Effective real estate agency model: strategy, business processes, organizational structure

• Business: Real estate; investments from 200,000 rubles; payback from 3 months; minimum area from 10 m²
• Business area: services

Real estate agency business plan

What pitfalls await a newly minted realtor? What is the initial cost and payback period? How to acquire and expand a client base? Read below for tips for someone new to the real estate business.

Who is a realtor and what does a real estate agency do?

The word realtor is borrowed from the English language and comes from the concept realty, which means real estate. It is translated into Russian as “a manager working with real estate.”

Within this specialization, this term is understood as a real estate manager. Actually, a realtor is an intermediary between the seller and the buyer, the lessor (owner of the area) and the tenant, whose task is to find the most profitable combination for his client, depending on his needs.

Depending on the type of real estate with which a realtor works, there are several specializations in this profession. First of all, the market is divided into primary and secondary real estate markets, then real estate is divided into commercial and residential. A realtor working in any of the above areas of the real estate market can make transactions either for rent or for the transfer of ownership of an object, i.e. sale. There is also a specialization of realtors who work exclusively with luxury or suburban real estate.

Specialization of realtors allows you to improve the quality of work. However, despite the obvious need for realtor specialization, in Kazan it is practiced only in a few agencies. The fact is that for most agencies it is unprofitable to maintain several specialized departments. In such companies, one realtor is involved in all activities.

An example of an agency with specialized departments is Avangard-Realt, which has departments for secondary, primary, commercial real estate, mortgages, foreign real estate and interregional transactions. Director of the Avangard-Realt agency Egorov Vyacheslav Aleksandrovich Fr.

In addition to choosing a specialization, the realtor himself decides how to organize his activities: either he can be on the staff of a real estate agency, or work independently, creating his own databases of objects, placing advertisements about his services in specialized real estate media.

How real estate agencies work - 6 main stages

So, agencies are structured organizations that operate according to proven and effective schemes.

Let's consider the stages of a company's work with sales objects.

Stage 1. Collection of information about real estate

The company buys databases of sellers, buyers and landlords. Each item contains brief information: name, contacts, desired price, geographical location, number of rooms, floor and other important information.

Each agency constantly updates such databases: the larger the company, the more information it operates.

Stage 2. Distribution of collected information among employees

Next, printouts with contacts are distributed among agents. They start calling the indicated numbers, collecting additional information about the price and conditions.

Stage 3. Advertising for the sale or rental of real estate

After this, ready-made client advertisements are published on the agency’s website, in the media or in special newsletters. The agent’s task is to provide as complete information as possible about the property and to be constantly in touch, expecting calls or chat messages from potential clients.

Stage 4. Negotiations with potential clients

The next stage is negotiations. If there are those interested, they need to be “processed” in such a way that they turn from potential clients into real buyers. They need to demonstrate options, showing the advantageous aspects of the objects and hiding the disadvantages.

Stage 5. Preparation of documents

Ideally, the client only needs to hand over the documents to the realtor. The agent independently analyzes and verifies them. The more experienced the company, the faster the “paper” stage goes through. Professional agents have their own ways to speed up paperwork.

Stage 6. Conclusion of an agreement

The obligatory stage is the conclusion of an agreement. This document details the rights and responsibilities of the real estate agent, as well as the amount of future commissions. The agreement must contain a clause on the liability of the parties in case of violation of the terms of the contract.

To make it clearer, let’s present the stages of the agency’s work in the form of a table:

Single realtors: who has it easier?

As a rule, single realtors come from agencies and have accumulated a sufficient client base for independent existence. They work only for themselves, that is, they receive the full amount of the proceeds from the transaction without sharing with the agency. Among singles there are both real professionals and laymen waiting for easy money.

The question of who is easier and more profitable to work with, an agency employee or an independent realtor, is complex. The director of the “Regional Real Estate Agency - Kazan” Galiullina Gulnaz Raifovna answers it as follows: “Many experienced realtors leave agencies and begin independent activities.

A single person works only for himself, that is, he receives full profit, while in an agency he gets 30-50% of the deal. However, most often, such realtors do not work for long without the support of an agency. The fact is that working alone is very difficult. After all, the agency provides a constant income and also maintains the necessary material resources.

There is also a problem. There are unreliable clients, because of whom a realtor can lose a large sum and a lot of nerves. For example, this situation: the deal has already begun to be formalized, the seller has paid a deposit, and then the client unexpectedly refuses it. The seller does not return the deposit, problems arise. And the realtor, having spent so much effort, does not receive a penny for the unfinished transaction. The agency always supports its employees in such cases. Judging by my experience, after about six months, many single realtors return back to the agency.” However, there are quite a few successful single realtors. Therefore, this issue cannot be resolved unambiguously.

Creating a client base for the agency

The work of a real estate agency without its own client base is doomed to failure. Often, one or more experienced realtors already have a client base in one form or another. It is also possible that a realtor who left the agency and decided to open his own business in this area has an extensive client base.

We need to expand our client base using all possible options:

• Contacting everyone you know asking them to recommend your agency;
• Distributing business cards;
• Interaction with developers;
• Exchange of databases with organizations working in the service sector;
• Cooperation and exchange of information with other real estate agencies.

How much does a realtor working in a real estate agency earn?

