How to Open a Real Estate Agency? Learn 2021 Real Estate Tips
Opening a real estate agency is a profitable business as well as a troublesome one. There are many benefits to opening your own real estate office.If you enjoy mentoring and have cash flow management skills, the psychological and financial rewards will be great.
How to Start a Real Estate Agency?
- Save enough money to cover your start-up costs. Your start-up costs should cover buying or renting office space, office equipment, logo design, office signage, roadside signs, website design, and insurance. In addition to these, you should set aside the money to cover your operating expenses for at least 3-4 months. Operating expenses include rent, advertising, online fees, dues, utilities, and other miscellaneous expenses.
- Obtain all necessary licenses and permits. You need to register with the tax office, and professional chamber. In addition, you must go for incorporation of company to obtain a legal business name.
- Prepare an independent contractor agreement. This agreement outlines what you expect from brokers working with you and includes provisions for individual brokers’ commission separations. As an independent contractor, you cannot interfere with brokers’ office hours, but you can require them to comply with ethical codes. You can also define your policies regarding the use of office space.
- Organize your office. You will need to purchase waiting area and conference room furniture, reception desk and chair, fax, photocopier, telephone system and at least one computer.
- Get brokers. New brokers add energy and excitement to your office, but you must be very careful when training them so they don’t make legal mistakes. They may also need sales training.
- Build your customer base. You can promote your company in newspapers, real estate publications, the Internet, television and radio. Send emails and increase your awareness through promotions. For example, you can promote by sponsoring charities. In addition, you can agree with search engine optimization companies to make your website visible in search engines and to rank higher.
Requirements to open a real estate office:
- Business license and permits
- office equipment
- office furniture
Tips for success
You can charge brokers office fees for the use of photocopiers and faxes to maintain your profit margin. Brokers can also contribute to the costs of error and omissions insurance.
Do not hesitate to seek professional help for incorporation of company. Have an attorney review your independent contractor agreement, contracts, and appendices.
Documents required to open a real estate Agency in Singapore:
1-Copy of identity card and proof of residence
3- A copy of the title deed.
4-Building occupancy permit paper.
5-Original or notarized copy of the rental agreement if it is rented.
6-Copy of tax plate.
7- A copy of the relevant Chamber of Commerce
8-Copy of insurance or bonding certificate, or retirement certificate.
9-A water subscriber card meter will be installed in the workplace
10- If there is a shooting license previously issued to the same address, it will be returned to the municipality.
11-A fire measure has been taken report from the fire department.
12- A copy of the identity document that proves that he/she has made an identity report to the police.
13-Signature circular, a copy of the Trade Registry Gazette (in case of a company)
Note: These documents are for informational purposes only and may differ from municipality to municipality. For exact documents, please apply to the relevant municipality.
Conditions for opening a real estate office
- a) The size of the real estate office should not be less than a certain square meter. (It varies from municipality to municipality)
- b) It is obligatory to have a real estate brokerage certificate.
- c) The real estate brokerage office must be an independent department and workplace in accordance with the condominium law.
- d) Office furniture suitable for the technical devices and equipment used in real estate brokerage services should be available and seating groups should be arranged in accordance with the acceptance of the customer.
- e) The real estate brokerage must have a computer.
Is it profitable to open a realtor?
Profitability is about where and how you do this business. Especially in big cities, since there is a very lively housing market, you can earn quite a lot of money here.