Top 10 Tips for Setting up your own Estate Agency

Embarking on a new venture and taking a leap of faith to establish your own brand can be an intimidating endeavour. However, it is increasingly common in the property industry for professionals to break away from franchises and pursue their entrepreneurial dreams. The allure of managing your own time, following your own rules, and unlocking the untapped potential of working for yourself can be tempting, pushing individuals to give it a try.

The scary part of all of this comes predominantly from the uncertainty, financial risks, lack of experience, increasing effort and huge competition. For estate agents specifically, legal and regulatory compliance can be something that puts the breaks on the big plan a new business owner may have set out.

Working with estate agents and realtors both locally here in the UK and internationally is something that we here at Property Webmasters are more than used to, it’s the only set of professionals we work with, leaving us with a substantial amount of experience working with both huge franchises like Sotheby’s and Chestertons, as well as smaller agents that operate on a one branch basis in a small region within the UK.

We have helped hundreds of agents get started on their own, creating brand guidelines and logos, designing and developing websites, executing marketing campaigns and liaising on calls with customers to work with them on the next stage of their growth.

What do estate agents do? Experience is vital

The overwhelming majority of people reading this article will already be heavily involved in the estate agent/property industry. We do not need to go over the basics of what an estate agent really does, in a dummies guide – but, what is often forgotten is how much knowledge is typically required to really become a maverick of the industry.

Primary responsibilities, of course, involve property valuation, property marketing, finding buyers or tenants, negotiation, market analysis, and client representation. Estate agents assess property values, determine appropriate selling or rental prices, and create marketing strategies to promote properties. They actively seek out potential buyers or tenants, conduct property viewings, and facilitate negotiations between parties. 

Additionally, estate agents assist with the necessary paperwork and legal documentation involved in property transactions, staying updated on market trends and providing advice based on market analysis.

What skills do estate agents typically need?

Communication, sales, customer service and attention to detail spring to mind when we discuss skills that are essential to becoming a successful agent. But when setting up your own estate agency, you may need to venture slightly out of your comfort zone, to improve upon skills that you are not as used to taking advantage of. 

For example, technological proficiency, and being comfortable using technology and real estate software tools. Proficiency in using CRM systems, online listing platforms, email marketing tools, and social media platforms can enhance productivity and marketing efforts.

Tips for setting up an estate agency – 10 tips that you should not avoid

1. Develop a business plan 

A business plan will help you clarify a vision for the business and define your short-term and long-term objectives. It forces you to think critically about your goals, target market, services, and strategies for success. This clarity provides a solid foundation and guides decision-making throughout the business journey.

2. Conduct thorough market research

Before launching your estate agency, research the local real estate market extensively. Understand the current trends, competition, pricing, and customer preferences. This knowledge will help you position your agency effectively. Coming up with a USP is becoming harder and harder for estate agents, so if you do not have one in mind, focus on perhaps selling a lifestyle, with excellent service along the way.

3. Establish a strong online presence

In today’s digital age, having a robust online presence is crucial for any business. Create or purchase a professional website for your agency, optimize it for search engines, and provide comprehensive property listings and contact information. Leverage social media platforms to engage with potential clients and showcase your properties. 

Building on this further, your personal brand can play a huge role in the success of our business, video content with you front and centre is a far more effective way to get your name out there initially.

4. Network and build relationships

Networking is key in the real estate industry. Attend local events, join professional associations, and engage with other industry professionals. Establishing relationships with other agents, brokers, lenders, and attorneys can lead to referrals and collaborations that benefit your agency.

5. Provide excellent customer service

Focus on delivering exceptional customer service to differentiate yourself from competitors. Be responsive, listen to clients’ needs, and provide timely updates and feedback. Going the extra mile to meet and exceed client expectations can lead to repeat business and referrals which is the backbone of a good estate agency’s pipeline.

6. Develop a marketing strategy

Develop a comprehensive marketing strategy to promote your agency and its services. Utilize both online and offline marketing channels such as social media, email marketing, print media, and direct mail campaigns. Consider partnerships with local businesses to cross-promote your services. Initially, the cheaper routes would include leaflet drops and organic social media posts outlining testimonials, video content and a display of your knowledge as an expert estate agent.

7. Stay informed and adapt

The property market is dynamic, regardless of where you are operating, so it’s crucial to stay updated on industry trends, regulations, and technological advancements. Attend seminars, workshops, and conferences, and invest in continuing education for yourself and your team. Embrace new technologies and tools that can streamline your operations and enhance customer experience. Understanding market dynamics helps you provide valuable insights to clients and make strategic business decisions.

8. Investing in your brand

Developing trust and integrity is absolutely essential for any business but not many businesses are trusted with such a large and important event in a person’s life than homeownership. A strong brand creates a perception of value in the minds of clients. When your brand is associated with quality, expertise, and outstanding service, clients are willing to pay a premium for your services. This can result in higher commissions and increased profitability for your agency.

9. Monitor finances closely

Keep a close eye on your agency’s finances. Maintain proper accounting practices, track expenses, and regularly review your financial statements. This will help you make informed decisions, identify areas for improvement, and ensure the financial health of your business.

10. Grow at a breaking point

Growing your team is the obvious way to continue to scale your business, you may not be a one-man band forever and as soon as you approach a personal breaking point of having too much to cover, you must hire staff and automate as many tasks as possible, to allow you to focus on what you are good at. A growing business often attracts talented individuals who are seeking new opportunities and challenges. Growing your business allows you to diversify your revenue streams. Relying heavily on a single source of income can be risky. By expanding your offerings, reaching new markets, or exploring additional services, you can mitigate risks and create a more sustainable business model.

So, thinking of starting your own estate agency business? In our opinion, the most crucial of the above ten points include being financially ready, establishing a strong online presence one that was not mentioned but requires no introduction, be ready to work extremely hard – the more effort you put into the first 6 – 12 months, the more you will get out.

How many agents are flying high within a franchise or medium-sized agency, becoming increasingly frustrated about the little control they have over the customer journey and earning potential, so they start up their own agency, sharing it with friends and family but even after a month have no instructions?

Almost all of them!

That is where 90% of agents quit, while the 10% work harder, knocking on more doors, posting more across socials, and getting their name out in front of everyone to be successful.

Not everyone will be able to make the business work but most of the time, agents do not give themselves a chance at success, that is why the plan is important.

Contact Property Webmasters, to learn how we can help you on your journey!