A realtor's salary is calculated as a percentage of the transaction amount. But deals are different. For example, a realtor receives from 30 to 50% of the sale transaction (percentages depending on the complexity of the transaction).

If this is a rental transaction, then, as a rule, there is a remuneration to the realtor in the amount of the monthly rent. Thus, if a housing purchase and sale transaction brings the agency, for example, 52,000 rubles, the realtor will conditionally receive 20,000-25,000 rubles. When carrying out a transaction for renting an apartment worth 7,500 per month, the realtor will receive 2,000–3,000 rubles. Although such a volume of transactions, according to real estate agencies, is practically unrealistic. It is possible for a realtor with extensive work experience.

However, this income is unstable. The work of a realtor is reminiscent of the work of a sales manager: here a lot depends on the psychological qualities of the employee and on luck.

Marketing plan

Before the start of the economic crisis, there were many small companies operating in the real estate market, which did not constitute serious competition to large Agencies, but brought some inconvenience in their work. Since the end of 2014 and the beginning of 2015, most of these companies have closed, freeing up this niche for large players. At the same time, the demand for real estate by individuals has decreased significantly due to a sharp drop in household incomes. On the other hand, reducing the number of competitors makes it possible for the successful implementation of the project.

However, according to experts, government support for mortgage and other housing lending programs gives reasonable hope for a “revival” of the real estate market and an increase in demand for the services of professional real estate agencies. The mortgage market, which began to decline in January-February 2015, began to gradually grow. At the beginning of the 2nd half of the year, according to Rosstat, more mortgage loans were issued in the country than in the entire 1st half of the year.

In the current crisis, opening a new company is much more difficult and risky due to the current instability in the secondary and primary housing market. In addition, it is difficult for a newly opened Agency that does not have a solid reputation as a major player to instill confidence in potential clients.

This situation creates the need to solve additional problems :

• Creating your own reputation practically from scratch
• Fighting for clients with competing large firms
• Determining the optimal strategy for action in an economic crisis
• Training inexperienced personnel to work with clients who were rejected by large agencies due to their dubious reputation, problems with documents, or other reasons.

But the newly opened company also has its advantages. For example, frequent requests from experienced clients who expect to receive the largest possible discount from a young company. Data on categories of clients - the main consumers of real estate agency services are presented in Table No. 3:

Possible risks can be minimized by carrying out the following activities aimed at creating a positive consumer opinion among clients who are participants in the real estate market:

• Regular advertising in local periodicals
• Advertising in specialized offline and online publications
• Taking regular part in social events
• Creating your own Internet resource

It is necessary to develop a system of rewarding staff for work done conscientiously, introducing non-standard solutions to pressing problems, and a creative approach to work. Separating the Agency from the segment of similar companies offering standard services will help attract more attention from new clients.

One of the most reliable marketing moves is creating the image of a company that has been successfully operating in the real estate market for a long time. When implementing this method, advertising in cheap or free publications should be eliminated and the quality of service delivery should be improved. It is necessary to establish contacts with companies providing security services and installing and servicing fire and security alarms in order to provide clients with their coordinates when concluding contracts.

Real estate agency work scheme

A start-up agency needs to gain a decent client base. This is possible thanks to intensive advertising. The scheme of work is as follows. The client turns to the agency for help. If an agreement on work is reached, the client enters into an agreement with the agency to carry out the transaction.

If he needs to find an apartment to buy or rent, then the realtor travels with the client around the city, showing housing options. If the client needs another service, for example, the privatization of housing or the sale of his own real estate, then the realtor handles the preparation of the necessary documents. Although, as a rule, the client requires a range of services.

For example, choose a new building apartment, arrange its purchase with a mortgage, and sell your own home to make a down payment. This process includes many procedures: selecting an apartment with a mortgage, collecting documents for a mortgage, registering a transaction, collecting documents for selling a home, and much more. Such transactions can last several months.

Don't agree to scams

Some particularly odious realtors or agencies offer very dubious deals. For example, they sell an apartment cheaply, in which the share is under arrest, but first they ask to buy out this same share. Or they offer to “cash out” maternity capital using a cunning scheme.

I myself was offered a suspiciously cheap apartment in one of the old buildings. Outwardly, everything about it was good, but the low price, fresh renovation and the appearance of the owner - an obvious drunkard - did not fit together. A short search on the Internet on the website bsr.sudrf.ru by the name of the owner gave the result: the apartment was seized for non-payment of taxes and rent.

How the realtors were going to sell me such housing is a different story, there was a whole detective story looming with drawing up powers of attorney and making deposits in the best traditions of Ocean’s Friends, but I turned to another agency.

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Why is the real estate market overcrowded with real estate agencies?

It is believed that the real estate business is easy money. The supply market is full, the city is being actively developed, and there are more and more sellers and developers. So it seems to novice realtors that if they open their own business, the money will flow like a river. Most of the real estate agencies we surveyed claim that in the modern real estate market, a newcomer will have a very difficult time. Why? Let's look at the path a novice owner (founder) or director of a real estate agency must take from opening a company from scratch to making a profit. Let's take the following as the initial situation. A businessman with no experience in the real estate field wants to open his own or LLC.

How to open a real estate agency in 2021?

