The 6 Best Things About Owning a Real Estate Brokerage

6 best things about owning brokerage

 

You’ve been selling real estate as an agent for a few years now, and you’re feeling pretty good about it. Each year, your earnings have increased, and your buyers and sellers value and seek your expertise.

When you first got your license, you needed a lot of support from your broker. It was important for you to have someone to ask questions about writing formal contracts, managing buyer and seller expectations, and closing the deal. Now the dynamic has changed, and you feel more like colleagues.

Maybe it’s time. You’ve gotten the hang of all the steps in the process, and even though you sometimes have questions, it’s nothing you can’t solve. You understand what you need; it’s just a question of when and how you decide to make the leap.

In the case of most real estate agents, their listings belong to them rather than the brokerage. In that event, you will be able to take your book of clients and customers with you as you begin your new venture. Your little black book will give you a huge leg up as you are starting your new brokerage. Check with an attorney before making any big waves, just in case you have some non-compete clauses or other contractual obligations to meet.

So why should you leave the relative security of your current position to take on the risk of going it alone? Here are the six best things about owning a real estate brokerage so you can decide for yourself.

1. Leverage

As a real estate broker, you can begin to build a reputation for fair dealing and positive name recognition. Your reputation is like a savings account that will repay you many times over. Studies have shown that 85% of small businesses draw in new customers by word of mouth. Even if that number was only 40%, wouldn’t it still be worth it?

An established brokerage with positive name recognition can give you the kind of leverage that draws customers to you. Before you know it, you will be bringing on more and more agents to handle the work, increasing your profit margins. Having a brokerage is also advantageous when you compete for listings or contracts. As an individual, you just don’t have as much clout. Your brokerage and its good name will give you the leverage you need to be a strong contender.

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2. Time, money and freedom

Being your own boss is hard work, but there is nothing quite like the feeling of being captain of your own ship. As a real estate broker, you have the flexibility to create space for yourself – space to take a vacation, work from home now and then, take your kid to the park – whatever you want.

In addition, you may find yourself in the enviable position of making money while you are on vacation. Whether you are in the office or not, your team continues to write contracts and close deals. Your cut pays you and covers expenses. What could be better?

3. Helping others have success

When you start your own real estate brokerage, you can take everything you have learned and apply it. If you didn’t like how your last brokerage handled transaction fees, you could do it differently. As you hire additional real estate agents, you will have an opportunity to share with them what you have learned.

For many, this opportunity to mentor others is itself the highest reward. Sharing your knowledge with those on your team will help you establish a common language, cultivate a collegial culture, and empower your team for success.

4. Ability to not have to do everything yourself

Selling real estate can be exciting and fun, but aspects of the job are tedious. Making follow-up calls, shuffling paperwork, making appointments – all important work that needs to be done. The thing is it doesn’t have to be done by you.

When you open a real estate brokerage, you will have the chance to staff your office with a team of many talents, leaving you to specialize in what you do best. You can hire a web guru to build an outstanding website, a social media expert to build your online persona, and a marketing expert to get the right ads in front of the right people at the right time.  Your time may be better spent doing open houses. Maybe that’s a better job for someone else. As the owner of your real estate brokerage, you get to decide.

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5. Generational opportunities

Real estate brokerages are also uniquely positioned to take advantage of their foresight in generational trends. Careful attention to trends in the market, active participation in the community, and persistent networking can yield valuable insights as to properties under development, prospective foreclosures, or other opportunities to leverage your expertise into profit.

6. Leaving a legacy

We all have thought from time to time about the legacy we will leave behind to our loved ones and communities.  Having taken the time to build a real estate brokerage that is profitable, respected, trusted, and valued is an incredible legacy. You could choose to leave your brokerage to a child or family member or pass it down to your hand-picked successor. Either way, you can take pride in knowing that something that you built, with your blood, sweat, and tears, will live on after you are gone.

Whatever your reasons for starting your own brokerage, you should find it to be a very rewarding experience. It will be terrifying, exciting, educational, and transformative. You will make mistakes and learn from them. You will learn a lot about leadership, communication, strategy, team building, and much more along the way. What’s more, you will learn a lot about yourself and your limitless potential. Each of these new skill sets will make you a better professional in this venture and the next.

Success is never guaranteed, but it is achievable with dedication and a relentless drive to keep learning and growing.

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Written By: Devin Doherty