Why start a real estate agency now, though?<\/h2>\n
Hey, fair question.<\/p>\n
Getting started in real estate can be daunting for beginners. Meanwhile, the uncertain economic climate might make it seem like now\u2019s not really the ideal time to dive in.<\/p>\n
However, the stats above and current housing trends actually say that\u2019s not the case.<\/p>\n
It\u2019s cliche to say that\u00a0now<\/em>\u00a0is the time to get into real estate, but let\u2019s look at some of the reasons why you should consider starting your business ASAP.<\/p>\n Becoming a real estate agent is arguably easier than ever.<\/p>\n Requirements in terms of education, time, and price tag are practically nothing compared to the potential returns. For example, getting a real estate license can be done in a matter of months with little more than a high school diploma and some coursework.<\/p>\n The whole process can be navigated almost exclusively online, too. There are plenty of online real estate schools for prospective agents looking to pass their state exams.<\/p>\n In terms of actually being an agent, you don\u2019t need to worry about a physical office space or pricey advertising. With well-placed online ads and the right tech tools (more on those later), you can get your real estate business up and running on a relatively small budget. Much like many jobs are going remote, so is real estate.<\/p>\n The process of buying and selling a home likewise happens largely online. As long as you have a web presence where leads and prospects can get in touch, you\u2019re on the right track.<\/p>\n Being a real estate agent is hard work.<\/p>\n But despite popular belief, it doesn\u2019t have to result in backbreaking, endless hours. It doesn\u2019t have to mean quitting your day job, either.<\/p>\n The beauty of working in real estate is that you\u2019re empowered to work as much (or as little) as you want. Like any other sort of business owner, you have control over your client load and the flexibility to scale at your own pace.<\/p>\n Consider that real estate side hustles are becoming increasingly popular, especially for folks trying to figure out whether they want to commit to being an agent long-term. Although you might be tempted to dive into real estate head first, taking a slow and steady approach is much less stressful and allows you to build sizable side income.<\/p>\n Remember what we said earlier about 5+ million homes being sold within the past year? Although demand for agents is far from static, shifts in the market mean that there are opportunities for agents<\/p>\n Think about it. Booming economy? People are buying homes. Downturn? People are selling their homes.<\/p>\n In short, agents are necessary for helping people manage their largest economic investment.<\/p>\n There are lots of opportunities out there for those looking to start a real estate agency. Below are two key points in the favor of new agents despite the tough times we\u2019re facing.<\/p>\n Remote and hybrid work has given workers in a high cost of living area an incentive to live elsewhere for the sake of reducing their mortgages. Such areas will be selling en masse, and likewise areas with a lower cost of living could see a subsequent boom of buyers.<\/p>\n People moving\u00a0period<\/em>\u00a0is good news for real estate agents. As more people shift around the country, they\u2019ll need agents to hold their hands through the process of finding a new home.<\/p>\n Fact: interest in real estate investing now outweighs that of the stock market.<\/p>\n Not only that, but a shocking 55% of millennials are interested in investing themselves. Younger buyers are currently flooding the market to purchase homes, with millennials now making up the largest share of homebuyers in the United States at 37%.<\/p>\n And although real estate has the connotation of a get-rich scheme, this is more so the case with investors versus agents.<\/p>\n That\u2019s good news for you, though. As an agent, you\u2019re a necessary piece of the puzzle for anyone looking to buy, sell, or flip a property. Agents benefit from the hype around investing without carrying around the risk.<\/p>\n It\u2019s crucial that agents keep themselves rooted in reality.<\/p>\n A strong economy obviously spells good news for the real estate market. Right now, the combination of COVID-19, rising rent costs, and general economic anxiety are weighing on the house-buying public.<\/p>\n Coupled with potential evictions and rising unemployment numbers, circumstances could clearly be better for newcomers to real estate.<\/p>\n And with roughly\u00a0two million active real estate agents<\/a> in the United States, competition is clearly an issue. More folks flocking to the field means that new agents have to step up their game to stand out from the crowd and grab the attention of new clients.<\/p>\n {Marketo-form}<\/p>\n Licensing requirements for starting a real estate agent or becoming an agent vary from state-to-state.<\/p>\n Some states stricter requirements in terms of coursework, while others have pricier exam fees. Below is a general overview of what\u2019s required to get a real estate license in\u00a0most<\/em>\u00a0states:<\/p>\n Again, this is just a general overview to give you an idea of what legwork is involved. Make sure to double-check your respective requirements for your state prior to pursuing a license.