Experts say that in order to strengthen a real estate agency in the market, a period of 3-5 years is required. Within a specified period of time, a base of regular customers is built up + branding takes root in the minds of ordinary consumers. Is it worth waiting that long for a risk-free job? The table below will help you decide.

How to invest money correctly?

Real estate agency commissions are worth the sweat. Indeed, due to the scale of transactions, even 1-2% of the contract amount will already become a tangible profit to the company’s account, and if we are talking about 10-20 transactions every week, the payback of the business will come after a couple of weeks.

1) Step-by-step instructions for opening an agency

Like any business, a real estate agency needs a clear business plan. Whether you develop it yourself or order it from specialists is up to you, but it should be noted that the niche is not particularly complex, and if desired, the document can be successfully developed even by a beginner.

To simplify the issue, we will provide you with step-by-step instructions for starting a real estate agency from scratch.

A) Step No. 1. Regional market analysis

Before entering a niche, you need to know what you have to deal with. An analysis of the real estate services market will help to objectively assess the potential of a business in your region + will answer the question of whether it is worth opening such a business at all.

There are more than 10 directions in analysis, but if you are not an expert, you can puzzle over the method for a long time. A blank piece of paper + a pen will help simplify the work. Just write down a list of questions that you want to solve during the research process. On the right side, indicate exactly how the answer to each question will help.

Brief market research algorithm:

• Identification of market volume, its growth dynamics and sales potential.
• Identification of the main players + brief analysis of each of them.
• Market analysis with identification of product segments.
• Find places to sell the service and ways to promote it.
• Comparative analysis of promotion methods.
• Breakdown of market participants by price.
• Research on the level of consumer satisfaction with real estate services. Identify factors influencing the transition to a permanent customer base.
• Produce a market growth forecast for the next 3-5 years.

Answers to all 8 points will help you create an optimal business plan for a real estate agency from scratch, and the 5 candidates in the figure below can serve as research tools.



When researching the market, it is important to remain objective and take into account only data that you can realistically process. There is no point in conducting analysis for the sake of analysis. Only the conclusions are important.

B) Step No. 2. Business registration

For most, it will be important to minimize the tax burden. Note that individual entrepreneurs and LLCs have approximately equal indicators for this criterion. It all depends on the volume of turnover and the chosen form of taxation. The table below will tell you in more detail about the differences between both forms of business organization.

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Analysis criterion	IP	OOO
Registration	You must pay a state fee of 800 rubles + provide a small package of documentation.	State duty of 4,000 rubles + a large package of papers.
Legal address	At the place of registration.	The office space serves as the point.
Owners	Sole.	Up to 50 people. Adding + removing members is possible at any time.
Responsibility	Personal property is pledged. Most often real estate.	It is possible to lose only the authorized capital and property registered directly to the LLC.
Taxation	There are no restrictions on choice.	All modes except PSN.
Fees and Payments	The entrepreneur must pay insurance premiums. The issue of taxes is resolved through the chosen type of taxation.	When the LLC's activities are stopped, tax collection is suspended.
Employees	The right to work without employees, but with official employment, an individual entrepreneur has 1 month to register with the Social Insurance Fund	LLC is included in the Social Insurance Fund automatically.
Investments	Really use lending.	In addition to lending, private investments + equity distribution are available.
Reporting	Accounting is not required. The rest depends on the taxation system.	Accounting is mandatory. The rest depends on the tax system.
Cash register equipment	Simplified system.	Full scope of application.
Responsibility	Minimum fines for administrative violations.	Large fines + additional liability for the CEO.

After registering a business, it is necessary to optimize reporting. Online accounting services can help here. Usually, a person focuses on the scale of the business. A real estate agency has realtors on its staff, and this is already a hint at an LLC.

How to open an LLC?



The diagram in the figure above will help you choose a taxation system. Secondary organizational issues for starting a business are to order a company seal, register agents and register the company name. The list of LLC documentation is provided in the picture below.



For individual entrepreneurs, the list is simpler - application P21001, receipt for payment of state duty, application for the taxation system and a copy of the passport. The registration procedure will take from 2 to 5 business days.

C) Step No. 3. Office + hiring realtors

The type of premises must correspond to the niche in which the real estate agency operates. If the specialization is new buildings and luxury housing, then you need to focus on presentability and convenient location for clients. Preferably the city center.



The second option is to sell or rent out apartments from the secondary housing market, where price tags are affordable for ordinary people. In 2020, it is the economy segment that is in great demand, so opening a real estate agency is a priority for the common consumer. We exclude pomposity and create a neat, nondescript design with the basic functionality necessary for the work of realtors.

Minimum requirements for an office for a real estate agency:

• area from 10 to 15 squares;
• furniture - 2-3 tables, chairs, wardrobe and small items;
• computer technology;
• Internet;
• landline telephone (still relevant for older people, so it is required);
• a car is desirable, but not required.

Buying a home is a 1-2 one-time event in the life of 90% of the Russian population, therefore locating an office for a real estate agency does not play a key role. Much more important is the company’s reputation and its honesty in its work.

Now about the personnel. The success of 100% of real estate agencies depends on the quality of work of its realtors. When selecting employees, look for people who already have experience in the real estate sales industry. As a last resort, you can hire newcomers, but they will have to be taught the basics of trading.

