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How easy is it to open your real estate agency from scratch
Quite often, young entrepreneurs think about opening their real estate agency from scratch. This is due to the fact that a person at the time when he is buying an apartment or a house is seriously thinking about how much money could be earned by just organizing a meeting between the seller and the buyer.
Real estate agency opening
However, most often such a business is opened by former real estate agents. This is because they have the necessary experience, knowledge, and in some cases a database (everything will depend on how decent the employee was and how well the former employer is able to protect information). In each case, the decision to open a real estate agency seems obvious and simple. Most often, an entrepreneur thinks that it will be enough to just rent an office, buy a desk, chair and phone, and that’s all – the company is ready to work and make a lot of money. However, in reality, everything is not as simple as it seems.
Different types of clients a start-up company may encounter
Competition in the real estate market It is worth starting with the fact that the fairly low barriers to entry in this market have led to the fact that new real estate agencies open every day, which contributes to creating enormous competition in such an industry. It is worth noting that they close as fast as they opened. Even in spite of the fact that real estate both in Moscow and in the regions is booming, it is not so easy to earn a start-up company.
There may be several reasons. The first may be that today there are a fairly large number of buyers who are greatly intimidated by scary stories about the fraud of such agencies, respectively, such people prefer to work only with large companies that have existed on the market for quite some time. The second case – there are so “cunning” people who themselves are capable of cheating. Consequently, the position of the new company no longer looks so promising:
zero fame in this market;
high competition, which will force the company to fight for customers with hundreds of other similar companies;
the most inexperienced convenient clients who buy apartments for family reasons, and not because they want to make money on it, most often go to large companies (this is due to the fact that they are aware of their ignorance and do not want to give in to risk);
experienced buyers may try to trick a company if it does not have a highly qualified lawyer (payment for services most often depends on its level of professionalism).
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Necessary investment in advertising and various ways of promotion
If the entrepreneur still decided to open such a business, he will need to take care of good advertising. At the initial level, there will be only one global problem – no one knows about the company. Consequently, their efforts and money will need to be spent on ensuring the company’s fame on the market. It is worth noting that this requires not just large, but huge investments in advertising and promotion.
Advertising of a real estate agency Quite common are cases in which entrepreneurs who have not calculated their financial capabilities at the very beginning try to get by with small modules with quotes in various free newspapers that are distributed through mailboxes. Despite the fact that the choice of publication was made correctly, the small size of the module only emphasizes the still low status of a real estate agency against the background of quotes of large companies.
On the other hand, such entrepreneurs can be understood, because there may not be any money to purchase a larger module. This is due to the fact that advertising prices in such newspapers are often very high. It is possible to compensate for such a hopeless situation by placing image advertising in other types of newspapers.
For a medium-sized company, the minimum possible budget for advertising should be approximately $ 1,000 per month.