<\/p>\n Now, let\u2019s talk about what being an agent or running an agent actually looks like in practice.<\/p>\n There is no single, silver-bullet approach to acquire clients. As noted earlier, the space is incredibly competitive.<\/p>\n That\u2019s why it makes sense to do as much as you can to fill up your pipeline. As a beginner, you need to put out as many feelers as possible. Note that getting clients becomes much easier once you successfully close contracts and have some referrals under your belt.<\/p>\n But what if you\u2019re just starting out? Here are a few ideas to help get your agency off the ground.<\/p>\n There are no two ways about it: you absolutely have to network.<\/p>\n If you sit around waiting for clients and leads to fall into your lap, you\u2019re going to be sorely disappointed. Even talking to friends and family is a solid starting point to find potential opportunities in your network. Then, move onto coworkers and colleagues. You need an efficient prospecting plan<\/a> to be successful.<\/p>\n From there, you can always reach out to players in the industry via phone, email, or social media. This includes people who work for mortgage firms, title companies, or even other real estate agents. Online communities, Facebook Groups, and platforms like LinkedIn are excellent for finding potential partnerships.<\/p>\n Running ads might seem like a no-brainer.<\/p>\n But keep in mind that not all types of ads are equally effective. For example, it\u2019s pretty common to see Google searches saturated with ad purchases from big-name realtors and companies.<\/p>\n Instead, it\u2019s arguably more prudent for up-and-coming agencies to advertise on social media. Why? Because platforms like Facebook and Instagram allow you to target customers based on factors such as age, income, and location.<\/p>\n For example, you can run ads explicitly targeting people within a certain income bracket within a community: that means that you only reach relevant prospects and don\u2019t waste money serving ads to users who\u2019d never be interested.<\/p>\n There are tons of Facebook ad success stories for real estate companies out there (like the one below which resulted in a 4.6x increase in click-through rate). Running social ads requires some trial-and-error but is essential to so many real estate businesses getting off the ground.<\/p>\n Piggybacking on the last tip, having a social presence on Facebook, LinkedIn, and Instagram is a great way to uncover clients.<\/p>\n Fact: 77% of realtors use social in some capacity. It\u2019s likewise the number one place where younger home buyers begin their search.<\/p>\n Comments and DMs on social media are a bit less \u201cformal\u201d than calls or outreach. They also take less time to craft. With a bit of creativity, you can show off properties and find potential buyers and sellers in your area.<\/p>\n Cold-calling might not be sexy, but it\u2019s much better than just expecting leads to find you at random.<\/p>\n Conducting outreach on expired listings is a tried-and-tested tactic for finding leads. Just take a peek at your local MLS listings, keep an eye on what\u2019s about to expire, and conduct a cold call once the listing goes off the market.<\/p>\n Over time, you can craft your own\u00a0cold calling<\/a>\u00a0scripts to streamline the process of prospecting.<\/p>\n Did you know that nearly 70% of agents have sold homes from connections they\u2019ve made at open houses?<\/p>\n Attending and conducting open houses is a surefire way to find clients, build relationships, and become more comfortable approaching people in the field.<\/p>\n Although open houses might not be totally prudent in the wake of COVID-19, note that fully virtual open houses are on the rise. This again speaks to the need for agents to get on board with modern tech and social media.<\/p>\n While social media is an awesome tool for your real estate agency, nothing beats having an actual website that\u00a0you<\/em>\u00a0own.<\/p>\n Your website serves as the hub of your business. This is where prospects can get to know you and understand whether your personality and expertise is the right fit for them.<\/p>\n Some general tips for real estate agents looking to snag clients from their sites include:<\/p>\n Gathering inbound traffic and leads from your site is a slow process that takes time. Either way, having a website is pretty much non-negotiable for real estate agents.<\/p>\n Let\u2019s say you don\u2019t have the time, patience, or energy to dig for cold-calling candidates.<\/p>\n Hey, no problem. There are plenty of services out there which aggregate and source prospects for your area (including FSBO leads), such as:<\/p>\n Again, anything you can do to take action and talk to more prospects is a point in your favor. Even if people from such lists are far from \u201csure things,\u201d talking to them is a great way to hone your skills and better understand what people in your market are looking for from agents.