What qualities should a realtor have:

• intellectual potential. A real estate salesperson encounters a variety of personalities every day, and the ability to connect with each person is highly valued. Interesting and maintaining the attention of the interlocutor is a duty, not a wish;
• honesty.

  Cases of deception by realtors are commonplace. A person gets a job, makes a copy of his client database and safely goes free, organizing a competing company;

• politeness + accuracy.

  After a conversation with a realtor, a person should only be left with a pleasant impression and positive emotions. This is facilitated by a neat appearance and a smile on the face;

• PC ownership.

  Including the Internet. Sending a request to the Unified State Register of Real Estate, drawing up an agreement and other operations are carried out using computers, and if a person is good with people, but not good with new technologies, he will have to either train or look for another candidate;

• experience.

  It is expensive to entice experienced realtors, but such people already have an established client base.

The transaction itself takes from 1 to 2 hours. It takes about 1-2 months to prepare. If a realtor closes 2 transactions a month, this is already a valuable specialist.

Approximately 30% of gross profit will be spent on paying salaries (4% from each transaction). For new business owners, salary costs can be more than 60%. Let us note that realtors are more willing to agree to a stable salary + a percentage of transactions.

D) Step #4. Creation of a client base + advertising

You need to accept that opening a real estate agency completely without clients is stupid. It is necessary to carry out preliminary preparations and find from 30 to 100 potential clients of the company. Having launched a business, it will be easier to start, and realtors will not have to waste time running around with offers of cooperation.

Ways to develop a client base for a starting real estate agency:

• Business Cards. The design can be photos from exhibitions/fairs and other events in which the company took part. Presentations must be agreed upon with the organizer in advance. Distribute the material in cafes, hairdressers, workshops, taxi companies and so on;
• agreements with developers. For the sake of an influx of buyers, 50% will agree to give a small percentage as a commission, or provide discounts on the company’s future housing, which is even more profitable for business;
• barter with databases. Look for neighbors in your niche and agree to transfer numbers/email addresses. You can go further and organize a full-fledged affiliate program with percentage payments for each referred buyer/tenant;
• “duck announcements.” The point is to lure buyers through clickbait. Bright headlines like “I’m selling my apartment. URGENTLY! CHEAP!" are welcome. The return is low, but you can get 5-10 clients per month with such advertising;
• posting advertisements. It's banal, but it works. Make a memorable design or an original slogan that will stick in your memory and make you remember the name of your real estate agency;
• Personal site. More than 50% of clients in 2021 come from the Internet. Let’s say even more, a business can be organized entirely via the Internet - it’s both more economical and easier to manage + you can cheat and bypass the tax authorities.

Some suggest running advertising in the media, but, to be honest, this does not pay off according to the price/quality formula. The money spent is large, but the return is average. It is more priority to use the flow of funds to promote the site - the profit from it will be much greater.

The pie chart above shows the causality of clients turning to real estate agencies. The prevailing desires are to select a list of potential purchase/rental options or provide advice on the preparation of documentation. Mortgages also often slip through the cracks. The rest is a matter of chance.

The success factors of a real estate agency revolve around the company's reputation. No name - no clients. Therefore, saving money on the marketing component is the last thing an entrepreneur should resort to.

2) Cost of opening a real estate agency

Below is a calculation for running a standard one-person real estate agency. The form of business organization of individual entrepreneurs is taken as the basis + the simplified taxation system (STS) is used.

Expenditure:

• $400 – corporate style to order from a designer;
• $600 — expenses for an advertising campaign in all directions;
• $100 — expenses for mobile communications, high-speed Internet and other office trifles (monthly);
• $100 – transportation costs. If you have your own car, the article will double;
• % - salary for realtors of your company. It is possible to work according to the scheme + rate +%;
• $200 – payment of taxes (monthly);
• $100 - utilities;
• $300 is the rent for office space.

The main expense item is the marketing campaign. The profitable part of the business will be formed as a percentage of each transaction carried out - from 4% to 6%. Based on the volume of transactions and how much they cover the costs of running the business, a person will draw conclusions about the profitability of the business as a whole.

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3) Viral plan for opening a real estate agency

A real estate intermediary company will not greatly burden the pocket of a wealthy entrepreneur, but for an ordinary person, even the amount of a couple of thousand rubles from the start can be unaffordable.

Due to the irregularity of transactions, it is extremely undesirable for banking institutions to issue credit funds. A financial cushion will help smooth out bad months + contribute to the uninterrupted work process of all real estate agency employees. If it is not possible to arrange insurance, the entrepreneur should proceed in 2 stages.

Stage No. 1. Fast start

The LLC form of business organization will be taken as the basis. We are assembling a group of founders, which will include the general director, accountant, deputy and lawyer. Next, the charter and contract documents are developed. The standards of the future real estate agency are being set. The head rents economy premises or uses meeting rooms in a coworking space.

What tasks do employees perform:

• updating and constantly expanding the customer base;
• development of a company website with an emphasis on style and functionality. At first, you can use website builders;
• development of a price list with an optimal list of services.

Such a start will allow you to avoid significant costs and taking out loans. During the first 2-3 months of work, it is necessary to take care of contracts with developers, debug document flow/reporting, and also develop an effective system for managing relationships with the client base.

Review of common mistakes when opening a real estate agency.

