A new real estate agent needs to identify all important factors concerning the new business. Besides he or she needs to enjoy the job with integrity. Here are a few tips to start such a business.
A new real estate agent needs to identify all important factors concerning the new business. Besides he or she needs to enjoy the job with integrity. After all a person who likes to sell real estate may also enjoy possessing one! So instead of working with some other agent and sharing commission, one can own their individual real estate company.
As an owner one needs to take charge of all supervisory duties. To top it all there must be sufficient finances to run a fully-fledged office. Keeping the above factors in mind, here is a thorough plan on how to start a real estate business.
- It is important that a budding real estate agent has sufficient funds; for this the person can save up money that can cover all start-up costs. This spans across renting or buying an office space, office equipment, specific logo design, an catchy office sign board, numerous yard signs, good website design costs and last but not the least money for insurance.
If possible money needs to be set aside for covering all operating expenses. This is to ensure that for at least 6 months the office functions without any hurdles. This fund should cover all rents, advertising costs, dues, utility expenses, online fees and other miscellaneous expenses.
- Get property dealing license as soon as possible; only then one can do property dealing in India. All terms, conditions and requirements for this license varies from region to region. The basic fee for property dealer license in Haryana is Rs.25, 000 and for companies the fee is Rs.50, 000. (In Haryana an agent without a proper license gets fined up to Rs.50, 000; companies are fined up to Rs.1 lakh.)
- One needs to register their business name with the Registrar of Companies (ROC). A list of six names can be submitted and then it is time to register with Registrar of companies. This is for getting the certificate of incorporation and register for Value Added Tax (VAT) through the Sales Tax Officer.
- Next is to choose for a site or location where the office will be set up. It should have ample parking for agents and clients. Then associate with local board of realtors as it is good to join as many housing boards as possible. Some examples are the Orissa State Housing Board, Madhya Pradesh Housing Board and Karnataka Housing Board. Also join the local Chamber of Commerce by submitting an application form and a fee of Rs.500.
- If possible, outsource the website building task to a professional web designer. The aim is to set up a professional-looking website. This is because maximum home owners these days start with an online search. On the site list down all properties that are to be sold in India. Actually it is a great way to market the new real estate business.
Hopefully the above steps will help a brand new real estate agent to start a fully functional company in India. It is just that he or she needs to follow all the above steps carefully.