<\/p>\n If you want to connect with like-minded business owners, your local chamber of commerce is a good starting point. If nothing else, doing so signals that you\u2019re serious about being part of your local business community. Even small talk can lead to an opportunity; the more people you talk to, the better.<\/p>\n Business owners are only as good as the tools in their toolbox.<\/p>\n There\u2019s tons of\u00a0software for real estate agents<\/a>\u00a0out there to help streamline the process of connecting with clients and organizing your business. For example, when it comes to preparing contracts and handling documentation, using a lease agreement creator<\/a> can save agents hours of manual work and ensure their agreements are professional and compliant. <\/span>Below we\u2019ll look at some of the must-have tools that anyone running a real estate agency should be familiar with.<\/p>\n Think of your CRM as your business\u2019 one-stop-shop for managing client relationships.<\/p>\n With a CRM, have a complete profile of each of your clients, leads, and prospects in one place. This includes records of their personal details, interactions (think: emails, phone calls), and documents such as contracts.<\/p>\n Logging interactions automatically with a CRM is a time-efficient alternative to keeping manual notes through spreadsheets. By having your clients\u2019 information consolidated, it\u2019s much easier to manage your priority tasks and keep your schedule from devolving into chaos.<\/p>\n When it comes to choosing a CRM system, there is no shortage of options. However, there are real-estate CRMs out there that are tailor-made for anyone running an agency. Tools like Contactually clearly highlight your client calendar, most recent communications.<\/p>\n Specifically, the platform has built-in daily reminders for follow-ups so you never miss out on important messages.<\/p>\n CRMs make it easy to break down your client relationships and data. For example, the Freshsales dashboard allows you to see which of your real estate clients are most engaged with your messages.<\/p>\n Additionally, Freshsales gives you a birds-eye view of your properties and listings in one place.<\/p>\n Used alongside with your lead capture forms, communications systems, and marketing tools, you can manage almost every aspect of your real estate agency from a CRM.<\/p>\n Timely, consistent client communication is key to a thriving real estate agency.<\/p>\n That means having a dedicated communication platform<\/a> that manages to meet your clients\u2019 needs regardless of where they\u2019re reaching out from.<\/p>\n Phone calls. Email. SMS. Video chat.<\/p>\n RingCentral takes care of all of the above and then some, all within a single platform. For example, RingCentral allows you to accept client calls, conduct video conferences, and ultimately go back-and-forth with clients on their terms.<\/p>\n Notably, you can use RingCentral to route your\u00a0inbound calls<\/a>\u00a0so you never miss out on a lead when they reach out around-the-clock. Our platform is also perfect for prospecting and conducting cold-calling campaigns. Thanks to our variety of integrations, you can do so directly from your email inbox or CRM.<\/p>\nThe barrier to entry is low<\/h3>\n
You can scale your business at your own pace<\/h3>\n
Agents are essentially always in-demand<\/h3>\n
What are the current market opportunities for real estate agents?<\/h2>\n
The rise of remote work means more people can move more freely<\/h3>\n
The popularity of real estate investing signals the need for more agents<\/h3>\n
What challenges do real estate agents face right now?<\/h2>\n
What are the requirements for becoming a real estate agent?<\/h2>\n
\n
How do real estate agents generate leads and prospects?<\/h2>\n
1. Build your network and connections (both online and off)<\/h3>\n
![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f93186ed8255.png\")
<\/figure>\n<\/div>\n2. Run targeted online ads<\/h3>\n
![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f93186f35f29.png\")
<\/figure>\n<\/div>\n![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f93186f92451.png\")
<\/figure>\n<\/div>\n3. Make yourself known on social media<\/h3>\n
![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f9318700bcbf.png\")
<\/figure>\n<\/div>\n4. Uncover leads from expired FSBO (for sale by owner) listings<\/h3>\n
5. Attend (and conduct) more open houses<\/h3>\n
![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f931870c0d1e.png\")
<\/figure>\n<\/div>\n6. Build a website that attracts clients<\/h3>\n
\n
![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f9318712aa47.png\")
<\/figure>\n<\/div>\n7. Purchase a lead list and start cold-calling<\/h3>\n
\n
8. Join forces with your local chamber of commerce<\/h3>\n
What tools do you need to start a real estate agency?<\/h2>\n
CRM<\/h3>\n
![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f93187321ee2.png\")
<\/figure>\n<\/div>\n![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f9318737ece2.png\")
<\/figure>\n<\/div>\n![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f931874463e1.png\")
<\/figure>\n<\/div>\n![\"\"](\"https:\/\/www.ringcentral.com\/how-to-start-a-business\/wp-content\/uploads\/sites\/3\/2020\/10\/img_5f931874a08e9.png\")
<\/figure>\n<\/div>\nA communications platform<\/h3>\n