The Ultimate 8-Step Guide to Starting Your Own Real-Estate Agency

Starting a real estate agency can be a rewarding business and while it does require careful planning, licensing, and a solid marketing strategy, following the right steps is all that matters.

Regardless if you’ve been working many years in the real estate industry or have only experienced a few years, it doesn’t really matter because this is a procedure that everyone should follow.

In this article, we’ll dive deeper into learning more about the steps you should take to launch your real estate agency.

1. Do your research

Before you launch your real estate agency, you need to dive deeper into learning more about the industry itself. Research the local real estate market extensively, and understand current trends, competition, pricing, and customer preferences.

This will help you better know about the next steps you should take. Key areas to research your market include:

1. Market trends: Identify property demand, pricing trends, and economic factors that contribute to the real estate market. You can always subscribe to channels on YouTube that talk about real estate trends or even follow the latest news on X (formerly Twitter).
2. Target audience: Determine whether you’ll focus on commercial, residential, luxury, or rental properties.
3. Conduct a competitor analysis: Identify where are the gaps and strengths of your competitors and what you can do better than them.

Doing research helps you learn more about the industry you’re getting into and what you can do to stand out.

2. Create a detailed business plan

Being clear about your business's vision and goals when starting is crucial. You should outline your target market, the services you’ll offer, and daily objectives. Your business plan will serve as a roadmap through the lifetime of your business so it’s important to act based on what you clarify.

Overall, your business plan should mention the following:

1. The services you’ll offer and how you’ll help buyers and sellers coordinate with each other;
2. Your target audience demographics and how you’ll reach them;
3. How you’ll differentiate from competitors;
4. Your market strategy;
5. The estimated costs involved with your real estate agency.

Having a detailed plan will always help you take a step further when starting with your business.

3. Starting networking and building relationships

If there’s one thing that matters a lot in the real estate world, it’s networking and building relationships. Spending some time joining industry groups and even meeting in real-life with brokers, mortgage lenders, real estate agents, and more, will help you build long-term relationships and partnerships; exactly what you need to have in this industry.

Other than that, you can focus on building remote connections too. For instance, you can use a social media platform like LinkedIn that is focused on B2B networking and allows you to connect with business owners all over the world.

If you pay close attention, you’ll see that on other social media channels like Facebook, you can join local community groups that talk about real estate topics and this will help you connect with more people over time.

4. Choose a business model

Deciding how your real estate agency will operate is more important than ever and this includes four different options that give you the freedom to choose from:

1. Independent agency: This includes running your own brokerage without affiliations.
2. Franchise: Partnering with an established real estate brand.
3. Virtual agency: It’s trending now that many real estate agencies are starting to work remotely and the only way to reach them is online. If you’re one of them, it’s time to set up your virtual office.
4. Hybrid model: Combine your physical office with your online services.

Each model has its advantages and it’s always important to choose one that aligns with your goals and resources.

5. Create a website with AI

Creating a website is more important than ever and it’s now time to do so. You want to make your website look as professional as possible and this is now easier than ever thanks to technology advancing so quickly.

AI web builders are now becoming a common method amongst business owners for creating a website and guess what? They are not only fast, but have everything you need and are cost-efficient. AI web builders can create a website in under an hour compared to months that traditional web developers offer and only cost a small monthly subscription.

68% of business owners now claim that they prefer to use AI website builders compared to traditional web building methods.

6. Obtain the necessary licenses and certifications

Real estate is a highly regulated industry and it’s important to acquire the necessary licenses to operate. Obtaining the appropriate licenses is important to operate legally and build credibility in this industry.

Here’s a general overview of acquiring the necessary real estate licenses:

1. Apply for a real estate license: Apply to your state’s real estate board. Keep in mind that processing times will take a few weeks, so plan accordingly.
2. Finding a sponsoring broker: Many states will require you to work under a licensed broker before you start working independently. Always choose someone who aligns with your business goals, offers mentorship, and provides commission support.
3. Register your business: Register your real-estate agency with the appropriate local and state authorities. You can also consider acquiring Errors & Omissions (E&O) insurance to protect your agency from any legal claims. It’s always good to have it to remain legally compliant.

Once you acquire your licenses, you’ll need to keep them active throughout time. Licenses need to be renewed every two to four years. However, check with local state authorities to see how many years it's been in your region since it’s not the same story everywhere.

7. Provide top-notch customer support

Customer support matters a lot when it comes to attracting and retaining your customers in the long-term. It’s also the way how your agency can stand out from competitors and after all, you need to always be communicating with buyers and sellers.

Even if a deal fails with your customers, you need to always support them with new updates. Make sure to be clear about every purchasing step to buyers and every selling step to sellers. After all, you need one thing and that’s the fact that if you are delivering good customer support, you’ll have positive feedback and customers will also tell others about your services.

Word-of-mouth is one of the most powerful marketing tools and when you put it to use, you are already one step ahead of your competitors.

8. Focus on email marketing

Emails have always been a main method of communication since the day they were put to use. To attract buyers and sellers, it’s important to create effective email offers that will attract customers. Here’s what you need to do:

1. Include sign-up forms on your website: Add a pop-up or embedded form offering a discount or exclusive content.
2. Create a welcome email series: First impressions matter a lot and this includes sending out welcome sequences that can set a good first impression. Send out the first email immediately to welcome your subscribers. After, send an email after 2 days to highlight your real estate achievements. Lastly, send an email after 5 to 7 days to share customer stories and offer personalized recommendations.
3. Segment your email list: Personalized emails will generate higher open rates and conversions. Always segment your audience based on purchase behaviors, browsing history, and preferences.
4. Automate email campaigns: This includes sending out welcome sequences, birthday & anniversary emails, and re-engagement emails with exclusive offers that help customers make better decisions.
5. A/B testing: This can be used to test & track performance to continuously improve your email tracking strategy. This includes testing different elements such as subject lines, email body content, when they should be sent out, and even where you should place your Call-to-Actions (CTAs).

Email marketing is a cost-effective way for retail agencies to increase their sales and build brand loyalty. Especially considering that you need to be persuasive in the real estate industry, this is more important than ever to put into practice.

Now is the best time to start your own real estate agency

Starting your own real estate agency isn’t only an exciting journey, but always know that success requires careful planning, industry expertise, and a strong email marketing approach. By following everything that we mentioned in this guide, it’s now time to build your online presence and establish a competitive and thriving real estate business.

The real estate industry offers endless opportunities for those who are willing to build their network, adapt to changes, and provide exceptional services to clients. Starting a business is a continuous learning journey, and is about building strong relationships and staying updated with market trends.

Now it’s time to take action and with dedication and persistence, your real estate agency can easily grow into a successful and profitable business.