If you think you have a flair for real estate and would like to create your own real estate agency, there are indeed great opportunities in an industry that is totally performance-based, and if you do your research and crunch the numbers, you can carve out your share of the very lucrative real estate sector in Australia. As you would expect, everything is going to be digital and you will have some serious competition, wherever you happen to be in Australia, and with that in mind, here are a few tips to help you gain a deeper understanding of the real estate sector.
Assuming that you understand your role in the buying and selling of real estate, you need to acquaint yourself with current commission rates charged when selling a property, as this is the market price and that will define your fees. You are the person who connects sellers with buyers and in order to keep in line with industry standards, you must offer your services to the buyer for free, as it is the seller who pays you a commission, which might be 2.5-3.0% of the sale price.
See Things from the Client’s Perspective
Think about what it is that the buyer and seller are looking for in a real estate agent, which would include the following:
- Fast and efficient service.
- Results based – Short listing times with properties selling relatively quick.
- Reasonable commissions.
- Friendly and helpful staff.
- Keep you abreast of things.
You must base your business around the above, which will enhance the customer’s experience, and if you focus on customer service, you will go from strength to strength.
Like all small businesses, the real estate agency must outsource their photography and copy writing for property listings – both are essential if you want to present your properties professionally – plus you will need a web developer to build and maintain your website. Lastly, and perhaps most importantly, you will need digital marketing.
So, how do you reach buyers and sellers? The answer to that lies with the behaviour of the buyers and sellers, and the majority of sellers would visit https://www.localagentfinder.com.au/, meaning this is one platform you must register with as an agent. This will provide you with a steady stream of sellers, and, of course, you will have to pay the agent-finder a small commission when a sale is concluded. Being registered with agent-finding services will provide you with regular enquiries, and when a seller uses an agent-finding service, they have access to vital information about each real estate agent, including yours. This data would include:
- How many units the agent has sold this year.
- How many units the agent currently has listed.
- The average price of a sale.
- The average number of days a property remains on the market.
If you have a good turnaround of properties, this will lead the seller to choose your agency, as everyone wants a quick sale. Remember that the real estate sector is performance based, and if you deliver the goods in a timely manner, you can expect a lot of referrals.
The buyer would likely Google ‘real estate agents in my area’, and with some serious SEO work, your website will be well-ranked with the popular search terms. You should regard digital marketing as an essential part of your business, and the service needs to be ongoing, which will drive potential buyers to your digital platform. Then there’s social media, a very powerful online marketing platform and this is something your digital marketing provider can handle, and with regular posting, your page will soon develop a large following.
Other real estate agents will network their website with others, thus reaching a wider audience, so you will need to join forces with some of your rivals, as a shared network benefits everyone. These networks cover the entire country, as someone from Perth might be looking to move to Cairns, and the more people that have access to your listings, the better.
Crunching the Numbers
Assuming you plan to create a business plan, one important aspect of that is to calculate your start-up costs, which would include the following:
- Business Premises
- Office Equipment – IT Hardware
- Web Development
- Marketing Costs
- Staff – Salaries
- Business Communication – VoIP
You want your offices to be in prime locations, which might be costly, but it is part of the set up and without business premises, you will lose a lot of credibility.
Successful real estate agents are comfortable working with strangers and they have a warm and sincere disposition, so if you are a people person, this might be the ideal sector for you.
You will need a good helping of determination, adequate funds and untold amounts of enthusiasm, and, of course a little good luck.