Methods to avoid errors:

Algorithm for opening a real estate agency

Question number one: open your own brainchild or use a franchising service? There are again different opinions on this matter. On the one hand, a ready-made brand, system and operating technologies are kind of like a well-trodden path for a successful businessman.

On the other hand, many are confused by the information that franchise companies do not last long on the market. The director of the Avangard-Realt agency, Vyacheslav Aleksandrovich Egorov, speaks about the reasons for this: “There is official data that such companies exist for a maximum of 2-3 years and then disintegrate. I've heard many franchise buyers complain about their quality: undeveloped, crude technology that doesn't really work. But a franchise is an expensive pleasure, and there is no point in risking a decent amount of money.

Apparently, the “federals” became cramped in their own market, and they decided to expand into the provinces. So far it has been beneficial for them. But it’s difficult to talk about future prospects. We ourselves offer a certain type of franchising, but on the terms of equal partnerships. This is the most profitable form of work.”

So, if you decide to purchase a franchise, you need to save up a certain amount. Important: exchange of experience, mutual assistance and joint discussion of problems, adoption of common decisions. Franchising is a chance to move beyond the scale of small businesses, where we all successfully work, into the medium-sized business segment. The beginning of 2007, which already clearly indicated the stagnation of the market, brought to us many applicants for franchising, some of whom, having realistically assessed the situation, made a choice.

Undoubtedly, your main competitive advantage could be the opening and launch of an Internet portal, which will give impetus to the development of all real estate agencies and bring new technologies to the work of realtors. Also, now 70% of all long-distance transactions of the Expert agency take place via the Internet. Real estate franchising is still a completely new direction. If you risk being the first, as they say, the flag is in your hands!

If you decide to open your own business, you need to understand the obvious: it is profitable to open a real estate agency under the following conditions:

1. large starting capital;
2. creativity and charisma;
3. presence of business contacts;
4. availability of third-party sources of income.

It would be a good idea to start by assessing your potential place in the market. To do this, you can conduct special marketing research. It will be most convenient to contact a consulting company, which will conduct all the necessary research and give you valuable instructions - even to the point of dissuading you from opening your own company. Ordering a marketing research will cost a different amount depending on the complexity of the goal.

For example, a marketing research company recommends targeting the following parameters for competitor analysis:

• Sales volume (in physical and value terms), total for the real estate market and separately for each of the main competitors;
• Advertising costs (advertising budgets) of main competitors;
• Budget structure by competitors (percentage ratio in value terms of costs for different types of promotion);
• Places in the Ratings (including Internet ratings) of the main competitors in a given market, indicating the methodology for this rating;
• Prices of the main competitors for each segment – ​​price lists;
• Competitor discount system;
• The percentage of each competitor for services provided in each segment (For example, 50% - country real estate, 30% - non-residential rental, the rest - inexpensive new buildings) (in physical and value terms);
• Plans of companies in this market (including investment);
• Personnel changes;
• Office areas of competing companies (size, location);
• The ratio of consumers of individuals and legal entities for each segment (for each competitor);
• Samples of advertising and information products and methods of their distribution.

Marketing and advertising agency

Competition in the real estate market is very high, so special attention needs to be paid to marketing and advertising. Advertising when launching a new real estate business is one of the main cost items in an organization’s budget. Without sufficient experience and a good reputation, it is difficult to attract clients to a new company on the market.

To attract the attention of potential customers, various marketing tools and types of advertising are used:

• Creating your own website;
• Contextual and targeted advertising on the Internet;
• Placing information in specialized printed publications;
• Advertising on specialized Internet sites (Domofond, Cyan, Avito, etc.);
• Advertising in the media - radio and television;
• Establishing partnerships with banks to obtain mortgages.

Advice from a seasoned businessman

Many of those who open a real estate agency face the same mistake - understanding the agency as an enterprise. This thought immediately begins to dominate over the fact that, after all, a business is being created, the goal of which is always to make money.

They want to do good to their employees, they want to make their brainchild popular, and at the same time they forget one thing - the task of creating any business: the money invested must work and bring income to the owner. Therefore, my advice is: think about your money and your original goal. The real estate agencies we surveyed note: of course, you can get by with the minimum, that is, save on literally everything: renting premises, advertising, etc. We will take the example of a large-scale opening of an Academy of Sciences with all the necessary components. Go…

Step-by-step instruction

Enterprise registration

The founder of the company can handle the registration on his own. However, for a busy person it will be convenient to use the services of a law firm that will carry out the entire process of registering a new agency. Then in a week you will receive the entire package of documents:

• company registration certificate,
• registration with tax authorities,
• the charter of the company, which spells out all the activities of the agency, etc.

Development of a price list and samples of other documents

Elena Andreeva, director of the Expert Real Estate Agency Network, talks about how to set tariff rates: “If we are talking about competitive advantages, then first of all the quality of services and full support of the transaction and the client from start to finish.” Dumping prices (deliberately lowering them much lower than the market average) is not worth it, as this causes consumers to believe that the service is easily feasible, and does not increase the number of transactions too much, reducing the profit margin and the total profit of the company in general.

It is necessary to be able to explain to the client the essence of the service, that it includes a full range of support and extensive, almost round-the-clock work of a realtor. It is also necessary to explain the degree of responsibility of the company compared to a private broker, based on which the cost of the company’s services and reliability are higher. The price should be the average market price with high quality service. If the company has special service capabilities, then the price may be slightly higher.”

