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 estate agent marketing campaigns, and liaising on calls with customers to work with them on the next stage of their growth.
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.
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.
Discover the top 10 insider tips from our most successful estate and letting agents.
Having a clear vision and goals is crucial when starting an estate agency business. Your business plan should outline your objectives, target market, services offered, competitive advantages, estimated startup costs, and strategies for growth. Defining these elements will help provide direction as you establish your new estate agency franchise and run your business. Outlining your business goals and how you plan to promote your business will be key.
Your business plan for your new estate agency should cover things like:
Having this detailed plan will provide a roadmap as you work to set up your new estate agency business in the UK industry.
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.
In today’s digital era, having a professional website and a broader online presence is essential for any new estate agency aiming to reach modern sellers and buyers. Key elements you’ll need to invest in include:
Taking time to build a strong online presence and utilize estate agent digital marketing will help your new estate agency business attract more site traffic, generate leads, and build trust with potential clients. This is one area new agencies need to prioritize when starting up in the UK’s competitive property industry.
Networking extensively within the industry is a crucial activity for any new estate agency looking to grow its business in the UK property sector.
Taking time early on to join relevant industry groups and connect face-to-face with professionals like local estate agents, letting agents, brokers, mortgage lenders, solicitors, and tradesmen will allow you to build relationships and gain valuable referrals and partnerships. Attending industry events, conferences, and mixers provides opportunities to connect with the range of players involved in residential and commercial real estate transactions.
Focus on delivering exceptional customer service to differentiate yourself from
Delivering exceptional customer service is how your new estate agency can stand out from the crowded competition. Be diligent and responsive when communicating and transacting with both buyers and sellers. Provide transparent guidance and expertise throughout the process, from listing to offer to closing. Go above and beyond by celebrating successful deals with gifts or cards and supporting clients if a deal falls through with market updates.
Take time to explain each step clearly to first-time buyers. Your aim is to exceed customers’ service expectations, leading to loyalty, positive word-of-mouth, and repeat or referral business down the road. This outstanding service will become your competitive advantage, fueling sustainable growth for your agency.
Developing a comprehensive digital and print marketing strategy should be a top priority for any estate agency looking to actively promote their services, and listings and grow their business. Your plan should leverage traditional tactics like print ads in local publications and direct mailers to targeted households, as well as digital channels like social media ads, email campaigns to your subscriber list, partnerships with complementary local businesses, and video walkthroughs to showcase listings on social media.
Aim for an integrated mix of high-visibility tactics like Google Ads along with very cost-effective options like organic social media posts. Consistently marketing across multiple channels will help more potential buyers and sellers in your area find and choose your agency when seeking to purchase or list residential or commercial property.
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.
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.
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.
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.