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Real estate agent

How to Buy a Real Estate Agency

If you’re flexible and willing to work outside the normal nine-to-five, then owning a real estate agency can be a fulfilling lifestyle of financial freedom.

Now that you’ve done your research and decided to become a real estate agency owner, you know that buying this type of business is not your typical nine-to-five job. However, a real estate agency can lead to a fulfilling lifestyle of financial freedom when you choose one that’s the right fit for you.

To make certain your new real estate business can become the best investment you’ve ever made, it’s vitally important that you make sure you perform a detailed analysis before you buy. 

Skills and education

To be an owner in this industry, you should have a warm, outgoing personality and be a good communicator. Real estate is a “people” business, so you’ll need to network, communicate, and negotiate effectively with potential buyers, sellers, and solicitors.

Depending on your state or territory, you’ll also need some type of real estate training, such as earning a Certificate IV in Property Services. The Real Estate Academy of Australia offers multiple courses designed to help individuals become real estate agency owners.

skills and education

It’s also wise to gain as much firsthand experience as possible by working as an agent’s representative under the supervision of a licensed estate agent. Take your time to talk with seasoned owners in the industry, ask questions, and attend conferences and seminars.

Finance and statistics

Once you’ve decided to take the leap into ownership, you’ll need to choose the best business model based on your resources, expertise, and future goals.

Ask yourself the following questions: Will your agency offer residential and commercial sales and property management, or will you specialise in one niche service? Will you be independent or part of a franchise?

Once you’ve chosen the perfect business model for your specific goals, you’ll need to finance your new venture. Depending on your business model, your agency could cost anywhere from $150,000 to $750,000.

finance statistics

Prior to approaching any investors for a loan, be sure to prepare a detailed business plan outlining the following:

  • Objectives, strategies, and growth and capital requirements
  • Analysis of the current real estate market
  • Description of competition and how you intend to stand out through specific branding, marketing, or superior customer service
  • Legal structure for your business
  • Cash flow statement and revenue projections forecasting costs, income, and profit
  • Detailed marketing plan demonstrating how social media, direct marketing, public relations, and content marketing will build awareness for your agency

The ideal business

To make certain your new real estate business can become the best investment you’ve ever made, it’s vitally important that you make sure you perform a detailed analysis before you buy.

When evaluating a specific business for sale, consider its location. Is it in a high-growth area with new construction and future plans for housing developments? To be a successful owner, you should have a strong knowledge of the town and the surrounding areas.

Be sure to evaluate your competition. Take a look at other agencies in the area to determine what they’re doing and how you can approach things differently to set yourself apart.

Look for a successful business with an established track record that’s located in a trendier part of town. Make sure there are some cheaper areas nearby offering numerous affordable properties like duplexes, condos, and newer starter homes for first-time buyers.

Licences and permissions

Before beginning any business activities, you’ll need to decide the name under which you will trade and register your real estate agency, linked to your physical office so that you can receive your business number. You’ll also need to be sure that:

  1. The officer in charge holds a “licensee-in-charge” and is responsible for the agency’s conduct.
  2. You are aware of the qualifications for each of your salespeople. These staff members work under the licensee-in-charge who directly supervises them.

licences and permissions

For registration and licensing requirements, thoroughly research the applicable government agencies in your region. Know these details and the correct laws for your corporation, licensee-in-charge, salespeople, and property managers.

Due diligence

Buying a real estate agency can be complex and take an extended period of time. However, transparency from both parties during the negotiation process can bring success and high returns for everyone involved.

It’s of crucial importance for you to thoroughly investigate the business you’re interested in buying. You need to plan your due diligence before the sale is completed to justify that the acquisition is worth it.

Be sure to look at key issues, including profit and loss statements, legal concerns, financial risks, and other possible deal-breakers. Delve into historical documents and future projections.

If you’re considering going the route of real estate agency ownership that includes rent roll, take time to ensure the purchase price is worth the investment.

When purchasing a real estate company, locating any hidden details is also of extreme importance. Don’t forget that when you buy an agency, you also buy the debt if the company is bought in its entirety.

If you’re ready to take the next step into owning and running your own real estate business, check out these agencies for sale near you. If this sector is not for you, browse our site and find the business that is a perfect match!



Faye Ferris

About the author

APAC Sales & Marketing Director for BusinessesForSale.com, the world’s most popular website for buying and selling businesses globally and attracting over 1.5 Million visitors each month. To contact Faye please email [email protected]

@YouAreYourBoss

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