Recruitment

Of course, the best option would be to recruit experienced realtors through acquaintances. In our example, recruitment took place without advertising. If this is not possible, it is necessary to advertise the recruitment of employees in specialized media on work and real estate or on similar sites, or seek help from a recruitment agency.

The number of employees depends on the desires and capabilities of the founder. As directors of real estate agencies warn, it is not quantity that matters here, but quality. One realtor with his client base is worth several employees without experience. In addition, you will need to hire a part-time chief accountant, HR officer, PR manager, website editor (administrator), office manager, driver with his own car, and, if possible, a lawyer. Sometimes psychologists work on staff.

It is necessary to determine the salary of each employee. Usually there is no salary for a realtor, especially for an inexperienced employee. As already noted, his salary is calculated as a percentage of the transaction value. Although, based on the requirements of labor legislation, which provides for a permanent salary for an employee, some agencies set the salary.

The more firmly a company stands on its feet, the lower the percentage it pays to employees. Large organizations can afford to set commissions of 30–50%, while small ones give the agent 50–70% of the transaction proceeds. There are opposing opinions about who is better to hire: experienced realtors or beginners. The advantages of experienced employees are obvious: an established client base, that is, a relatively stable income.

However, there is an opinion that they are repeating all previous mistakes and miscalculations. Moreover, the lion's share of these errors is related to the legal side of the agency's activities. According to some agencies, this is why it is better not to contact experienced realtors. In fact, the most favorable soil for the growth of a new real estate office is the legal education of its founder. Moreover, the education is of high quality, and not the kind that can be obtained in any very small and seedy educational institution. As you know, we have an infinite number of lawyers, but only a few worthwhile specialists.

If you feel that you do not have enough knowledge, do not skimp on training courses for yourself and your realtors. If you don’t have a suitable education, don’t be upset; your chances of success don’t decrease. But in the expense column you will have to include the lawyer’s salary, and a good lawyer, as you know, is not cheap (approximately 30-100,000 rubles per month).

It will be useful for the newly appointed director of the Academy of Sciences to look through the essay of Harry Keller, the owner of the largest real estate agency in America. The book is called "How to become a millionaire selling real estate." Of course, American business is very different from ours, but the author has something to take note of.

Office rental

Of course, you can rent an office of 12 square meters. m. in a hard-to-reach or industrial area, but this is unlikely to benefit your business. After all, many clients, when they first come to an agency, evaluate it by its external features. They are greeted by their clothes - when they see a small, cramped office with ancient furniture and peeling wallpaper, the client can simply turn around and leave.

Speaking about the intricacies of the client’s psychology, the director of the Melt Academy of Sciences ... notes a paradox: “On the one hand, the client judges the agency’s services by the presentability of the office and employees. On the other hand, seeing the solid decoration of the room, many people think: “That means they’ll rip off a lot”…” In any case, every self-respecting business person will decorate his workplace with dignity and will not lose face.

Advertising is a major cost item.

A decent outdoor sign carries a lot of weight. You can also advertise in print and electronic media, although most agencies prefer free newspaper advertisements. Website creation and maintenance.

Miscellaneous expenses

Purchasing office equipment:

• Office and other furniture.
• Computers.
• Server.
• Software products.
• Purchasing an accounting program.
• Buying a cash register.
• Purchase of other office equipment (printer, fax, copier, scanner, camera, video camera).
• Installation of a landline telephone.
• PBX.
• Internet.
• Other initial expenses.

Payment of taxes - from the payroll, from business, income tax.

Business insurance

Basically, only large real estate agencies insure the activities of their work with an insurance company. According to many agencies, for one realtor 2-3 transactions per month is a very difficult volume to achieve. The problem here is that many types of transactions last longer than one month. For example, transactions for registering ownership of land, inheritance, privatization transactions and purchase and sale of housing can legally take up to six months to be completed.

The payback period and profitability of a business depend on the level of costs, plans and requests of the owners. A small company can break even in a few months. Large ones may take years.

General characteristics of the project

The main activities of the Agency are the provision of intermediary services between the buyer and seller of real estate, the tenant and the lessor, the official registration of their relations, and the drawing up of contracts.

According to experts working in the real estate sector, the Agency is an almost ideal investment object, and one of the most effective ways to organize your own business. The absence of the need for large initial capital and any production process makes it especially attractive for budding businessmen. The advantages and disadvantages of opening an Agency are shown in Table No. 2:

As a rule, the Agency is opened by people familiar with the real estate business - former realtors, or real estate appraisal experts with experience and who have developed their own client base. The apparent ease of implementing the project has deceived many entrepreneurs, as a result of whose inept actions almost 60% of all opening real estate agencies are closed.

The best option is to work for at least 6 months in this field (preferably in several companies), gain some experience in finding clients and communicating with people, make the “necessary” contacts, and create your own client base, even if it’s small at first. And only after this can you invest in the project.

Or hire real estate agents with extensive experience. But this option carries additional risks, since it often happens that when realtors leave, they “take” the entire database with them.

Currently, the real estate market is one of the most profitable in the business world. Both individuals and legal entities want to sell, buy, rent, or lease real estate. That is, there is stable supply and demand. The Agency’s task is to help these people “find” each other.

