6 steps to start your own real estate business in Australia

Starting your own real estate company might be the best decision you ever make. But before you begin, you need to understand certain requirements and to be aware of several factors that can impact your business success. Here are a few tips to help you get started.

1. Get the necessary qualifications and licenses

Property acquisition and management can be a high-risk endeavour. Licensing requirements exist in every state in Australia to guarantee that people who promote themselves as real estate agents are permitted to do so. Make sure you thoroughly research the standards that apply to your state of operation before you start offering your services, as all states and territories in Australia have slightly different rules.

For example, in NSW you must complete a Certificate IV in Real Estate Practice (CPP41419) in order to obtain a Certificate of Registration and your Real Estate License. Only then can you legally start working as a real estate agent. But in Victoria, you need to complete the Certificate IV in Real Estate Practice, obtain your Certificate of Registration, then complete a Diploma of Property Services (Agency Management) (CPP51119) and gain two years of work experience as an Agent’s Representative to apply for a full license.

2. Develop a business plan

If you want your agency to prosper, you’ll need to create a business strategy. Your business’s objectives, strategy, development, and capital requirements should be outlined in the plan. This allows you to make informed decisions about how to grow your firm.

3. Estimate costs and profits

A cash flow statement and revenue estimates will show you what you’ll need to start and expand your company. This should also allow you to identify when additional team members and resources will be required by forecasting your expenditures, income, and profit. Keeping your employees on top of their game with regular training and incentives is a terrific way to increase performance and profitability.

4. Get the right insurance

Sorting out your insurance is an essential step for any new real estate business in Australia. After you’ve worked out your estimate costs, you should have an accurate idea of what kind of insurance you may need and how much cover your business may require. Common types of insurance for real estate agents include Professional Indemnity insurance, Public Liability insurance and Cyber insurance*, to name a few.

5. Examine the market and the competition

Knowing the market you’re entering and who your rivals are can help you assess opportunities and challenges. It also reveals holes in your market that a distinctive brand or service offering may fill. Consequently, your research will assist you in making strategic choices for your agency.

6. Create a marketing strategy

Your marketing strategy should include your findings to develop a distinct agency brand. It should also describe your promotional tactics and outlets. Consider how social media, direct marketing, and public relations may help your firm become more well-known and trusted.

Recommended reading: 8 Tips to Market a Real Estate Business

Business insurance for real estate agents

If you’re considering starting up your own real estate business in NSW, then you may already know that Professional Indemnity insurance is a legal requirement. And while it may not be mandatory in other states and territories, purchasing Professional Indemnity insurance may still be a good idea to help cover your business for losses claimed by a third party due to your negligent professional services or advice.

At BizCover, we offer a range of different types of insurance for real estate agents from leading Australian insurers. These insurance products include Professional Indemnity insurance and other types of business insurance that are relevant for real estate agents. This allows you to compare insurance policies online to discover the policy that might be right for you.

Visit our website or give us a call on 1300 920 867 to get your business insurance for real estate agents sorted today.