Writing a real estate business plan will improve the real estate agency’s odds of rising dramatically. But the major challenge with making a marketing strategy for real estate is that agents and brokers frequently think too hard and don’t follow through with the specifics.
We will look at the measures that need to be taken in this publication to outline, implement and assess the success of a business strategy for a real estate agent, and we will include a preview of the real estate business strategy.
What is a real estate business plan?
It is a structured text that forecasts the company’s potential. It clarifies what you want to do and how you want to do it.
In specific, it conveys the company priorities, the methods and techniques you can use to attain them, future challenges you might face along the way, positions and duties, SWOT analysis and evaluation methods, and how to solve them.
Why is it important to create a real estate business plan?
Not planning can lead to failure. Your realtor business plan is the key to success. Instead of moving aimlessly, with a specific path, drive towards your aims and priorities.
One study found that 64% of businesses that developed a plan increased their business, compared to 43% of businesses that didn’t have a plan or never finished one.
For how long is valid is a real estate business plan?
The duration of realtor business plans varies, but they are generally described as lasting between one and five years. FIn only one year, few agents can completely grow their business, while projecting five years into the future can be very theoretical. Three years is a realistic time period for most new agents to attain some degree of financial success and develop a viable career in the business.
Steps to follow to create a real estate business plam
Identify your strengths and weaknesses as a real estate agent
Starting off in the right direction in your new real estate agency business plan begins with understanding who you are. Although this sounds a little simplistic, knowing your talents, shortcomings, and what you want to accomplish is important.
You’ll also use this segment to describe the responsibilities of each member of your team if you are part of a real estate team. Putting what everybody contributes to the table on paper is a huge part of meeting your goals.
Write down your company’s vision
Your executive summary is an anchor point that you will use to understand your strategic priorities, to evaluate your target market parameters, and to make choices consistent with your strategy.
It will include points on real estate: segmenting communities and price ranges; target buyers and a brief summary of the individual; a brief analysis of the business strategy, risks, and business opportunities. This section of the organization is typically one of the last elements done, owing to the detailed information contained in the executive summary.
Analyze the target of your real estate market
Knowing what’s new in the real estate market is fundamental to success. You will explore every corner of the market in this segment, which sections are in fashion, which sections have slowed down and, most notably, where the possibilities are. We recommend that you take your time to really review MLS here and figure out just what the statistics tell you.
Although they are fun to look at, don’t waste too much time looking at numbers on a national or even state level. Real estate is a local operation, and while these macro figures can have some slight consequences, what matters most is what happens at the community’s street level.
Any good explanations of some indicators to be taken into account in this section include topics such as: average days on the market for properties of different price and form and standard listing commission rate; average price trend for a market in which you are interested; monthly number of new listings in a specific sector and monthly number of new listings in a particular sector.
Analyze your local competition
Knowing who does what and how well they do will allow you to recognise the niches that are not being met at present, as well as the service industries that are flooded with agents striving to become part of the region.
This part is about seeing what the rest of the industry is doing and finding out that the competition is overlooked. Once you do, you can move to another area, if necessary.
Decide what services you will provide
You don’t have to choose just one, but not choosing anything is a missed opportunity. Think hard about what you are good at (and your staff if you have one), what you are excited about, and what the industry wants. Your reaction is the overlap of these groups.
Find your ideal customers
You would have a clear sense of who your clients are if you have a sense of the services you provide in your business. For example, if you need a real estate agent (or broker) who deals in first-time homebuyers, you know your typical client is going to be younger, which means they are more likely to engage with social networks, which means ads. To them, a waste of money is in the media.
If your ideal clients are older retirees, on the other hand, the mailbox is always an effective place to connect with them.
Do a SWOT analysis
In our real estate business plan template, SWOT, or strengths, drawbacks, opportunities and risks, is a common player in business plans and is highly relevant. Here, using what you have learned about yourself and your company when writing, you determine each of these categories. And after the real estate business strategy samples are done, SWOT analysis is a perfect tool to excel.
Determine your objectives
You will clarify what your distinct priorities are for your organization in this section; financial, development and others. Using the testing and study that you have done to solidify your priorities into measurable statements that you will regularly refer to and review.
Here are some of the targets you may want to consider: a certain GCI, a certain number of orders, a certain number of leads in a given time, recruiting an internal salesperson or assistant, adding new agents to the staff, and investing a certain amount of time at work, at home or with the family.
You will also list the instruments you will use to accomplish your objectives in this section. You already have a decent idea of what will be included on this document, so make sure to arrange days to come back and revisit the example of your real estate business strategy to see if you need to add additional tools to the document, or to delete those that don’t drive you forward anymore.
Analyze your financial activity and expenses
Although financial planning is not the strong point of all, thanks to the diligent reading you did in previous parts of this paper, much of the work has already been completed, so don’t be afraid. Fill in the blanks, fill in the formulas, see if you end up in the spreadsheet of costs with your real estate agent.
You will consider all of your operational expenses in this segment, including all of your publicity and lead generation expenses. Be sure to consider all of your monthly outreach and lead generation efforts, as well as your expenses for a real estate CRM like Aidy, which will keep you informed of all of your obligations as a real estate agent 24 hours a day, 7 days a week. It will help you find the most likely buyers and sellers, promote the properties on social networks, and allow you to make more profit by helping you sell more properties.
Aidy will send you smart notifications so that you’ll know what to do to close a deal. You’ll need a network of realtors & clients to start, but with Aidy you can reach them easily. Enlisting the help of real estate software like Aidy is a great way to manage all your marketing and lead management campaigns and have better real estate business ideas.
An agent who has Aidy on their mobile or desktop device does not need other client registration software, or real estate tracking programs. Thanks to the Real estate CRM Aidy – that offers a free trial period – real estate consultants spend less time trying to establish quality communication with potential clients and making real estate marketing. They only focus on their Real Estate salary and being the best in the Real Estate Business.
Evaluate and manage your real estate business plan
Finally, it is important that you conduct a quarterly review to see if the strategies you chose are moving you toward your goals.
Free 2020 real estate business plan template
The sample of this real estate business strategy is broken into parts addressing an integral aspect of planning your success. As an agent or broker you are responsible for your own success, so it is very important to have a solid plan to achieve your goals.
Use this sample real estate agent business plan to start outlining your goals and strategies for getting there.