However, the need for special knowledge requires a preliminary study of the situation on the real estate market of a particular region, determination of a business strategy, careful planning of future actions, and strict strict adherence to the stages of project implementation.

One of the most key points in the successful work of the Agency is its location, the main condition for which is being in the central part of the city. Another important factor is the ability to connect several telephone lines to the premises in order to organize multi-channel communication, since more than half of all work of Agency employees is carried out by telephone.

The main problem of any beginning Agency is finding sources of information about the need to perform any actions with real estate. Such sources may include:

• Newspaper and magazine advertisements requiring self-calling
• Specialized Internet sites such as Avito, Domofon.ru, cian.ru, etc.
• Printed notices posted around the city
• Direct calls from interested parties
• Purchased database from companies that specialize in collecting and selling such data. It often happens that for new buyers, such companies provide a demo, trial version of the database for testing. The testing process consists of calling selected contacts listed in the database. A match of 85-90% of the information provided allows us to confidently judge the authenticity of the database. This means that you can safely work with such a company and enter into an agreement for the purchase of an information catalog and its further expansion and replenishment.

One of the most effective ways of self-promotion and expanding your base is satisfied clients who will recommend the company’s services to their friends and acquaintances. The professionalism of the Agency’s employees will play a significant role in this, so the issue of personnel selection must be approached with special care.

If there are several founders of the LLC, in order to ensure the successful operation of the Agency and its security, it is necessary to correctly distribute their responsibilities and spheres of influence among all partners in a mutual agreement. And responsibility for the actions taken.

Organizational work also includes determining the timing of regular meetings of all founders for the purpose of reviewing and discussing the amount of work carried out by the Agency, making and considering proposals and complaints. Typically, such a reporting period is 6 months.

It is necessary to create several divisions within the Agency's structure:

• Marketing
• Financial
• Legal
• Strategic management
• Market research
• Creative development and advancement, between which there must be mandatory continuous interaction.

One of the main problems facing the Agency is the search for qualified personnel, who are literally in great demand in this industry. The easiest way is to prepare professionals within the Agency, hiring employees with minimal or no experience, under the patronage of 1-2 experienced specialists who are able to convey the secrets of the profession to newcomers. Experts from other firms can only be “lured” by higher pay for their labor with prospects for further growth.

Particular attention in training employees should be paid to the ability to negotiate and communicate with people. For this purpose, psychologists, masters of public speaking, and business trainers should be periodically invited to conduct trainings. When it comes to hiring employees, it is important to determine the degree of integrity of a person, since in the process of work there are often temptations to deceive the employer.

The work schemes of almost any Agency are identical, and differ only in minor details:

• Initially, the client contacts the Agency
• A corresponding agreement is concluded between the company and the client
• An Agency employee specializing in this area is looking for the best options that meet the client’s request
• The found object is demonstrated to the customer
• If the proposed option is approved, negotiations are held with the seller
• A legal review of the documents of both parties to the transaction and the conclusion of an agreement are carried out
• The client pays commission to the Agency

In parallel with achieving the main goals of creating the Agency, it is necessary to take care of your clients, whose main desires are: satisfaction, security when making a transaction, and comfort.

What problems await a novice real estate agency owner?

As large agencies warn newcomers, entering this area of ​​business will not be easy. Difficulties await both in the struggle for a client in a highly competitive market, and from government agencies. Comment from the director of the Yort Academy, Dina Moiseevna Zhuravleva, more than 17 years in the Kazan market: “In the past, setting up a real estate agency was much more difficult than it is now. We started working even before privatization and remember how many procedures a beginner NA had to go through. And now anyone and everyone can start their own company.

It seems to everyone that all they have to do is open an office, advertise, and money will pour in from all sides. This is, of course, an illusion. Now there are a lot of different private entrepreneurs and single realtors, and their number is growing every day. This is bad for the consumer, since the number of so-called black brokers is increasing, and no one is immune from unfair treatment. And such realtors easily go unpunished.

However, before, when the Registration Chamber did not exist, there were much more loopholes for unscrupulous realtors. It happened that one apartment was sold several times at the same time, and then several owners dealt with the situation. Now this is unacceptable. However, there are loopholes in registering participation in shared construction.”

Egorov Vyacheslav Aleksandrovich, director of the Avangard-Realt Academy of Sciences, also noted relations with government agencies as one of the major problems of a start-up real estate agency: “Recently, the market has become tougher, a lot of agencies are opening and leaving the fight. Control by government agencies, in particular the tax service, has been tightened. This is due to the development of black brokerage.

There is such a subtle point: it is difficult for a new AN to maintain an official staff of realtors until they have gained a sufficient client base. Therefore, many start-up agencies work in “black” and “gray” ways, and the tax service can easily shut down such an agency. And for effective development, the real estate market must be as clean as possible.”

Indeed, many agencies now exist due to high staff turnover. Realtors come to the agency and leave after a month or two, without receiving any return from their work, and the company is slowly building up a client base. It goes without saying how dishonest this form of activity is and, in principle, ineffective.

Competent selection of the team is noted as one of the difficult tasks for a newly appointed director. As already noted, the amount of agency profit directly depends on the experience and talent of the realtor. The agency simply needs ace realtors, otherwise the agency most likely will not make a profit for several months.

