in real estate brokerage software.

I am well aware that there are successful brokerages that operate completely off of Excel spreadsheets and the sweat of their employees. The risk with this approach is that humans are just that: human. That means they make mistakes. Not to mention the massive problems you’ll have when you lose a key employee who takes the knowledge of your processes with them when they leave.

You don’t want to put yourself or your brokerage at risk by relying on ad hoc and insecure systems and processes. Today, there are many software systems that will protect your brokerage from losing your processes when a key employee leaves and can provide you with clear reporting to insure that the procedures are being followed by your agents and employees. Cutting-edge software not only saves you time, it can also attract tech-savvy agents.

Below is a list of procedures that are imperative in running a successful real estate brokerage and the software that makes these processes secure and easier to manage.

The Software Options to Successfully Operate a Real Estate Brokerage

Procedure	Objective	Optional Software	Cost
Agent Marketing	Create custom listing fliers, monthly mailers, and newsletters
		Microsoft Publisher	$150/yr
		BannerSeason	$45/mo
		ProspectPLUS!	As needed
Brokerage Management	Track agent transactions, income projections, and manage agent splits and fees
		Lonewolf	$350+/mo
		Total Brokerage	$219+/mo
Contract Compliance and Management	Manage the broker file, broker review, and file storage
		Dotloop	Call for pricing
		SkySlope	$350+/mo
Recruiting Software	Pull market share reports, agent production reports, and contact information
		BrokerMetrics	$199+/mo
		Brokerkit	Call for pricing
Financial Management	Basic financial management and tax preparation
		QuickBooks	$60/mo
Emails	Brokerage branded email accounts for agents
		Workspace by Google	$6/user
Websites	Brokerage website and individual websites for agents
		Placester	$64+/mo
		Real Geeks	Call for pricing
Agent CRM	Contact relationship management software
		BoomTown	$750+/mo
		Zurple	$399+/mo
		LionDesk	$70/user
Showing Service	Manage showings and feedback
		ShowingTime	$45+/mo
Payroll Service	Manage payroll, employee liability insurance, and tax withholding
		Oasis Advantage	$75-$150/mo
		QuickBooks Payroll	$22/mo

Some of the software providers offer more than one feature than the category I have placed them in. For example, Propertybase provides websites, customer relationship management (CRM), and lead generation software in an all-in-one solution. For a deeper look at all-in-one CRMs, see our recent article: The Best Real Estate CRM for 2022.

Also, in some of these categories (like brokerage websites), there are endless options. My goal here is to provide you with a general understanding of what software is available. Therefore, I suggest doing your own research to determine which software providers are right for your situation.

The decisions you have made thus far are all extremely important, but none of them are as expensive or put you at risk more than selecting the right office and location for your real estate brokerage. Let’s take a deeper look.

6. How to Select the Right Office for Your Brokerage

I can’t say this enough: Get your office right from the beginning. Your office is often your largest expense and your greatest risk. Before getting tied into a long-term lease, you must first take into consideration your overall objective with your brokerage, your competitive advantage, and the type of agents you ultimately wish to recruit. Make sure that the office and the location is in line with all of your goals. This way, you have a greater chance of getting it right the first time.

Will Agents Return to Offices?

This is the $10 million dollar question. Will agents return to the office after the pandemic is over? The concern is if agents get used to working from home, then do you even need to plan and budget for an office when opening your real estate brokerage?

My guess is even though most agents will stay mobile, many will still want the option to work from an office again. For some of us, it is difficult to motivate ourselves from home and for others, their home may not be conducive for doing business. But this may not be the only reason you want an office.

Your Office Is a Statement to Your Customers & Agents

Your office can be more than just a place for team meetings—it can be a statement to customers and agents of your commitment to the community and your brand. For instance, if you are building a boutique brokerage that is specific to a neighborhood, you want a visible office to create brand awareness in the community you serve.

On the other hand, some seasoned agents are attracted to semi-private offices or at least the idea of having them available. If your goal is to recruit professional, seasoned agents, then an office building would be the suitable solution. A secret you may not know is instead of breaking the budget on A+ main floor office space, consider the third floor or fourth floor. The higher floors are usually 15% to 25% less than the main floor.

If you’re building a brokerage that teaches newer agents, consider an office space with few private offices and a larger training room that can be closed off to not bother the other agents while you are teaching. When not in use, the training room can be used as agent drop-in space.

Are Co-working Spaces a Viable Solution?

I have had brokerages with beautiful executive office space and I have run my brokerage from a co-working space. The low cost and short-term lease commitments can make co-working space a great place to launch your brokerage. The long-term challenge with co-working space is coordinating things like team meetings, lead generation, and educational events with the other members of the co-working space.

The other challenge is that as you grow, the cost can rise exponentially. Room for two to three agents may only cost as little as $400 a month, but when you grow to 15 agents, the cost can exceed the cost of having your own private office space. As with short-term rentals like Airbnb, you will pay more for the flexibility that a co-working space offers.

If you are considering co-working space, beware of additional costs like parking, coffee and snacks, conference room rental, and so forth.

7. How to Select the Best Location for Your Brokerage

One of the most important things you must consider when selecting the office for your new brokerage is location. Location is more than just deciding what area of town you want to be in. The location can determine if your agents are going to sell mostly condos in the city or mini-mansions in the suburbs.

Parking and accessibility is important if you have customers or agents who drop in to the office for short periods of time. Many downtown locations are desirable, but the lack of parking and accessibility might make them unattractive to some agents.

If you are in a tourist town where visitors may be interested in retiring or buying a second home, you may want to consider a small house or retail location on the main strip that will attract curious tourists to come in. The office location and style must be attractive and inviting so customers feel comfortable enough to stop in.

Bottom Line

My agenda is not for you to start your own brokerage. It is, however, to provide you the information and a true picture of the obstacles that come with starting your own brokerage so you can make the best educated decision based on your individual goals and situation. If you’re up for the challenge, read on to learn How to Start a Real Estate Brokerage (Without Going Broke).

If you are thinking that you don’t have the time or vision to create your own brokerage, you may want to consider a franchise. Franchisors have already figured out the vision and the plan for their franchisees. Therefore, if you have the drive to build a brokerage and don’t have a plan, then a franchise may be the perfect solution for you.

Simply put, opening your own brokerage is not as easy as you may think. But if you use this information to prepare yourself to make the most important decisions prior to opening your brokerage, you will have a higher chance of achieving the success you desire.

Over to You

Do you have a suggestion for opening a brokerage that we overlooked? Let us know in the comments or join us on our Facebook Mastermind Group here.

The post 7 Things I Wish I Knew Before Starting My Real Estate Brokerage appeared first on The Close.