A comment on this is given by the director of Regional Real Estate Agency - Kazan LLC, Galiullina Gulnaz Raifovna: “Even if a realtor has experience and an established client base, it will be difficult for him to competently select a team - a working team that will generate income. And a manager without experience has no place at all on the Kazan market. Even if he hires specialists, the employees themselves could force him out of business.”

All these problems are very familiar to any agency owner. However, of course, the main headache for the new agency is the fight against competition. The real estate market is oversaturated, there are too many sellers. According to experts, there are 4-5 apartments per buyer.

This excess of supply over demand against the backdrop of a constant increase in housing prices and tightening mortgage conditions in Kazan led to stagnation in the real estate market of Kazan. This fact is noted by the agencies we surveyed. “In such a stagnant period, a new Academy of Sciences will need a large financial reserve for development. If I were now thinking of opening my own agency from scratch, I probably would hardly have decided to do so,” noted Vyacheslav Aleksandrovich Egorov, director of the Avangard-Realt Academy of Sciences.

What services do real estate agencies provide – TOP 5 main services

Large companies are entire corporations with a large staff and an extensive structure. Well-known companies have dozens of branches in one city and representative offices in other regions.

Let's look at what exactly the offices do - let's study the main services they provide.

Service 1. Purchase of apartments

It may take months, or even years, to independently search for an apartment that suits you in terms of location, square footage and cost. The agency will significantly speed up the process.

By contacting the company, the client receives:

• personal agent - professional realtor;
• access to the real estate database;
• legal support;
• a formal agreement guaranteeing confidentiality and quality of services provided.

The algorithm for working with the agency is as follows: you call the company or contact them through the website, receive a free consultation on your issue and enter into an agreement with the company.

Purchasing an apartment is a risky and serious procedure. There's a lot of money at stake. Therefore, the operation requires professional legal and administrative support. Real estate transactions in the secondary housing market pose a particular challenge.

Realtors guarantee clients protection and full respect for their interests. Agents will take care of paperwork and control the movement of papers at all stages of the transaction.

There is a separate article on the resource about how to sell commercial real estate.

Service 2. Apartment exchange

There are many exchange options: people want to exchange a large apartment for two small ones, housing in the city center for a house in the suburbs, a one-room apartment for a two-room apartment with an additional payment, etc. There are very complex exchange options that only agents with many years of experience can implement.

Moreover, transactions are not limited to objects located in one city. Sometimes owners need to carry out long-distance or even international exchange. It is almost impossible to carry out such an operation on your own, but an experienced company with an extensive network of branches throughout the country will cope with this quickly and competently.

Service 3. Rental transactions

If you want to rent an apartment, the office will help in this matter. They will help you rent housing in any area of ​​the city, for any period, at any price.

True, you will have to pay a monthly rent for the services of intermediaries, but the transaction will be completely legal, and your rights will be properly protected.

Our portal has detailed material on how to quickly and profitably rent out an apartment.

Service 4. Urgent purchase of apartments

Selling an apartment through an agency is even faster than buying it. At the same time, you will be offered the most favorable price corresponding to the current market situation.

The urgent redemption scheme is as follows:

• the seller receives from the agency 75-85% of the market value within a few days;
• the balance is returned after the office finds a specific buyer for your living space.

There is another option - you set the prepayment amount yourself (it should be less than the real price), the remaining money is returned to you within a month. Usually during this period the agency manages to sell the property on favorable terms. Commissions are deducted from the final amount.

Read a detailed article on this topic - “Repurchase of real estate”.

Service 5. Sales management

Each agency offers users a full range of services aimed at competent sales management. A special department searches for and engages potential buyers and clients.

Employees organize full-scale advertising campaigns to provide information about goods and services to all participants in the real estate market. Firms promote themselves in the media, through the Internet, television and outdoor advertising.

Agency corporate culture

Active investments are far from a guarantee of success. A well-formed, well-coordinated team plays a significant role. Even if you managed to assemble a team of high-quality realtors, do not forget that retaining them is not so easy.

In the real estate business, as in any other, there are common cases when key specialists either leave for a competitor or start their own business. Almost 80% of specialists leave for competitors due to the fact that the company’s management simply does not fulfill its promises, for example, the specialist was not paid the promised increased fee for a successful deal.

It’s another matter when a realtor decided to leave the company in order to open his own business. It is very difficult to retain such a specialist in the company: one of the possible solutions is to promote him in his position. In addition, in order to retain a professional in the company, it is necessary to develop a corporate culture that provides for collegial decision-making and a democratic atmosphere.

Real estate agency business plan (financial part)

• Rent of premises - from 14-15 thousand rubles.
• Equipment – ​​from 60-80 thousand rubles.
• Software (1C, etc.) ~ 30 thousand rubles.
• Advertising – from 4-15 thousand rubles. per month.

Remuneration for agents is set on a piece-rate basis. The remuneration amount can be 30-60% of the transaction commission. Remuneration for the manager, accountant, and cleaner is a fixed salary. Utility bills, telephone payments and other expenses - from 6 thousand rubles.

Income. The average price for real estate services is 3-6% of the transaction amount. The profit of a company with 5 people can be about 200 thousand rubles. Profitability largely depends on the amount of investment and the size of the business; the average is 25%. Payback – from 3-6 months.

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